Eton Pharmaceuticals(ETON) - 2025 Q2 - Quarterly Results

Financial Performance - Eton Pharmaceuticals reported Q2 2025 product sales of $18.9 million, representing a 108% increase compared to Q2 2024, marking the 18th consecutive quarter of sequential growth [4]. - The company achieved a gross profit of $11.9 million in Q2 2025, up 112% from $5.6 million in the prior year period [13]. - Adjusted EBITDA for Q2 2025 was $3.1 million, compared to a loss of $(1.6) million in the prior year period [17]. - Total net revenues for the three months ended June 30, 2025, were $18,928 thousand, a significant increase from $9,074 thousand for the same period in 2024, representing a growth of 108% [30]. - Gross profit for the six months ended June 30, 2025, was $21,785 thousand, compared to $10,633 thousand for the same period in 2024, indicating a 104% increase [30]. - Adjusted EBITDA for the six months ended June 30, 2025, was $6,726 thousand, compared to a loss of $1,167 thousand for the same period in 2024 [35]. - Total net revenues for the period reached $36.21 million, with product sales and royalties contributing $32.92 million [42]. - Gross profit amounted to $26.14 million, reflecting a gross margin of approximately 72.2% [42]. - The company reported a net loss of $4.16 million, resulting in a net loss per share of $0.15 on a basic basis [42]. Expenses and Losses - Operating expenses for the three months ended June 30, 2025, totaled $13,399 thousand, up from $8,561 thousand in the same period of 2024, reflecting a 56% increase [30]. - The net loss for the six months ended June 30, 2025, was $4,157 thousand, compared to a net loss of $3,852 thousand for the same period in 2024, showing an increase in losses of 8% [30]. - The company reported stock-based compensation of $3,296 thousand for the six months ended June 30, 2025, compared to $1,661 thousand in the same period of 2024, reflecting a 98% increase [35]. - Operating expenses totaled $19.70 million, with research and development expenses at $4.79 million and general and administrative expenses at $14.91 million [42]. - Interest and other expenses amounted to $2.07 million, contributing to the overall net loss [42]. - The company experienced a loss from operations of $1.95 million, with adjustments leading to a total income from operations of $6.44 million [42]. Product Development and Launches - Eton expects to reach an annual revenue run rate of approximately $80 million in Q3 2025, one quarter ahead of previous projections [12]. - The relaunch of INCRELEX has exceeded expectations, reaching 100 active patients by the end of July, ahead of the original year-end target [5]. - The FDA approved and launched KHINDIVI, Eton's third commercial product in 2025, which is the first FDA-approved oral solution of hydrocortisone [2]. - The NDA for ET-600 was accepted by the FDA, with a target action date set for February 25, 2026, and commercialization activities are already underway [11]. - Licensing revenue was reported at $3.29 million, with associated costs of $0.83 million [42]. - The company is focusing on expanding its product offerings and enhancing operational efficiencies to improve future performance [41]. Cash and Assets - Eton's cash and cash equivalents as of June 30, 2025, were $25.4 million, with $8.0 million generated from operating cash flow during the quarter [20]. - Cash and cash equivalents increased to $25,379 thousand as of June 30, 2025, from $14,936 thousand at the end of 2024, representing a growth of 70% [32]. - Accounts receivable, net, rose to $14,453 thousand as of June 30, 2025, compared to $5,361 thousand in 2024, marking a 169% increase [32]. - Total current assets reached $68,443 thousand as of June 30, 2025, up from $41,021 thousand in 2024, indicating a growth of 67% [32]. Shareholder Information - The weighted average number of common shares outstanding, basic, was 26,889 thousand for the six months ended June 30, 2025, compared to 25,771 thousand for the same period in 2024 [35]. - The weighted average number of common shares outstanding was 26.89 million for basic shares and 31.07 million for diluted shares [42].