Sonendo, Inc. Reports First Quarter 2025 Financial Results and Issues Financial Guidance

Business Wire

04-06-2025

BUSINESS WIRE)--Sonendo, Inc. ('Sonendo' or the 'Company') (OTC Pink: SONX), a leading dental technology company and developer of the GentleWave® System, today reported select financial results for the first quarter ended March 31, 2025 and issued short and long-term financial guidance.
Recent Highlights
Generated $7.4 million of total revenue for the first quarter of 2025, representing 5% growth compared to the prior year period;
Drove a substantial increase in gross margin to 44% for the first quarter of 2025, up 1600 basis points compared to the 28% gross margin for the prior year period;
Reported a 48% year-over-year improvement in Adjusted EBITDA loss to $3.9 million for the first quarter of 2025;
Significantly reduced free cash flow burn to $4.5 million, a 58% reduction compared to the prior year period;
Recently completed a $5.0 million private placement of its common stock, which included new and existing investors;
Amended its credit facility to defer principal amortization payments until at least September 2025, and potentially until March 31, 2026.
'We are pleased that our lender and the new and existing investors who participated in the private placement have recognized the meaningful success we have achieved in restructuring the business and increasing revenue while significantly reducing operating expenses and free cash flow burn, as demonstrated in our first quarter 2025 financial and operational results,' said Bjarne Bergheim, President and Chief Executive Officer of Sonendo. 'We have significantly improved the liquidity profile of the Company, and we expect to deliver additional gross margin expansion and further reductions in operating losses and free cash flow burn in 2025. We remain steadfastly committed to operational excellence and to position Sonendo for robust, long-term and profitable growth.'
As of March 31, 2025, the Company's cash, cash equivalents and short-term investments totaled $7.2 million, which does not include the $4.7 million in estimated net proceeds the Company received in the private placement, and there was $14.2 million of principal outstanding under its credit facility.
Financial Guidance
The Company is providing the following short and long-term financial guidance, which reflects management's latest expectations.
(1)
See additional information included in the Company's Form 8-K filed with the SEC on November 12, 2024 for additional information about the Company's use of these non-GAAP financial measures.
(2)
The Company expects to generate positive adjusted EBITDA starting in FY 2028.
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About Sonendo
Sonendo is a commercial-stage medical technology Company focused on saving teeth from tooth decay, the most prevalent chronic disease globally. Sonendo develops and manufactures the GentleWave® System, an innovative technology platform designed to treat tooth decay by cleaning and disinfecting the microscopic spaces within teeth without the need to remove tooth structure. The system utilizes a proprietary mechanism of action, which combines procedure fluid optimization, broad-spectrum acoustic energy and advanced fluid dynamics, to debride and disinfect deep regions of the complex root canal system in a less invasive procedure that preserves tooth structure. The clinical benefits of the GentleWave System when compared to conventional methods of root canal therapy include improved clinical outcomes, such as superior cleaning that is independent of root canal complexity and tooth anatomy, high and rapid rates of healing and minimal to no post-operative pain. In addition, the GentleWave System can improve the workflow and economics of dental practices.
For more information about Sonendo and the GentleWave System, please visit www.sonendo.com. To find a GentleWave doctor in your area, please visit www.gentlewave.com.
Forward Looking Statements
This news release includes forward-looking statements (statements which are not historical facts) within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, the Company's expectations regarding short- and long-term financial performance, including (among other things) GAAP gross margin, adjusted EBITDA and free cash flow; the Company's expectations to deliver additional gross margin expansion and further reduce operating losses and free cash flow burn in 2025; and the Company's ability to achieve robust, long-term and profitable growth. You are cautioned that such statements are not guarantees of future performance and that our actual results may differ materially from those set forth in the forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions; speak only as of the date they are made; and, as a result, are subject to risks and uncertainties that may change at any time. Factors that could cause the Company's actual results to differ materially from these forward-looking statements are described in detail in the 'Risk Factors' section of the Company's Annual Report on Form 10-K that was filed with the Securities and Exchange Commission on March 26, 2025. Such filings are available at www.sec.gov. The Company undertakes no obligation to publicly update or revise forward-looking statements to reflect subsequent developments, events, or circumstances, except as may be required under applicable securities laws. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.