Emergent reports strong progress on its multiyear transformation plan, executing key initiatives and on track with strategic goals for 2025.
The company has exceeded guidance on both revenue and EBITDA, with second quarter revenues of $141 million, $21 million above guidance.
Financial improvements include a reduction in net leverage to 1.9x from 9.9x a year ago, and a significant increase in liquidity by $297 million, now totaling $367 million.
Adjusted free cash flow year-to-date was $27.8 million with a 51.9% conversion rate, and debt was reduced by $10.5 million in the quarter.
Consolidated adjusted EBITDA was $26.9 million, up 6.7% year-over-year and 0.7% sequentially, with margin expanding 40 basis points to 10.1%.
Consolidated net revenue for Q2 2025 was $266.1 million, up 2.1% year-over-year and 2.4% sequentially.
Home health adjusted EBITDA was $39.3 million, up 2.6% sequentially but down 190 basis points in margin year-over-year due to mix shift.
Home health revenue was $205.9 million, down 2.0% year-over-year but up 2.6% sequentially, with volumes increasing 0.5% year-over-year and 2.1% sequentially.
Hospice revenue grew 19.4% year-over-year to $60.2 million, with adjusted EBITDA increasing 53.8% and margin expanding by 520 basis points to 23.3%.
Net debt to adjusted EBITDA leverage ratio improved to 4.3x from 5.1x in the prior year quarter.
Day One Biopharmaceuticals reported Q2 2025 net product revenue of $33.6 million for OJEMDA, a 10% increase over Q1.
Net cash used in operating activities decreased by approximately 50% quarter-over-quarter.
The company ended Q2 with $453 million in cash and no debt.
Total costs and operating expenses were $68.9 million in Q2, including $10.9 million in noncash stock-based compensation, representing a 5% decrease quarter-over-quarter.
Cash and equivalents totaled $580 million, with an additional $170 million in committed government funding, providing total available liquidity of around $750 million.
General and administrative expenses were approximately $19 million, down from $20 million, including ongoing intellectual property defense costs.
Net loss for the quarter was roughly $35 million, an improvement from a $37 million loss in Q2 2024.
Research and development expenses were about $39 million, slightly lower than the previous year by $2 million due to timing of program-specific expenses.
Revenue for Q2 2025 was approximately $17 million, up from $7 million in Q2 2024, driven by a $10 million lump sum licensing fee from the Trianni platform.
Sales and marketing expenses decreased slightly to $3 million compared to the prior year.
Reported Q2 revenues of $720 million and adjusted EBITDA of $184 million, with confidence in raising 2025 guidance.
Emphasized diversified portfolio and multiple growth drivers including new product launches, complex medicines, biosimilars, and strategic partnerships.
Projected continued growth with a focus on innovative and affordable medicines, aiming to be America's #1 affordable medicines company.
Dafinchi