Executive Summary
Aytu Biopharma delivered a meaningful turnaround in Q3 FY2025, posting 32% year-over-year revenue growth to $18.45 million driven by its ADHD portfolio (+25% YoY) and pediatric portfolio (+77% YoY). The company achieved positive operating income of $2.42 million and net income of $3.99 million, marking the second quarter with positive operating income and the third quarter of positive net income from continuing operations. Adjusted EBITDA reached $3.90 million, contributing to a trailing-12-month EBITDA of $9.2 million. These results reflect the culmination of multi-year strategic actions to de-emphasize non-core assets, outsource manufacturing, and optimize the commercial platform (notably RxConnect), which together improved gross-to-net performance and cost efficiency. Management emphasized the ADHD and pediatric franchises as primary growth engines while signaling continued exploration of in-licensed or acquired assets to broaden the CNS-focused sales footprint and RxConnect reach. Notably, accounts receivable rose to $35.8 million as of March 31, 2025, highlighting working-capital dynamics tied to lumpy quarterly shipments, though near-term collections were favorable (about $19 million in April). The company does not provide formal forward guidance, but a qualitative outlook points to incremental margin expansion as inventory clears, ongoing OpEx rigor, and potential accretive acquisitions. Overall, AYTU is transitioning from a restructuring-era model to a more balanced, growth-oriented platform with a strong emphasis on physician/payer access via RxConnect and selective inorganic growth.
Key Performance Indicators
QoQ: 242.83% | YoY:198.25%
QoQ: 406.85% | YoY:238.20%
QoQ: -92.31% | YoY:101.92%
Key Insights
Revenue: $18.452 million in Q3 2025, up 32% YoY from $14.000 million in Q3 2024. Gross margin: 69.4% (vs. 74.0% YoY). Operating income: $2.421 million (positive), vs. a loss from operations of $1.6 million in Q3 2024. EBITDA: $3.921 million (adjusted EBITDA; Q3 2025), vs. $0.9 million in Q3 2024. Net income: $3.994 million, vs. a net loss of $2.900 million in Q3 2024. Net income margin: 21.6%. EPS: $0.01 (basic and diluted). Weighted average shares: 6.134 million (basic), 8.205 million (diluted)...
Financial Highlights
Revenue: $18.452 million in Q3 2025, up 32% YoY from $14.000 million in Q3 2024. Gross margin: 69.4% (vs. 74.0% YoY). Operating income: $2.421 million (positive), vs. a loss from operations of $1.6 million in Q3 2024. EBITDA: $3.921 million (adjusted EBITDA; Q3 2025), vs. $0.9 million in Q3 2024. Net income: $3.994 million, vs. a net loss of $2.900 million in Q3 2024. Net income margin: 21.6%. EPS: $0.01 (basic and diluted). Weighted average shares: 6.134 million (basic), 8.205 million (diluted). Cash and cash equivalents: $18.17 million as of 2025-03-31; Total assets: $124.201 million; Total liabilities: $89.303 million; Total stockholders’ equity: $34.898 million. Accounts receivable: $35.825 million (up from $23.5 million in prior year), signaling working-capital intensity. Net debt: ($3.247) million (approximate; total debt $21.42 million; cash $18.17 million). Trailing 12-month EBITDA: $9.2 million. Cash-based operating expenses (Q3 2025, excluding amortization/depreciation/stock-based comp): $9.3 million; total operating expenses: $10.4 million. Target breakeven: approximately $15 million quarterly revenue to cover current economics on a gross margin around 69% (cash breakeven approx. $13.1 million). Revenue drivers: ADHD revenue $15.4 million (YoY up 25%); Pediatric revenue $3.1 million (YoY up 77%).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
18.45M |
2.55% |
13.75% |
| Gross Profit |
12.81M |
9.52% |
18.73% |
| Operating Income |
2.42M |
198.25% |
242.83% |
| Net Income |
3.99M |
238.20% |
406.85% |
| EPS |
0.01 |
101.92% |
-92.31% |
Key Financial Ratios
operatingProfitMargin
13.1%
operatingCashFlowPerShare
$-1.05
freeCashFlowPerShare
$-1.06
Management Commentary
Key management insights from the Q3 earnings call: Strategy and platform. 'RxConnect continues to be a significant differentiator for the company and one that enables us to stand apart from the competition and truly benefit patients.' Management notes RxConnect network comprises about 1,000 pharmacies and drives over 85% of scripts, providing affordability, predictability, and access across payer designs. Growth drivers and portfolio focus. 'ADHD net revenue was up 25%, coming in at $15.4 million during the quarter'; 'pediatric portfolio net revenue increased 77% to $3.1 million'; Discussions of returning to growth in pediatrics with payer diversification and expanded promotion—especially antihistamines—with broader field coverage and dual focus on ADHD and Karbinal. Cost discipline and efficiency. 'cost reduction initiatives ... helped to decrease operating expenses by $1.6 million' and 'outsourcing of manufacturing' contributing to margin improvements; management highlights ongoing optimization that would lift gross margins toward the low-to-mid 70s in the coming periods. Capital allocation and balance sheet. 'We paid down $2.5 million of long-term debt in the quarter' and noted debt covenants are in full compliance; management emphasizes the potential for in-licensed or acquired products to leverage CNS salesforce and RxConnect. Outlook and product strategy. Management discussed pursuing brands with approved FDA status or those that can be relaunched, highlighting a CNS focus with pediatric opportunities and payer-friendly strategies. No formal quarterly guidance was provided; management indicated near-term momentum and potential to capitalize on ongoing gross-margin improvements and platform scale.
"RxConnect continues to be a significant differentiator for the company and one that enables us to stand apart from the competition and truly benefit patients."
— Josh Disbrow
"Total revenue grew 32%, led by growth in both our ADHD portfolio, which was up 25%, and pediatric portfolio, which was up 77%."
— Josh Disbrow
Forward Guidance
Guidance stance: Management explicitly stated they do not provide forward guidance. However, the quarterly breakeven framework discussed in the call implies that at current gross margins (~69%) and OpEx (~$9.3–$10.4 million quarterly baseline, excluding noncash items), revenue around $13.1–$15.0 million per quarter would be required to breakeven on an operating cash/GAAP basis. The company highlighted multiple catalysts: (i) continued gross-margin improvement as ADHD inventory overhang resolves with outsourcing and inventory liquidation; (ii) RxConnect scale enabling additional brand throughput and potential new CNS assets; (iii) expansion of payer coverage for pediatric products and new promotional strategies; (iv) selective acquisitions or in-licensing aligned to the CNS call-point and RxConnect ecosystem. Key monitoring factors for investors include: accounts receivable stability and collections cadence, progression of gross-to-net improvements, progress toward better operating leverage with continued OpEx discipline, any material new asset announcements, and debt-reduction trajectory. The absence of formal guidance should be viewed as a cautious stance toward macro and deal variability, but the company’s trajectory toward sustainable profitability and EBITDA normalization remains a focal point of investor interest.