Executive Summary

Q3 2025 revenue and profitability expanded: revenue $134.224M (+12% YoY; +10% QoQ), GAAP net income $36.428M (+1% YoY), gross margin 56.3% (+550 bps YoY), and adjusted EBITDA $58.740M (+29% YoY) .
Versus consensus: revenue beat (actual $134.224M vs $130.533M*), EPS was in line (actual $0.15 vs $0.15*) for Q3; Q2 was a beat on both, Q1 missed on both (see table) (Values retrieved from S&P Global).*
Guidance raised: FY25 revenue ≥$510M (from >$500M); FY26 revenue ≥$630M (from ≥$625M); FY26 adj. EBITDA >$355M (from ≥$340M); FY26 adj. net income >$255M (from ≥$245M). FY25 adj. net income revised to ~$158M to reflect a higher effective tax rate; FY25 adj. EBITDA reaffirmed at $235M .
Catalysts: FDA lot release of first yield‑enhanced batches (expected to drive margin expansion starting Q4 2025), record ASCENIV demand with statistically significant real‑world outcomes and expected 2026 payer coverage expansion, and disciplined capital deployment including ongoing share repurchases .

What Went Well and What Went Wrong

What Went Well

Yield‑enhanced production lot release, positioning ADMA for sustained gross margin expansion beginning Q4 2025; CEO: “marks a pivotal milestone expected to drive sustained gross margin expansion…through 2026 and beyond” .
ASCENIV real‑world outcomes and demand: infection rates reduced >50% (2.1 to 0.9 per year, p<0.05); record utilization with positive payer negotiations for expanded coverage in 2026 .
Operating leverage: gross margin rose to 56.3% (Q3) and product‑level gross margin was ~63.7% excluding a discrete plasma sale; adjusted EBITDA up 29% YoY .

What Went Wrong

Earnings tempered by higher effective tax rate; FY25 adjusted net income guidance reduced to ~$158M (from >$175M) .
Temporary competitive dynamics in standard IVIG markets (mainly impacting BIVIGAM) and an opportunistic $13.8M spot sale of normal source plasma at negative margin to optimize working capital .
Working capital elevated due to inventory build and $12.6M facility expansion investment; ~$23.0M share repurchases settled in Q3 (cash usage), with normalization expected in coming quarters .

Financial Results

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$114.802	$121.984	$134.224
Diluted EPS ($)	$0.11	$0.14	$0.15
Gross Margin %	53.2%	55.1%	56.3%
GAAP Net Income ($USD Millions)	$26.904	$34.219	$36.428
Adjusted EBITDA ($USD Millions)	$47.939	$50.769	$58.740
Adjusted Net Income ($USD Millions)	$33.299	$36.035	$38.906

Segment/Driver Notes	Q1 2025	Q2 2025	Q3 2025
ASCENIV demand narrative	Robust demand trending to record highs	Further record highs	Record utilization; payer coverage expansion anticipated 2026
Product-level gross margin (ex plasma sale)	—	—	~63.7%

KPIs and Balance Sheet	Q1 2025	Q2 2025	Q3 2025
Cash & Cash Equivalents ($M)	$71.625	$90.285	$61.385
Accounts Receivable ($M)	$99.412	$109.726	$137.673
Inventories ($M)	$172.188	$191.464	$196.667
Share Repurchases ($M, settled in period)	—	~$15.0 (settled in July)	~$23.0
Facility Expansion Investment ($M)	—	~$12.5 purchase (completed July)	~$12.6 investment reflected
Revolver Availability ($M)	—	Undrawn $225	Undrawn $225

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue	FY 2025	>$500M	≥$510M	Raised
Adjusted Net Income	FY 2025	>$175M	≈$158M (higher tax rate)	Lowered (tax-driven)
Adjusted EBITDA	FY 2025	≥$235M	$235M (reaffirmed)	Maintained
Total Revenue	FY 2026	≥$625M	≥$630M	Raised
Adjusted Net Income	FY 2026	≥$245M	>$255M	Raised
Adjusted EBITDA	FY 2026	≥$340M	>$355M	Raised
Total Annual Revenue	FY 2029	≥$1.1B (pre‑2030 outlook)	≥$1.1B (FY 2029)	Maintained (timing specified)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
Yield‑enhancement & margins	Q1: FDA approval; +20% output expected . Q2: Commercial-scale batches delivering 20%+ output .	FDA lot release of first yield‑enhanced batches; margin expansion expected from Q4 2025; normalized product-level margin ~63.7%; potential to reach >70% in 2026 .	Accelerating positive
ASCENIV demand & outcomes	Q1: Robust demand trending to record highs . Q2: Utilization at record highs .	Statistically significant real‑world infection reduction (>50%); record utilization; access expected to expand in 2026 .	Strengthening adoption/access
Payer coverage/reimbursement	Limited detail Q1/Q2.	Active negotiations; improving approvals; movement off restrictions; mix ~40%–45% commercial; impact to margins not significant expected .	Improving
Supply chain & plasma sourcing	Q1: US‑based insulation; high‑titer contracts . Q2: Record external collections; Boca Raton site expansion .	One‑time $13.8M spot plasma sale to optimize working capital; third‑party suppliers outperformed; inventory build; visibility to collect more high‑titer plasma in 2026 .	Strengthening capacity; short‑term normalization
Capital deployment	Q1: $500M repurchase authorization; debt reorg lowers cost of debt by 1.1% nominal . Q2: JPMorgan‑led refinancing; undrawn $225M revolver; ~$15M repurchases .	~$23M Q3 repurchases; undrawn $225M revolver; strong cash generation outlook .	Continued optimization
SG‑001 pipeline	Q1: Initial animal data targeted 2025; $300–$500M opportunity . Q2: Proprietary animal model; early signs of efficacy .	Broad serotype coverage; CNPV voucher application submitted; accelerated review potential; long-term protected opportunity .	Progressing on track

Management Commentary

“ADMA is executing from a position of strength as we enter our next phase of disciplined, profitable growth…[yield‑enhanced] batches…drive sustained gross margin expansion beginning in the fourth quarter of 2025 and through 2026 and beyond.” — Adam Grossman, CEO .
“This process innovation is expected to improve per‑batch output by 20% or more, driving sustained gross margin expansion…” .
“We believe we are strongly positioned to finish 2025 on a high note and accelerate year‑over‑year growth rates in 2026 from a position of operational strength.” .
On ASCENIV outcomes: “2.1 infections per year…on prior IVIG vs. 0.9 infections per year on ASCENIV; reduction of greater than 50% (p<0.05).” .

Q&A Highlights

Real‑world outcomes publication and payer impact: Management expects data to reinforce prescriber confidence and strengthen payer coverage with expanded access in 2026; negotiations are ongoing with movement off restricted lists and step‑edits .
Yield‑enhanced lot release cadence and margins: Lot releases occur in normal course (2–8 weeks typical); normalized product‑level gross margin of 63.7% in Q3 and potential >70% in 2026 if mix shift and cost savings proceed as expected .
Demand trajectory and access: Record ASCENIV utilization continues into Q4; direct‑to‑patient medical education initiatives started late summer may be supporting adoption; physician centers and prescribers expanding .
Plasma supply and sourcing performance: Third‑party suppliers “meaningfully outperformed”; incentives aligned to increase high‑titer collections in 2026 .

Estimates Context

Metric vs Consensus	Q1 2025	Q2 2025	Q3 2025
Revenue Consensus ($USD Millions)	118.650*	121.767*	130.533*
Revenue Actual ($USD Millions)	114.802	121.984	134.224
Outcome (Revenue)	Miss	Beat	Beat
EPS Consensus ($)	0.165*	0.13667*	0.15*
EPS Actual ($)	0.11	0.14	0.15
Outcome (EPS)	Miss	Beat	In line

Values retrieved from S&P Global.*
Implications: Q3 beat on revenue with in‑line EPS likely reflects ASCENIV mix and early yield‑enhancement benefits, offset by a higher effective tax rate and the discrete negative‑margin plasma sale; Q2 showed underlying strength; Q1 underperformed due to voluntary withdrawals and timing items noted in company disclosures .

Key Takeaways for Investors

Yield‑enhanced batches are now FDA‑released and expected to expand margins starting Q4 2025, with management indicating potential to reach >70% product‑level margins in 2026 as ASCENIV mix increases and cost savings accrue .
ASCENIV demonstrated >50% infection reduction in real‑world data, supporting demand and 2026 payer coverage expansion—key to sustained top‑line growth and pricing durability .
FY26 outlook raised across revenue, adjusted EBITDA, and adjusted net income, even as FY25 adjusted net income reflects a higher tax rate; operating momentum appears intact .
Short‑term headwinds (standard IVIG competitive dynamics, discrete plasma sale) were managed to optimize working capital and cash flow; conditions stabilizing post‑quarter .
Liquidity and capital structure are strong (undrawn $225M revolver), enabling continued share repurchases and investment (Boca Raton site expansion) to support capacity and efficiency .
Pipeline optionality: SG‑001 advancing with potential accelerated review pathway and a protected $300–$500M high‑margin opportunity not in terminal guidance—upside lever beyond core IG portfolio .
Near‑term trading set‑up: watch Q4 margin cadence from yield‑enhanced lots, payer coverage updates, and ASCENIV utilization trends; medium‑term thesis hinges on margin trajectory, ASCENIV penetration, and SG‑001 progress .

Notes: All company figures and statements are sourced from ADMA’s Q3 2025 8‑K press release and earnings call materials, prior quarter disclosures, and associated press releases. Estimates marked with * are from S&P Global.

ADMA BIOLOGICS, INC. (ADMA)·Q3 2025 Earnings Summary