Sanara MedTech Inc. (SMTI) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, SMTI scores 55 out of 100, a D+ grade, with the verdict "Roarable Sell — Weak Fundamentals / Trim." The five pillars are:

• Fundamental Cash Engine: 9 / 20. The rating cites ROIC of 16.3% and an FCF yield of 0.71%. The ROIC figure is a relative strength, but the low FCF yield means little free cash flow is being returned relative to the share price. For a prospective investor, the valuation case rests more on earnings quality than on cash generation today.
• Whale 13F Flow: 9 / 20. The rating describes institutional accumulation and options positioning as weak. Institutional holder data is not supplied in the source data, so the basis for this pillar cannot be verified here.
• Insider Conviction: 14 / 20. The rating references SEC Form 4 and Congressional PTR cluster flow at a moderate level. Specific insider transactions are not itemized in the source data.
• Macro Regime Fit: 9 / 20. Beta is 1.0 per the market data, meaning the stock's price has historically moved in line with the broader market. The rating treats sector sensitivity as a negative.
• Forensic Balance Sheet: 14 / 20. The rating cites an Altman Z-Score of 3.25, a Piotroski F-Score of 7/9, and a Debt/Equity ratio of 7.74. The Z-Score and F-Score are constructive; the Debt/Equity level is the primary balance sheet concern.

Investor implications. Upside drivers in the source data include the 92.7% gross margin, the 36.4% net margin, and the 16.3% ROIC. The trailing P/E of 8.1 and forward P/E of 6.8 suggest a low earnings multiple, but the EV/EBITDA of 29.5 is considerably higher, indicating that enterprise value is elevated relative to EBITDA. Net margin is well above operating margin (7.1%), so reported net income is substantially larger than operating income, and the source data does not explain the difference; a prospective investor should treat the earnings base as requiring verification. The pending MiMedx deal described in the news wire adds a binary event risk that the rating does not model. The RQD verdict reflects these mixed signals.

Revenue grew from $65.0M in FY 2023 to $103.1M in FY 2025, and operating income moved from $-4.2M to $7.3M over the same span. FY 2025 net income of $37.6M is far above operating income of $7.3M, a gap the source data does not explain. Per the Roarable RQD rating, the Altman Z-Score is 3.25 and the Piotroski F-Score is 7/9; ROIC is 16.3% per the market data. Debt rose from $30.7M to $46.0M in FY 2025 and the Debt/Equity ratio is 7.74, indicating high leverage relative to equity.

Per the recent news and catalysts section, the dominant theme is the proposed MiMedx-Sanara merger. Items flagged RED under "RISK WATCH" include a report that the deal faces a fresh regulatory obstacle alongside a note that the stock fell below a key support level for the first time in four months, and a report on the deal spread widening after an FTC second request. YELLOW "MARKET WIRE" items reference FTC clearance as the last major hurdle for a shareholder-approved sale, along with a weekly recap of the second request and the $35 deal price. The source data does not provide the regulatory timeline or the terms of the deal beyond these headlines. The Butterfly supply-chain graph reports no proprietary signals and no links.

• What explains the gap between FY 2025 net income of $37.6M and operating income of $7.3M, and is any of it non-recurring?
• What are the terms of the MiMedx-Sanara transaction, and what is the expected regulatory timeline following the FTC second request?
• What are the company's products, customers, and revenue sources?
• What drove the increase in debt from $30.7M to $46.0M, and what are the repayment terms?
• Who are the institutional holders and insiders, and what are their recent transactions?