United-Guardian Reports Third Quarter Earnings

Rhea-AI Summary

United-Guardian (NASDAQ:UG) reported third-quarter and nine-month 2025 results on November 6, 2025. For the nine months ended September 30, 2025, net sales fell to $7,583,613 from $9,705,262 a year earlier and net income declined to $1,456,162 ($0.32 per share) from $2,747,151 ($0.60 per share). For Q3 2025, sales were $2,264,261 vs $3,060,113 in Q3 2024 and net income was $268,441 ($0.06 per share) vs $865,484 ($0.19 per share).

Management attributed the Q3 decline in cosmetic ingredient orders mainly to reduced purchases by its largest marketing partner, ASI, amid tariff and China demand pressures, while noting pharmaceutical sales rose 10% and medical product sales rose 6% year-to-date and progress on expanding Renacidin formulary placement.

Positive

• Pharmaceutical sales up 10% for first nine months of 2025
• Medical product sales up 6% for first nine months of 2025
• Progress on Renacidin formulary project to expand pharmaceutical distribution

Negative

• Nine-month sales declined ~22% to $7.58M
• Nine-month net income declined ~47% to $1.46M
• Q3 sales fell ~26% to $2.26M
• Q3 net income fell ~69% to $268K

Insights

Equity Analyst

Third-quarter and nine-month sales and net income fell materially; cosmetic ingredient destocking by ASI drove the decline while Renacidin formulary efforts offer limited upside.

Sales for the nine months dropped from $9,705,262 to $7,583,613 and net income fell from $2,747,151 to $1,456,162. For the third quarter, sales declined from $3,060,113 to $2,264,261 and net income fell from $865,484 to $268,441. These are straightforward reductions in revenue and profit on the stated periods.

The company attributes the quarterly sales drop primarily to reduced purchases of cosmetic ingredients by its largest marketing partner, Ashland Specialty Ingredients, citing tariff, geopolitical concerns, and excess inventory; this creates a near-term demand risk concentrated in one channel. Management also reports progress adding Renacidin to additional drug formularies and new marketing agreements for personal care products, which are favourable but described as prospective and therefore contingent.

Watch the pace of ASI order recovery, any quantified gains from formulary placements for Renacidin, and subsequent quarter sales and net income trends over the coming years. Near-term impact is negative given the disclosed declines; the formulary and marketing initiatives are monitorable milestones that could alter trajectory if they produce measurable sales increases.

HAUPPAUGE, N.Y., Nov. 06, 2025 (GLOBE NEWSWIRE) -- United-Guardian, Inc. (NASDAQ:UG) announced today the financial results for the third quarter and the first nine months of 2025. Sales for the nine-month period ended September 30^th decreased from $9,705,262 in 2024 to $7,583,613 in 2025 and net income decreased from $2,747,151 ($0.60 per share) to $1,456,162 ($0.32 per share). Third quarter sales decreased from $3,060,113 in 2024 to $2,264,261 in 2025 and net income decreased from $865,484 ($0.19 per share) to $268,441 ($0.06 per share).

Donna Vigilante, President of United-Guardian, stated, “While sales of our pharmaceutical and medical products both increased during the first nine-months of 2025 compared with the same period in 2024 (increasing by 10% and 6%, respectively), we did experience a decrease in sales of our cosmetic ingredients in this year’s third quarter compared with 2024. That decrease was attributable primarily to reduced purchases of our cosmetic ingredients by Ashland Specialty Ingredients (“ASI”), our largest marketing partner, which has been dealing with difficult tariff and geopolitical concerns in Asia that have caused some customers to move towards lower cost local products. This has resulted in ASI having to work down excess inventory, which has caused a decrease in their orders this year. This is consistent with recent reports that indicated that sales and earnings of U.S. chemical companies in the third quarter were depressed mainly due to weak China demand, continued destocking, and tariffs. ASI has indicated to us that it is confident that it will be able to regain market share by offering more competitive pricing going forward.”

“On a positive note we have made progress with our project to increase sales of Renacidin^®, our most important pharmaceutical product, by working with an outside pharmaceutical consultant to have Renacidin included on additional drug formularies. We are excited about the potential this project has to significantly increase sales of Renacidin over the coming years. We are hopeful that this project, along with the new marketing agreements we have negotiated recently for some of our new personal care products, will give us an excellent opportunity to increase our revenue in 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 Nine Months Ended
September 30, 2025 and 2024

STATEMENTS OF INCOME
(unaudited)

		THREE MONTHS ENDED SEPTEMBER 30,					NINE MONTHS ENDED SEPTEMBER 30,
		2025			2024			2025			2024
Net sales	$	2,264,261		$	3,060,113		$	7,583,613		$	9,705,262
Costs and expenses:
Cost of sales		1,311,192			1,408,866			3,775,122			4,526,446
Operating expenses		620,893			591,047			1,947,678			1,762,689
Research and development expense		117,104			111,072			339,366			325,714
Total costs and expenses		2,049,189			2,110,985			6,062,166			6,614,849
Income from operations		215,072			949,128			1,521,447			3,090,413
Other Income:
Investment income		75,165			99,934			230,425			298,014
Net gain on marketable securities		36,238			47,223			73,164			79,218
Total other income		111,403			147,157			303,589			377,232
Income before provision for income taxes		326,475			1,096,285			1,825,036			3,467,645
Provision for income taxes		58,034			230,801			368,874			720,494
Net income	$	268,441		$	865,484		$	1,456,162		$	2,747,151
Earnings per common share  (Basic and Diluted)	$	0.06		$	0.19		$	0.32		$	0.60
Weighted average shares  (Basic and Diluted)		4,594,319			4,594,319			4,594,319			4,594,319

    

FAQ

What were United-Guardian (UG) Q3 2025 sales and EPS reported on November 6, 2025?

United-Guardian reported Q3 2025 sales of $2,264,261 and EPS of $0.06 for the quarter.

How did United-Guardian (UG) nine-month 2025 revenue compare with 2024?

Nine-month 2025 revenue was $7,583,613, down from $9,705,262 in 2024 (about a 22% decline).

What caused the Q3 2025 sales decline for United-Guardian (UG)?

Management cited reduced cosmetic ingredient orders from its largest marketing partner, ASI, due to tariff, China demand and inventory destocking pressures.

Did United-Guardian (UG) report any product growth in 2025 year-to-date?

Yes; the company reported pharmaceutical sales +10% and medical product sales +6% for the first nine months of 2025.

What progress did United-Guardian (UG) announce for Renacidin on November 6, 2025?

The company said it is working with an external consultant to have Renacidin included on additional drug formularies to increase future sales.