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CERUS CORP (CERS)·Q2 2025 Earnings Summary

Executive Summary

  • Record product revenue of $52.4M (+16% YoY) drove total revenue of $60.1M, with continued momentum in IFC and platelets; non-GAAP adjusted EBITDA remained positive at $0.9M .
  • Guidance raised: FY25 product revenue to $200–$203M (from $194–$200M) and FY25 IFC revenue to $16–$18M (from $12–$15M), reflecting stronger demand and improved supply position .
  • Q2 beat/miss vs S&P Global consensus: Revenue modest beat ($52.45M vs $51.80M*) and EPS miss (-$0.03 vs -$0.02*) as OpEx rose on R&D and COLA-related SG&A .
  • Strategic catalysts: advancing EU RBC CE Mark review (clinical module review complete; dossier with SÚKL), U.S. DoD +$7.2M award for CRYO-FIRST supporting LyoIFC development .
  • Management highlighted another quarter of positive adjusted EBITDA and confidence in back-half growth; expect typical seasonal Q3 flattening in EMEA with stronger Q4 cadence .
    Note: Asterisked estimate values are from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Record product revenue $52.4M (+16% YoY) and total revenue $60.1M (+19% YoY); IFC revenue surged to $5.6M (vs $2.0M LY) on rising hospital adoption .
  • Raised FY25 product revenue guidance to $200–$203M and IFC to $16–$18M, citing strong first-half execution and confidence in second-half demand .
  • Progress on key growth drivers: INT200 LED illuminator launched and receiving positive feedback; EU RBC CE Mark dossier advanced to SÚKL review (clinical module cleared by TÜV-SÜD) .

Quotes:

  • “Record product sales… another quarter of positive non-GAAP adjusted EBITDA… we are raising our full-year 2025 product revenue guidance.” — CEO Obi Greenman .
  • “Feedback on the INT-200 continues to be very positive… foundational component of blood center operations.” — CEO Obi Greenman .

What Went Wrong

  • EPS missed consensus (-$0.03 vs -$0.02*), as OpEx rose: R&D $18.9M (from $15.0M) on INT200 development and government contract activity; SG&A $21.2M (from $19.0M) on COLA .
  • Product gross margin compressed sequentially to 55.2% from 58.8% in Q1; FX, inflation and mix offset volume and ASP tailwinds; CFO flags mid-50s margin outlook with potential modest headwinds .
  • Government contract revenue timing impacted by administrative delays in Washington, affecting cash receipts timing; operating cash used $2.4M tied to working capital build (inventory, AR) .

Financial Results

Consolidated metrics (oldest → newest)

MetricQ2 2024Q1 2025Q2 2025
Total Revenue ($M)$50.5 $48.9 $60.1
Product Revenue ($M)$45.1 $43.24 $52.45
Gov’t Contract Revenue ($M)$5.44 $5.61 $7.68
Product Gross Margin %54.7% 58.8% 55.2%
Non-GAAP Adj. EBITDA ($M)$0.78 $0.16 $0.94
Net Loss per Share ($)($0.03) ($0.04) ($0.03)
R&D Expense ($M)$15.0 $16.61 $18.90
SG&A Expense ($M)$19.0 $20.29 $21.18

Estimates vs Actual (S&P Global; product revenue appears to be the revenue definition used)

Metric (Q2 2025)ConsensusActual
Revenue ($M)$51.80*$52.45
EPS (Primary)-$0.02*-$0.03
  • Values with asterisk are retrieved from S&P Global.
  • Note: S&P’s revenue “actual” maps to product revenue ($52.445M), not total revenue ($60.1M) for this quarter, suggesting consensus tracked product revenue.

Regional product revenue (YoY)

Region ($000s)Q2 2024Q2 2025YoY Δ ($000s) / %
North America$30,097 $35,286 +$5,189 / +17%
EMEA$13,725 $16,612 +$2,887 / +21%
Other$1,257 $547 -$710 / -56%
Total Product Revenue$45,079 $52,445 +$7,366 / +16%

KPIs and Other Items

KPIQ2 2024Q2 2025Notes
IFC Revenue ($M)$2.0 $5.6 +$3.6M YoY
Platelet Kit Growth (Worldwide)+3% +3% As reported fixed-base YoY
Treatable Platelet Doses (Worldwide)+1% +1% Based on kit mix
Cash + ST Investments ($M)$80.5 (12/31/24) $78.0 (6/30/25) Stable liquidity

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Product RevenueFY 2025$194M – $200M $200M – $203M Raised
IFC RevenueFY 2025$12M – $15M $16M – $18M Raised

Earnings Call Themes & Trends

TopicQ4 2024 (Q-2)Q1 2025 (Q-1)Q2 2025 (Current)Trend
Profitability/EBITDAAchieved +$5.7M FY24 adj. EBITDA; positive Q4 adj. EBITDA $3.3M Positive adj. EBITDA $0.2M; reiterated FY25 positive target Fifth consecutive positive adj. EBITDA; aim for FY25 positive Sustained non-GAAP profitability
INT200 (LED illuminator)Submitted for EU; pipeline investment ongoing Received CE Mark; ahead of plan Launch underway, strong customer feedback; approvals in ~40 countries Commercial ramp, positive reception
RBC (EU CE Mark)ReCePI P3 completed; RBC late-stage Updated CE Mark submission to TÜV-SÜD Clinical module review complete; SÚKL reviewing API; broader indications in submission Regulatory progress ahead of plan
IFC adoptionFY24 IFC $9.2M; growing demand Q1 IFC $3.0M; supply build Q2 IFC $5.6M; uplift in guidance; supply constraints easing Accelerating demand and supply
Regional dynamicsNA and EMEA growth; FX pressure noted NA +22% product; EMEA -4% FX impact NA +17%, EMEA +21%; EMEA Q3 seasonality expected Broad-based growth; seasonality in EMEA
Macro/gov’t timingCash flow positive FY24; macro headwinds acknowledged Building inventory for growth BARDA/DoD admin delays impacting timing; WC build (inventory, AR) Some funding/admin timing frictions

Management Commentary

  • “Another quarter of both solid commercial and product development execution… record quarterly sales… near doubling of our IFC revenue quarter over quarter.” — CEO Obi Greenman .
  • “We are increasingly confident in our ability to exceed our full-year 2025 product revenue guidance… raising our full-year 2025 product revenue guidance to $200M–$203M.” — CEO Obi Greenman .
  • “Product gross margins… 55.2%… expect mid-50s but face modest headwinds such as FX and product mix.” — CFO Kevin Green .
  • “Deferred revenue recognized in Q2 won’t recur in the back half; expect Q3 tempered and robust Q4.” — CFO Kevin Green (Q&A) .
  • “Regulatory review [RBC] is advancing ahead of plan… CE Mark decision expected in 2026.” — CEO Obi Greenman .

Q&A Highlights

  • Revenue cadence: Back-half growth expected with typical EMEA Q3 flattening and stronger Q4; some deferred revenue recognized in Q2 won’t repeat .
  • RBC TAM access: Expanded submission covers all patient indications, removing anticipated restrictions; opens broader opportunity post-approval .
  • IFC guidance cadence: H1 benefited from backlog burn and recognition timing; pipeline robust with new hospitals onboarding and deeper penetration at existing accounts as supply improves .
  • OpEx outlook: No one-time spikes; higher R&D tied to government contract activity and INT200 development; SG&A reflecting COLA adjustments; leverage expected in H2 .

Estimates Context

  • Revenue: $52.45M actual vs $51.80M consensus* → modest beat (consensus appears to track product revenue) .
  • EPS: -$0.03 actual vs -$0.02 consensus* → miss .
  • Analyst coverage breadth: 2 EPS estimates and 3 revenue estimates for Q2 2025*.
  • Implications: Modest top-line beat and raised FY guide should support upward revenue revisions; EPS may face near-term pressure from elevated R&D/SG&A tied to growth investments and government program activity .
    Note: Asterisked values retrieved from S&P Global.

Key Takeaways for Investors

  • Demand strength is broad-based: Platelets and IFC drove a record quarter; North America and EMEA both posted double-digit product revenue growth YoY .
  • Guidance reset higher: FY25 product revenue to $200–$203M and IFC to $16–$18M; signals confidence in back-half execution and supply availability .
  • Profitability path intact: Positive non-GAAP adjusted EBITDA for a fifth straight quarter; management reaffirms FY25 positive target despite higher OpEx for growth .
  • Watch cadence and mix: Q3 may be seasonally softer (EMEA holidays) with stronger Q4; margins to remain mid-50s with FX/mix as swing factors .
  • Regulatory and pipeline optionality: EU RBC CE Mark advancing; INT200 rollout gaining traction; DoD funding (+$7.2M) for CRYO-FIRST de-risks LyoIFC path .
  • Near-term trading setup: Raised guide and IFC outperformance are likely positive catalysts; EPS miss vs modest revenue beat suggests focus on top-line trajectory and operating leverage as stock reaction drivers .
  • Medium-term thesis: Multi-product, multi-region growth engine with expanding clinical/operational validation; continued progress on RBC and LyoIFC could unlock incremental TAM and valuation re-rating over time .

Estimates footnote: Values marked with an asterisk (*) are retrieved from S&P Global.