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AMARIN CORP PLC\UK (AMRN)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue was $49.7M, up 17% YoY on higher U.S. sales, while GAAP net loss narrowed to $7.7M (EPS $(0.02) per ordinary share); non-GAAP EPS per ADS was $0.19 .
  • Results beat S&P Global consensus on both revenue ($49.7M vs $43.1M*) and EPS ($0.19 vs $(0.43)) as restructuring drove SG&A down 47% YoY; operating margin improved to (22)% from (60)% YoY, though down sequentially versus Q2’s licensing-boosted revenue .
  • Strategic transition to a fully partnered ex-U.S. model progressed on track (Recordati in Europe), with variability in partner supply shipments tempering Europe/ROW contributions this quarter; U.S. regained exclusive status with a large PBM and maintained >50% IPE market share .
  • Management reiterated a path to sustainable positive free cash flow in 2026 and indicated restructuring costs will remain within the $30–$37M range for 2025; cash and investments ended Q3 at $286.6M with no debt .

What Went Well and What Went Wrong

What Went Well

  • Material cost takeout: SG&A fell 47% YoY (to $19.7M), driving a 56% YoY reduction in operating loss; operating margin improved to (22)% from (60)% .
  • U.S. resilience: Net product revenue rose 34% YoY to $40.9M on improved net price/mix and volumes after regaining exclusive status with a large PBM; VASCEPA held >50% IPE market share five years post-generic .
  • Clearer FCF path and execution in Europe: Transition to Recordati advancing well, with expectation Recordati will fully manage EU commercialization by year-end 2025; company targets sustainable positive free cash flow in 2026 .

Management quotes:

  • “Our international commercial strategy is now a fully partnered model … across close to 100 countries” .
  • “We continue to build toward positive free cash flow, which we expect to achieve in 2026” .
  • “VASCEPA stood at greater than 50% share of the IPE market … and as of July 1 we regained exclusive status with a large national pharmacy benefit manager” .

What Went Wrong

  • Sequential revenue decline vs Q2: Q3 total revenue of $49.7M fell from $72.7M in Q2 due to lumpy licensing revenue in Q2 (Recordati upfront recognition); Europe product revenue dipped during the transition .
  • ROW variability: ROW product revenue declined YoY to $3.6M due to timing of partner supply shipments, reflecting the inherent variability of the partnered model .
  • Restructuring costs continued: Q3 recognized $9.4M restructuring, with additional but lower Q4 charges expected; total FY25 restructuring remains within the $30–$37M range .

Financial Results

P&L summary and margins (YoY and QoQ)

MetricQ3 2024Q2 2025Q3 2025
Total Net Revenue ($M)$42.298 $72.741 $49.670
Operating Loss ($M)$(25.168) $(15.985) $(11.103)
Net (Loss)/Income ($M)$(25.134) $(14.139) $(7.738)
GAAP Diluted EPS (per Ordinary Share)$(0.06) $(0.03) $(0.02)
Non-GAAP EPS (per ADS)$(0.99) $0.87 $0.19
Operating Margin %(60)% —(22)%
Net Margin %(59)% —(16)%

Notes: Non-GAAP adjusts for stock-based comp, restructuring and certain fees; see reconciliations .

Actual vs S&P Global Consensus (Q3 2025)

MetricConsensusActualSurprise
Revenue ($M)$43.1*$49.7 +$6.6M / +15%
Primary EPS$(0.43)*$0.19 +$0.62

Values with asterisk are from S&P Global. Values retrieved from S&P Global.

Revenue breakdown (product + licensing)

Metric ($M)Q3 2024Q2 2025Q3 2025
U.S. Product Revenue (net)$30.6 $36.5 $40.9
Europe Product Revenue (net)$4.3 $6.6 $4.1
Rest-of-World Product Revenue (net)$6.9 $3.5 $3.6
Total Product Revenue (net)$41.9 $46.6 $48.6
Licensing & Royalties$0.4 $26.1 $1.1
Total Net Revenue$42.3 $72.7 $49.7

Operating expense detail

Metric ($M)Q3 2024Q3 2025
COGS$26.0 $27.5
SG&A$36.9 $19.7
R&D$4.5 $4.2
Restructuring—$9.4
Total Operating Expenses (as defined)$41.4 $33.3

KPIs and balance sheet

KPIQ1 2025Q2 2025Q3 2025
Cash & Investments ($M)$281.8 $298.7 $286.6
DebtNone None None
Working Capital ($M)——$446
U.S. IPE Market Share——>50%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Sustainable Positive Free Cash Flow2026“Accelerated path to achieving positive free cash flow in the future” (no date) “Targeting sustainable positive free cash flow in 2026”; anticipate achieving in 2026 Clarified timing (dated to 2026)
OpEx Savings TargetNext 12 months from Jun-2025~$70M savings over next 12 months (announced with Recordati deal) SG&A down 47% YoY in Q3; savings flowing through; continued discipline Maintained; execution underway
Restructuring ChargesFY2025—Total $30–$37M; additional Q4 charges at lower level; within range Formalized range; maintained
EU Transition Completion2025Largely completed by end 2025 Recordati to fully manage EU promotion by end 2025; on track Maintained
U.S. ExclusivesThrough 2025Retained major exclusives through Q2 Confident to retain major exclusives through end 2025; regained exclusive status with large PBM 7/1 Strengthened outlook

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
European strategy/RecordatiQ2: Exclusive license with Recordati; EU handoff expected by YE25 Transition “progressed exceptionally well”; Recordati to fully manage EU by YE25 Execution progressing
Cost discipline/restructuringQ1: Opex control; Q2: Global restructuring targeting ~$70M savings SG&A down 47% YoY; restructuring charges continue but trending lower; within $30–$37M range Savings realized; charges tapering
U.S. market/pricing & accessQ1: Retained major exclusives; plan for AG option >50% IPE share; regained exclusive with large PBM; net price to be relatively consistent 2H25; 2026 rebates under negotiation Stable/pragmatic
Regulatory/scienceQ1: Italy access expanded; Austria reimbursement; ongoing data generation ESC 2025 guideline update reaffirms IPE; FDA phenofibrate label change underscores outcomes-based therapy need Supportive
ROW commercializationQ1: Sequential demand growth across launched geographies Variability in shipments; YoY revenue down due to timing/launch cadence Variable but progressing

Management Commentary

  • Strategic positioning: “Our international commercial strategy is now a fully partnered model comprising seven parties and close to 100 countries” (Aaron Berg, CEO) .
  • Operating model change: “Operating expenses declined meaningfully, demonstrating the benefits of our global reorganization and continued cost discipline” (CFO) .
  • U.S. durability: “VASCEPA stood at greater than 50% share of the IPE market… and as of July 1 we regained exclusive status with a large national PBM” (CEO) .
  • Outlook: “We’re… on an accelerated path to positive free cash flow, which we anticipate achieving in 2026” (CFO) .

Q&A Highlights

  • U.S. net price and gross margin outlook: Net price expected to be relatively consistent in 2H25; 2026 rebates under negotiation. Gross margin percentage likely to decline over time with a larger partnered mix, but operating margin should benefit from lower OpEx .
  • Recordati milestones: Milestones are sales-driven (first trigger at €/$100M in sales) as commercialization scales over time .
  • Restructuring cadence: Additional but lower Q4 restructuring charges; total FY25 charges to remain within $30–$37M .
  • ROW volatility: Revenue variability reflects supply timing tied to launches and in-market demand; fewer large launches this quarter vs prior year .
  • Phenofibrate label update: Management views FDA’s action as supportive of outcomes-based therapies; potential to influence prescriber/payer behavior in U.S. and inform ex-U.S. practice over time .

Estimates Context

  • S&P Global consensus revenue for Q3 2025 was ~$43.1M*, and Primary EPS was $(0.43)*. AMRN delivered $49.7M revenue and $0.19 non-GAAP EPS per ADS, representing meaningful beats on both metrics . Values retrieved from S&P Global.
  • Estimate revisions may trend higher for U.S. revenue and operating margin trajectory given SG&A run-rate and PBM exclusivity; however, modelers should incorporate licensing/royalty lumpiness and EU/ROW supply variability .

Key Takeaways for Investors

  • Restructuring is working: SG&A down 47% YoY with a clear glidepath to sustainable positive FCF in 2026; cash/investments of $286.6M and no debt provide runway .
  • U.S. remains the anchor: >50% IPE share and regained PBM exclusivity support pricing/mix and volume resilience despite generic presence .
  • Ex-U.S. pivot on track: Recordati to fully manage EU by YE25; expect quarter-to-quarter variability in product and supply revenues as the partnered model normalizes .
  • Quality-of-revenue mix matters: Q2’s outsized licensing revenue inflated the sequential comp; investors should normalize for lumpy licensing/royalty recognition when assessing trajectory .
  • Regulatory/scientific tailwinds: ESC guideline reaffirmation and FDA’s phenofibrate label update strengthen the outcomes-based narrative for IPE/EPAs, a potential medium-term demand catalyst .
  • Watch Q4 items: Lower but ongoing restructuring charges, stabilization of EU shipments under Recordati, and confirmation of U.S. exclusive account retention into 2026 .

Values with asterisk are from S&P Global. Values retrieved from S&P Global.