Sol-Gel Technologies (SLGL) Q3 2025 earnings summary

Executive summary

• Announced Q3 2025 results, highlighting progress in late-stage pipeline for rare dermatologic diseases and expansion of commercial partnerships for approved products.

• Health Canada approved EPSOLAY for rosacea; new licensing agreements signed for EPSOLAY and TWYNEO in Australia and New Zealand.

• Ongoing pivotal Phase 3 trial for SGT-610 in Gorlin syndrome, with top-line results expected Q4 2026; exploring high-frequency BCC as an additional indication.

Financial highlights

• Q3 2025 revenue was $0.4 million, down from $5.4 million in Q3 2024, mainly due to lower licensing and royalty income.

• Research and development expenses rose to $5.7 million from $4.8 million year-over-year, driven by SGT-610 development and clinical trial costs.

• General and administrative expenses decreased to $1 million from $1.4 million, reflecting cost-saving measures.

• Net loss for Q3 2025 was $5.9 million ($2.13 per share), compared to a net loss of $0.4 million ($0.13 per share) in Q3 2024.

• Cash, cash equivalents, and marketable securities totaled $20.9 million as of September 30, 2025.

Outlook and guidance

• TWYNEO and EPSOLAY expected to launch in most new territories in 2028 and 2027, respectively.

• Anticipated annual royalty revenue from these launches could reach $10 million by 2031.

• Cash resources projected to fund operations into Q1 2027.

• Targeting $10 million EBITDA from ex-U.S. business by 2031.