Aytu BioPharma(AYTU) - 2025 Q2 - Quarterly Results

Q2 2025 Highlights Aytu BioPharma achieved sequential prescription growth in ADHD and Pediatric portfolios, reporting $0.8 million net income and $1.3 million Adjusted EBITDA Q2 FY2025 Key Financial Metrics | Metric | Value | Comparison Period | Value (Comparison) | | :--- | :--- | :--- | :--- | | Net Income | $0.8 million | Q2 FY2024 | ($0.2 million) loss | | Adjusted EBITDA | $1.3 million | Q2 FY2024 | $5.5 million | | Net Income per Share (Basic) | $0.13 | Q2 FY2024 | ($0.04) loss | | Cash and Cash Equivalents | $20.4 million | Sep 30, 2024 | $20.1 million | - For the first time since Q2 fiscal 2023, the company reported a quarterly sequential increase in prescriptions across both its ADHD and Pediatric portfolios[1] Sequential Net Revenue Growth (Q2 vs Q1 FY2025) | Portfolio | Q2 FY2025 Net Revenue (in millions) | Sequential Growth | Note | | :--- | :--- | :--- | :--- | | Pediatric Portfolio | $2.4 million | +86% | Reflects positive effects from return-to-growth plan | | ADHD Portfolio | $13.8 million | +16% | Adjusted for a one-time $3.3M positive impact in Q1 | Management Discussion Management highlighted successful sequential prescription growth and corporate optimization efforts, aiming for positive cash flow and enhanced stockholder value - The company returned both ADHD and Pediatric portfolios to positive sequential prescription growth for the first time since late 2022[3] - New corporate optimization programs are expected to generate at least $2.0 million in annual cost savings, building on previous expense reductions[3][4] - Management noted that while the normalization of the ADHD stimulant supply market impacted year-over-year comparisons, prescription volumes for Aytu's ADHD brands remain above pre-shortage levels[3] - The company's strategy is to focus on its profitable prescription pharmaceutical business and leverage its commercial infrastructure to seek and add in-licensed or acquired products[3] Corporate Strategy and Restructuring Aytu completed a strategic realignment, divesting Consumer Health and suspending clinical programs to focus on prescription pharmaceuticals - The company has fully repositioned itself to focus on commercializing novel prescription therapeutics[4] - Completed strategic actions include: - Divestiture of the Consumer Health business - Outsourcing of ADHD product manufacturing and closure of the Grand Prairie, Texas facility - Indefinite suspension of clinical development programs[4][5] - The financial results of the Consumer Health business are now reported as a discontinued operation, effective July 31, 2024[6] Q2 2025 Financial Performance Q2 FY2025 net revenue was $16.2 million, with a net income of $0.8 million, influenced by a non-cash gain and temporary gross margin decrease Net Revenue by Portfolio (Three Months Ended Dec 31, in thousands) | Portfolio | 2024 | 2023 | YoY Change | | :--- | :--- | :--- | :--- | | ADHD Portfolio | $13,816 | $16,572 | -17% | | Pediatric Portfolio | $2,400 | $2,145 | +12% | | Total Net Revenue | $16,221 | $18,748 | -13.5% | - Gross profit was $10,786 thousand (66% margin) compared to $14,603 thousand (78% margin) in the prior year, with the decrease attributed to temporary overhead costs[11] - Net income of $788 thousand was significantly impacted by a $3,016 thousand gain on derivative warrant liabilities, contrasting with a $577 thousand loss in the prior-year period[13] - Adjusted EBITDA was $1,273 thousand, compared to $5,459 thousand in the prior-year period[14] Financial Statements Unaudited Consolidated Statements of Operations For Q2 FY2025, Aytu reported net revenues of $16.2 million and a net income of $0.8 million, or $0.13 per basic share Consolidated Statements of Operations Summary (in thousands) | Line Item | Q2 FY2025 (3 mos ended Dec 31, 2024) | Q2 FY2024 (3 mos ended Dec 31, 2023) | | :--- | :--- | :--- | | Net Revenue | $16,221 | $18,748 | | Gross Profit | $10,786 | $14,603 | | (Loss) Income from Operations | $(1,695) | $3,146 | | Derivative Warrant Liabilities Gain (Loss) | $3,016 | $(577) | | Net Income (Loss) | $788 | $(220) | | Basic Net Income (Loss) per Share | $0.13 | $(0.04) | Unaudited Consolidated Balance Sheets As of December 31, 2024, total assets were $116.2 million, with cash of $20.4 million, and stockholders' equity increased to $30.8 million Consolidated Balance Sheets Summary (in thousands) | Line Item | Dec 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $20,398 | $20,006 | | Total Current Assets | $63,053 | $61,891 | | Total Assets | $116,227 | $118,095 | | Total Current Liabilities | $64,048 | $62,228 | | Total Liabilities | $85,462 | $90,379 | | Total Stockholders' Equity | $30,765 | $27,716 | Reconciliation of Net Income (Loss) to Adjusted EBITDA Aytu reconciled GAAP net income of $788 thousand to non-GAAP Adjusted EBITDA of $1.3 million for Q2 FY2025, with key adjustments for non-cash items Reconciliation to Adjusted EBITDA (in thousands) | Line Item | Q2 FY2025 (3 mos ended Dec 31, 2024) | Q2 FY2024 (3 mos ended Dec 31, 2023) | | :--- | :--- | :--- | | Net Income (Loss) - GAAP | $788 | $(220) | | Depreciation and amortization | $1,292 | $1,510 | | Derivative warrant liabilities (gain) loss | $(3,016) | $577 | | Restructuring costs | $1,317 | — | | Net (income) loss from discontinued operations | $(123) | $839 | | Adjusted EBITDA - non-GAAP | $1,273 | $5,459 | Historical Quarterly Financial Data (FY2024 Adjusted) This section presents restated FY2024 quarterly and full-year financial results, adjusted for discontinued operations, showing $65.2 million net revenue and $10.8 million Adjusted EBITDA FY2024 Full Year Adjusted Financial Summary (in thousands) | Line Item | Twelve Months Ended June 30, 2024 | | :--- | :--- | | Net Revenue | $65,183 | | Gross Profit | $49,054 | | (Loss) from Operations | $(1,591) | | Net Loss from Continuing Operations | $(12,098) | | Adjusted EBITDA - non-GAAP | $10,833 |