Heron Therap | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 38.21 M

Revenue: As of FY2025 Q3, the actual value is USD 38.21 M, missing the estimate of USD 39.03 M.

EPS: As of FY2025 Q3, the actual value is USD -0.1, missing the estimate of USD -0.015.

EBIT: As of FY2025 Q3, the actual value is USD -2.03 M.

Segment Revenue

• Acute Care Net Product Sales: Increased by 67.2% to $12.3 million for the three months ended September 30, 2025, compared to $7.4 million in the same period in 2024. For the nine months ended September 30, 2025, sales increased by 69.2% to $33.3 million from $19.7 million in 2024.
• Oncology Net Product Sales: Increased by 1.7% to $25.9 million for the three months ended September 30, 2025, compared to $25.4 million in the same period in 2024. For the nine months ended September 30, 2025, sales decreased by 3.4% to $81.0 million from $83.8 million in 2024.

Operational Metrics

• Net Loss: For the three months ended September 30, 2025, the net loss was $17.5 million, compared to $4.8 million in the same period in 2024. For the nine months ended September 30, 2025, the net loss was $17.2 million, consistent with the same period in 2024.
• Gross Profit: For the three months ended September 30, 2025, gross profit was 68.8%, compared to 71.2% in the same period in 2024. For the nine months ended September 30, 2025, gross profit was 73.6%, compared to 72.5% in 2024.

Cash Flow

• Net Cash Used in Operating Activities: For the nine months ended September 30, 2025, net cash used was $18.4 million, compared to $10.7 million in the same period in 2024.
• Net Cash Provided by Investing Activities: For the nine months ended September 30, 2025, net cash provided was $21.5 million, compared to $7.3 million in the same period in 2024.
• Net Cash Provided by Financing Activities: For the nine months ended September 30, 2025, net cash provided was $14.2 million, compared to $0.5 million in the same period in 2024.

Future Outlook and Strategy

• Core Business Focus: The company plans to wind down the commercialization of SUSTOL over the next 12 months while evaluating potential product updates, with a possible reintroduction as early as late 2027. During the wind down, the company will continue to support customers and manage inventory responsibly.
• Non-Core Business: The company is focusing on expanding the market share and customer base for ZYNRELEF and APONVIE, which have shown significant sales growth.