OPKO Health(US:OPK)2025-10-29 20:12Revenue Performance - Total revenues for the three months ended September 30, 2025, were $151.7 million, a decrease of 13% compared to $173.6 million in the same period of 2024[244]. - Revenue from services decreased by approximately $26.0 million, or 21%, primarily due to the sale of BioReference's lab operations and lower clinical test volume[245]. - Total revenues for the three months ended September 30, 2025, increased by $4.1 million or 8% to $56.4 million compared to $52.4 million in 2024[253]. - Total revenues for the nine months ended September 30, 2025, decreased by $71.1 million or 13% to $458.4 million compared to $529.5 million in 2024[268]. - Revenue from services for the nine months ended September 30, 2025, decreased by $78.4 million or 21% to $299.2 million, primarily due to the sale of BioReference's lab operations[269]. - Total revenue for the nine months ended September 30, 2025, was $299.2 million, a decrease of 20.7% from $377.6 million in 2024[271]. - Revenue from products decreased by $1.5 million or 3.7% to $37.7 million, primarily due to lower sales volume in international operations[253]. - Revenue from products decreased by $4.4 million, or 3.8%, primarily due to lower sales volume in international operations[276]. - Revenue from the transfer of intellectual property and other increased by $5.5 million or 42% to $18.7 million, driven by a $2.6 million increase from the BARDA Contract[254]. - Revenue from the transfer of intellectual property increased by $11.7 million, or 34%, driven by a significant increase from the BARDA Contract[277]. Expenses - Selling, general and administrative expenses decreased by 55.6% to $31.5 million for the three months ended September 30, 2025, compared to $70.9 million in 2024[248]. - Selling, general and administrative expenses decreased by $2.1 million or 14% to $13.1 million, mainly due to lower employee-related expenses[256]. - Research and development expenses for the three months ended September 30, 2025, were $0.3 million, a decrease of 41% from $0.5 million in 2024[250]. - Research and development expenses decreased to $1.3 million in 2025 from $1.5 million in 2024, primarily due to reduced employee-related expenses[273]. - Research and development expenses increased by $1.4 million or 5% to $29.6 million, reflecting higher expenses at ModeX and growth in BARDA collaboration[258]. - Cost of revenue for the three months ended September 30, 2025, decreased by 26.1% to $80.4 million, primarily due to the divestiture of certain lab operations[247]. - Cost of revenue decreased by $3.3 million or 13.3% to $21.4 million, attributed to lower sales volume and unfavorable foreign exchange effects[255]. - Cost of revenue decreased by $78.5 million, or 24.1%, primarily due to the divestiture of certain lab operations, which incurred $71.9 million in costs in 2024[271]. Gains and Losses - The company recognized a gain of $101.6 million from the Oncology Transaction for the three and nine months ended September 30, 2025[239]. - Gain on sale of assets was $101.6 million for the nine months ended September 30, 2025, compared to $121.5 million in 2024, attributed to the Oncology and BioReference Transactions[275]. Cash and Investments - As of September 30, 2025, the company had cash, cash equivalents, and restricted cash of approximately $428.9 million[290]. - Cash used in operations for the nine months ended September 30, 2025, was $152.6 million, primarily due to general and administrative expenses, research and development, and sales and marketing activities[290]. - The company received $232.3 million from investing activities, mainly from the Labcorp asset sale, which included $197.8 million in proceeds[290]. - The company sold its entire holding of 620,000 shares of GeneDx common stock for approximately $51.7 million[294]. - The company exchanged $159.2 million of 2029 Convertible 144A Notes for 121.4 million shares of Common Stock and cash payments totaling approximately $63.5 million[293]. - The company authorized an increase of $100.0 million to its Common Stock repurchase program, bringing the total capacity to $200.0 million[292]. Foreign Exchange and Interest - Approximately 25.2% of revenue for the nine months ended September 30, 2025, was denominated in currencies other than the U.S. Dollar, compared to 22.3% in the same period of 2024[242]. - The company held $5.3 million in open foreign exchange forward contracts related to inventory purchases as of September 30, 2025, compared to zero open contracts at the end of 2024[243]. - The company manages foreign currency exchange rate risk through foreign exchange forward contracts, primarily hedging against the Chilean Peso to the U.S. dollar[318]. - Interest income increased to $3.0 million for the three months ended September 30, 2025, compared to $2.9 million in 2024, driven by a larger average balance of cash and cash equivalents[262]. - Interest income increased to $11.0 million in 2025 from $4.1 million in 2024, due to interest earned on a larger cash investment[284]. - Interest expense decreased to $11.4 million for the three months ended September 30, 2025, from $17.4 million in 2024, due to lower interest incurred on convertible notes[263]. - Interest expense rose to $97.2 million in 2025 from $33.2 million in 2024, primarily due to amortization of debt discount and issuance costs[285]. Tax and Obligations - Income tax benefit for the nine months ended September 30, 2025, was $0.1 million, compared to a provision of $21.9 million in 2024, reflecting non-recurring tax expenses related to transactions[288]. - The total contractual obligations due by period as of September 30, 2025, amounted to $423.7 million[308]. Accounting Changes - The company adopted ASU 2024-04 effective January 1, 2025, which clarifies accounting for convertible debt, with no material impact on financial statements[313]. - The company adopted ASU 2023-07 in Q4 of fiscal year 2024, enhancing segment expense disclosures, with no material impact on financial statements[314].