Lantheus Holdings(LNTH) - 2025 Q1 - Quarterly Results

Financial and Business Highlights Lantheus reported Q1 2025 revenue of $372.8 million, experiencing declines in GAAP and adjusted EPS, while pursuing strategic portfolio restructuring Q1 2025 Summary Financial Results | (in millions, except per share data) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Worldwide revenue | $372.8 | $370.0 | 0.8% | | GAAP net income | $72.9 | $131.1 | (44.3)% | | GAAP fully diluted EPS | $1.02 | $1.87 | (45.5)% | | Adj. net income (non-GAAP) | $109.5 | $118.3 | (7.5)% | | Adj. fully diluted EPS (non-GAAP) | $1.53 | $1.69 | (9.5)% | Q1 2025 Key Product Sales and Operating Metrics | Metric | Q1 2025 Value (in millions) | YoY Change | | :--- | :--- | :--- | | PYLARIFY Sales | $257.7 | -0.5% | | DEFINITY Sales | $79.2 | +3.5% | | Operating Income | $102.1 | -4.3% | | Free Cash Flow | $98.8 | N/A | - The company is actively reshaping its portfolio through strategic transactions, including closing the Evergreen Theragnostics acquisition, planning to close the Life Molecular Imaging acquisition, and announcing the planned divestiture of its SPECT business[3][6] Business Development and Pipeline Updates Lantheus is strategically transforming its business via acquisitions and divestitures, focusing on PET radiodiagnostics, with MK-6240 advancing and PNT2002 discontinued - Completed the acquisition of Evergreen Theragnostics, gaining OCTEVY™, a portfolio of theranostic pairs, and radioligand therapy manufacturing capabilities[11] - Announced an agreement to acquire Life Molecular Imaging, which will add Neuraceq®, a globally approved beta-amyloid radiodiagnostic for Alzheimer's disease, to its portfolio; the deal is expected to close in Q2 2025[11] - Agreed to sell its SPECT business, including key diagnostic agents like TechneLite and Cardiolite, to SHINE Technologies to sharpen focus on its PET radiodiagnostics and microbubbles portfolio[11] - MK-6240, a next-generation tau imaging agent, met primary endpoints in two pivotal studies; the company plans to submit a New Drug Application (NDA) to the FDA in Q3 2025[11] - Following the Phase 3 SPLASH study of PNT2002 reaching 100% overall survival events with results confounded by patient crossover, the company does not plan to pursue an NDA or further invest in this asset[11] Full Year 2025 Financial Guidance Lantheus updated its full year 2025 financial guidance, slightly adjusting revenue forecasts and lowering adjusted fully diluted EPS expectations Full Year 2025 Interim Corporate Financial Guidance Comparison | Metric | Guidance Issued May 7, 2025 | Guidance Issued Feb 26, 2025 | | :--- | :--- | :--- | | FY 2025 Revenue | $1.550B - $1.585B | $1.545B - $1.610B | | FY 2025 Adj. fully diluted EPS | $6.60 - $6.70 | $7.00 - $7.20 | - The company does not provide GAAP income per common share guidance due to the inability to predict with reasonable certainty items such as business development expenses, purchase accounting adjustments, and other non-recurring charges[10][12] Detailed Financial Statements This section provides a comprehensive overview of Lantheus's consolidated financial statements, including statements of operations, revenue analysis, balance sheets, and cash flow Consolidated Statements of Operations Q1 2025 saw total revenues of $372.8 million, a slight increase, but gross profit and GAAP net income declined significantly, impacted by an unrealized loss on equity securities Q1 2025 Statement of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $372,764 | $369,975 | | Gross Profit | $237,700 | $241,846 | | Operating Income | $102,067 | $106,635 | | Net Income | $72,945 | $131,066 | | Diluted EPS | $1.02 | $1.87 | Consolidated Revenues Analysis Q1 2025 total revenue was primarily driven by PYLARIFY sales, with DEFINITY showing growth and significant expansion in strategic partnerships and other revenue Q1 2025 Revenue by Product (in thousands) | Product/Category | Q1 2025 Revenue | Q1 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | PYLARIFY | $257,654 | $258,870 | (0.5)% | | DEFINITY | $79,211 | $76,564 | 3.5% | | TechneLite | $19,711 | $21,714 | (9.2)% | | Strategic partnerships and other | $10,747 | $6,511 | 65.1% | | Total revenues | $372,764 | $369,975 | 0.8% | Condensed Consolidated Balance Sheets As of March 31, 2025, Lantheus reported increased cash and total assets, stable liabilities, and growth in stockholders' equity Balance Sheet Highlights (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $938,533 | $912,814 | | Total current assets | $1,423,780 | $1,326,633 | | Total assets | $2,055,224 | $1,980,340 | | Total liabilities | $891,030 | $892,329 | | Total stockholders' equity | $1,164,194 | $1,088,011 | Cash Flow Statement Q1 2025 saw a decrease in net cash from operating activities to $107.6 million, resulting in free cash flow of $98.8 million after capital expenditures Q1 2025 Cash Flow Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $107,563 | $127,238 | | Capital expenditures | $(8,718) | $(8,273) | | Free cash flow | $98,845 | $118,965 | Reconciliation of GAAP to Non-GAAP Financial Measures This section details the reconciliation of Q1 2025 GAAP financial results to non-GAAP measures, adjusting for items like stock compensation and unrealized losses to derive adjusted net and operating income Q1 2025 Reconciliation of Net Income and EPS (in thousands, except per share) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Net Income | $72,945 | $36,530 | $109,475 | | Diluted EPS | $1.02 | $0.51 | $1.53 | Q1 2025 Reconciliation of Operating Income (in thousands) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Operating Income | $102,067 | $42,191 | $144,258 | - Major adjustments between GAAP and Non-GAAP net income included stock compensation ($21.2M), unrealized loss on equity securities ($14.9M), and amortization of intangible assets ($8.0M)[27]