United-Guardian Reports Second Quarter Results

Rhea-AI Summary

United-Guardian (NASDAQ:UG) reported its Q2 and H1 2025 financial results, showing mixed performance across segments. Q2 net sales declined to $2.8M from $3.4M in 2024, with net income decreasing to $626,826 ($0.14 per share) from $956,225 ($0.21 per share). However, compared to Q1 2025, the company saw a 14% increase in net sales and 12% growth in net income.

For H1 2025, pharmaceutical and medical lubricant sales showed strength with 11% and 12% growth respectively. However, overall H1 net sales decreased to $5.3M from $6.6M, primarily due to reduced cosmetic ingredient purchases from Ashland Specialty Ingredients due to inventory overstock in Asia. The company is working to expand Renacidin® drug formulary inclusion to boost future sales.

Positive

• Q2 2025 showed sequential growth with 14% increase in net sales and 12% increase in net income vs Q1
• Medical lubricant sales increased 12% in H1 2025 vs H1 2024
• Pharmaceutical product sales grew 11% in H1 2025 vs H1 2024
• Initiative to expand Renacidin® drug formulary inclusion could significantly increase future sales

Negative

• Q2 2025 net sales decreased 16.3% to $2.8M from $3.4M in Q2 2024
• Q2 2025 net income fell 34.4% to $626,826 from $956,225 in Q2 2024
• H1 2025 net sales declined 19.9% to $5.3M from $6.6M in H1 2024
• Cosmetic ingredient sales decreased due to reduced purchases from largest distributor ASI
• Operating expenses increased to $1.33M in H1 2025 from $1.17M in H1 2024

Insights

Specialty Pharmaceutical & Healthcare Financial Analyst

United-Guardian reports declining YoY performance with Q2 2025 sales down 16.3% and EPS down 33.3%, but shows sequential improvement from Q1.

United-Guardian's Q2 2025 results reveal a 16.3% year-over-year decline in net sales to $2.84 million and a 34.4% decrease in net income to $626,826 ($0.14 per share). This represents a substantial deterioration from the $0.21 EPS reported in Q2 2024. However, when viewing sequentially, there are signs of stabilization with Q2 sales increasing 14% and net income growing 12% compared to Q1 2025.

The company's first-half performance follows a similar pattern with six-month net sales decreasing 20% to $5.32 million and net income falling 36.9% to $1.19 million ($0.26 per share). The gross margin slightly improved to 53.7% in Q2 2025 from 54% in Q2 2024, but operating expenses increased by 15.1% to $694,050, pressuring profitability.

Digging into segment performance reveals a divergent trend: pharmaceutical and medical lubricant sales increased by 11% and 12% respectively in H1 2025, while cosmetic ingredient sales declined significantly due to inventory overstocking issues with their largest distributor, Ashland Specialty Ingredients, particularly in Asian markets.

Management's strategic initiatives include a new project to expand Renacidin® inclusion in additional drug formularies, which could meaningfully increase sales of their flagship pharmaceutical product in the coming years. The sequential improvement in Q2 versus Q1 suggests the company may be beginning to address its challenges, though year-over-year metrics remain substantially negative.

HAUPPAUGE, N.Y., Aug. 08, 2025 (GLOBE NEWSWIRE) -- United-Guardian, Inc. (NASDAQ:UG) announced today the financial results for the second quarter and first half of 2025. Second quarter net sales decreased from $3,390,205 in 2024 to $2,838,225 in 2025, with net income decreasing from $956,225 ($0.21 per share) to $626,826 ($0.14 per share). As compared with the first quarter of 2025, the second quarter net sales increased by 14% and net income increased by 12%. Net sales for the six-month period ended June 30^th decreased from $6,645,149 in 2024 to $5,319,352 in 2025 and net income decreased from $1,881,667 ($0.41 per share) to $1,187,721 ($0.26 per share).

Donna Vigilante, President of United-Guardian, stated, “Sales of our pharmaceuticals and medical lubricants both increased for the first half of 2025 compared with the same period in 2024. Sales of our medical lubricants increased by 12% and pharmaceutical product sales increased by 11% in the first six months of 2025 compared with the same period in 2024. Those increases were offset by a decrease of sales of our cosmetic ingredients in the first six months of 2025 compared with the same period in 2024. This decrease was attributable to reduced purchases by Ashland Specialty Ingredients (“ASI”), our largest cosmetic distributor. The primary reason for the decrease in purchases by ASI was softer demand in Asia, which resulted in an inventory overstock situation that ASI had to work down before it could increase its purchases. We are working closely with ASI and are hopeful that cosmetic sales will improve in the second half of the year as this overstock situation is resolved. We are also initiating a new project to have Renacidin^®, our most important pharmaceutical product, included in additional drug formularies. If this project is successful, we should be able to significantly increase sales of Renacidin over the coming years.”

United-Guardian is a manufacturer of cosmetic ingredients, pharmaceuticals, medical lubricants, and sexual wellness ingredients.

Contact:	Donna Vigilante
	(631) 273-0900
	dvigilante@u-g.com

NOTE: This press release contains both historical and "forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements about the company’s expectations or beliefs concerning future events, such as financial performance, business prospects, and similar matters, are being made in reliance upon the “safe harbor” provisions of that Act. Such statements are subject to a variety of factors that could cause our actual results or performance to differ materially from the anticipated results or performance expressed or implied by such forward-looking statements. For further information about the risks and uncertainties that may affect the company’s business please refer to the company's reports and filings with the Securities and Exchange Commission.

Financial Results for the Three and Six Months Ended June 30, 2025 and 2024
STATEMENTS OF INCOME (unaudited)
	THREE MONTHS ENDED JUNE 30,						SIX MONTHS ENDED JUNE 30,
		2025			2024			2025			2024
Net sales	$	2,838,225		$	3,390,205		$	5,319,352		$	6,645,149
Costs and expenses:
Cost of sales		1,340,854			1,561,090			2,463,930			3,117,580
Operating expenses		694,050			602,777			1,326,785			1,171,642
Research and development expense		107,868			111,660			222,262			214,642
Total costs and expenses		2,142,772			2,275,527			4,012,977			4,503,864
Income from operations		695,453			1,114,678			1,306,375			2,141,285
Other income (expense):
Investment income		70,573			100,007			155,260			198,080
Net gain (loss) on marketable securities		24,576			(9,501	)		36,926			31,995
Total other income		95,149			90,506			192,186			230,075
Income before provision for income taxes		790,602			1,205,184			1,498,561			2,371,360
Provision for income taxes		163,776			248,959			310,840			489,693
Net income	$	626,826		$	956,225		$	1,187,721		$	1,881,667
Earnings per common share (basic and diluted)	$	0.14		$	0.21		$	0.26		$	0.41
Weighted average shares (basic and diluted)		4,594,319			4,594,319			4,594,319			4,594,319

FAQ

What were United-Guardian's (NASDAQ:UG) Q2 2025 earnings per share?

United-Guardian reported Q2 2025 earnings of $0.14 per share, down from $0.21 per share in Q2 2024.

How did United-Guardian's pharmaceutical sales perform in H1 2025?

United-Guardian's pharmaceutical sales increased by 11% in the first half of 2025 compared to the same period in 2024.

What caused the decline in United-Guardian's cosmetic ingredient sales?

The decline was due to reduced purchases by Ashland Specialty Ingredients (ASI) caused by softer demand in Asia and an inventory overstock situation.

What is United-Guardian's strategy to improve Renacidin sales?

United-Guardian is initiating a project to have Renacidin® included in additional drug formularies to significantly increase sales in coming years.

How did United-Guardian's Q2 2025 performance compare to Q1 2025?

United-Guardian showed sequential improvement with 14% increase in net sales and 12% increase in net income in Q2 compared to Q1 2025.