Emmaus Life Sciences Reports Quarterly Financial Results

Rhea-AI Summary

Emmaus Life Sciences (OTCQB: EMMA), a biopharmaceutical company focused on sickle cell disease treatment, reported challenging Q2 2025 financial results. The company experienced a significant 48% decline in net revenue to $2.8 million compared to $5.4 million in Q2 2024, primarily due to generic L-Glutamine competition.

The company reported a net loss of $1.1 million ($0.02 per share), an improvement from the $2.2 million loss in Q2 2024. Operating expenses decreased by 33% to $3.0 million following workforce reductions. Cash position weakened to $0.9 million as of June 30, 2025, down from $1.4 million at year-end 2024.

Positive

• Net loss improved to $1.1 million from $2.2 million in Q2 2024
• Operating expenses reduced by 33% to $3.0 million through cost-cutting measures
• Other expenses decreased to $1.4 million from $2.7 million year-over-year

Negative

• Revenue declined 48% year-over-year to $2.8 million due to generic competition
• Shifted from $0.6 million operating income to $0.4 million operating loss
• Cash position deteriorated to $0.9 million from $1.4 million at year-end 2024

TORRANCE, Calif., Aug. 14, 2025 /PRNewswire/ -- Emmaus Life Sciences, Inc. (OTCQB: EMMA), a commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease, today reported on its financial condition and results of operations as of and for the three and six months ended June 30, 2025.

Highlights

"We experienced a 48% decline in net revenue for the three months ended June 30, 2025 as compared to the same period in 2024 due to ongoing competition from generic L-Glutamine, partially offset by a 33% reduction in operating expenses," commented Willis Lee, Chairman and Chief Executive Officer of Emmaus. "We realized loss from operations of $0.4 million compared to income from operations of $0.6 million in the prior year," he added.

Financial and Operating Results

Net Revenues. Net revenues for the three months ended June 30, 2025 were $2.8 million, compared to $5.4 million in the same period in 2024. The decrease was due to a decrease in U.S. sales which management attributes to competition from the generic version of L-Glutamine introduced in the market in mid-2024.

Operating Expenses. Total operating expenses for the three months were $3.0 million compared to $4.6 million in the comparable period in 2024. The decrease was due primarily to decreases in selling expenses and general and administrative expenses attributable to a reduction in force in Q4 2024.

Income (Loss) From Operations. Total loss from operations for the three months was $0.4 million compared to income from operation of $0.6 million in the same period in 2024.  This was due to the decrease in net revenues.

Other Expense. The company realized other expense of $1.4 million for the three months compared to $2.7 million in the same period in 2024. The decrease was due primarily to a decrease of $1.4 million in change in fair value of conversion feature derivative liabilities and an increase in decreases in $0.9 million nonrecurring gain recognized on lease modification of the Torrance headquarter office lease partially offset by $0.7 million increase in interest expenses.

Net Loss. For the three months, the company realized net loss of $1.1 million, or $0.02 per share based on approximately 63.9 million weighted-average basic common shares, compared to net loss of $2.2 million, or $0.03 per share based on approximately 63.4 million weighted-average basic common shares in the comparable period in 2024. The decreased net loss was attributable to the decrease in other expense. 

Liquidity and Capital Resources. At June 30, 2025, the company had cash and cash equivalents of $0.9 million, compared to $1.4 million at December 31, 2024. 

About Emmaus Life Sciences
Emmaus Life Sciences, Inc. is a commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease. Endari® (L-glutamine oral powder), indicated to reduce the acute complications of sickle cell disease in adults and children 5 years and older, is approved for marketing in the United States, Israel, Kuwait, Qatar, the United Arab Emirates, Bahrain and Oman and is available on a named patient or early access basis in France, the Netherlands, and the Kingdom of Saudi Arabia, where Emmaus' application for marketing authorization is awaiting final action by the Saudi Food & Drug Authority. For more information, please visit www.emmausmedical.com.

About Endari® (prescription grade L-glutamine oral powder)
Endari®, Emmaus' prescription grade L-glutamine oral powder, was approved by the U.S. Food and Drug Administration (FDA) in July 2017 for treating sickle cell disease in adult and pediatric patients five years of age and older.

Indication
Endari® is indicated to reduce the acute complications of sickle cell disease in adult and pediatric patients five years of age and older.

Important Safety Information
The most common adverse reactions (incidence >10 percent) in clinical studies were constipation, nausea, headache, abdominal pain, cough, pain in extremities, back pain, and chest pain.

Adverse reactions leading to treatment discontinuation included one case each of hypersplenism, abdominal pain, dyspepsia, burning sensation, and hot flash.

The safety and efficacy of Endari® in pediatric patients with sickle cell disease younger than five years of age has not been established.

For more information, please see full Prescribing Information of Endari® at: www.ENDARIrx.com/PI.

About Sickle Cell Disease
There are approximately 100,000 people living with sickle cell disease (SCD) in the United States and millions more globally. The sickle gene is found in every ethnic group, not just among those of African descent; and in the United States an estimated 1-in-365 African Americans and 1-in-16,300 Hispanic Americans are born with SCD.¹ The genetic mutation responsible for SCD causes an individual's red blood cells to distort into a "C" or a sickle shape, reducing their ability to transport oxygen throughout the body. These sickled red blood cells break down rapidly, become very sticky, and develop a propensity to clump together, which causes them to become stuck and cause damage within blood vessels. The result is reduced blood flow to distal organs, which leads to physical symptoms of incapacitating pain, tissue and organ damage, and early death.²

¹Source: Data & Statistics on Sickle Cell Disease – National Center on Birth Defects and Developmental Disabilities, Centers for Disease Control and Prevention, December 2020.
²Source: Committee on Addressing Sickle Cell Disease – A Strategic Plan and Blueprint for Action -- National Academy of Sciences Press, 2020.

Forward-looking Statements
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding the recent trend in net revenues . These forward-looking statements are subject to numerous assumptions, risks and uncertainties which change over time, including doubt about the company's ability to continue as a going concern  and other factors disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on April 14, 2025 and Quarterly Report on Form 10-Q filed on August 14, 2025, and actual results may differ materially. Such forward-looking statements speak only as of the date they are made, and Emmaus assumes no duty to update them, except as may be required by law. 

Company Contact:
Emmaus Life Sciences, Inc.
Investor Relations
(310) 214-0065
IR@emmauslifesciences.com 

(Financial Tables Follow)

Emmaus Life Sciences, Inc.
Condensed Consolidated Statement of Operations and Comprehensive Income (Loss)
(In thousands, except share and per share amounts)
		Three Months Ended June 30,				Six Months Ended June 30,
		2025		2024		2025		2024
Revenues, Net		$             2,817		$             5,377		$          5,223		$             7,883
Cost of Goods Sold		150		241		375		498
Gross Profit		2,667		5,136		4,848		7,385
Operating Expenses		3,037		4,554		6,198		9,543
Income (Loss) from Operations		(370)		582		(1,350)		(2,158)
Total Other Expense		(1,355)		(2,735)		(2,701)		(4,350)
Net Income (Loss)		(1,135)		(2,184)		(3,465)		(6,532)
Comprehensive Income (Loss)		4,036		(1,524)		4,234		(3,234)
Net Loss Per Share		$              (0.02)		$              (0.03)		$           (0.05)		$              (0.10)
Weighted Average Common Shares Outstanding		63,865,571		63,355,121		63,865,571		62,600,542

 

Emmaus Life Sciences, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
		As of
		June 30, 2025 (Unaudited)		December 31, 2024
Assets
Current Assets:
Cash and cash equivalents		$                886		$             1,389
Accounts receivable, net		2,071		2,623
Inventories, net		1,313		1,635
Prepaid expenses and other current assets		745		1,120
Total Current Assets		5,015		6,767
Property and Equipment, net		143		46
Right of use assets		830		1,530
Investment in convertible bond		17,188		15,037
Other Assets		168		222
Total Assets		23,344		23,602
Liabilities and Stockholders' Deficit
Current Liabilities:
Accounts payable and accrued expenses		19,373		16,926
Operating lease liabilities, current portion		348		2,423
Conversion feature derivative, notes payable		—		162
Notes payable, current portion		11,399		10,465
Convertible notes payable, net of discount		16,804		17,014
Other current liabilities		14,152		16,565
Total Current Liabilities		62,076		63,555
Other long-term liabilities		16,969		16,526
Total Liabilities		79,045		80,081
Stockholders' Deficit		(55,701)		(56,479)
Total Liabilities & Stockholders' Deficit		23,344		23,602

 

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SOURCE Emmaus Life Sciences, Inc.

FAQ

What caused Emmaus Life Sciences (EMMA) revenue decline in Q2 2025?

Emmaus experienced a 48% revenue decline primarily due to competition from generic L-Glutamine introduced in mid-2024, which affected U.S. sales.

How much did Emmaus Life Sciences (EMMA) lose in Q2 2025?

Emmaus reported a net loss of $1.1 million ($0.02 per share), compared to a net loss of $2.2 million ($0.03 per share) in Q2 2024.

What is Emmaus Life Sciences (EMMA) current cash position?

As of June 30, 2025, Emmaus had cash and cash equivalents of $0.9 million, down from $1.4 million at December 31, 2024.

How did Emmaus Life Sciences (EMMA) reduce operating expenses in Q2 2025?

Emmaus achieved a 33% reduction in operating expenses to $3.0 million through decreased selling expenses and general administrative costs following a workforce reduction in Q4 2024.

What was Emmaus Life Sciences (EMMA) earnings per share in Q2 2025?

Emmaus reported a loss of $0.02 per share based on approximately 63.9 million weighted-average basic common shares.