Aytu BioPharma(AYTU) - 2025 Q3 - Quarterly Results

Q3 2025 Highlights & Management Discussion The company reported significant revenue growth and a return to profitability, driven by its strategic focus on the prescription pharmaceutical business Q3 FY2025 Key Financial Metrics | Metric | Q3 FY2025 | Q3 FY2024 | Change | | :--- | :--- | :--- | :--- | | Total Net Revenue | $18.5 million | $14.0 million | +32% | | ADHD Portfolio Revenue | $15.4 million | $12.3 million | +25% | | Pediatric Portfolio Revenue | $3.1 million | $1.7 million | +77% | | Net Income (Loss) | $4.0 million | ($2.9 million) | N/A | | Net Income (Loss) per Share (basic) | $0.65 | ($0.52) | N/A | | Adjusted EBITDA | $3.9 million | $0.9 million | +333% | | Cash and Cash Equivalents | $18.2 million | - | - | - The CEO stated that the strategic realignment to focus on the profitable prescription pharmaceutical business is beginning to fully manifest in the company's financial performance[3] - Aytu is actively pursuing in-licensed or acquired products to leverage its CNS-focused sales team and the Aytu RxConnect platform[3] - The company reduced company-wide operating expenses by 13% year-over-year while growing revenue, demonstrating improved operational efficiency[3] Q3 2025 Detailed Financial Results Net revenue grew 32% to $18.5 million, and despite a temporary gross margin dip, reduced operating expenses led to a significant operating income turnaround Revenue by Portfolio Total net revenue grew 32% YoY, fueled by strong performance in both the ADHD and Pediatric portfolios Net Revenue by Portfolio (in thousands) | Portfolio | Q3 2025 | Q3 2024 | % Change | | :--- | :--- | :--- | :--- | | ADHD Portfolio | $15,389 | $12,326 | +25% | | Pediatric Portfolio | $3,059 | $1,729 | +77% | | Total Net Revenue | $18,452 | $14,025 | +32% | - ADHD Portfolio growth was primarily driven by improvements in gross-to-nets through the Aytu RxConnect platform[7] - Pediatric Portfolio growth reflects the positive effects from the Company's recently implemented return-to-growth plan[8] Profitability and Operations Reduced operating expenses and operational efficiencies drove a significant turnaround to operating income despite a temporary gross margin decline - Gross profit margin decreased to 69% from 74% YoY due to higher cost of sales for ADHD inventory from a now-closed facility, which is expected to normalize[9] - Operating expenses, excluding amortization and restructuring, were reduced by 13% YoY to $9.5 million due to cost reduction efforts and operational efficiencies[10] Profitability Comparison (in millions) | Metric | Q3 FY2025 | Q3 FY2024 | | :--- | :--- | :--- | | Income from Operations | $2.4 | ($1.6) | | Net Income (Loss) | $4.0 | ($2.9) | Balance Sheet and Cash Position The company maintained a solid cash position of $18.2 million while actively paying down $2.5 million in debt during the quarter - Cash and cash equivalents were $18.2 million at March 31, 2025[13] - The Company paid down a combined $2.5 million in long-term debt and other fixed payment arrangements during the third quarter[13] Financial Statements This section presents the unaudited consolidated statements of operations and balance sheets, alongside a non-GAAP to GAAP reconciliation Unaudited Consolidated Statements of Operations The company shifted from a prior-year net loss to a net income of $4.0 million, or $0.21 per diluted share, in Q3 FY2025 Q3 2025 vs Q3 2024 Statement of Operations Highlights (in thousands) | Line Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net revenue | $18,452 | $14,025 | | Gross profit | $12,806 | $10,361 | | Income (loss) from operations | $2,421 | ($1,597) | | Net income (loss) | $3,994 | ($2,887) | | Diluted net income (loss) per share | $0.21 | ($0.52) | Unaudited Consolidated Balance Sheets The balance sheet shows total assets of $124.2 million and an increase in total stockholders' equity to $34.9 million as of March 31, 2025 Balance Sheet Highlights (in thousands) | Line Item | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $18,173 | $20,006 | | Total current assets | $72,512 | $61,891 | | Total assets | $124,201 | $118,095 | | Total current liabilities | $70,706 | $62,228 | | Total liabilities | $89,303 | $90,379 | | Total stockholders' equity | $34,898 | $27,716 | Unaudited Reconciliation of Net Income (Loss) to Adjusted EBITDA A reconciliation from GAAP net income of $4.0 million to a non-GAAP Adjusted EBITDA of $3.9 million highlights strong operational performance Reconciliation to Adjusted EBITDA (in thousands) | Line Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income (loss) - GAAP | $3,994 | ($2,887) | | Adjustments (Net) | ($51) | $3,818 | | Adjusted EBITDA - non-GAAP | $3,943 | $931 | Other Information This section provides details on the investor conference call, a corporate overview, and the forward-looking statements disclaimer - The company hosted a conference call and webcast on May 14, 2025, to discuss the quarterly results[14] - Aytu's prescription products include Adzenys XR-ODT® and Cotempla XR-ODT® for ADHD, Karbinal® ER for allergies, and fluoride-based vitamins[16] - The press release contains forward-looking statements that are subject to risks and uncertainties, and readers are referred to the company's SEC filings[17]