Company Overview - ADMA Biologics is a vertically integrated U.S. Immune Globulin plasma manufacturer [1] - The company's earnings are growing due to higher finished-goods yield from each liter of plasma and a mix shift [1] Investment Strategy - The investment approach focuses on quantitative and fundamental analysis, particularly in small to mid-cap stocks [1] - A value-investing strategy is adopted, emphasizing the importance of not overpaying for stocks to mitigate risk [1] - Stocks are typically held until growth prospects diminish or the price-to-earnings ratio justifies a sale [1]

Core Insights - ADMA Biologics, Inc. is focused on developing plasma-derived biologics and has three FDA-approved products, including Asceniv, which is effective against RSV [1] Company Overview - ADMA Biologics, Inc. operates in the biopharmaceutical sector, specializing in products derived from human plasma [1] - The company has a notable product, Asceniv, which is an RSV-enriched immunoglobulin, making it particularly suitable for treating respiratory syncytial virus infections [1]

Group 1 - The article highlights ADMA Biologics, Inc. as a focus for investment discussions in 2025, particularly after a significant stock pullback following sector quarterly results [1] - The Biotech Forum, led by Bret, offers a model portfolio featuring 12-20 high upside biotech stocks, along with live chat discussions and weekly research updates [1] - The forum has seen increased interest in covered call opportunities among biotech investors in recent quarters [1] Group 2 - The article does not provide any specific financial metrics or performance data for ADMA Biologics, Inc. or the broader biotech sector [1]

Core Insights - ADMA Biologics reported better-than-expected Q2 results with adjusted earnings per share of 15 cents, beating the Zacks Consensus Estimate by a penny, and revenues of $122 million, up 14% year over year, also surpassing the estimate of $121 million [1][8] - Despite the positive results, ADMA's stock fell 7.4% in after-market trading, and year-to-date shares have decreased by 4.4% compared to the industry's growth of 0.2% [1] Financial Performance - The company's revenue growth was primarily driven by the strong adoption of its lead product, Asceniv, which contributed to a 29% year-over-year growth in underlying revenues, excluding a $12.6 million Medicaid rebate accrual reversal [6][8] - Gross margin improved to 55.1% from 53.6%, with underlying gross margin expanding by 7.7% year over year due to a favorable mix of higher-margin immunoglobulin sales and operational efficiencies [7] - Research & Development expenses increased by 84% to $1 million, while selling, general, and administrative expenses rose by 33.7% to $22.2 million [7] Product and Market Developments - ADMA's product portfolio includes three FDA-approved products: Bivigam, Asceniv, and Nabi-HB, with Asceniv being the lead product for treating primary immunodeficiency disease [4][5] - The company anticipates significant growth rates in the second half of 2025, with a revenue potential exceeding $1.1 billion from plasma products before 2030 [10][12] - ADMA is initiating SG-001, a hyperimmune globulin targeting S. pneumonia, with promising initial pilot testing results showing no clinical signs of pneumonia in treated animals [13][14] Strategic Investments - In July, ADMA completed the purchase of a $12.5 million facility adjacent to its Boca Raton manufacturing campus, enhancing its U.S.-based vertically integrated supply chain and potentially increasing future cGMP capacity by up to 30% [15]

Adma Biologics (ADMA -2.21%), a plasma-derived biologics manufacturer focused on immunotherapies, released its earnings for Q2 2025 on August 6, 2025. The quarter showed continued revenue growth, with GAAP total revenue of $122.0 million, with total revenue (GAAP) reaching $122.0 million, edging out analyst consensus on GAAP total revenue. Earnings per share (EPS) were $0.14 (GAAP), while Adjusted net income and adjusted EBITDA also advanced. Gross margin (GAAP) improved to 55.1%, up from 53.6% in Q2 2024. ...

Core Viewpoint - Adma Biologics reported quarterly earnings of $0.15 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, and showing an increase from $0.13 per share a year ago, indicating a positive earnings surprise of +7.14% [1] Financial Performance - The company achieved revenues of $121.98 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.73% and up from $107.19 million in the same quarter last year [2] - Over the last four quarters, Adma Biologics has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Adma Biologics shares have increased approximately 10.6% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $130.7 million, and for the current fiscal year, it is $0.61 on revenues of $505.8 million [7] - The company's earnings outlook will be crucial for assessing future stock performance, especially in light of recent earnings report and management commentary [4][6] Industry Context - The Medical - Biomedical and Genetics industry, to which Adma Biologics belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Data and Key Metrics Changes - Total revenues for the second quarter of 2025 reached $122 million, reflecting a 14% year-over-year increase or approximately 29% growth when adjusted for a nonrecurring Medicaid rebate accrual reversal from 2024 [9][17] - Adjusted net income grew to $36 million, representing an 85% underlying growth year-over-year when normalizing for the prior year's Medicaid rebate accrual [10][18] - Adjusted EBITDA increased to $50.8 million, up 59% on an underlying basis after adjusting for the Medicaid rebate accrual benefit [10][18] - Gross profit rose to $67.2 million, with gross margins improving to 55.1% from 53.6% a year ago [10][18] Business Line Data and Key Metrics Changes - The Ascentive product line continues to gain momentum, with utilization reaching record highs in the second quarter [7][9] - The company reported a strategic increase in inventory of $19.3 million to support Ascentive demand, indicating strong commercial expansion [12][18] Market Data and Key Metrics Changes - Internal and external plasma collection volumes reached new highs, positioning the company well for ongoing commercial expansion [12] - The company anticipates significant margin expansion and revenue growth driven by the enhanced yield production process and strong demand indicators [10][21] Company Strategy and Development Direction - The company is focused on advancing key growth initiatives, enhancing supply chain infrastructure, and solidifying its leadership position in the specialty biologics market [7][10] - A new $300 million senior secured credit facility was executed to lower borrowing costs and enhance liquidity, supporting long-term strategic growth initiatives [10][19] - The acquisition of a facility near the Boca Raton campus is expected to provide additional operational flexibility and support growth through expanded cold storage and manufacturing space [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to accelerate revenue and earnings growth rates in the latter half of 2025, supported by strong demand and improved manufacturing efficiencies [22][24] - The company reaffirmed its financial guidance for 2025, expecting total revenue of $500 million or more and adjusted EBITDA of at least $235 million [21][22] Other Important Information - The company activated a $500 million share repurchase program, repurchasing approximately $15 million of common stock during the second quarter [12][19] - The company is progressing with its R&D pipeline, including studies on a new product, SG-one, which could represent a significant revenue opportunity [13][14] Q&A Session Summary Question: Changes in trends for Ascentive utilization - Management noted that the trends for Ascentive utilization remain strong, with new patient starts and physicians continuing to switch patients from standard IG therapies to Ascentive [28][29] Question: Details on the yield enhancement process - The yield enhancement process involves purifying waste streams to recover IgG that was previously lost, resulting in a 20% increase in bulk IG yield [30][31] Question: Overview of reaffirmed guidance and outlook - Management indicated that the guidance remains conservative, with expectations for accelerating growth in the latter half of 2025 due to improved inventory and manufacturing processes [39][40] Question: Cost-benefit analysis for hospitals using Ascentive - Management highlighted that patients switched to Ascentive experience fewer hospitalizations and improved quality of life, providing a strong value proposition [50][51] Question: Initiatives to expand physician use of Ascentive - Management mentioned ongoing efforts to educate physicians and alleviate reimbursement hurdles, with positive feedback from new clinics [60][61] Question: Gross margin improvement expectations - Management stated that there are currently no headwinds to gross margins, with expectations for continued margin accretion driven by yield enhancement and product mix [66][67] Question: Timeline for capacity expansion from the new facility - Management indicated that while immediate capacity expansion is not planned, the new facility will support future growth and scalability [70][72]

PART I FINANCIAL INFORMATION [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for ADMA Biologics, Inc. as of June 30, 2025, show significant growth in revenues and net income compared to the same period in 2024, with total assets increasing to $558.4 million from $488.7 million at year-end 2024, driven by higher accounts receivable and inventories [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents the company's financial position, detailing assets, liabilities, and equity at specific dates Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | $90,285 | $103,147 | | Accounts receivable, net | $109,726 | $49,999 | | Inventories, net | $191,464 | $170,235 | | **Total Assets** | **$558,380** | **$488,678** | | **Current Liabilities** | $74,941 | $55,542 | | **Total Liabilities** | **$160,055** | **$139,660** | | **Total Stockholders' Equity** | **$398,325** | **$349,018** | - Total assets grew to **$558.4 million** as of June 30, 2025, from **$488.7 million** at the end of 2024, primarily due to a significant increase in accounts receivable and inventories[13](index=13&type=chunk) - The company initiated a treasury stock program, holding **$15.1 million** in treasury stock as of June 30, 2025, which was not present at the end of 2024[13](index=13&type=chunk) [Unaudited Condensed Consolidated Statements of Operations](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Details the company's financial performance, including revenues, expenses, and net income over reporting periods Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | **$121,984** | **$107,191** | **$236,786** | **$189,066** | | Gross Profit | $67,227 | $57,453 | $128,323 | $96,561 | | Income from Operations | $42,798 | $39,201 | $77,678 | $61,022 | | **Net Income** | **$34,219** | **$32,062** | **$61,122** | **$49,868** | | Diluted EPS | $0.14 | $0.13 | $0.25 | $0.21 | - Revenues for the second quarter of 2025 increased to **$122.0 million**, a **13.8% increase** from **$107.2 million** in the same period of 2024[14](index=14&type=chunk) - Net income for the six months ended June 30, 2025, rose to **$61.1 million** from **$49.9 million** in the prior-year period, representing a **22.6% increase**[14](index=14&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities for the period Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,464 | $43,428 | | Net cash used in investing activities | ($7,247) | ($4,727) | | Net cash used in financing activities | ($7,079) | ($1,809) | | **Net (decrease) increase in cash** | **($12,862)** | **$36,892** | - Net cash from operating activities significantly decreased to **$1.5 million** in the first six months of 2025 from **$43.4 million** in the same period of 2024, primarily due to large increases in accounts receivable and inventories[18](index=18&type=chunk) - Cash used in financing activities increased, driven by **$8.4 million** in taxes paid on vested restricted stock units and a **$30.0 million** principal payment on a term loan, which was offset by a **$30.0 million** draw from a revolver[18](index=18&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Provides essential disclosures and explanations supporting the condensed consolidated financial statements - In May 2025, the Board authorized a share repurchase program of up to **$500.0 million** During the quarter, the company repurchased **816,237 shares** for **$15.1 million**[50](index=50&type=chunk)[51](index=51&type=chunk) - In May 2025, the company repaid **$30.0 million** of its term loan using a draw from its revolving credit facility, resulting in a debt extinguishment loss of **$1.2 million**[47](index=47&type=chunk) - Subsequent to the quarter end, in August 2025, the company entered into a new **$300 million** credit agreement with JPMorgan, consisting of a **$75 million** term loan and a **$225 million** revolving facility, to refinance its existing debt[86](index=86&type=chunk) - In July 2025, the company acquired real estate in Boca Raton, FL for **$12.6 million** to expand production operations and storage capacity[85](index=85&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management attributes the strong financial performance in the first half of 2025 to the continued commercial success and growing market acceptance of its IVIG product, ASCENIV, with revenues for the second quarter and first six months of 2025 increasing by 14% and 25% year-over-year, respectively [Overview](index=27&type=section&id=Overview) Introduces ADMA's business, products, and key strategic developments, including recent FDA approvals and acquisitions - ADMA is an end-to-end commercial biopharmaceutical company with three FDA-approved products: ASCENIV, BIVIGAM, and Nabi-HB, manufactured at its Boca Raton facility[95](index=95&type=chunk)[96](index=96&type=chunk) - The company operates ten FDA-licensed plasma collection centers, which supply plasma for its products and for sale to third parties[98](index=98&type=chunk) - In April 2025, the FDA approved an innovative yield enhancement production process for ASCENIV and BIVIGAM, which is expected to increase production yields by approximately **20%** and contribute to revenue and earnings growth starting in the second half of 2025[101](index=101&type=chunk) - In July 2025, the company acquired real estate in Boca Raton for **$12.6 million** to expand production and storage capabilities[103](index=103&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Analyzes the company's financial performance, highlighting revenue, gross profit, and net income trends and drivers Q2 2025 vs Q2 2024 Results (in thousands) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $121,984 | $107,191 | $14,793 | | Gross Profit | $67,227 | $57,453 | $9,774 | | Income from Operations | $42,798 | $39,201 | $3,597 | | Net Income | $34,219 | $32,062 | $2,157 | - Q2 2025 revenues increased **14% YoY**, primarily due to higher sales volume of ASCENIV Excluding a **$12.6 million** Medicaid rebate accrual adjustment in Q2 2024, the underlying revenue growth was **29%**[118](index=118&type=chunk) H1 2025 vs H1 2024 Results (in thousands) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $236,786 | $189,066 | $47,720 | | Gross Profit | $128,323 | $96,561 | $31,762 | | Income from Operations | $77,678 | $61,022 | $16,656 | | Net Income | $61,122 | $49,868 | $11,254 | - For the first six months of 2025, revenues grew **25% YoY** A voluntary withdrawal of three BIVIGAM lots reduced revenue by **$4.0 million** during this period[130](index=130&type=chunk) - Gross margin for H1 2025 improved to **54.2%** from **51.1%** in H1 2024, driven by a better product mix and manufacturing efficiencies[132](index=132&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the company's financial flexibility, cash position, debt structure, and future funding outlook - As of June 30, 2025, the company had working capital of **$324.6 million**, including **$90.3 million** in cash and cash equivalents[146](index=146&type=chunk) - Management anticipates that current cash, receivables, and projected operating cash flow will be sufficient to fund operations through the first half of 2026 and beyond, with no current need to raise additional capital[148](index=148&type=chunk) - On August 5, 2025, the company refinanced its debt by entering a new **$300 million** credit facility with JPMorgan, replacing the previous Ares facility The new facility includes a **$75 million** term loan and a **$225 million** revolving credit line[157](index=157&type=chunk)[158](index=158&type=chunk) - Net cash from operations for the first six months of 2025 was **$1.5 million**, a significant decrease from **$43.4 million** in the prior year, mainly due to investments in inventory and an increase in accounts receivable[165](index=165&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company is exposed to interest rate risk due to its variable-rate senior credit facilities, with a hypothetical 100 basis point increase in interest rates resulting in an approximate $0.8 million negative impact on annualized earnings and cash flows - The company's primary market risk is from changes in interest rates on its senior credit facility[172](index=172&type=chunk) - As of June 30, 2025, a hypothetical **100 basis point (1%)** increase in interest rates would have an approximate **$0.8 million** negative impact on annual earnings and cash flows based on the **$75.0 million** outstanding variable-rate debt[172](index=172&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of June 30, 2025, concluding they were effective in ensuring timely and accurate reporting, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[174](index=174&type=chunk) - There were no changes in the company's internal control over financial reporting during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[176](index=176&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings.) The company reports that it is not currently involved in any material pending legal proceedings that would have a material adverse effect on its financial position, results of operations, or cash flows - Management states that there are currently no material pending legal proceedings against the company[178](index=178&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors.) The company outlines several key risks to its business, including the potential inability to maintain profitability, reliance on third-party contractors for manufacturing and plasma supply, business interruptions, regulatory hurdles, customer concentration, stock price volatility, and limitations on the use of Net Operating Loss (NOL) carryforwards - The company may not be able to maintain profitability, despite achieving it for the first time in the year ended December 31, 2024[179](index=179&type=chunk)[182](index=182&type=chunk) - A few customers account for a significant portion of revenue and accounts receivable, with two customers representing about **72%** of consolidated revenues for the first six months of 2025[181](index=181&type=chunk)[216](index=216&type=chunk) - The business relies on third parties for filling, packaging, testing, and sourcing plasma, which introduces risks related to performance, quality, and supply chain disruptions[179](index=179&type=chunk)[185](index=185&type=chunk) - The company's new senior secured credit facility with JPMorgan contains covenants and is subject to acceleration in case of default, which could lead to the seizure of collateral[181](index=181&type=chunk)[231](index=231&type=chunk)[232](index=232&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=72&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) The company reports no unregistered sales of equity securities during the period, having repurchased 816,237 shares in June 2025 at an average price of $18.35 per share under its publicly announced share repurchase program, with approximately $485 million remaining available for future repurchases Share Repurchases in Q2 2025 | For the Month Ended | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value of Shares that May Yet Be Purchased | | :--- | :--- | :--- | :--- | | April 30, 2025 | - | $- | $- | | May 31, 2025 | - | $- | $- | | June 30, 2025 | 816,237 | $18.35 | $485,002,210 | - The share repurchases were made pursuant to the program publicly announced on May 5, 2025, which has no expiration date[296](index=296&type=chunk)[297](index=297&type=chunk) [Other Information](index=73&type=section&id=Item%205.%20Other%20Information.) The company states that none of its directors or executive officers adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025 - No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the second quarter of 2025[300](index=300&type=chunk)

dated as of August 5, 2025 among ADMA BIOLOGICS, INC., as Borrower, Exhibit 10.1 CREDIT AGREEMENT JPMORGAN CHASE BANK, N.A., MUFG BANK, LTD. and U.S. BANK NATIONAL ASSOCIATION as Joint Lead Arrangers TABLE OF CONTENTS | | Page | | --- | --- | | ARTICLE I DEFINITIONS | 1 | | SECTION 1.01.Defined Terms | 1 | | SECTION 1.02.Classification of Loans and Borrowings | 42 | | SECTION 1.03.Terms Generally | 42 | | SECTION 1.04.Accounting Terms; GAAP | 42 | | SECTION 1.05.Pro Forma Adjustments | 43 | | SECTION 1.06.S ...

Core Insights - ADMA Biologics reported a total revenue of $122.0 million for Q2 2025, reflecting a 14% year-over-year increase, and a 29% increase when excluding a prior-year non-recurring item [1][7] - The company achieved a GAAP net income of $34.2 million, a 7% increase year-over-year, and an adjusted net income of $36.0 million, representing an 85% increase when excluding the prior-year non-recurring item [1][9] - Adjusted EBITDA rose to $50.8 million, marking a 59% year-over-year increase after adjusting for the prior-year Medicaid rebate accrual benefit [1][10] - ADMA initiated commercial-scale manufacturing with an FDA-approved yield enhancement process, resulting in a 20%+ increase in finished immunoglobulin (IG) output [1][2] - The company secured a $300 million syndicated debt refinancing led by J.P. Morgan, which significantly lowers borrowing costs and enhances strategic optionality [1][3] - ADMA expanded its production operations by acquiring a new facility in Boca Raton, which could increase cGMP manufacturing space by up to 30% at peak [1][6] - The company reaffirmed its financial guidance for FY 2025 and 2026, projecting total revenue to exceed $500 million and $625 million, respectively [4][6] Financial Performance - Total revenue for Q2 2025 was $122.0 million, up from $107.2 million in Q2 2024, driven by the adoption of ASCENIV [7] - Gross profit increased to $67.2 million, with gross margin improving to 55.1% from 53.6% in the prior year [8] - The company reported a net income of $34.2 million compared to $32.1 million in Q2 2024, primarily due to higher operating income and lower interest expenses [9] - Adjusted EBITDA for the quarter was $50.8 million, up from $44.5 million in the same period of 2024 [10] Strategic Developments - The FDA-approved yield enhancement process is expected to drive gross margin expansion and support revenue growth [2][4] - ASCENIV utilization reached new highs, indicating strong demand and positioning the company to meet or exceed financial projections [3] - The acquisition of a new facility is expected to enhance operational efficiencies and support future capacity expansion [6][12] - ADMA repurchased approximately $15 million of common stock during Q2 2025, reflecting confidence in the company's long-term value creation potential [3][6]