Adjusted EBITDA was $82 million in Q2, negatively impacted by $7 million in severance and sign-on bonuses.
Cash and short-term investments ended Q2 at over $1.1 billion; free cash flow was negative $69 million due to investments in new capabilities and working capital.
G&A costs improved 1 point year-over-year but deleveraged 4 points quarter-over-quarter due to new executives and organizational restructuring.
Gross margins expanded 3 points quarter-over-quarter to 76%, driven by growth outside weight loss specialty.
Marketing spend was 40% of revenue, with slowed investment due to volatility in marketing efficiency.
Monthly average revenue per subscriber declined quarter-over-quarter to $74 from $84, primarily due to offboarding GLP-1 subscribers.
Revenue grew 73% year-over-year to $545 million in Q2 2025, with an adjusted EBITDA margin north of 15%.
Subscribers increased by 73,000 quarter-over-quarter to over 2.4 million, reflecting 31% year-over-year growth.
Technology and development costs increased to 7% of revenue, reflecting investment in technology talent.
Approximately 90% of ORLADEYO revenue was generated in the U.S., totaling $140.3 million.
Expected net interest savings of approximately $90 million over the life of the loan due to prepayments.
Generated $45 million cash in Q2 before debt prepayment; paid down $125 million in term loan principal in April and July, reducing debt to $199 million.
Non-GAAP operating expenses were $106.4 million, up from $87.4 million in Q2 2024, driven by continued R&D investments.
Non-GAAP operating profit was $57 million, and non-GAAP net income was $32.3 million, resulting in EPS of $0.15.
Projected to reach $700 million in cash by 2027, with plans to actively deploy capital into value-creating opportunities.
Total revenue for Q2 2025 was $163.4 million, with $156.8 million from ORLADEYO, representing 45% year-over-year growth.
Cash generated from operations was approximately $79 million in the quarter, with a strong cash position of over $670 million.
Harmony Biosciences reported second quarter 2025 net revenues of $200.5 million, a 16% increase year-over-year from $172.8 million in Q2 2024.
The company extended its 4-year streak of profitability with non-GAAP adjusted net income of $53.8 million or $0.92 per diluted share, compared to $24.5 million or $0.43 per diluted share in the prior year quarter.
The financial results reflect strong underlying demand for WAKIX, offset by a slight reduction in trade inventories heading into summer months.
Total operating expenses for Q2 2025 were $114.2 million, down from $119.3 million in the same quarter last year.
Adjusted diluted earnings per share were $0.17, and adjusted EBITDA was $17 million.
Adjusted gross margins stood at 55.7%, with SG&A expenses at 45.2% of revenue.
A noncash goodwill impairment charge of $77 million was recorded in the Pain Management and Recovery segment due to downward market capitalization pressure.
Avanos reported net sales of $175 million in Q2 2025, adjusted for foreign exchange and portfolio changes, with organic sales up 2% year-over-year.
Balance sheet remains strong with $90 million cash and $105 million debt, maintaining leverage below 1 turn.
Free cash flow was negative $4 million for the quarter, affected by tax payments timing and higher capital expenditures.
Pain Management and Recovery segment's normalized organic sales increased 3.4%, with strong 13.8% growth in the radiofrequency ablation (RFA) business.
Specialty Nutrition Systems segment grew 5% organically, with operating profit near 18%, impacted by tariffs and cost absorption.
Adjusted operating profit increased 9% to $1.4 billion, with three of four segments delivering double-digit growth in adjusted operating profit.
Corporate expenses decreased 4% excluding McKesson Ventures gains, driven by lower opioid-related expenses and technology costs.
First quarter earnings per diluted share increased 5% to $8.26, or 14% excluding gains from McKesson Ventures equity investments.
Free cash flow was negative $1.1 billion, impacted by $3.4 billion cash used for acquisitions and $189 million in capital expenditures.
International segment revenues increased 1% to $3.7 billion, with operating profit down 3% due to divestitures; excluding divested businesses, revenues grew 5% and operating profit was flat.
McKesson reported record consolidated revenues of $97.8 billion for Q1 fiscal 2026, a 23% increase year-over-year.
Medical-Surgical Solutions segment revenues increased 2% to $2.7 billion, with operating profit up 22% due to operational efficiencies and cost optimization.
Prescription Technology Solutions segment revenues increased 16% to $1.4 billion, with operating profit up 21%, driven by higher demand for access solutions including prior authorization services for GLP-1 medications.
U.S. Pharmaceutical segment revenues rose 25% to $90 billion, driven by increased prescription volumes, growth in oncology and specialty products, and new strategic customer onboarding.
Free cash flow loss for the first half of 2025 was approximately $27.3 million, with an expected full-year loss of $40 million to $45 million.
Gross profit was $2.1 million with a gross margin of 52%, slightly down from 56% in Q2 2024 due to increased instrument installation and training costs.
Net loss narrowed to $19.4 million from $22.9 million in the prior year quarter.
Operating expenses decreased 21% to $22.6 million, with R&D expenses down 6% and SG&A expenses down 34%, largely due to lower stock-based compensation.
Product revenue was $2.7 million, primarily from sales of Proteograph instruments and consumable kits.
Seer reported Q2 2025 revenue of $4.1 million, a 32% increase year-over-year driven by higher product and service revenue.
Seer repurchased approximately $20 million of Class A shares, reducing shares outstanding by about 13%.
Service revenue was $1.2 million, including $409,000 from related party revenue, mainly from STAC service projects.
The company ended the quarter with $263.3 million in cash, cash equivalents, and investments.
Dafinchi
