Fortress Biotech (FBIO) Q2 2025 earnings summary

Executive summary

• Q2 2025 net revenue was $16.4M, up 10% year-over-year, mainly from Journey's dermatology products and $1.4M from Avenue's license termination with AnnJi.

• Emrosi launched in March 2025, contributing $2.8M in Q2 revenue, with strong initial prescription ramp and expanded payer coverage announced in July 2025.

• Q2 2025 net income attributable to common stockholders was $13.4M, compared to a net loss of $13.3M in Q2 2024, driven by a $27.1M gain from the deconsolidation of Checkpoint after its sale to Sun Pharma.

• Joined the Russell 2000® and Russell 3000® Indexes in June 2025, reflecting increased market visibility.

• The company paused dividends on Series A Preferred Stock, accumulating $8.0M in undeclared dividends as of June 30, 2025.

Financial highlights

• Q2 2025 net revenue: $16.4M (up 10% year-over-year); six months ended June 30, 2025: $29.6M (up 6%).

• Q2 2025 net income attributable to common stockholders: $13.4M; EPS (diluted): $0.45 vs. $(0.73) in Q2 2024.

• Q2 2025 operating loss: $(36.5)M, up from $(27.8)M in Q2 2024, due to higher SG&A and stock-based compensation.

• Gross margin improved to 67% from 61% year-over-year, driven by favorable product mix and Emrosi sales.

• Cash and cash equivalents at June 30, 2025: $74.4M; restricted cash: $1.2M.

Outlook and guidance

• Management anticipates continued growth and operating leverage in H2 2025, supported by Emrosi's market traction and expanding payer access.

• Current cash and equivalents are expected to fund operations for at least the next 12 months; additional funding may be needed for R&D, regulatory filings, and commercialization.

• The company will seek further capital through equity, debt, or asset sales as needed to support development and expansion.