Cerus | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 60.24 M

Revenue: As of FY2025 Q3, the actual value is USD 60.24 M, beating the estimate of USD 55.12 M.

EPS: As of FY2025 Q3, the actual value is USD 0, beating the estimate of USD -0.0275.

EBIT: As of FY2025 Q3, the actual value is USD 3.355 M.

Segment Revenue

Product Revenue: $52.698 million for the three months ended September 30, 2025, compared to $46.017 million for the same period in 2024, representing a 15% increase. For the nine months ended September 30, 2025, product revenue was $148.382 million, compared to $129.461 million for the same period in 2024, also a 15% increase.
Government Contract Revenue: $7.539 million for the three months ended September 30, 2025, compared to $4.639 million for the same period in 2024, representing a 63% increase. For the nine months ended September 30, 2025, government contract revenue was $20.837 million, compared to $15.109 million for the same period in 2024, a 38% increase.

Operational Metrics

Cost of Product Revenue: $24.558 million for the three months ended September 30, 2025, compared to $19.818 million for the same period in 2024, representing a 24% increase. For the nine months ended September 30, 2025, cost of product revenue was $65.843 million, compared to $57.324 million for the same period in 2024, a 15% increase.
Gross Margin on Product Sales: 53% for the three months ended September 30, 2025, compared to 57% for the same period in 2024. For the nine months ended September 30, 2025, gross margin on product sales was 56%, consistent with the same period in 2024.
Research and Development Expenses: $15.825 million for the three months ended September 30, 2025, compared to $14.013 million for the same period in 2024, representing a 13% increase. For the nine months ended September 30, 2025, research and development expenses were $51.330 million, compared to $43.464 million for the same period in 2024, an 18% increase.
Selling, General and Administrative Expenses: $18.618 million for the three months ended September 30, 2025, compared to $17.786 million for the same period in 2024, representing a 5% increase. For the nine months ended September 30, 2025, selling, general and administrative expenses were $60.086 million, compared to $56.558 million for the same period in 2024, a 6% increase.
Non-Operating Expense, Net: - $1.171 million for the three months ended September 30, 2025, compared to - $1.897 million for the same period in 2024, representing a 38% decrease. For the nine months ended September 30, 2025, non-operating expense, net was - $5.178 million, compared to - $5.529 million for the same period in 2024, a 6% decrease.
Provision for Income Taxes: $0.085 million for the three months ended September 30, 2025, compared to $0.076 million for the same period in 2024, representing a 12% increase. For the nine months ended September 30, 2025, provision for income taxes was $0.235 million, compared to $0.094 million for the same period in 2024, a 150% increase.

Cash Flow

Net Cash (Used in) Provided by Operating Activities: - $1.363 million for the nine months ended September 30, 2025, compared to $6.430 million for the same period in 2024.
Net Cash Used in Investing Activities: - $4.787 million for the nine months ended September 30, 2025, compared to - $0.844 million for the same period in 2024.
Net Cash Provided by Financing Activities: $1.262 million for the nine months ended September 30, 2025, compared to $4.218 million for the same period in 2024.

Unique Metrics

Working Capital: $80.032 million as of September 30, 2025, compared to $88.890 million as of December 31, 2024.

Future Outlook and Strategy

Core Business Focus: The company plans to continue investing in research and development, particularly for the red blood cell system, and to expand its commercial operations globally. The company also aims to achieve market acceptance and generate product sales through execution of sales agreements on commercially reasonable terms.
Non-Core Business: The company is exploring new business models, including selling kits to blood centers, performing inactivation themselves, staffing blood centers, or selling services. The company has also formed a joint venture in China to develop and commercialize blood transfusion products.
Priority: The company emphasizes the importance of obtaining regulatory approvals and maintaining compliance with regulatory requirements to support its commercialization efforts. The company also highlights the need to manage its supply chain effectively to meet customer demand and ensure product quality.