Aytu BioPharma Reports Fiscal 2025 Third Quarter Operational and Financial Results

Rhea-AI Summary

Aytu BioPharma (NASDAQ:AYTU) reported strong financial results for Q3 FY2025. The company achieved total net revenue of $18.5 million, up 32% year-over-year, driven by growth in both ADHD and Pediatric portfolios. The ADHD Portfolio revenue increased 25% to $15.4 million, while the Pediatric Portfolio saw a 77% increase to $3.1 million. The company reported net income of $4.0 million ($0.65 basic and $0.21 diluted EPS), compared to a net loss in Q3 FY2024. Adjusted EBITDA improved to $3.9 million from $0.9 million year-over-year. Cash position stood at $18.2 million, with the company reducing long-term debt by $2.5 million during the quarter. Gross profit was $12.8 million (69% margin), slightly down from 74% in the previous year due to temporary manufacturing transition costs.

Positive

• Revenue growth of 32% year-over-year to $18.5 million
• Strong ADHD Portfolio growth of 25% to $15.4 million
• Impressive Pediatric Portfolio growth of 77% to $3.1 million
• Turned profitable with $4.0 million net income vs previous year loss
• Adjusted EBITDA improved to $3.9 million from $0.9 million
• Operating expenses reduced by 13% year-over-year
• Paid down $2.5 million in long-term debt

Negative

• Gross profit margin declined to 69% from 74% year-over-year
• Cash position decreased to $18.2 million from $20.4 million in previous quarter

Insights

Pharmaceutical Financial Analyst

Aytu's Q3 shows remarkable transformation with 32% revenue growth, positive net income, and significant ADHD portfolio expansion driving profitability.

Aytu BioPharma has delivered a transformative quarter with net income of $4.0 million ($0.65 basic EPS), representing an impressive turnaround from the $2.9 million loss in Q3 2024. The 32% revenue jump to $18.5 million demonstrates that management's strategic realignment is bearing fruit.

The company's focused strategy on high-margin prescription pharmaceuticals is clearly working. Their ADHD portfolio (Adzenys XR-ODT and Cotempla XR-ODT) grew 25% to $15.4 million, while their pediatric portfolio surged 77% to $3.1 million. This diversified growth across multiple product lines indicates sustainable momentum rather than a one-product phenomenon.

Particularly noteworthy is how Aytu achieved this growth while simultaneously reducing operating expenses by 13% year-over-year. This operational leverage has translated directly to profitability, with Adjusted EBITDA of $3.9 million compared to just $0.9 million a year ago – a 333% improvement.

The temporary gross margin compression (from 74% to 69%) is a transitional cost related to manufacturing relocation, not an underlying business concern. As inventory normalizes in coming quarters, margins should recover.

With $18.2 million in cash and growing positive cash flow, Aytu is strengthening its balance sheet by paying down $2.5 million in debt this quarter alone. This financial flexibility positions them well for their stated goal of pursuing complementary product acquisitions to leverage their CNS-focused sales infrastructure and patient access platform.

The successful divestiture of their Consumer Health business has enabled management to focus entirely on their core pharmaceutical operations, eliminating a previous drag on performance. This strategic repositioning as a pure-play pharmaceutical company with improving economics appears to be gaining meaningful traction.

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

FAQ

What was Aytu BioPharma's (AYTU) revenue growth in Q3 2025?

Aytu BioPharma reported total net revenue of $18.5 million in Q3 2025, representing a 32% increase from $14.0 million in Q3 2024.

How much net income did AYTU report in Q3 2025?

Aytu BioPharma reported net income of $4.0 million, or $0.65 and $0.21 per share basic and diluted, compared to a net loss of $2.9 million in Q3 2024.

What was the performance of AYTU's ADHD portfolio in Q3 2025?

The ADHD Portfolio (Adzenys XR-ODT and Cotempla XR-ODT) revenue increased 25% to $15.4 million compared to $12.3 million in Q3 2024.

How much cash does Aytu BioPharma (AYTU) have as of March 2025?

Aytu BioPharma had cash and cash equivalents of $18.2 million as of March 31, 2025.

What was AYTU's Adjusted EBITDA in Q3 2025?

Aytu BioPharma reported Adjusted EBITDA of $3.9 million in Q3 2025, compared to $0.9 million in the prior year period.