Adjusted earnings per share were $3.73, a 9.1% increase year-over-year.
Adjusted gross margin was 59.7%, a 110 basis point decrease year-over-year due to cost inflation, logistics, and unfavorable product mix, partially offset by foreign exchange.
Adjusted operating margin was 26.9%, a 20 basis point increase year-over-year, better than expected due to operating expense control and FX benefits.
Cash, cash equivalents and restricted cash were $283.9 million at quarter end, down from $327.7 million at year-end 2024.
Cash flow from operations for 6 months was $81.2 million, down from $204.5 million prior period, mainly due to working capital changes and acquisition-related costs.
Net leverage was approximately 1.8x at quarter end and 2.6x pro forma for the Vascular Intervention acquisition.
Second quarter revenues were $780.9 million, an increase of 4.2% year-over-year on a GAAP basis and up 1% on an adjusted constant currency basis, exceeding the high end of previous guidance.
Cash, cash equivalents, and marketable securities totaled $214.2 million as of June 30, 2025, with an additional $50 million raised in a July registered direct offering.
Dividend and interest income declined to $2.3 million in Q2 2025 from $2.9 million in Q2 2024, reflecting lower interest rates and invested balances.
GAAP total operating expenses for Q2 2025 were $30.5 million, up from $26.8 million in Q2 2024; adjusted operating expenses were $23.8 million, slightly down from $24.4 million.
Gross profit for Q2 2025 was $351,000 with a gross margin of 59%, including a 13% benefit from low or no value inventory utilization.
Q2 2025 revenue was $591,000, primarily from Platinum instruments, consumable kits, and related services, below expectations due to capital sales headwinds.
The company expects runway into Q2 2028 based on current cash and capital raise.
Adjusted EBITDA improved significantly to a negative $4.7 million from negative $35 million in Q2 2024, marking the fifth consecutive quarter of improvement.
Cash burn reduced to $3 million in Q2, ending the quarter with $219 million in cash and marketable securities and zero debt.
Gross margin expanded to 56.1%, up 3.3 percentage points from Q1 2025, reflecting higher software mix and cost initiatives.
Operating expenses declined with R&D down 12.2% year-over-year, sales and marketing down 32%, and G&A down 25.7% compared to Q2 2024.
Subscription software revenue grew 47% year-over-year to $40.4 million, representing 57% of total revenue, driven by deployments across the Military Health System (MHS).
Total revenue for Q2 2025 was $70.9 million, a 13% increase from Q2 2024, and 25% higher when normalized for the sale of Amwell Psychiatric Care (APC).
Dafinchi