Celularity (CELU) Q2 2025 earnings summary

Executive summary

• Net revenues for Q2 2025 were $5.7M, down 53% year-over-year, mainly due to lower Biovance 3L sales, partially offset by higher Rebound sales and contract manufacturing revenue.

• Operating loss for Q2 2025 was $15.9M, up from $10.2M in Q2 2024, driven by increased cost of revenues and other expenses.

• The company continues to face substantial doubt about its ability to continue as a going concern due to recurring losses, negative cash flows, and upcoming debt maturities.

• Recent financing activities included private placements and warrant modifications, but additional capital is still required to sustain operations.

Financial highlights

• Q2 2025 net revenues: $5.7M (down 52.6% YoY); six months ended June 30, 2025: $17.2M (down 36% YoY).

• Q2 2025 net loss: $24.5M; six months net loss: $44.3M.

• Gross margin declined due to higher cost of revenues, including a $1.8M write-off of bulk material and $1.2M Rebound milestone accrual in Q2.

• Cash and cash equivalents at June 30, 2025: $0.9M; accumulated deficit: $944M.

Outlook and guidance

• The company expects continued operating losses and negative cash flows for the foreseeable future.

• Additional funding is required to meet obligations and continue operations; failure to secure capital may result in curtailment or cessation of business.

• Plans to expand the degenerative disease business and advance new biomaterial products, but progress is contingent on capital availability.