Core Insights - Heron Therapeutics reported a 55.5% increase in Acute Care segment revenue, but faced a GAAP revenue shortfall compared to analyst expectations and continued declines in the Oncology segment [1][5][7] - Net revenue (GAAP) for Q2 2025 was $37.2 million, slightly below the consensus estimate of $38.075 million, with a year-over-year growth of 3.3% [1][2] - The company achieved a positive adjusted EBITDA of $1.8 million, indicating improved operational leverage [2][8] Financial Performance - GAAP loss per share was $(0.02), missing the expectation of $(0.01), while operating losses narrowed [1][2] - Acute Care revenue reached $10.7 million, up from $6.9 million in Q2 2024, reflecting a 55.5% year-over-year increase [2][5] - Oncology segment revenue declined by 9.0%, with SUSTOL experiencing a significant drop of 43.4% [2][7] Business Overview - Heron Therapeutics focuses on developing and commercializing therapeutics for acute care and oncology, including pain management and anti-nausea drugs [3] - The company is emphasizing growth in the Acute Care business, particularly through products like ZYNRELEF and APONVIE [4][10] Product Performance - ZYNRELEF saw a 40.4% year-over-year growth in GAAP net revenue, with unit demand increasing by 6.3% compared to Q1 2025 [5] - APONVIE's revenue grew by 141.6% year-over-year, with a 19% sequential increase in unit demand [6] - The Oncology segment's decline was attributed to ongoing weakness in SUSTOL and CINVANTI, with no new product drivers announced [7] Operational Developments - Gross margin was reported at 73.5%, with operating expenses decreasing by $3.0 million year-over-year to $29.0 million [8] - Total debt was reduced to $145 million, with maturities extended to at least 2030, providing greater flexibility for growth [8] - Cash and short-term investments decreased to $40.6 million, with a notable inventory increase of almost $20 million over six months [9] Future Outlook - The company reaffirmed its full-year 2025 net revenue target of $153.0 million to $163.0 million, requiring at least $77 million in the second half of 2025 [11] - Adjusted EBITDA guidance was raised to $9.0 million to $13.0 million for full-year 2025, reflecting improved operating performance [11] - Future growth in Acute Care revenue is expected to be driven by commercial team expansion and the rollout of permanent reimbursement codes for ZYNRELEF [11]