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COLLEGIUM PHARMACEUTICAL, INC (COLL)·Q3 2025 Earnings Summary

Executive Summary

  • Record quarter: net revenue $209.4M (+31% YoY) and adjusted EBITDA $133.0M (+27% YoY); adjusted EPS $2.25; GAAP diluted EPS $0.84 .
  • Both top- and bottom-line beat S&P Global consensus: revenue $209.4M vs $189.1M*, adjusted EPS $2.25 vs $1.86*; GAAP diluted EPS $0.84 vs consensus EPS $1.86* driven by non-GAAP adjustments and heavy amortization; management raised FY25 guidance for net revenue to $775–$785M and adjusted EBITDA to $460–$470M . Values marked with * retrieved from S&P Global.
  • Growth drivers: Jornay PM net revenue $41.8M (+20% Rx YoY; prescribers 27,700, +22% YoY) and pain portfolio $167.6M (+11% YoY); Nucynta benefited from ~$2.8M rebate settlement and lower gross-to-nets .
  • Capital deployment and deleveraging: $25M accelerated share repurchase completed in July; board-authorized $150M program through 2026; $16.1M term loan repayment in Q3; net leverage ~1.2x with plan for <1.0x by year-end .

What Went Well and What Went Wrong

What Went Well

  • Strong commercial execution: record net revenue $209.4M and adjusted EBITDA $133.0M; pain portfolio revenues at $167.6M with all three core products up YoY .
  • Jornay PM momentum during back-to-school: Rx +20% YoY; market share in branded long-acting methylphenidate up to 23.4% (+6.3pp YoY); prescribers 27,700 (+22% YoY) .
  • Management confidence and guidance raise: “We delivered another strong quarter…has led us to raise our 2025 financial guidance” — Vikram Karnani, CEO . CFO emphasized record net revenue and adjusted EBITDA, strong operating cash flows, and balanced capital deployment priorities .

What Went Wrong

  • Elevated non-GAAP adjustments and amortization intensity: amortization $55.5M and stock-based compensation $9.8M in Q3; adjusted operating expenses +60% YoY reflecting commercialization investments for Jornay .
  • Operating expense pressure: GAAP opex $67.1M (+8% YoY); non-GAAP adjusted opex $55.7M (+60% YoY) due to expanded ADHD sales force and marketing .
  • Dependence on gross-to-net dynamics: Jornay gross-to-net improved to 62% (Q3) with expectation of mid‑60% for FY; Nucynta’s Q3 uplift partly driven by a timing benefit from rebate settlements (~$2.8M), introducing quarter-to-quarter variability .

Financial Results

Quarterly Performance vs Estimates

MetricQ1 2025Q2 2025Q3 2025
Product Revenues, Net ($USD Millions)$177.8 $188.0 $209.4
Revenue Consensus Mean ($USD Millions)$173.1*$180.9*$189.1*
GAAP Diluted EPS ($USD)$0.07 $0.34 $0.84
Adjusted EPS ($USD)$1.49 $1.68 $2.25
Primary EPS Consensus Mean ($USD)$1.45*$1.85*$1.86*

Consensus values marked with * retrieved from S&P Global.

Year-over-Year (Q3 2025 vs Q3 2024)

MetricQ3 2024Q3 2025YoY Change
Product Revenues, Net ($USD Millions)$159.3 $209.4 +31%
GAAP Diluted EPS ($USD)$0.27 $0.84 +211%
Adjusted EPS ($USD)$1.61 $2.25 +40%
Adjusted EBITDA ($USD Millions)$105.1 $133.0 +27%
Adjusted Operating Expenses ($USD Millions)$34.8 $55.7 +60%
Gross Profit ($USD Millions)$96.8 $129.2 +33%

Segment Breakdown (Q3 2025)

SegmentQ3 2025 Net Revenue ($USD Millions)YoY Growth
Jornay PM$41.8 +20% Rx YoY
Belbuca$58.3 +10% YoY
Xtampza ER$50.5 +2% YoY
Nucynta Franchise$54.8 +21% YoY

KPIs and Margins

KPI/MarginQ1 2025Q2 2025Q3 2025
Gross Profit Margin %87.9%*88.2%*89.7%*
EBITDA Margin %45.5%*50.1%*58.8%*
Cash from Operations ($USD Millions)$55.4 $72.4 $78.4
Jornay PM Gross-to-Net (%)——62%
Jornay PM Prescribers (count)——27,700
Jornay PM Market Share (branded long-acting methylphenidate)——23.4% (+6.3pp YoY)

Margin values marked with * retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Product Revenues, NetFY 2025$745–$760M $775–$785M Raised
Jornay PM Revenues, NetFY 2025$140–$145M $145–$150M Raised
Adjusted Operating Expenses (ex-SBC)FY 2025$225–$235M $235–$240M Raised
Adjusted EBITDA (ex-SBC)FY 2025$440–$455M $460–$470M Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2025)Trend
Jornay PM momentum and GTN managementQ2: Jornay net revenue $32.6M; Rx +23% YoY; FY Jornay guidance lifted . Q1: net revenue $28.5M; Rx +24% YoY; sales force expansion completed .Net revenue $41.8M; Rx +20% YoY; GTN 62% in Q3; FY GTN mid‑60% expected .Improving net revenue on seasonality and GTN; sustained Rx growth .
Pain portfolio durabilityQ2: $155.4M (+7% YoY) with all three products up . Q1: $149.2M (+3% YoY) .$167.6M (+11% YoY); reinforced durability and coverage .Strengthening .
Capital deployment and leverageQ2: $150M repurchase authorization; $25M ASR completed . Q1: ASR authorized; cash $197.8M; debt paydown $16.1M .$25M ASR completed in July; $16.1M debt repaid in Q3; net leverage ~1.2x, target <1.0x YE .Deleveraging ongoing; dry powder preserved .
Business development appetiteQ1/Q2 strategy: expand portfolio through disciplined BD .Willing to lever to ~3x net debt/EBITDA; focus on commercial or near-commercial assets in pain/CNS call-points .Active; disciplined .
Payer/coverage dynamicsQ2: solid coverage maintained .No major payer changes expected for 2026; Xtampza ER secured exclusive formulary access for ~1.7M commercial lives (Jan 1) .Improving access .
Regional expansion (Jornay PM)—Launched in Canada via Knight Therapeutics; Health Canada approval referenced .Expanding geography .
Advocacy/awareness—Paris Hilton collaboration to raise ADHD awareness; patient/caregiver digital marketing .Amplifying demand drivers .

Management Commentary

  • CEO: “The outstanding performance of Jornay PM, along with sustained growth across our pain portfolio, has led us to raise our 2025 financial guidance” — Vikram Karnani .
  • CFO: “Net revenue and adjusted EBITDA reached record highs this quarter… We continue to execute our capital deployment strategy which balances rapidly paying down debt, opportunistically repurchasing shares, and actively evaluating opportunities to expand our portfolio” — Colleen Tupper .
  • CCO: “Year to date, Jornay PM is the fastest-growing stimulant for ADHD… average weekly prescriptions in October were 15,700 vs 13,800 in July (+14%)” — Scott Dreyer .

Q&A Highlights

  • Jornay GTN and inventory: GTN improved through seasonality, returns, and contracting (Q1 70%, Q2 67%, Q3 62%); inventory ~17 days on hand (controlled substances average ~15 days) .
  • Sales force impact: Expansion broadened target prescribers from ~17k to ~21k; 3,800 new targets wrote scripts; main impact expected in 2026 and beyond .
  • Nucynta GTN and rebate: Q3 rebate settlement benefit ~$2.8M (timing from H1 activities); Q3 GTN IR 28.5%, ER 31.8% .
  • BD framework: Willing to lever to ~3x net debt/EBITDA; priority on commercial/near-commercial assets with call-point synergy (pain and neuropsychiatry) vs adding R&D risk today .

Estimates Context

  • Q3 2025 beats: revenue $209.4M vs $189.1M*; adjusted EPS $2.25 vs $1.86*; also exceeded revenue consensus in Q1 and Q2 and modestly missed EPS in Q2 (actual $1.68 vs $1.85*) . Values marked with * retrieved from S&P Global.
  • Implications: Street likely to raise FY25 revenue and EBITDA models following guidance increase; Jornay GTN trajectory (mid‑60% FY) and pain portfolio durability support higher margin assumptions; note non-GAAP adjustments (amortization, SBC) materially influence GAAP EPS vs adjusted .

Consensus vs Actual (S&P Global)

MetricQ1 2025Q2 2025Q3 2025
Revenue Consensus Mean ($USD Millions)$173.1*$180.9*$189.1*
Revenue Actual ($USD Millions)$177.8 $188.0 $209.4
EPS Consensus Mean ($USD)$1.45*$1.85*$1.86*
Adjusted EPS Actual ($USD)$1.49 $1.68 $2.25

Consensus values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Top- and bottom-line outperformance with raised FY25 guidance is a clear positive catalyst; expect estimate revisions upward post-print .
  • Jornay PM is scaling with improving GTN and strong prescriber growth, underpinning near-term revenue acceleration and 2026 momentum .
  • Pain portfolio durability remains better than feared, with continued YoY growth and coverage stability; Xtampza ER gains exclusive access for ~1.7M lives in 2026 .
  • Cash generation remains robust ($78.4M CFO in Q3), enabling rapid deleveraging (~1.2x net leverage) and potential ongoing buybacks ($150M authorization) .
  • Watch non-GAAP adjustment intensity (amortization, SBC) and operating expense growth tied to ADHD commercialization; GAAP vs adjusted metrics will diverge meaningfully .
  • Nucynta’s Q3 uplift includes a ~$2.8M rebate timing benefit; model normalization in Q4 while acknowledging improved GTNs .
  • Strategic BD optionality with capacity to lever to ~3x provides avenue for portfolio expansion in pain/CNS call-points without adding R&D risk today .

Additional Relevant Press Releases in Q3 2025

  • Jornay PM Canada launch via Knight Therapeutics, expanding international reach .
  • Paris Hilton collaboration boosts ADHD awareness during back-to-school season, supporting direct-to-consumer demand drivers .

Notes:

  • Consensus and margin values marked with * retrieved from S&P Global.
  • All other figures and quotes cited from the company’s 8-K earnings press release and Q3 2025 earnings call transcript, with references provided.