Cryo Cell International (CCEL) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended May 31, 2025 was $15.90M, nearly flat compared to the prior year, with a 4% increase in recurring annual storage fees offset by a 15% decrease in new domestic cord blood specimens processed.

• Fiscal Q2 2025 revenue was $7.9 million, down 1% year-over-year from $8.0 million.

• Net income for the six months was $638,640, down from $1,212,031 year-over-year, reflecting higher interest expense and increased SG&A costs.

• Net income for Q2 2025 was $356,000, or $0.04 per share, compared to $656,000, or $0.08 per share, in Q2 2024.

• The company is engaged in arbitration with Duke University over a terminated license agreement, impacting future business expansion plans.

Financial highlights

• Operating income for the six months was $2.55M, up from $2.21M year-over-year.

• Gross margin improved as cost of sales decreased 8% to $3.84M from $4.19M.

• Interest expense rose to $1.05M from $0.59M, primarily due to higher debt balances and rates.

• Diluted EPS for the six months was $0.08, down from $0.15 in the prior year; Q2 EPS was $0.04, down from $0.08.

• Cash and cash equivalents at May 31, 2025 were $137,491, down from $560,960 at November 30, 2024.

Outlook and guidance

• Management anticipates sufficient liquidity for at least the next 12 months, but future capital needs depend on the outcome of the Duke arbitration and business expansion plans.

• Planned discretionary capital expenditures of approximately $5M over the next year for property buildout and equipment.

• No further investments in Duke-related activities are expected until the dispute is resolved.

• Strategic initiatives include expanding ExtraVault services and biopharmaceutical manufacturing.

• Forward-looking statements highlight ongoing transformation into a vertically integrated cellular therapy company.