Assertio Reports First Quarter 2025 Financial Results
Assertio Holdings (NASDAQ: ASRT) reported Q1 2025 financial results with total net product sales of $26.0 million, down from $31.9 million in Q1 2024. The company posted a net loss of $13.5 million ($0.14 per share) compared to a loss of $4.5 million ($0.05 per share) in the prior year quarter. Rolvedon sales reached $13.1 million, while Indocin contributed $5.5 million.
The company's transformation strategy focuses on reducing legal exposure, simplifying corporate structure, prioritizing growth assets, and pursuing strategic transactions. Notable achievements include settling multiple legal matters and transferring Assertio Therapeutics subsidiary to ATIH Industries. The company maintained a strong balance sheet with $87.3 million in cash and equivalents and $40.0 million in debt as of March 31, 2025.
Assertio Holdings (NASDAQ: ASRT) ha riportato i risultati finanziari del primo trimestre 2025 con vendite nette totali di prodotti per 26,0 milioni di dollari, in calo rispetto ai 31,9 milioni di dollari del primo trimestre 2024. La società ha registrato una perdita netta di 13,5 milioni di dollari (0,14 dollari per azione) rispetto a una perdita di 4,5 milioni di dollari (0,05 dollari per azione) nello stesso trimestre dell'anno precedente. Le vendite di Rolvedon hanno raggiunto 13,1 milioni di dollari, mentre Indocin ha contribuito con 5,5 milioni di dollari.
La strategia di trasformazione dell'azienda si concentra sulla riduzione dell'esposizione legale, sulla semplificazione della struttura aziendale, sulla priorità agli asset di crescita e sulla ricerca di transazioni strategiche. Tra i risultati significativi vi sono la risoluzione di diverse questioni legali e il trasferimento della controllata Assertio Therapeutics a ATIH Industries. La società ha mantenuto un bilancio solido con 87,3 milioni di dollari in contanti e equivalenti e 40,0 milioni di dollari di debito al 31 marzo 2025.
Assertio Holdings (NASDAQ: ASRT) reportó los resultados financieros del primer trimestre de 2025 con ventas netas totales de productos por 26,0 millones de dólares, una disminución respecto a los 31,9 millones de dólares del primer trimestre de 2024. La compañía registró una pérdida neta de 13,5 millones de dólares (0,14 dólares por acción) comparado con una pérdida de 4,5 millones de dólares (0,05 dólares por acción) en el mismo trimestre del año anterior. Las ventas de Rolvedon alcanzaron 13,1 millones de dólares, mientras que Indocin aportó 5,5 millones de dólares.
La estrategia de transformación de la empresa se centra en reducir la exposición legal, simplificar la estructura corporativa, priorizar los activos de crecimiento y buscar transacciones estratégicas. Logros notables incluyen la resolución de varios asuntos legales y la transferencia de la subsidiaria Assertio Therapeutics a ATIH Industries. La compañía mantuvo un balance sólido con 87,3 millones de dólares en efectivo y equivalentes y 40,0 millones de dólares en deuda al 31 de marzo de 2025.
Assertio Holdings (NASDAQ: ASRT)는 2025년 1분기 재무 실적을 발표하며 총 순제품 판매액 2,600만 달러를 기록했으며, 이는 2024년 1분기의 3,190만 달러에서 감소한 수치입니다. 회사는 1,350만 달러 순손실(주당 0.14달러)을 기록했으며, 이는 전년 동기 450만 달러(주당 0.05달러) 손실과 비교됩니다. Rolvedon 매출은 1,310만 달러에 달했고, Indocin은 550만 달러를 기여했습니다.
회사의 전환 전략은 법적 노출 감소, 기업 구조 단순화, 성장 자산 우선순위 설정 및 전략적 거래 추진에 중점을 둡니다. 주요 성과로는 여러 법적 문제 해결과 Assertio Therapeutics 자회사의 ATIH Industries로의 이전이 포함됩니다. 회사는 2025년 3월 31일 기준으로 8,730만 달러의 현금 및 현금성 자산과 4,000만 달러의 부채를 보유하며 견고한 재무 상태를 유지했습니다.
Assertio Holdings (NASDAQ : ASRT) a publié ses résultats financiers du premier trimestre 2025 avec des ventes nettes totales de produits de 26,0 millions de dollars, en baisse par rapport à 31,9 millions de dollars au premier trimestre 2024. La société a enregistré une perte nette de 13,5 millions de dollars (0,14 dollar par action) contre une perte de 4,5 millions de dollars (0,05 dollar par action) au trimestre précédent. Les ventes de Rolvedon ont atteint 13,1 millions de dollars, tandis qu’Indocin a contribué pour 5,5 millions de dollars.
La stratégie de transformation de l’entreprise vise à réduire l’exposition juridique, simplifier la structure corporative, prioriser les actifs de croissance et poursuivre des transactions stratégiques. Parmi les réalisations notables figurent le règlement de plusieurs litiges et le transfert de la filiale Assertio Therapeutics à ATIH Industries. La société a maintenu un bilan solide avec 87,3 millions de dollars en liquidités et équivalents et 40,0 millions de dollars de dettes au 31 mars 2025.
Assertio Holdings (NASDAQ: ASRT) meldete die Finanzergebnisse für das erste Quartal 2025 mit Gesamtumsatz aus Produktverkäufen in Höhe von 26,0 Millionen US-Dollar, was einem Rückgang gegenüber 31,9 Millionen US-Dollar im ersten Quartal 2024 entspricht. Das Unternehmen verzeichnete einen Nettoverlust von 13,5 Millionen US-Dollar (0,14 US-Dollar pro Aktie) im Vergleich zu einem Verlust von 4,5 Millionen US-Dollar (0,05 US-Dollar pro Aktie) im Vorjahresquartal. Die Verkäufe von Rolvedon erreichten 13,1 Millionen US-Dollar, während Indocin 5,5 Millionen US-Dollar beisteuerte.
Die Transformationsstrategie des Unternehmens konzentriert sich darauf, die rechtliche Belastung zu reduzieren, die Unternehmensstruktur zu vereinfachen, Wachstumswerte zu priorisieren und strategische Transaktionen zu verfolgen. Zu den bemerkenswerten Erfolgen zählen die Beilegung mehrerer Rechtsangelegenheiten und die Übertragung der Tochtergesellschaft Assertio Therapeutics an ATIH Industries. Das Unternehmen behielt eine starke Bilanz mit 87,3 Millionen US-Dollar in bar und Äquivalenten sowie 40,0 Millionen US-Dollar Schulden zum 31. März 2025 bei.
- Settlement of multiple legal matters including DOJ False Claims Act and Glumetza antitrust action, reducing future legal costs
- Strong cash position of $87.3 million with manageable debt of $40.0 million
- Improved gross margin to 70% from 65% year-over-year
- Sympazan prescriptions up 6.5% year-over-year in Q1
- Net loss widened to $13.5 million from $4.5 million year-over-year
- Total net product sales declined to $26.0 million from $31.9 million year-over-year
- Rolvedon sales decreased to $13.1 million from $14.5 million due to lower pricing
- Indocin sales dropped to $5.5 million from $8.7 million due to generic competition
- SG&A expenses increased to $22.0 million from $18.5 million year-over-year
Insights
Assertio's Q1 results show declining revenue and higher losses, but strategic restructuring may position for future growth despite current challenges.
Assertio's Q1 2025 results reveal a decline in net product sales to
Looking at product performance, Rolvedon sales decreased to
The corporate transformation efforts—including settling multiple legal matters, simplifying corporate structure, and divesting Assertio Therapeutics with its opioid litigation exposure—represent important strategic moves. However, these initiatives haven't yet translated to financial improvement. The cash position decreased to
While management maintains they're tracking to full-year guidance and points to expected Rolvedon growth through 2025, the substantial year-over-year declines and slim adjusted EBITDA margin suggest significant challenges ahead. The company's future depends heavily on successfully executing its growth strategy for Rolvedon and Sympazan while completing the promised strategic transaction to bring new growth drivers into its commercial platform.
First Quarter Total Net Product Sales of
Provides Update on Long-Term Business Strategy Designed to Create Sustainable Near-Term Growth and Increased Long-Term Value
LAKE FOREST, Ill., May 12, 2025 (GLOBE NEWSWIRE) -- Assertio Holdings, Inc. (“Assertio” or the “Company”) (Nasdaq: ASRT), a pharmaceutical company with comprehensive commercial capabilities offering differentiated products designed to address patients’ needs, today reported financial results for the first quarter ended March 31, 2025.
Said Brendan O’Grady, Chief Executive Officer, “We have achieved substantial progress to date as we implement our business strategy designed to create sustainable near-term growth and increased long-term value as a specialty pharmaceutical company focused on commercial assets. As part of this strategy, Assertio’s 2025 transformation priorities include reducing legal exposure, simplifying our corporate structure and processes, prioritizing investment in growth assets, divesting declining or non-core assets, and using the strength of our balance sheet to close a strategic transaction.”
Executing on these priorities through the first quarter, Assertio has:
- Settled multiple prior legal matters, including the previously disclosed DOJ False Claims Act qui tam lawsuit, the last remaining Glumetza antitrust action, Spectrum’s legacy Luo securities class action (subject to court approval), and obtained a dismissal of the Company’s Edwards securities class action, reducing future legal costs and further focusing resources on the business.
- Begun simplifying its corporate holdings structure by transferring all of its interests in its subsidiary Assertio Therapeutics to an established purchaser of legacy litigation matters resulting in Assertio Therapeutics being owned by the purchaser’s related company, ATIH Industries, LLC. At the closing of this transaction, Assertio Therapeutics held approximately
$8.2 million in cash, insurance, a single-digit royalty on Indocin, and certain legal liabilities, including those related to opioid litigation. As a result of this transaction, neither Assertio Holdings nor any of its current subsidiaries are defendants in any opioid-related litigation. - Reallocated corporate resources to focus on growth assets, namely Rolvedon and Sympazan.
- Advanced its strategic activities to bring new growth drivers into Assertio’s commercial platform, while also progressing the process to divest non-core assets.
Net Sales and Key Asset Performance
Further, O’Grady said “Looking at the first quarter, net sales came in at
Financial Highlights (unaudited):
| Three Months Ended | |||||||
| (in millions, except per share amounts) | March 31, 2025 | March 31, 2024 | |||||
| Net Product Sales (GAAP) | $ | 26.0 | $ | 31.9 | |||
| Net Loss (GAAP) | $ | (13.5 | ) | $ | (4.5 | ) | |
| Loss Per Share (GAAP) | $ | (0.14 | ) | $ | (0.05 | ) | |
| Adjusted EBITDA (Non-GAAP)1 | $ | 0.2 | $ | 7.4 | |||
| Adjusted Earnings Per Share (Non-GAAP)1 | $ | (0.04 | ) | $ | 0.04 | ||
First quarter results included the following as compared to the prior year first quarter:
- Rolvedon net product sales were
$13.1 million , a decrease from$14.5 million in the prior year quarter, driven by lower pricing, partially offset by higher volume. - Indocin net product sales were
$5.5 million , a decrease from$8.7 million in the prior year quarter, due to the previously announced generic competition affecting both volume and pricing.
- Gross margin2 increased to
70% compared to65% in the prior year quarter, primarily driven by a reduction in inventory write-downs and the completion of Rolvedon inventory step-up amortization, partially offset by the impact of higher Rolvedon volumes on cost of sales. - SG&A expenses were
$22.0 million , an increase from$18.5 million in the prior year quarter, primarily driven by$4.7 million of net higher legal charges and settlements, partially offset by a$1.1 million reduction in personnel costs. - Adjusted EBITDA3 was
$0.2 million , a decrease from$7.4 million in the prior year quarter, primarily reflecting lower net product sales and the impact of higher Rolvedon volumes on cost of sales.
1 Non-GAAP measures are reconciled to the corresponding GAAP measures in the schedules attached.
2 Gross margin represents the ratio of net product sales less cost of sales to net product sales.
3 See “Non-GAAP Financial Measures” below for information about reconciling our Adjusted EBITDA guidance to Net Loss.
Balance Sheet and Cash Flow
- As of March 31, 2025, cash, cash equivalents and short-term investments totaled
$87.3 million , compared to$100.1 million as of December 31, 2024. Cash flow from operations during the quarter was impacted by the timing of approximately$12.0 million of accounts receivable collected in April 2025. - Debt as of March 31, 2025 was
$40.0 million , comprised of the Company’s6.5% convertible notes, with no maturities until September 2027.
Conference Call and Investor Presentation Information
Assertio’s management will host a conference call today to discuss its first quarter 2025 financial results and provide additional details of its 2025 corporate strategy.
| Date: | Monday, May 12, 2025 |
| Time: | 4:30 p.m. Eastern Time |
| Webcast (live and archive): | http://investor.assertiotx.com/overview/default.aspx (Events & Webcasts, Investor Page) |
| Dial-in numbers: | 1-646-307-1963, Conference ID 3278948 |
To access the live webcast, the recorded conference call replay, and other materials, please visit Assertio’s investor relations website at http://investor.assertiotx.com/overview/default.aspx. Please connect at least 15 minutes prior to the live webcast to ensure adequate time for any software download that may be needed to access the webcast. The replay will be available approximately two hours after the call on Assertio’s investor website.
About Assertio
Assertio is a pharmaceutical company with comprehensive commercial capabilities offering differentiated products designed to address patients’ needs. Our focus is on supporting patients by marketing products in oncology, neurology, and pain management. To learn more about Assertio, visit www.assertiotx.com.
Investor Contact
Matt Kreps, Managing Director
Darrow Associates
M: 214-597-8200
mkreps@darrowir.com
Forward Looking Statements
The statements in this communication include forward-looking statements. Forward-looking statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs. Forward-looking statements speak only as of the date they are made or as of the dates indicated in the statements and should not be relied upon as predictions of future events, as there can be no assurance that the events or circumstances reflected in these statements will be achieved or will occur. Forward-looking statements can often, but not always, be identified by the use of forward-looking terminology such as “anticipate,” “approximate”, “believe,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “might,” “opportunity,” “plan,” “potential,” “project,” “prospective,” “pursue,” “seek,” “should,” “strategy,” “target,” “will,” or the negative of these words and phrases, other variations of these words and phrases or comparable terminology. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements, including: Assertio’s ability to grow sales and the commercial success and market acceptance of Rolvedon and Assertio’s other products, including the coverage of Assertio’s products by payors and pharmacy benefit managers; Assertio’s ability to successfully develop and execute its sales, marketing and promotion strategies using its sales force and omni-channel promotion model capabilities; the impact on sales and profits from the entry and sales of generics of Assertio’s products and/or other products competitive with any of Assertio’s products, including, but not limited to, biosimilars and indomethacin suppositories compounded by hospitals and other institutions and a 503B compounder which Assertio believes is violating certain provisions of the Federal Food, Drug and Cosmetic Act; the timing and impact of additional generic approvals and uncertainty around the recent approvals and launches of generic Indocin products, which are not patent protected and now face generic competition; Assertio’s ability to successfully identify and execute business development and other strategic transactions; Assertio’s ability to achieve the expected financial performance from products we acquire as well as delays, challenges and expenses, and unexpected liabilities and costs associated with integrating and operating newly-acquired products; expectations regarding changes in product volume and mix and the impact those changes may have on Assertio’s operating results; expectations regarding the recoverability of long-lived assets; expected industry trends, including pricing pressures and managed healthcare practices; Assertio’s ability to attract and retain executive leadership and key employees; the ability of Assertio’s third-party manufacturers to manufacture adequate quantities of commercially salable inventory and active pharmaceutical ingredients for each of Assertio’s products on commercially reasonable terms and in compliance with their contractual obligations to Assertio, and Assertio’s ability to maintain its supply chain which relies on single-source suppliers; the outcome of, and Assertio’s intentions with respect to, any litigation or government investigations, including pending and potential future shareholder litigation relating to the Spectrum Merger and/or the recent approval and launch of generic indomethacin suppositories, opioid-related government investigations and opioid-related litigation, Spectrum’s legacy shareholder and other litigation, and other disputes and litigation, including Assertio’s antitrust and unsealed qui tam litigation for which definitive settlements have now been reached; the timing, cost and results of Assertio’s clinical studies and other research and development efforts, including the extent to which data from the Rolvedon same-day dosing trial, which was completed in the fourth quarter of 2024, may support Assertio’s ongoing commercialization efforts; Assertio’s compliance or non-compliance with, or being subject to, legal and regulatory requirements related to the development or promotion of pharmaceutical products in the U.S., the extent to which the current U.S. federal administration may impose or seek to impose leadership, rule and/or policy changes impacting Assertio’s business, as well as legal challenges and uncertainty around the funding, functioning, regulatory and policy priorities of U.S. federal regulatory agencies; Assertio’s ability to obtain and maintain intellectual property protection for its products and operate its business without infringing the intellectual property rights of others; variations in revenues obtained from commercialization agreements and the accounting treatment with respect thereto; Assertio’s common stock regaining and maintaining compliance with The Nasdaq Capital Market’s minimum closing bid requirement of at least
Non-GAAP Financial Measures
To supplement the Company’s financial results presented on a U.S. generally accepted accounting principles (“GAAP”) basis, the Company has included information about non-GAAP measures of EBITDA, adjusted EBITDA, adjusted earnings, and adjusted earnings per share as useful operating metrics. The Company believes that the presentation of these non-GAAP financial measures, when viewed with results under GAAP and the accompanying reconciliation, provides supplementary information to analysts, investors, lenders, and the Company’s management in assessing the Company’s performance and results from period to period. The Company uses these non-GAAP measures internally to understand, manage and evaluate the Company’s performance, and in part, in the determination of bonuses for executive officers and employees. These non-GAAP financial measures should be considered in addition to, and not a substitute for, or superior to, net income or other financial measures calculated in accordance with GAAP. Non-GAAP financial measures used by us may be calculated differently from, and therefore may not be comparable to, non-GAAP measures used by other companies.
Specified Items
Non-GAAP measures presented within this release exclude specified items. The Company considers specified items to be significant income/expense items not indicative of current operations. Specified items may include adjustments to interest expense and interest income, income tax expense (benefit), depreciation expense, amortization expense, sales reserves adjustments for products the Company is no longer selling, stock-based compensation expense, fair value adjustments to contingent consideration or derivative liability, expenses recognized for legal settlements, net of any insurance proceeds, restructuring charges, amortization of fair value inventory step-up as a result of purchase accounting, transaction-related costs, gains, losses or impairments from adjustments to long-lived assets and assets not part of current operations, changes in valuation allowances on deferred tax assets, and gains or losses resulting from debt refinancing or extinguishment.
Revisions to Specified Items
Beginning with the first quarter of 2025, adjusted EBITDA excludes legal settlement costs incurred during the period, as these charges relate to non-recurring and non-operational matters. Management believes that excluding such items provides investors with a clearer understanding of the Company’s underlying operating performance by removing the impact of items that are not indicative of continuing operations. Prior period amounts of Adjusted EBITDA have been recast to conform to this presentation.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands, except per share amounts)
(unaudited)
| Three Months Ended | |||||||
| March 31, 2025 | March 31, 2024 | ||||||
| Revenues: | |||||||
| Product sales, net | $ | 25,994 | $ | 31,862 | |||
| Royalty revenue | 494 | 586 | |||||
| Total revenues | 26,488 | 32,448 | |||||
| Costs and expenses: | |||||||
| Cost of sales | 7,786 | 11,177 | |||||
| Research and development expenses | 438 | 733 | |||||
| Selling, general and administrative expenses | 21,975 | 18,524 | |||||
| Amortization of intangible assets | 9,233 | 5,631 | |||||
| Restructuring charges | 289 | 720 | |||||
| Total costs and expenses | 39,721 | 36,785 | |||||
| Loss from operations | (13,233 | ) | (4,337 | ) | |||
| Other (expense) income: | |||||||
| Interest expense | (765 | ) | (757 | ) | |||
| Interest income | 720 | 711 | |||||
| Other (loss) gain | (18 | ) | 5 | ||||
| Total other expense | (63 | ) | (41 | ) | |||
| Net loss before income taxes | (13,296 | ) | (4,378 | ) | |||
| Income tax expense | (245 | ) | (132 | ) | |||
| Net loss and comprehensive loss | $ | (13,541 | ) | $ | (4,510 | ) | |
| Basic and diluted net loss per share | $ | (0.14 | ) | $ | (0.05 | ) | |
| Shares used in computing basic and diluted net loss per share | 95,677 | 94,980 | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
| (Unaudited) | |||||||
| March 31, 2025 | December 31, 2024 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 35,004 | $ | 50,588 | |||
| Short-term investments | 52,321 | 49,466 | |||||
| Accounts receivable, net | 66,292 | 54,120 | |||||
| Inventories, net | 39,403 | 38,308 | |||||
| Prepaid and other current assets | 20,530 | 10,067 | |||||
| Total current assets | 213,550 | 202,549 | |||||
| Property and equipment, net | 550 | 586 | |||||
| Intangible assets, net | 71,238 | 80,471 | |||||
| Other long-term assets | 1,088 | 1,126 | |||||
| Total assets | $ | 286,426 | $ | 284,732 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 8,896 | $ | 14,736 | |||
| Accrued rebates, returns and discounts | 82,130 | 76,304 | |||||
| Accrued liabilities | 33,037 | 18,847 | |||||
| Contingent consideration, current portion | 726 | 726 | |||||
| Other current liabilities | 4,043 | 4,075 | |||||
| Total current liabilities | 128,832 | 114,688 | |||||
| Long-term debt | 38,929 | 38,813 | |||||
| Other long-term liabilities | 10,135 | 10,150 | |||||
| Total liabilities | 177,896 | 163,651 | |||||
| Commitments and contingencies | |||||||
| Shareholders’ equity: | |||||||
| Common stock, | 9 | 9 | |||||
| Additional paid-in capital | 795,186 | 794,196 | |||||
| Accumulated deficit | (686,665 | ) | (673,124 | ) | |||
| Total shareholders’ equity | 108,530 | 121,081 | |||||
| Total liabilities and shareholders' equity | $ | 286,426 | $ | 284,732 | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Operating Activities | |||||||
| Net loss | $ | (13,541 | ) | $ | (4,510 | ) | |
| Adjustments to reconcile net loss to net cash from operating activities: | |||||||
| Depreciation and amortization | 9,269 | 5,696 | |||||
| Amortization of debt issuance costs | 115 | 107 | |||||
| Accretion of interest income from short-term investments | 54 | — | |||||
| Recurring fair value measurements of assets and liabilities | 25 | — | |||||
| Provisions for inventory | 538 | 1,428 | |||||
| Stock-based compensation | 1,101 | 1,207 | |||||
| Changes in assets and liabilities, net of acquisition: | |||||||
| Accounts receivable | (12,172 | ) | 5,054 | ||||
| Inventories | (1,633 | ) | (2,344 | ) | |||
| Prepaid and other assets | (10,425 | ) | 1,921 | ||||
| Accounts payable and other accrued liabilities | 8,954 | (134 | ) | ||||
| Accrued rebates, returns and discounts | 5,827 | (267 | ) | ||||
| Interest payable | (650 | ) | (650 | ) | |||
| Net cash (used in) provided by operating activities | (12,538 | ) | 7,508 | ||||
| Investing Activities | |||||||
| Proceeds from maturities of short-term investments | 28,482 | — | |||||
| Purchases of short-term investments | (31,417 | ) | — | ||||
| Net cash used in investing activities | (2,935 | ) | — | ||||
| Financing Activities | |||||||
| Payments related to the vesting and settlement of equity awards, net | (111 | ) | (206 | ) | |||
| Net cash used in financing activities | (111 | ) | (206 | ) | |||
| Net (decrease) increase in cash and cash equivalents | (15,584 | ) | 7,302 | ||||
| Cash and cash equivalents at beginning of year | 50,588 | 73,441 | |||||
| Cash and cash equivalents at end of period | $ | 35,004 | $ | 80,743 | |||
| Supplemental Disclosure of Cash Flow Information | |||||||
| Net cash refunded (paid) for income taxes | $ | 1,040 | $ | (11 | ) | ||
| Cash paid for interest | $ | 1,300 | $ | 1,300 | |||
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP EBITDA and ADJUSTED EBITDA
(in thousands)
(unaudited)
| Three Months Ended March 31, | ||||||||||
| 2025 | 2024 | Financial Statement Classification | ||||||||
| GAAP Net Loss | $ | (13,541 | ) | $ | (4,510 | ) | ||||
| Interest expense | 765 | 757 | Interest expense | |||||||
| Income tax expense | 245 | 132 | Income tax expense | |||||||
| Depreciation expense | 36 | 65 | Selling, general and administrative expenses | |||||||
| Amortization of intangible assets | 9,233 | 5,631 | Amortization of intangible assets | |||||||
| EBITDA (Non-GAAP) | $ | (3,262 | ) | $ | 2,075 | |||||
| Adjustments: | ||||||||||
| Stock-based compensation | 1,101 | 1,207 | Selling, general and administrative expenses | |||||||
| Legal settlement in principle, net of insurance proceeds (1) | 2,750 | — | Selling, general and administrative expenses | |||||||
| Restructuring costs(2) | 289 | 720 | Restructuring charges | |||||||
| Other (3) | (720 | ) | 3,377 | Multiple | ||||||
| Adjusted EBITDA (Non-GAAP) | $ | 158 | $ | 7,379 | ||||||
(1) Legal settlement in principle, net of insurance proceeds represents the net impact of the Luo securities class action.
(2) Restructuring costs represent non-recurring costs associated with the Company’s announced restructuring plans.
(3) Other for the three months ended March 31, 2025 and 2024, represents the following adjustments (in thousands):
| Three Months Ended March 31, | ||||||||||
| 2025 | 2024 | Financial Statement Classification | ||||||||
| Amortization of inventory step-up | $ | — | $ | 4,088 | Cost of sales | |||||
| Interest income | (720 | ) | (711 | ) | Interest income | |||||
| Total Other | $ | (720 | ) | $ | 3,377 | |||||
RECONCILIATION OF GAAP NET LOSS and NET LOSS PER SHARE TO
NON-GAAP ADJUSTED EARNINGS and ADJUSTED EARNINGS PER SHARE (1)
(in thousands, except per share amounts)
(unaudited)
| Three Months Ended March 31, | |||||||||||||||
| 2025 | 2024 | ||||||||||||||
| Amount | Diluted EPS (2) | Amount | Diluted EPS (2) | ||||||||||||
| Net loss (GAAP)(2) | $ | (13,541 | ) | $ | (0.14 | ) | $ | (4,510 | ) | $ | (0.05 | ) | |||
| Add: Convertible debt interest expense and other income statement impacts, net of tax(2) | — | — | |||||||||||||
| Adjustments: | |||||||||||||||
| Amortization of intangible assets | 9,233 | 5,631 | |||||||||||||
| Stock-based compensation | 1,101 | 1,207 | |||||||||||||
| Legal settlement in principle, net of insurance proceeds | 2,750 | — | |||||||||||||
| Restructuring costs | 289 | 720 | |||||||||||||
| Other | (720 | ) | 3,377 | ||||||||||||
| Income tax expense, as adjusted (3) | (3,163 | ) | (2,734 | ) | |||||||||||
| Adjusted (loss) earnings (Non-GAAP) | $ | (4,051 | ) | $ | (0.04 | ) | $ | 3,691 | $ | 0.04 | |||||
| Diluted shares used in calculation (GAAP)(2) | 95,677 | 94,980 | |||||||||||||
| Add: Dilutive effect of stock-based awards and equivalents(2) | — | 271 | |||||||||||||
| Add: Dilutive effect of 2027 Convertible Notes(2) | — | — | |||||||||||||
| Diluted shares used in calculation (Non-GAAP)(2) | 95,677 | 95,251 | |||||||||||||
(1) Certain adjustments included here are the same as those reflected in the Company’s reconciliation of GAAP net loss to non-GAAP adjusted EBITDA and therefore should be read in conjunction with that reconciliation and respective footnotes.
(2) The Company uses the if-converted method with respect to its convertible debt to compute GAAP and Non-GAAP diluted earnings per share when the effect is dilutive. Under the if-converted method, the Company assumes the 2027 Convertible Notes were converted at the beginning of each period presented and outstanding. As a result, interest expense, net of tax, and any other income statement impact associated with the 2027 Convertible Notes, net of tax, is added back to net income used in the diluted earnings per share calculation.
For the three months ended March 31, 2025, the Company’s potentially dilutive convertible debt under the if-converted method and stock-based awards under the treasury-stock method were not included in either the computation of GAAP net loss and diluted net loss per share or non-GAAP adjusted loss and adjusted loss per share, because to do so would be anti-dilutive.
For the three months ended March 31, 2024, the Company’s potentially dilutive convertible debt under the if-converted method and stock-based awards under the treasury-stock method were not included in the computation of GAAP net loss and diluted net loss per share, and the potentially dilutive convertible debt under the if-converted method were not included in non-GAAP adjusted earnings and adjusted earnings per share, because to do so would be anti-dilutive. However, the potentially dilutive stock-based awards under the treasury-stock method were included in the computation of non-GAAP adjusted earnings and adjusted earnings per share because the effect was dilutive.
(3) Represents the Company’s income tax expense adjustment from the tax effect of pre-tax adjustments excluded from adjusted earnings. The tax effect of pre-tax adjustments excluded from adjusted earnings is computed at the blended federal and state statutory rate of
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