ADMA Biologics - Q4 2025

Transcript

Operator (participant)

Good afternoon. Welcome to the ADMA Biologics full year 2025 financial results and business update conference call on Wednesday, February 25, 2026. At this time, all participants are in a listen-only mode. There will be a question and answer session to follow. Please be advised that this call is being recorded at the company's request and will be available on the company's website approximately two hours following the end of the call. At this time, I would like to introduce the company. Please go ahead.

Kaitlin Kestenbaum (COO and SVP Compliance)

Welcome, everyone. Thank you for joining us this afternoon to discuss ADMA Biologics' financial results for the fourth quarter and full year 2025 and recent corporate updates. I'm joined today by Adam Grossman, our President and Chief Executive Officer; Brad Tade, our retiring CFO and Treasurer; and Terry-Ann Kohler, our incoming CFO and Treasurer. During today's call, Adam will provide some introductory comments and provide an update on corporate progress. Brad will then provide an overview of the company's fourth quarter and full year 2025 financial results, and Terry will make some introductory comments. Finally, Adam will then provide some brief summary remarks before opening up the call for questions. Earlier today, we issued a press release detailing the full year 2025 financial results and summarized certain achievements and recent corporate updates. The release is available on our website at www.admabiologics.com.

Before we begin our formal comments, I'll remind you that we will be making forward-looking assertions during today's call that represent the company's intentions, expectations, or beliefs concerning future events, which constitute forward-looking statements for the purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to factors, risks, and uncertainties, such as those detailed in today's press release announcing this call in our filings with the SEC, which may cause actual results to differ materially from the results expressed or implied by such statements. In addition, any forward-looking statements represent our views only as of the date of this call and should not be relied upon as representing our views as of any subsequent date. We specifically disclaim any obligations to update any such statements, except as required by the federal securities laws.

We refer you to the Disclosure Notice section in our earnings release we issued today and the Risk Factors section in our annual report on Form 10-K for the year ended December 31st, 2025, for a discussion of important factors that could cause actual results to differ materially from these forward-looking statements. Please note that the discussion on today's call includes certain non-GAAP financial measures, including adjusted EBITDA and adjusted net income. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP metric is available in our earnings release. With that, I would now like to turn the call over to Adam Grossman. Adam, go ahead.

Adam Grossman (President and CEO)

Thank you. Good afternoon, everyone. ADMA delivered a strong finish to 2025, reflecting disciplined execution across our commercial, manufacturing, and financial platforms. For the full year, total revenue was $510 million, representing 20% year-over-year growth. Adjusted EBITDA was $231 million, increasing 40% year-over-year, and adjusted net income was $161 million, increasing 35% year-over-year. These results underscore the durability of our growth engine and the expanding operating leverage within our fully integrated U.S.-based business model. Importantly, 2025 was a defining year for ADMA. We expanded margins, improved our balance sheet, and executed several strategic initiatives that enhanced the long-term durability and earnings power of our company as we enter the next phase of growth. Asceniv continues to drive our growth.

For full year 2025, Asceniv achieved $363 million in net revenue, representing 51% year-over-year growth. Our differentiated, patent-protected specialty immune globulin exited the year at record utilization levels, driven by high demand and strong prescriber adoption. With Asceniv still forecasted to be early in its penetration curve within its total addressable market, driven by broad payer access and increasing confidence in long-term supply continuity, Asceniv is well positioned for sustained utilization growth throughout 2026 and beyond. Before turning to additional operating highlights, I want to briefly address working capital. We expect accounts receivable and day sales outstanding to improve over the course of 2026, trending toward and potentially improving beyond industry benchmarks over time.

The recent increase in working capital primarily reflects the growth in Asceniv and the acceleration in revenue growth we are guiding to as we continue to make meaningful inroads into Asceniv's still significantly under-penetrated addressable market. As demand builds and our McKesson distribution agreement ramps up, alongside further anticipated diversification of our distribution network, we expect improving working capital efficiency and cash conversion throughout 2026. We are also seeing continued validation of Asceniv's differentiation in real-world settings. Independent datasets generated during 2025 reinforce Asceniv's unique biologic profile. A peer-reviewed study by Tan et al., presented at the ACAAI 2025 conference and published in the Journal of Clinical Immunology, demonstrated statistically significant reductions in infections and hospitalizations among patients who failed prior IVIG therapy and transitioned to Asceniv. 71% of these patients showed clinical improvement.

These outcomes, along with additional publications expected throughout 2026, should further enhance physician confidence, support constructive payer engagement, and expand medical education and drive sustained utilization growth. From a manufacturing and supply perspective, 2025 marked a major inflection point as yield-enhanced production transitioned into routine commercial practice with continued FDA lot releases. This makes 2026 the first full year of yield-enhanced output, a structural improvement to our business model, supporting meaningful gross margin growth and increasing earnings power. In parallel, we strategically repositioned our plasma collection network to improve capital efficiency while securing our long-term high-titer plasma supply. In December, we entered into an agreement to monetize three plasma centers while retaining ownership of seven centers, and concurrently executed a long-term supply agreement that continues to diversify our high-titer plasma sourcing base.

With newly forged supply contracts with the purchaser of ADMA's three centers, in total, the company now has access to over 280 plasma collection centers. We have improved supply visibility through the late 2030s and beyond. This transaction remains on track to close this quarter. I want to thank the entire ADMA team for their exceptional execution and commitment throughout 2025. Their discipline and dedication continue to drive our performance and position us for sustained success. Before I turn the call over to Brad, I also want to share an important leadership update. After a successful tenure and meaningful contributions to ADMA's growth and financial transformation, including the successful onboarding of KPMG as the company's independent auditor, Brad has informed the company of his intention to retire as Chief Financial Officer and Treasurer.

We are grateful for Brad's contributions and partnership, and we are pleased that he will remain with ADMA in a consulting capacity through a structured transition period to ensure continuity of operations, which will extend through July of this year. Today, we are excited to announce the appointment of our incoming Chief Financial Officer and Treasurer, Terry Kohler. He brings extensive public company experience, deep expertise in working capital optimization and cash conversion, and a proven track record of disciplined capital allocation and financial execution. This leadership transition further solidifies our ability to scale efficiently, enhance financial flexibility, and maximize long-term stockholder value creation. Importantly, there have been no changes to our previously issued financial statements, no changes to our internal control conclusions, and our forward-looking guidance remains strong.

Our financial foundation remains robust, and our priorities are clear: Drive commercial execution, invest in our capital-efficient pipeline, and maintain balance sheet discipline. With that, I'll now turn the call over to Brad to review our fourth quarter and full-year financial results in greater detail.

Brad Tade (CFO and Treasurer)

Thank you, Adam. Our full year 2025 financial results demonstrate ADMA's consistent execution, expanding profitability and earnings power. Total revenue for the year was $510.2 million, representing 20% year-over-year growth. Gross margin expanded to 57.4%, compared to 51.5% in 2024, driven primarily by Asceniv's growing mix contribution and the successful transition of yield-enhanced production into routine commercial execution. Adjusted net income totaled $160.8 million, representing 35% growth, and adjusted EBITDA reached $231 million, increasing 40% year-over-year. These results reflect continued operating leverage, cost management, and the structural margin improvements anticipated by yield enhancement and embedded in our vertically integrated model. Fourth quarter, 2025, total revenue was $139.2 million, reflecting 18% year-over-year growth.

Importantly, we exited the fourth quarter of 2025 with corporate gross margins of 63.8%, representing approximately 10% year-over-year improvement. Fourth quarter, 2025, adjusted EBITDA grew by 52% to $73.6 million, and adjusted net income for the fourth quarter of 2025 grew by 57% to $52.6 million. Asceniv's continued growth through these broader market dynamics is a testament to the product's differentiation and relative insulation from standard IVIG market contours. ADMA ended 2025 with $88 million in cash, largely excluding proceeds from the previously announced plasma center divestiture, which remains on track to close in the first quarter of 2026. We maintain a healthy balance sheet and expect improved cash generation in 2026, driven by higher margins, improving working capital dynamics, and disciplined capital allocations.

Turning to our outlook, our 2026 and 2027 financial guidance forecasts continued Asceniv strength, favorable product mix shift, full-year yield enhanced production efficiencies, and sustained operating leverage. For 2026, total revenue is expected to exceed $635 million. Adjusted net income is expected to exceed $255 million, and adjusted EBITDA is expected to exceed $360 million. For 2027, total revenue is expected to exceed $775 million. Adjusted net income is expected to exceed $315 million, and adjusted EBITDA is expected to exceed $455 million. For 2029, total revenue is expected to exceed $1.1 billion, and adjusted EBITDA is expected to exceed $700 million.

These targets are driven by continued Asceniv penetration into its addressable patient market, full realization of yield enhancement efficiencies, continued mix improvement, and disciplined operational execution. Importantly, these projections exclude potential contributions from SG-001 and future capacity expansion, which represent meaningful potential long-term upside. We believe ADMA is entering 2026 from a position of strength, with strong demand in a growing U.S. IG market, higher margins, increasing cash generation, and a structurally improved earnings profile. As I've shared with our board and leadership team, it has been a privilege to serve as ADMA's Chief Financial Officer and Treasurer during a period of meaningful growth and financial transformation.

With record ascent of utilization, yield enhancement production now fully integrated into our commercial operations, and improving long-term plasma supply visibility, I believe ADMA is exceptionally well-positioned for sustained revenue growth, continued margin growth, and increasing cash generation in the years ahead. I am proud of what the team has accomplished, and I am exceedingly confident in the company's outlook. With that, prior to turning the call back to Adam, I'd like to introduce Terry to say a few words. Terry?

Terry-Ann Kohler (CFO and Treasurer)

Thanks, Brad. I'm excited to join ADMA's management team at a time of significant momentum and forward-looking opportunities. The company has built a differentiated platform with high demand, increasing margins, and a clear path to increasing cash generation. My focus will be on supporting disciplined execution, strengthening working capital performance and cash conversion, and enhancing financial strategy as we scale. I look forward to partnering with Adam, Caitlin, our COO, and the entire ADMA team to continue to drive growth, profitability, and long-term shareholder value.

Brad Tade (CFO and Treasurer)

Thanks, Terry. Adam, I'll pass it back to you.

Adam Grossman (President and CEO)

Thank you, Brad and Terry. Stepping back, ADMA is entering 2026 with strong momentum and increasing financial strengths. We are scaling a differentiated growth platform with the highest margins in the plasma-derived therapeutics complex. The company is committed to improving its capital efficiency while forging ahead with our focus on generating increasing cash flow, which we believe will unlock meaningful stockholder value. Asceniv remains the core of our growth strategy. In 2026, we expect continued demand and market penetration, expanding prescriber adoption, durable and now expanded payer access, and growing market confidence in our IG supply continuity. With Asceniv still forecast to be early in its penetration curve, we believe the runway for sustained utilization and growth remains significant. Yield-enhanced production is now fully integrated into commercial operations, making 2026 our first full year of structurally higher margin IG output.

Combined with continued mix shift towards Asceniv, we are well positioned for outside gross margin growth, increasing operating leverage, and continued earnings power. The strategic repositioning of our plasma collection network enhances capital efficiency and secures diversified long-term supply visibility through the late 2030s. These actions are expected to generate accretive cost savings beginning in 2026 and further improve the durability of our platform. Beyond our commercial business, our lead pipeline asset, SG-001, represents meaningful long-term optionality. We anticipate submitting a pre-IND package in 2026, potentially enabling direct progression into a cost-efficient registrational trial. We continue to view SG-001 as a potential $300 million-$500 million peak annual revenue opportunity. In closing, ADMA has never been better positioned. We are forecasting substantial revenue growth, continued margin growth, and increasing cash generation, driven by disciplined execution across the organization.

Thank you for your time today. We appreciate your continued interest and support. With that, operator, let's open up the call for questions.

Operator (participant)

Thank you. Today's question and answer session will be conducted electronically. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. We'll pause just a moment to assemble the roster. Our first question comes from the line of Kristen Kluska from Cantor Fitzgerald.

Rick Miller (MD)

Hi, this is Rick Miller for Kristen. Thanks for taking our questions.

Adam Grossman (President and CEO)

You're welcome.

Rick Miller (MD)

Hey, it's good to talk to you guys. Now that we can kind of clearly see into the proportion of sales that Asceniv accounts for, is there any updated color you can give us on how you're expecting Asceniv to sort of fit into the product mix as it relates to the revenue guidance that you've lined out going forward?

Adam Grossman (President and CEO)

Yes, I was trying to figure out what the first question was gonna be, Rick, and that was certainly one of the top ones. Look, very proud of Asceniv's growth year-over-year, 51%, $363 million. You know, we've this is our first time breaking out product level revenue. We certainly have been very, very bullish at Asceniv's opportunity and for the last period of time, right, Brad? We've been talking about mix shift.

Speaker 7

Yep.

Adam Grossman (President and CEO)

You know, I believe that the ratio is about a 70-30 split between Asceniv and Bivigam in 2025. We just believe that that's gonna continue to grow. We've given guidance around revenue, EBITDA, net income for next year. We think that that's gonna grow, and in the fourth quarter, we were 63.8%.

Speaker 7

Correct.

Adam Grossman (President and CEO)

Gross margins, you know, we expect that to continue to grow quarter-over-quarter. Full year, certainly with the 57.2% gross margin that we achieved. Very proud of that, the Asceniv mix is gonna continue to shift. As we've said, Rick, we're buying more high-titer plasma. We're making more Asceniv. We continue to forecast that Bivigam should be flat to down throughout the calendar year 2026. We expect margins to improve. We expect Asceniv to continue to progress with strong utilization and demand, and we're very proud of the results.

Speaker 7

Yeah, Rick, just to expand on the gross margin piece that Adam just hit on, right? You know, in 2025, we had Q4 that had yield-enhanced product being sold. You know, exiting Q4 2025 with a, you know, 63.8% gross margin, looking into 2026, you know, we feel strongly about our margin profile. We're gonna continue to see the mix shift from Bivigam to Asceniv, and we're gonna have a full year of yield-enhanced product being sold for both Bivigam and Asceniv. Again, we're feeling pretty confident about our gross margin profile.

Rick Miller (MD)

Maybe then to kind of follow up on something you brought up there, it sounded like heading into this year, you would really look to expand your third-party supply contracts to really get more of the RSV plasma. Is there any update on these efforts? You know, could you give us any color on finding additional supply on that front?

Adam Grossman (President and CEO)

Well, with respect to the third-party supply agreements, they're continuing to perform in good standing. We're collecting more plasma each and every month. Testing is ongoing and routine. You know, in connection with the plasma center divestiture that we announced at the JP Morgan conference in January, we also signed an additional third-party supply contract with the acquirer of those three centers. That operator is an independent collector of plasma. They're not connected to any fractionation capacity whatsoever. They just sell plasma to third parties. We're very pleased to be partnering with them. They've got a robust network. What we said is it adds about 30 centers today. They have plans to grow and expand their network. They've given us projections to about 50 additional centers.

All in all, we are collecting high-titer plasma from more than about 280 centers is what I think we've put in print. It's going really, really well. Look, we're very pleased and proud of our partnership with Grifols. They're a great partner. They're working well with us. Kedrion as well, another great partner, working very well. To the ADMA team here, I mean, look, we test a lot of samples. We test an enormous amount of samples when you really look at it. Look, as we've said, you know, less than 10% of the donor population has the antibody profile that we're looking for. It's a labor of love and we're collecting more raw material, and we're going to make more product.

Speaker 7

Rick, I would just add that just like the team has operationalized yield-enhanced manufacturing into normal course of business and normal course of manufacturing, I would say the same is true with RSV collections, right? The third-party agreements have exceeded our expectations. I think it's fair to say that we have normalized the collection of RSV plasma into a normal course of operations.

Rick Miller (MD)

Great. Okay, I'll jump back in the queue. Thank you, guys.

Operator (participant)

Thank you. One moment for our next question. Our next question comes from the line of Anthony Petrone from Mizuho Americas.

Anthony Petrone (MD and Equity Research)

... Thanks, congrats on the strong end to the year here. Great working with you, Brad, and welcome, Terry. Maybe, Adam, just the incentive number, you know, clearly was an outbreak in 4Q, at least by our math, and we'll scrub it a bit with these new disclosures. When you think about the offensive strategy here, I think in the past you've shared, you know, there's really 900 target immunology, you know, sites that you're going after. There's a decent amount of penetration into those sites. There's probably more than one prescriber per site. On the, you know, on the offensive strategy, how many more new centers do you think you can add in 2026? By what level do you think the prescriber base specifically can increase this year?

I'll have one follow-up question.

Adam Grossman (President and CEO)

No, thank you so much, Anthony Petrone. You know, we're very proud of the results, as you know. You know, we actively call on about 300 immunologists. We have a large majority of that number, who have prescribed Asceniv to at least one or more patients. We feel very good about our ability to continue to grow, both, from a reach perspective, getting more prescribers, writing their first script, getting more institutions using their first doses of Asceniv on these problematic refractive PI patients. We are seeing the depth in the existing, you know, same institutions growing rapidly. With commercial payer access opening up a bit in certain territories, we're very proud of the work that our team has done there.

We think that's gonna open up more lives for us to treat. Then we've mentioned the recent distribution agreement, which expands and diversifies our distribution network to McKesson and a number of the institutions that, you know, buy strictly from McKesson, you know, which is... We don't make the rules. People do what they want, and there's a large number of users of immune globulin in the PI space and in other secondary immune deficient populations that buy exclusively through McKesson and their related entities. We're very pleased now to be in a position where we've got a robust supply of flow material, which gives us visibility into the forward-looking throughput that we'll have in our plant and be able to distribute.

We're excited about the opportunity to expand to additional institutions that we have not yet even tapped. I feel that, you know, with the guidance that we've given this year, you know, $510 million for calendar year 2020, 2025 was achieved. Next year, we're guiding to $635 million on the top line. You know, substantially, all that growth, we believe, is gonna come from Asceniv utilization, and it will come from a mix of new institutions getting experienced, new prescribers, as well as expanding the reach into the existing same institutions. The drug continues to work well. The data that we're seeing from the investigator-initiated studies and publications, we're very pleased with how the company performed, and we're really excited about 2026.

I mean, a lot of this feels like we announced it already, you know, save for my colleague, Brad and Terry here, but, you know, we're very excited about the future. I think that we've really unlocked the value creation driver, which is yield enhancement. With the third-party plasma supply, you're gonna continue to see quarter-over-quarter growth.

Anthony Petrone (MD and Equity Research)

Very helpful. The quick follow-up will be, you mentioned Adam, and Brad as well, on receivables, you know, on track to get to a normalized level. I guess a quick two-parter: You know, when does McKesson show up in receivables? You know, if you can kinda just, you know, kinda define what that normalized level looks like once we get there, that would be helpful. Thanks again, congrats.

Adam Grossman (President and CEO)

Thanks, Anthony. Maybe I'll just start off about when we're gonna see McKesson. You know, we're actively working. We got the agreement set up. We're working with their partners and the customers that we know there, and I think we'll start to see it in the first half of the year, but I really think you're gonna really see it materialize in the back part of the year. You know, my team, I know, has been working very, very closely since...

You know, there are a number of steps that you have to go through to get sort of access with a number of these customers, and I can say that my team has been working very closely with McKesson and a number of the constituents that procure from there with respect to receiving formulary approval, P&T Committee approval at certain buying groups and certain infusion consortiums. I know that we're making substantial progress. I know that the team is working very, very hard, and I'm optimistic that we're going to see this not only with McKesson, but we're also going to see the right sizing of inventory, AR, et cetera, normalized towards the middle back part of the year. That's what we've been messaging.

You know, Anthony, when I look at the numbers, like, I was saying this earlier today, I know the numbers. I've known the numbers since day one. I know how much Asceniv we've been selling. I know how much Bivigam we sell. Actually looking at the Form 10-K for the first time with product level revenue broken out and seeing 51% year-over-year growth, I mean, it makes me understand a little bit more about what my distribution partners, what the specialty pharmacies who buy from us, what the end users have been experiencing. You know, Asceniv is an extremely important product in the lives of these patients. It has a higher cost per infusion than standard IG.

You know, as we've said, Asceniv sells for about, you know, 5.5, 6 times other standard IG products. You know, I think that our customers believe us, that we say, "Hey, we see all this growth. We need you to prepare for this level of demand." I think that they believe us to a point, but, you know, with that substantial growth, the working capital requirements on our distributors, on some of our end user customers has been robust. Give us some time to work through this. It's gonna normalize this year. Very excited about the new relationship with McKesson and all the opportunities that brings. Yeah, you know, we're just gonna keep growing.

Anthony Petrone (MD and Equity Research)

Thank you.

Adam Grossman (President and CEO)

AR. Growing revenues and reducing AR, I should say. Thanks, Anthony.

Operator (participant)

Thank you. Ladies and gentlemen, this will conclude our question and answer portion of the call. I'd like to turn it back over to Adam Grossman now for additional closing remarks.

Adam Grossman (President and CEO)

Thank you very much. With, with that, I'd like to thank everyone for dialing into today's call. Again, donate plasma, help save lives. We appreciate all the support from the investor community and the team at ADMA. Have a great evening.

Operator (participant)

Ladies and gentlemen, this does conclude the conference call for today. We appreciate your participation, and you may now disconnect.