Cerus(CERS) - 2025 Q2 - Quarterly Results

Executive Summary & Business Outlook Cerus Corporation reported strong Q2 2025 commercial and financial results, driven by INTERCEPT product growth and pipeline advancements, leading to an upward revision of full-year 2025 product revenue guidance CEO Commentary Cerus Corporation's CEO highlighted strong Q2 2025 commercial results, driven by the INTERCEPT product portfolio and global adoption, with advancements in the product development pipeline and an upward revision of full-year 2025 product revenue guidance - Commercial results in Q2 2025 demonstrate progress in multiple geographies and across the INTERCEPT product portfolio, with a singular focus on advancing blood safety and availability[4] - The early launch and adoption of the next-generation, LED-based INT200 illumination device continue to surpass expectations regarding performance and customer experience[4] - Advancements in the product development pipeline are encouraging, including the early resubmission for RBC CE Mark and the recent DoD award for the CRYO-First study[4] - Strong commercial and financial execution in Q2 resulted in record product sales, a year-over-year narrowing of net loss attributable to Cerus, and another quarter of positive non-GAAP adjusted EBITDA[5] Key Financial Highlights (Q2 2025) Cerus reported robust financial performance for Q2 2025, with total revenue reaching $60.1 million, a 19% increase year-over-year, driven by record product revenue and positive non-GAAP adjusted EBITDA | Metric | Q2 2025 (Millions $) | Q2 2024 (Millions $) | Change ($) | Change (%) | | :-------------------- | :------------------- | :------------------- | :--------- | :--------- | | Total Revenue | $60.1 | $50.5 | $9.6 | 19% | | Product Revenue | $52.4 | $45.1 | $7.4 | 16% | | Government Contract Revenue | $7.7 | $5.4 | $2.2 | 41% | | IFC Revenue | $5.6 | $2.0 | $3.6 | 180% | | Net Loss Attributable to Cerus | $(5.7) | $(5.8) | $0.1 | -1.7% | | Non-GAAP Adjusted EBITDA | $0.9 | $0.8 | $0.1 | 12.5% | - Customer demand for Pathogen Reduced, Cryoprecipitated Fibrinogen Complex (IFC) continues to increase, with Q2 IFC revenue reaching $5.6 million, a significant increase from $2.0 million in the prior year period[5][6] - Cash, cash equivalents, and short-term investments stood at $78.0 million at June 30, 2025[10][16] Full-Year 2025 Guidance Update Cerus Corporation has raised its full-year 2025 product revenue guidance range to $200 million - $203 million, reflecting strong first-half performance and anticipated second-half growth | Metric | Previous Guidance (Millions $) | Updated Guidance (Millions $) | Change (Millions $) | | :-------------------- | :----------------------------- | :---------------------------- | :------------------ | | Full-Year 2025 Product Revenue | $194 - $200 | $200 - $203 | Up $3 - $6 | | Full-Year 2025 IFC Revenue | $12 - $15 | $16 - $18 | Up $3 - $4 | - The company remains committed to its goal of achieving positive, full-year 2025 non-GAAP adjusted EBITDA[5][15] Second Quarter 2025 Financial Results Cerus Corporation's Q2 2025 financial results demonstrate strong revenue growth across product and government contracts, alongside strategic investments in operating expenses, leading to a narrowed net loss and positive adjusted EBITDA Total Revenue Analysis Cerus' total revenue for Q2 2025 increased by 19% year-over-year to $60.1 million, driven by strong product revenue growth and a significant increase in government contract revenue | Revenue Type | Q2 2025 (Millions $) | Q2 2024 (Millions $) | Change ($) | Change (%) | | :-------------------- | :------------------- | :------------------- | :--------- | :--------- | | Product Revenue | $52.4 | $45.1 | $7.4 | 16% | | Government Contract Revenue | $7.7 | $5.4 | $2.2 | 41% | | Total Revenue | $60.1 | $50.5 | $9.6 | 19% | Product Revenue Product revenue for Q2 2025 reached a record $52.4 million, a 16% increase from the prior year, primarily fueled by strong global platelet sales and a substantial increase in U.S. sales of INTERCEPT Fibrinogen Complex (IFC) | Metric | Q2 2025 (Millions $) | Q2 2024 (Millions $) | Change ($) | Change (%) | | :-------------------- | :------------------- | :------------------- | :--------- | :--------- | | Product Revenue | $52.4 | $45.1 | $7.4 | 16% | | U.S. IFC Sales | $5.6 | $2.0 | $3.6 | 180% | - The year-over-year increase in product revenue was led by growth in IFC and global platelet sales[6] Government Contract Revenue Government contract revenue increased by 41% to $7.7 million in Q2 2025, primarily supporting R&D activities for the INTERCEPT RBC program, next-generation pathogen reduction technology, and lyophilized IFC development | Metric | Q2 2025 (Millions $) | Q2 2024 (Millions $) | Change ($) | Change (%) | | :-------------------- | :------------------- | :------------------- | :--------- | :--------- | | Government Contract Revenue | $7.7 | $5.4 | $2.2 | 41% | - Revenue was comprised of funding for R&D activities related to the INTERCEPT RBC program, next-generation pathogen reduction technology for whole-blood, and development of lyophilized IFC[7] - The increase was primarily driven by increasing enrollment in the Phase 3 RedeS trial and activities for the advancement of the INTERCEPT RBC system under BARDA contracts[7] Revenue by Region North America and EMEA regions showed significant product revenue growth in Q2 2025, with North America increasing by 17% and EMEA by 21%, while the 'Other' category experienced a decline | Region | Q2 2025 (Thousands $) | Q2 2024 (Thousands $) | Change ($) | Change (%) | | :-------------------------- | :-------------------- | :-------------------- | :--------- | :--------- | | North America | $35,286 | $30,097 | $5,189 | 17% | | Europe, Middle East and Africa | $16,612 | $13,725 | $2,887 | 21% | | Other | $547 | $1,257 | $(710) | -56% | | Total product revenue | $52,445 | $45,079 | $7,366 | 16% | Product Gross Profit and Margin Product gross profit for Q2 2025 increased by 17% to $29.0 million, aligning with revenue growth, while the product gross margin remained relatively stable at 55.2% | Metric | Q2 2025 (Millions $) | Q2 2024 (Millions $) | Change ($) | Change (%) | | :-------------------- | :------------------- | :------------------- | :--------- | :--------- | | Product Gross Profit | $29.0 | $24.7 | $4.3 | 17% | | Product Gross Margin | 55.2% | 54.7% | 0.5 pp | - | Operating Expenses Total operating expenses for Q2 2025 increased by 18% to $40.1 million, reflecting strategic investments in both R&D and SG&A to drive future revenue growth | Metric | Q2 2025 (Millions $) | Q2 2024 (Millions $) | Change ($) | Change (%) | | :-------------------- | :------------------- | :------------------- | :--------- | :--------- | | Total Operating Expenses | $40.1 | $33.9 | $6.2 | 18% | - The increase in operating expenses reflects investments in the business to drive future revenue growth[9] Research and Development (R&D) Expenses R&D expenses rose by 26% to $18.9 million in Q2 2025, driven by development costs for the new LED-based INT200 device, higher government contract costs, and elevated employee compensation | Metric | Q2 2025 (Millions $) | Q2 2024 (Millions $) | Change ($) | Change (%) | | :-------------------- | :------------------- | :------------------- | :--------- | :--------- | | R&D Expenses | $18.9 | $15.0 | $3.9 | 26% | - Primary drivers for the increase were development costs on INT200, higher government contract costs, and higher employee compensation expenses[10][11] - The European regulatory review of the CE Mark application