Sign in
BI

Biofrontera Inc. (BFRI)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $8.588M, up 8.7% YoY, but below S&P Global consensus of $10.55M; diluted loss per share was $(0.47) vs consensus $(0.29), implying a miss on both revenue and EPS. The revenue shortfall was ~$1.96M and EPS missed by ~$0.18; adjusted EBITDA improved slightly to $(4.378)M with margin -51.0% [- S&P Global estimates*].
  • Cost structure improved: cost of revenues (related party) fell 22.1% YoY to $3.075M on lower transfer price (50%→25% through 2025), and SG&A decreased 6.5% YoY despite a $1.2M legal expense uptick linked to patent claims .
  • Cash declined to $1.785M at March 31, 2025 from $5.905M at year-end, while inventories remained stable at ~$6.5M; management reiterated confidence in achieving record 2025 revenues supported by pricing, new customers, and RhodoLED XL momentum .
  • Strategic milestones: final patient enrolled in Phase 3 AK (extremities/neck/trunk), last-patient-out completed for sBCC study, and patent approval for revised Ameluz formulation extending protection to December 2043—key long-term value drivers .

What Went Well and What Went Wrong

What Went Well

  • Revenue growth +8.7% YoY to $8.588M, driven by Ameluz price increase (+$0.5M) and RhodoLED XL lamp contribution ($0.2M) .
  • Improved cost of revenues (related party) to $3.075M (-22.1% YoY) reflecting reduced transfer price; SG&A down $0.6M (-6.5% YoY) despite targeted legal spend .
  • Management confidence and commercial traction: “We continue to see current customers reordering as well as new medical offices coming on board… illustrating the strength of our products and the success of our sales and marketing efforts.” .

What Went Wrong

  • Missed Street estimates: revenue $8.588M vs consensus $10.55M* and EPS $(0.47) vs $(0.29), weighing on near-term sentiment [- S&P Global estimates] .
  • Cash balance fell to $1.785M from $5.905M in Q4, increasing focus on liquidity near-term .
  • R&D expenses rose $1.2M YoY amid assumption of U.S. clinical trial activities, and legal expenses increased $1.2M due to patent claims, partially offset by personnel/financing savings .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$9.012 $12.560 $8.588
Diluted EPS ($)$(0.98) $(0.19) $(0.47)
Adjusted EBITDA ($USD Millions)$(4.575) $(1.375) $(4.378)
Adjusted EBITDA Margin (%)-50.8% -10.9% -51.0%
Operating Expense Detail ($USD Millions)Q3 2024Q4 2024Q1 2025
Cost of revenues, related party$4.801 $5.016 $3.075
Cost of revenues, other$0.076 $0.256 $0.193
SG&A$8.425 $8.192 $8.653
SG&A, related party$0.001 $0.012 $0.007
R&D$0.669 $0.796 $1.207
Q1 2025 Revenue Drivers (YoY)Contribution ($USD Millions)
Ameluz price increase+$0.5
RhodoLED XL lamp sales+$0.2
Balance Sheet KPIsQ4 2024Q1 2025
Cash & cash equivalents ($USD Millions)$5.905 $1.785
Accounts receivable, net ($USD Millions)$5.315 $4.031
Inventories, net ($USD Millions)$6.646 $6.527
Accounts payable ($USD Millions)$1.856 $3.300
Weighted-average diluted shares7,519,210 8,873,932

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025Not providedManagement expects record revenues in 2025 (qualitative) Maintained qualitative (no numeric)
Gross marginFY 2025Not providedLower transfer price (25%) expected throughout 2025; mix may fluctuate with lamp sales Qualitative update
SG&AFY 2025StableExpect to hold approximately steady (commercial SG&A) Maintained
R&DFY 2025StableStable vs recent months Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Transfer price & gross marginNoted cost benefits starting to flow 25% transfer price through 2025; gross margin tailwind All inventory now at 25% transfer price; lamp mix can pressure margin Positive structural tailwind; watch mix
Sales force efficiency/headcountSG&A reductions across 2024 SG&A expected to hold steady Reorganizing territories; junior reps to manage costs Focused optimization
Regulatory/label expansionFDA approval for 3-tube indication sBCC Phase 3 data to be submitted H2’25 Phase 3 AK (body) final patient enrolled; sBCC last-patient-out done; patent to 2043 Advancing pipeline
Product performanceRhodoLED XL rollout momentum 52 XL lamps placed in Q4; 100 since launch XL lamp sales contributed $0.2M in Q1 Continued adoption
Reimbursement (3-tube)——“All systems go” based on market feedback; no refusals reported Positive
Legal/patentHurricane impacts, competitor complaints noted —Legal expenses +$1.2M due to patent claims Elevated near term
R&D executionClinical operations transferred in June 2024 R&D stable going forward R&D +$1.2M YoY; offset by transfer price reduction Near-term spend to drive labels

Management Commentary

  • “We strongly believe our past investments, execution and tremendous efforts to increase the effectiveness of our sales force will allow us to achieve record revenues in 2025 without increasing our costs.”
  • “We continue to see current customers reordering as well as new medical offices coming on board… illustrating the strength of our products and the success of our sales and marketing efforts.”
  • On margins: “All of the inventory we have now is at the 25% transfer price… It might be offset… based on how many lamps we sell because the margin there is lower.”
  • On reimbursement: “We are not aware of a single case where a doctor has been refused payment because of using more than one tube… This seems to be completely solved.”
  • Strategic milestones: patent protection through December 2043 and progression of Phase 3 AK and sBCC programs .

Q&A Highlights

  • Sales force structure/costs: reorganizing territories with more junior reps; some turnover but committed to replacement; aim for efficiency to finish year strong .
  • Gross margin trajectory: full benefit of 25% transfer price for 2025; margin mix sensitive to lamp sales with lower margins vs drug .
  • Reimbursement clarity: post 3-tube approval, reimbursement functioning well with no reported denials; supports larger-field treatments .

Estimates Context

Q1 2025ActualS&P Global Consensus*Surprise
Revenue ($USD Millions)$8.588 $10.550*-$1.962
Primary EPS ($)$(0.47) $(0.29)*-$0.18

Values retrieved from S&P Global.*

Where estimates may adjust: Street may lower near-term revenue/EBITDA assumptions to reflect lamp mix and the pace of label expansion benefits, while maintaining medium-term uplift assumptions from 3-tube usage, AK body approval, and sBCC filing timelines .

Key Takeaways for Investors

  • Near-term print was mixed: solid YoY growth but a clear miss vs Street on both revenue and EPS; adjusted EBITDA margin reverted to -51%, reflecting lamp mix and elevated R&D/legal spend [- S&P Global estimates*].
  • Structural margin tailwinds persist via the 25% transfer price through 2025; monitor product mix (drug vs device) as a key driver of realized gross margins .
  • Liquidity tightened with cash at $1.785M; watch financing flexibility, working capital, and cadence of collections given lower accounts receivable vs Q4 .
  • Commercial momentum remains: pricing, new customer adds, and RhodoLED XL adoption supported by reimbursement clarity on 3-tube indication .
  • Pipeline catalysts in 2H 2025: sBCC data submission and progress on AK body label; Ameluz patent protection to 2043 enhances long-term moat .
  • Management expects record 2025 revenues without cost increases; SG&A/R&D guided to remain stable, aiding breakeven trajectory if revenue accelerates .
  • Trading setup: miss vs consensus may cap near-term, but structural margin improvement and regulatory milestones are core medium-term thesis drivers; monitor Q2 revenue trajectory and margins for validation .