Net income of $4.0 million, or $0.65 and $0.21 net income per share basic and diluted, respectively
Adjusted EBITDA1 of $3.9 million
Total net revenue of $18.5 million up 32% year-over-year
Company to host conference call and webcast today, May 14, 2025, at 4:30 p.m. Eastern time
DENVER, CO / ACCESS Newswire / May 14, 2025 / Aytu BioPharma, Inc. (the "Company" or "Aytu") (Nasdaq:AYTU), a pharmaceutical company focused on commercializing novel therapeutics, today announced operational and financial results for the fiscal 2025 third quarter.
?Q3 2025 Highlights
Net revenue increased 32% to $18.5 million versus $14.0 million in Q3 fiscal 2024.
ADHD Portfolio (Adzenys XR-ODT® and Cotempla XR-ODT®) net revenue increased 25% to $15.4 million versus $12.3 million in Q3 fiscal 2024.
Pediatric Portfolio (Karbinal® ER, Poly-Vi-Flor® and Tri-Vi-Flor®) net revenue increased 77% to $3.1 million versus $1.7 million in Q3 fiscal 2024.
Net income of $4.0 million, or $0.65 and $0.21 net income per share basic and diluted, respectively, compared to a net loss of $2.9 million, or $0.52 net loss per share basic and diluted in Q3 fiscal 2024.
Adjusted EBITDA was $3.9 million compared to $0.9 million in Q3 fiscal 2024.
Cash and cash equivalents were $18.2 million at March 31, 2025.
Management Discussion
"I am extremely pleased with the operating and financial performance Aytu achieved during the 2025 third fiscal quarter, resulting in strong revenue growth of 32% led by improvement in both our ADHD and Pediatric portfolios, and net income of $0.65 and $0.21 per share basic and diluted, respectively," noted Josh Disbrow, Chief Executive Officer of Aytu. "The multi-year, strategic realignment to focus on our profitable prescription pharmaceutical business and maximize the unique capabilities of our now streamlined organization is beginning to fully manifest in our financial performance."
"With the commercial prescription infrastructure near full optimization, we remain focused on leveraging our platform through the pursuit of additional in-licensed or acquired products that can utilize the capabilities of our CNS-focused sales team and the broader Aytu RxConnect patient access platform. The entire team is executing effectively as we drove 25% net revenue growth in the ADHD Portfolio and 77% growth in the Pediatric Portfolio, while also reducing companywide operating expenses by 13% year over year. Increasing revenues across the portfolio while streamlining operations and reducing OpEx is evidence of our plan starting to bear fruit and become more visible to our stockholders."
"With net income of $4.0 million and adjusted EBITDA of $3.9 million during the quarter, we utilized the opportunity to further improve the balance sheet through the continued pay down of our long-term loan with Eclipse, our senior lending partner, and other fixed payment arrangements. We remain focused on strengthening our balance sheet, seeking complementary product opportunities, and driving the business towards positive cash flows," Disbrow concluded.
Net Revenue by Portfolio
Three Months Ended | ||||||||
March 31, | ||||||||
2025 | 2024 | |||||||
(in thousands) | ||||||||
ADHD Portfolio | $ | 15,389 | $ | 12,326 | ||||
Pediatric Portfolio | 3,059 | 1,729 | ||||||
Other* | 4 | (30 | ) | |||||
Total net revenue | $ | 18,452 | $ | 14,025 | ||||
*Other includes discontinued or deprioritized products.
Q3 2025 Financial Results
Net revenue for the third quarter of fiscal 2025 was $18.5 million, compared to $14.0 million for the prior year.
The ADHD Portfolio (Adzenys XR-ODT® and Cotempla XR-ODT®) experienced a 25% increase in net revenue to $15.4 million in the third quarter of fiscal 2025, compared to the prior year period. Sequentially, ADHD Portfolio net revenue increased 11% compared to the second quarter of fiscal 2025. ADHD Portfolio growth was primarily driven by improvements in gross-to-nets through assertive management of our brands' economics as enabled through Aytu RxConnect.
The Pediatric Portfolio (Karbinal® ER, Poly-Vi-Flor® and Tri-Vi-Flor®) experienced a 77% increase in net revenue to $3.1 million in the third quarter of fiscal 2025, compared to the prior year period. Sequentially, Pediatric Portfolio net revenue increased 27% compared to the second quarter of fiscal 2025. Pediatric Portfolio growth reflects the positive effects from the Company's recently implemented return-to-growth plan as well as an improvement in gross-to-nets.
Gross profit was $12.8 million, or 69% of net revenue, in the third quarter of fiscal 2025, compared to $10.4 million, or 74% of net revenue, in the same quarter last year. The decrease in gross profit percentage is primarily related to increased cost of sales in the Company's ADHD inventory. The inventory's higher cost resulted from the allocation of certain overhead costs associated with the Company's now closed Grand Prairie, Texas manufacturing facility, to a reduced amount of ADHD product being produced there. This situation occurred as the Company ramped up production at its contract manufacturer and concurrently decreased production at Grand Prairie, Texas. This higher cost inventory is expected to be liquidated in the coming quarters as the Company continues to sell these products through its distribution channels, resulting in a normalization of gross profit percentage.
Operating expenses, excluding amortization of intangible assets and restructuring costs, were $9.5 million in the third quarter of fiscal 2025 compared to $10.8 million in the prior year period. The decrease is primarily a result of continued cost reduction efforts and improved operational efficiencies as part of the Company's overall strategic realignment.
Income from operations was $2.4 million for the third quarter of fiscal 2025 compared to loss from operations of $1.6 million in the prior year period. Net income from discontinued operations, net of tax for the third quarter of fiscal 2025 was $0.1 million compared to net loss from discontinued operations, net of tax of $0.6 million in the year ago period. Discontinued operations pertain to the Consumer Health business which was successfully wound down and divested in the first quarter of fiscal 2025.
Net income during the third quarter of fiscal 2025 was $4.0 million, or $0.65 and $0.21 net income per share basic and diluted, respectively, compared to a net loss of $2.9 million, or $0.52 net loss per share basic and diluted, in the prior year period. The fiscal 2025 third quarter results were impacted by $2.3 million of derivative warrant liabilities gain due primarily to the decrease in the Company's stock price, compared to a derivative warrant liabilities gain of $1.0 million in the third quarter of fiscal 2024.
Adjusted EBITDA was $3.9 million in the third quarter of fiscal 2025, compared to $0.9 million in the prior year period.
Cash and cash equivalents were $18.2 million at March 31, 2025, compared to $20.4 million at December 31, 2024. The Company paid down a combined $2.5 million in long-term debt and other fixed payment arrangements during the third quarter of fiscal 2025.
Conference Call Details
Date and Time: Wednesday, May 14, 2025, at 4:30 p.m. Eastern time.
Call-in Information: Interested parties can access the conference call by dialing (888) 506-0062 for United States callers or +1 (973) 528-0011 for international callers and using the participant access code 314386.
Webcast Information: The webcast will be accessible live and archived at https://www.webcaster4.com/Webcast/Page/2142/52282, and accessible on the Investors section of the Company's website at https://investors.aytubio.com/ under Events & Presentations.
Replay: A teleconference replay of the call will be available until May 28, 2025, at (877) 481-4010 for United States callers or +1 (919) 882-2331 for international callers and using replay access code 52282.
About Aytu BioPharma, Inc.
Aytu is a pharmaceutical company focused on commercializing novel therapeutics. The Company's prescription products include Adzenys XR-ODT® (amphetamine) extended-release orally disintegrating tablets (see Full Prescribing Information, including Boxed WARNING) and Cotempla XR-ODT® (methylphenidate) extended-release orally disintegrating tablets (see Full Prescribing Information, including Boxed WARNING) for the treatment of attention deficit hyperactivity disorder (ADHD), Karbinal® ER (carbinoxamine maleate), an extended-release antihistamine suspension indicated to treat numerous allergic conditions, and Poly-Vi-Flor® and Tri-Vi-Flor®, two complementary fluoride-based prescription vitamin product lines available in various formulations for infants and children with fluoride deficiency. To learn more, please visit aytubio.com.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"). All statements other than statements of historical facts contained in this press release, are forward-looking statements. Forward-looking statements are generally written in the future tense and/or are preceded by words such as "may," "will," "should," "forecast," "could," "expect," "suggest," "believe," "estimate," "continue," "anticipate," "intend," "plan," or similar words, or the negatives of such terms or other variations on such terms or comparable terminology. All statements other than statements of historical facts contained in this presentation, are forward-looking statements. These statements are predictions and are subject to risks and uncertainties that could cause the actual events or results to differ materially. These risks and uncertainties include, among others, risks associated with: the Company's overall financial and operational performance, potential adverse changes to the Company's financial position or our business, the results of operations, strategy and plans, changes in capital markets and the ability of the Company to finance operations in the manner expected, risks relating to gaining market acceptance of our products, our partners performing their required activities, our anticipated future cash position, regulatory and compliance challenges and future events under current and potential future collaborations. We also refer you to (i) the risks described in "Risk Factors" in Part I, Item 1A of our most recent Annual Report on Form 10-K and in the other reports and documents we file with the United States Securities and Exchange Commission.?
Footnote 1
Aytu uses the term adjusted EBITDA, which is a term not defined under United States generally accepted accounting principles ("U.S. GAAP"). The Company uses this term because it is a widely accepted financial indicator utilized to analyze and compare companies on the basis of operating performance. The Company believes that presenting adjusted EBITDA by certain categories allows investors to evaluate the various performance of these categories. The Company's method of computation of adjusted EBITDA may or may not be comparable to other similarly titled measures used by other companies. We believe that net income (loss) is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted EBITDA. See below for a reconciliation of net income (loss) to adjusted EBITDA.
Contacts for Investors
Ryan Selhorn, Chief Financial Officer
Aytu BioPharma, Inc.
rselhorn@aytubio.com
Robert Blum or Roger Weiss
Lytham Partners
aytu@lythampartners.com
Aytu BioPharma, Inc.
Unaudited Consolidated Statements of Operations
(in thousands, except share and per share data)
Three Months Ended | ||||||||
March 31, | ||||||||
2025 | 2024 | |||||||
Net revenue | $ | 18,452 | $ | 14,025 | ||||
Cost of sales | 5,646 | 3,664 | ||||||
Gross profit | 12,806 | 10,361 | ||||||
Operating expenses: | ||||||||
Selling and marketing | 5,194 | 5,352 | ||||||
General and administrative | 4,109 | 4,831 | ||||||
Research and development | 162 | 611 | ||||||
Amortization of intangible assets | 920 | 920 | ||||||
Restructuring costs | - | 244 | ||||||
Total operating expenses | 10,385 | 11,958 | ||||||
Income (loss) from operations | 2,421 | (1,597 | ) | |||||
Other income, net | 36 | 70 | ||||||
Interest expense | (900 | ) | (1,257 | ) | ||||
Derivative warrant liabilities gain | 2,261 | 1,017 | ||||||
Income (loss) from continuing operations before income tax expense | 3,818 | (1,767 | ) | |||||
Income tax benefit (expense) | 122 | (521 | ) | |||||
Net income (loss) from continuing operations | 3,940 | (2,288 | ) | |||||
Net income (loss) from discontinued operations, net of tax | 54 | (599 | ) | |||||
Net income (loss) | $ | 3,994 | $ | (2,887 | ) | |||
Basic weighted-average common shares outstanding | 6,134,634 | 5,533,555 | ||||||
Diluted weighted-average common shares outstanding | 8,204,453 | 5,533,555 | ||||||
Net income (loss) per share: | ||||||||
Basic - continuing operations | $ | 0.64 | $ | (0.41 | ) | |||
Diluted - continuing operations | $ | 0.20 | $ | (0.41 | ) | |||
Basic - discontinued operations, net of tax | $ | 0.01 | $ | (0.11 | ) | |||
Diluted - discontinued operations, net of tax | $ | 0.01 | $ | (0.11 | ) | |||
Basic - net income (loss) | $ | 0.65 | $ | (0.52 | ) | |||
Diluted - net income (loss) | $ | 0.21 | $ | (0.52 | ) | |||
Aytu BioPharma, Inc.
Unaudited Consolidated Balance Sheets
(in thousands, except share data)
March 31, | June 30, | |||||||
2025 | 2024 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 18,173 | $ | 20,006 | ||||
Accounts receivable, net | 35,825 | 23,526 | ||||||
Inventories | 11,058 | 12,141 | ||||||
Prepaid expenses and other current assets | 7,456 | 5,097 | ||||||
Current assets of discontinued operations | - | 1,121 | ||||||
Total current assets | 72,512 | 61,891 | ||||||
Non-current assets: | ||||||||
Property and equipment, net | 546 | 693 | ||||||
Operating lease right-of-use assets | 1,111 | 829 | ||||||
Intangible assets, net | 48,711 | 52,453 | ||||||
Other non-current assets | 1,321 | 2,185 | ||||||
Non-current assets of discontinued operations | - | 44 | ||||||
Total non-current assets | 51,689 | 56,204 | ||||||
Total assets | $ | 124,201 | $ | 118,095 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 12,041 | $ | 10,314 | ||||
Accrued liabilities | 41,727 | 38,143 | ||||||
Revolving credit facility | 10,028 | 2,395 | ||||||
Current portion of debt | 1,857 | 1,857 | ||||||
Other current liabilities | 5,053 | 8,962 | ||||||
Current liabilities of discontinued operations | - | 557 | ||||||
Total current liabilities | 70,706 | 62,228 | ||||||
Non-current liabilities: | ||||||||
Debt, net of current portion | 9,535 | 10,877 | ||||||
Derivative warrant liabilities | 4,125 | 12,745 | ||||||
Other non-current liabilities | 4,937 | 4,529 | ||||||
Total non-current liabilities | 18,597 | 28,151 | ||||||
Stockholders' equity: | ||||||||
Preferred stock, par value $.0001; 50,000,000 shares authorized; no shares issued or outstanding | - | - | ||||||
Common stock, par value $.0001; 200,000,000 shares authorized; 6,170,162 and 5,972,638 shares issued and outstanding, respectively | 1 | 1 | ||||||
Additional paid-in capital | 348,614 | 347,688 | ||||||
Accumulated deficit | (313,717 | ) | (319,973 | ) | ||||
Total stockholders' equity | 34,898 | 27,716 | ||||||
Total liabilities and stockholders' equity | $ | 124,201 | $ | 118,095 | ||||
Aytu BioPharma, Inc.
Unaudited Reconciliation of Net Income (Loss) to Adjusted EBITDA
(in thousands)
Three Months Ended | ||||||||
March 31, | ||||||||
2025 | 2024 | |||||||
Net income (loss) - GAAP | $ | 3,994 | $ | (2,887 | ) | |||
Interest expense | 900 | 1,257 | ||||||
Income tax (benefit) expense | (122 | ) | 521 | |||||
Depreciation and amortization | 1,287 | 1,449 | ||||||
Stock-based compensation expense | 139 | 699 | ||||||
Other income, net | (36 | ) | (70 | ) | ||||
Derivative warrant liabilities gain | (2,261 | ) | (1,017 | ) | ||||
Restructuring costs | - | 244 | ||||||
Pipeline research and development costs | 96 | 136 | ||||||
Net (income) loss from discontinued operations, net of tax | (54 | ) | 599 | |||||
Adjusted EBITDA - non-GAAP | $ | 3,943 | $ | 931 | ||||
Aytu BioPharma, Inc.
Unaudited Fiscal 2024 Quarterly and Full Year Consolidated Statements of Operations Adjusted for Discontinued Operations
(in thousands)
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2024 | ||||||||||||||||
(as adjusted) | ||||||||||||||||||||
Net revenue | $ | 14,593 | $ | 14,025 | $ | 18,748 | $ | 17,817 | $ | 65,183 | ||||||||||
Cost of sales | 3,541 | 3,664 | 4,145 | 4,779 | 16,129 | |||||||||||||||
Gross profit | 11,052 | 10,361 | 14,603 | 13,038 | 49,054 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling and marketing | 5,422 | 5,352 | 5,218 | 6,091 | 22,083 | |||||||||||||||
General and administrative | 4,028 | 4,831 | 4,800 | 6,295 | 19,954 | |||||||||||||||
Research and development | 1,042 | 611 | 521 | 595 | 2,769 | |||||||||||||||
Amortization of intangible assets | 921 | 920 | 918 | 924 | 3,683 | |||||||||||||||
Restructuring costs | 1,912 | 244 | - | - | 2,156 | |||||||||||||||
Total operating expenses | 13,325 | 11,958 | 11,457 | 13,905 | 50,645 | |||||||||||||||
(Loss) income from operations | (2,273 | ) | (1,597 | ) | 3,146 | (867 | ) | (1,591 | ) | |||||||||||
Other income, net | 120 | 70 | 96 | 584 | 870 | |||||||||||||||
Interest expense | (1,253 | ) | (1,257 | ) | (1,266 | ) | (1,283 | ) | (5,059 | ) | ||||||||||
Derivative warrant liabilities gain (loss) | 1,463 | 1,017 | (577 | ) | (5,907 | ) | (4,004 | ) | ||||||||||||
Loss on debt extinguishment | (594 | ) | - | - | - | (594 | ) | |||||||||||||
(Loss) income from continuing operations before income tax expense | (2,537 | ) | (1,767 | ) | 1,399 | (7,473 | ) | (10,378 | ) | |||||||||||
Income tax expense | (841 | ) | (521 | ) | (780 | ) | - | (2,142 | ) | |||||||||||
Net (loss) income from continuing operations | (3,378 | ) | (2,288 | ) | 619 | (7,473 | ) | (12,520 | ) | |||||||||||
Net loss from discontinued operations, net of tax | (1,239 | ) | (599 | ) | (839 | ) | (647 | ) | (3,324 | ) | ||||||||||
Net loss | $ | (4,617 | ) | $ | (2,887 | ) | $ | (220 | ) | $ | (8,120 | ) | $ | (15,844 | ) | |||||
Aytu BioPharma, Inc.
Unaudited Fiscal 2024 Reconciliation of Net Loss Adjusted for Discontinued Operations to Adjusted EBITDA
(in thousands)
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2024 | ||||||||||||||||
(as adjusted) | ||||||||||||||||||||
Net loss - GAAP | $ | (4,617 | ) | $ | (2,887 | ) | $ | (220 | ) | $ | (8,120 | ) | $ | (15,844 | ) | |||||
Interest expense | 1,253 | 1,257 | 1,266 | 1,283 | 5,059 | |||||||||||||||
Income tax expense | 841 | 521 | 780 | - | 2,142 | |||||||||||||||
Depreciation and amortization | 1,398 | 1,449 | 1,510 | 1,553 | 5,910 | |||||||||||||||
Stock-based compensation expense | 243 | 699 | 707 | 725 | 2,374 | |||||||||||||||
Other income, net | (120 | ) | (70 | ) | (96 | ) | (584 | ) | (870 | ) | ||||||||||
Derivative warrant liabilities (gain) loss | (1,463 | ) | (1,017 | ) | 577 | 5,907 | 4,004 | |||||||||||||
One-time transactions | 150 | - | - | 851 | 1,001 | |||||||||||||||
Restructuring costs | 1,912 | 244 | - | - | 2,156 | |||||||||||||||
Loss on extinguishment of debt | 594 | - | - | - | 594 | |||||||||||||||
Pipeline research and development costs | 599 | 136 | 96 | 152 | 983 | |||||||||||||||
Net loss from discontinued operations, net of tax | 1,239 | 599 | 839 | 647 | 3,324 | |||||||||||||||
Adjusted EBITDA - non-GAAP | $ | 2,029 | $ | 931 | $ | 5,459 | $ | 2,414 | $ | 10,833 | ||||||||||
SOURCE: Aytu BioPharma, Inc.
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/healthcare-and-pharmaceutical/aytu-biopharma-reports-fiscal-2025-third-quarter-operational-and-fina-1027225
