Sign in

You're signed outSign in or to get full access.

BB

Beta Bionics, Inc. (BBNX)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 net sales grew 54% year over year to $23.2M, with gross margin at 53.8%; strength came from both DME and accelerating pharmacy channel adoption .
  • Revenue and EPS beat Wall Street: revenue $23.2M vs. $19.7M consensus and EPS better than consensus (S&P “Primary EPS”) −0.27 vs. −0.47; company-reported diluted EPS was −$0.39 *.
  • Full-year 2025 guidance was raised across revenue ($88–$93M), pharmacy mix (25–28% of new starts), and gross margin (52–55%); CFO outlined cadence of sequential growth into Q3 and Q4 .
  • Strategic catalysts: nationwide PBM formulary agreements effective July 1 and strong real-world outcomes underpin adoption; pipeline milestones include Mint patch pump demo and progression of bihormonal PK/PD bridging trial .

What Went Well and What Went Wrong

What Went Well

  • Record quarterly adoption: 4,934 new patient starts (+57% YoY); installed base reached 24,085 users (+200% YoY), with ~71% of new starts from MDI, evidencing market expansion .
  • Pharmacy channel inflection: “As of July 1st, Beta Bionics has effective formulary agreements in place with all the major PBMs that operate in the U.S.” (CEO), with a high-20s percent of new starts reimbursed through pharmacy in Q2 .
  • Real-world outcomes: “We showed that the iLet delivered an average baseline A1C to follow a GMI decline of 1.6% in the real-world… across such a wide range of users and clinicians” (CEO) .
  • Guidance raised: revenue to $88–$93M, pharmacy mix to 25–28%, gross margin to 52–55%; CFO expects sequential revenue and GM upticks Q2→Q3→Q4 .

What Went Wrong

  • Operating expenses increased 63% YoY to $32.4M, reflecting sales force expansion and R&D for Mint and bihormonal programs; operating loss widened to $(19.9)M .
  • Near-term margin headwind from pharmacy mix: CFO explained foregone upfront pump revenue reduces revenue and GM in-quarter, offset over time by higher recurring pharmacy revenue .
  • Pricing and stocking dynamics: pharmacy iLet ASP declined due to PBM rebates; supply kits ASP unchanged but Q2 saw stocking headwinds vs. Q1 (analyst Q&A) .
  • Attrition remains undisclosed; CFO emphasized retention confidence but declined to quantify churn, an investor modeling concern .

Financial Results

Core P&L and Margins (prior quarter and prior year)

MetricQ4 2024Q1 2025Q2 2025
Net Sales ($USD Millions)$20.44 $17.64 $23.24
Gross Margin (%)57.2% 50.9% 53.8%
Loss from Operations ($USD Millions)$(13.04) $(18.64) $(19.87)
Net Loss ($USD Millions)$(18.11) $(28.66) $(16.87)
Adjusted EBITDA ($USD Millions)$(11.25) $(15.54) $(14.53)
Diluted EPS (Company) ($USD)$(2.72) $(0.93) $(0.39)

Year-over-Year Comparison (Q2)

MetricQ2 2024Q2 2025
Net Sales ($USD Millions)$15.05 $23.24
Gross Margin (%)53.7% 53.8%
Loss from Operations ($USD Millions)$(11.78) $(19.87)
Net Loss ($USD Millions)$(14.46) $(16.87)
Adjusted EBITDA ($USD Millions)$(9.99) $(14.53)
Diluted EPS (Company) ($USD)$(2.37) $(0.39)

Segment and Channel Breakdown (Q2)

Net Sales by Channel ($USD Thousands)Q2 2024Q2 2025
DME: iLet$11,690 $13,414
DME: Single-use products$2,588 $5,230
Total DME$14,278 $18,644
PBP: iLet$229 $205
PBP: Single-use products$539 $4,389
Total PBP$768 $4,594
Total Net Sales$15,046 $23,238

KPIs (Q2)

KPIQ2 2024Q2 2025
New Patient Starts3,133 4,934
% New Starts from MDI69% 71%
Installed Customer Base8,034 24,085
% New Starts via PharmacyMid-single digit High-20s

Results vs. S&P Global Consensus

MetricQ4 2024Q1 2025Q2 2025
Revenue Consensus Mean ($USD)$20.19M*$16.15M*$19.69M*
Actual Revenue ($USD)$20.44M $17.64M $23.24M
Primary EPS Consensus Mean ($USD)−1.217*−0.506*−0.467*
Primary EPS Actual (S&P) ($USD)−1.2167*−0.5060*−0.2736*
Company Diluted EPS ($USD)$(2.72) $(0.93) $(0.39)

Values with asterisk (*) retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total RevenueFY 2025$82–$87M $88–$93M Raised
% New Patient Starts via PharmacyFY 202522%–25% 25%–28% Raised
Gross MarginFY 202550%–53% 52%–55% Raised

CFO cadence commentary: Q3 revenue “slightly higher than Q2” and Q4 higher than Q3; GM to rise Q2→Q3→Q4 .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Pharmacy channel strategyPrime Therapeutics formulary effective Feb 1, 2025; pharmacy removes large upfront cost and eases physician burden All major PBM formulary agreements effective July 1; high-20s % of new starts via pharmacy; CFO explains near-term GM headwind but long-term accretive recurring revenue Accelerating adoption; expanding coverage
Gross margin driversQ1 GM dipped on mix; scaling and manufacturing leverage expected GM 53.8%; CFO details pharmacy mix headwind vs. recurring base tailwind and lower per-unit costs with scale Improving trajectory with scale
Policy/tariffsNairobi Protocol exempts custom components; minimal tariff impact CMS proposal: competitive bidding cap ~$226/mo and shift to pay-as-you-go rental; company sees minimal direct impact and potential tailwinds Policy clarity; preparedness
Product/tech & digitalColor iLet, Libre 3 Plus integration, Bionic Circle app Bionic Portal update for providers; positive feedback; Mint patch pump demo; firmware OTA plans Enhancing UX and clinician tools
Pipeline (bihormonal)Xeris glucagon formulation and compatibility; milestone paid PK/PD dosing completed; prelim PD supportive; full results in 2H25; form-factor flexibility (durable, Color iLet+Mint, or dual Mint) Advancing to feasibility
Market expansion (Type 2)N/A~25% of new starts estimated in T2 (off-label); plan to pursue label expansion; cautious commentary Broadening addressable market

Management Commentary

  • CEO: “We showed that the iLet delivered an average baseline A1C to follow a GMI decline of 1.6% in the real-world… This isn’t a fractional advantaged subsegment… This is a representative real-world population.”
  • CEO: “As of July 1st, Beta Bionics has effective formulary agreements in place with all the major PBMs that operate in the U.S.”
  • CFO: “Increasing our pharmacy mix is financially accretive over the medium and long term… near-term headwind for revenue and gross margin… pharmacy installed base… generates substantially more revenue per month.”
  • CEO on CMS: “We don’t expect to see any material revenue impact from competitive bidding… shift to pay-as-you-go will create tailwinds.”
  • CEO on Mint: “We believe Mint will be a game changer when it launches… commercialization by the end of 2027… highly confident.”

Q&A Highlights

  • Pricing/ASP: Pharmacy iLet ASP declined due to PBM rebates; supply kit ASP steady; Q2 saw stocking headwinds vs. Q1 .
  • Churn: Management declined to disclose attrition rates; emphasized strong retention and prioritization of pharmacy channel .
  • Guidance cadence: Expect Q3 revenue slightly above Q2 and Q4 above Q3; new patient starts similar Q2→Q3 then up in Q4 .
  • CMS implementation timing: Comments due by late Aug/early Sep; earliest full policy adoption around 2027, competitive bidding prerequisite to rental model .
  • OpEx outlook: Limited S&M and G&A uptick in 2H; R&D lumpy on Mint and bihormonal programs .

Estimates Context

  • Q2 2025 revenue beat: $23.24M actual vs. $19.69M consensus; Q1 also beat ($17.64M vs. $16.15M) *.
  • EPS beat: S&P “Primary EPS” −0.27 actual vs. −0.47 consensus; note company-reported diluted EPS was −$0.39 due to differing methodologies *.
  • Given raised full-year revenue, gross margin, and pharmacy mix guidance, consensus likely needs to move higher for 2H cadence and FY totals .

Values with asterisk (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Strong beat-and-raise quarter driven by accelerating pharmacy adoption and broad-based demand for iLet; recurring revenue base building should enhance predictability and margin over time .
  • Near-term GM headwinds from pharmacy mix are transitory; scale and installed-base monetization support updated 52–55% GM guidance .
  • Nationwide PBM formulary coverage is a major commercial unlock; watch health plan pull-through pacing across PBMs for 2H trajectory .
  • Pipeline de-risking: bihormonal PK/PD prelim data supportive; Mint patch pump progressing toward end-2027 commercialization, adding optionality and TAM expansion .
  • CMS proposal presents limited direct revenue risk and potential tailwinds via pay-as-you-go alignment and easier pump switching; monitor final rule timing .
  • 2H setup: management guides sequential revenue and GM improvement; Q4 seasonality typical for diabetes market—positive cadence .
  • Cash and investments of ~$280.9M provide ample runway to execute commercial scaling and R&D roadmap .