Fortress Biotech (FBIO) Q3 2025 earnings summary

Executive summary

• Q3 2025 net revenue reached $17.6 million, up 21% year-over-year, driven by Emrosi's U.S. launch and strong prescription growth, with Emrosi contributing $4.9 million and prescriptions up 146% sequentially.

• Net income attributable to common stockholders was $3.7 million for Q3 2025, compared to a $15.0 million loss in Q3 2024; net loss for Q3 2025 was $2.3 million ($0.09/share), slightly improved from $2.4 million ($0.12/share) in Q3 2024.

• Emrosi prescriptions reached 18,198 in Q3, with unique prescribers increasing by 50% to over 2,700; strong clinical data confirmed Emrosi's superiority over Oracea and placebo.

• Major events included the $28 million Checkpoint sale, a $15.1 million gain from the dotinurad transfer, and the transfer of dotinurad to Crystalys.

• Positive physician and patient feedback for Emrosi, with strong refill rates and high brand recognition emerging.

Financial highlights

• Gross margin improved sequentially in 2025, reaching 67.4% in Q3, up from 67.1% in Q2, but down from 69.4% in Q3 2024.

• Adjusted EBITDA improved to $1.7 million from $0.3 million year-over-year; EBITDA loss reduced to $0.5 million from $1 million.

• Cash and cash equivalents stood at $24.9 million as of September 30, 2025, up from $20.3 million at year-end 2024.

• Operating expenses for Q3 2025 decreased 33% year-over-year to $24.4 million, mainly due to lower R&D and SG&A costs after Checkpoint deconsolidation.

• Q3 2025 basic EPS: $0.13; diluted EPS: $0.11.

Outlook and guidance

• Management expects to become sustainably EBITDA positive in Q4 2025 and anticipates continued growth from Emrosi, with expanded payer access now covering over 100 million U.S. commercial lives.

• Emrosi is projected to reach peak annual net sales of over $200 million in the U.S. and $300 million globally.

• Operating expenses expected to remain relatively consistent into 2026, supporting margin expansion.