Sonendo Inc Delivers Strong Q1 2025 Performance With Margin Expansion and Improved Cash Flow Management

2025-12-31 10:24:45

Sonendo Inc (OTC Pink: SONX), a dental technology innovator behind the GentleWave® System, has unveiled its first quarter 2025 financial results, demonstrating notable operational improvements across multiple metrics. The company recorded $7.4 million in total revenue for the quarter ending March 31, 2025, marking a 5% increase from the same period last year.

Margin Expansion and Profitability Improvements

The most striking achievement in Sonendo Inc’s Q1 2025 performance was the dramatic improvement in gross margin, which expanded to 44%—a remarkable 1600 basis point increase compared to the 28% gross margin recorded in Q1 2024. This substantial margin improvement reflects the company’s successful cost optimization initiatives and operational restructuring efforts.

Adjusted EBITDA losses also improved significantly, declining to $3.9 million from the prior year period, representing a 48% year-over-year improvement. Perhaps more importantly for cash-conscious investors, Sonendo Inc reduced its free cash flow burn rate to $4.5 million, achieving a 58% reduction compared to the prior year quarter.

Strengthening Financial Position

The company has taken several strategic steps to enhance its liquidity. Sonendo Inc recently completed a $5.0 million private placement of common stock with both new and existing investors, demonstrating continued confidence in the company’s trajectory. Additionally, management renegotiated its credit facility to defer principal amortization payments, pushing the obligation out to at least September 2025, with potential extension to March 31, 2026.

As of quarter-end, Sonendo Inc maintained $7.2 million in cash and short-term investments, not including the approximately $4.7 million in net proceeds from the private placement. The company carries $14.2 million in principal outstanding under its credit facility.

Management Perspective and Strategic Direction

Bjarne Bergheim, President and Chief Executive Officer of Sonendo Inc, emphasized the significance of these results: “The recognition from our lender and investors reflects the tangible progress we’ve made in restructuring our business, expanding revenue, and reducing operating expenses and cash burn. Our improved liquidity position and operational efficiency set the foundation for continued growth.”

The executive further noted expectations for additional margin expansion and reduced operating losses throughout 2025, reaffirming the company’s commitment to operational discipline and sustainable, long-term profitability.

Forward Financial Guidance for Sonendo Inc

Management has issued guidance across multiple timeframes reflecting their strategic outlook:

2025 Expectations:

Revenue projection: $31-$32 million
GAAP Gross Margin: 44-46%
Adjusted EBITDA: $(11)-$(14) million
Free Cash Flow: $(12)-$(15) million

Mid-Term Outlook (2027):

9% CAGR for revenue (2024-2029)
GAAP Gross Margin: 57-59%
Adjusted EBITDA: (8)-(10)% of revenue

Long-Term Vision (2029):

GAAP Gross Margin: 65%+
Adjusted EBITDA: +8-10% of revenue (with positive EBITDA expected to commence in FY 2028)

About the GentleWave® System

Sonendo Inc’s flagship product, the GentleWave® System, represents an innovative approach to endodontic treatment. Rather than relying on traditional root canal methods, the technology utilizes a proprietary combination of procedure fluid optimization, broad-spectrum acoustic energy, and advanced fluid dynamics to clean and disinfect the complex microscopic spaces within teeth while preserving tooth structure.

Clinical advantages of the GentleWave® System include superior cleaning effectiveness that remains independent of root canal complexity, high healing rates, minimal post-operative discomfort, and improved workflow efficiency for dental practitioners. This positions Sonendo Inc as a significant player in addressing tooth decay, the world’s most prevalent chronic disease.

The company’s technology platform demonstrates how Sonendo Inc is advancing the field of preventive dental care while creating meaningful economic benefits for dental practices adopting the system.

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