Sign in

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

CP

CUMBERLAND PHARMACEUTICALS INC (CPIX)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered 38% revenue growth to $11.71M and a return to GAAP profitability with $0.08 diluted EPS; adjusted EPS was $0.16, aided by a $3M milestone tied to Vibativ’s approval in China, and strong cash from operations of $3.90M .
  • Product performance was led by Kristalose ($3.5M), Sancuso ($2.3M), Vibativ ($1.4M), and Caldolor ($1.3M); gross margin expanded to ~87.8% (COGS $1.43M) .
  • Balance sheet strengthened: total assets $69.94M, liabilities $41.60M (credit facility $5.24M), shareholders’ equity $28.66M; debt down vs YE 2024 .
  • Near-term catalysts: pending Vibativ launch in China (post-approval), DMD Phase II breakthrough positioning ifetroban for end-of-Phase II FDA meeting, and ongoing IPF/Systemic Sclerosis Phase II programs .
  • Street consensus for EPS/revenue was not available via S&P Global for CPIX; investors should treat Q1’s beat/miss context as unavailable and focus on the operational trajectory and pipeline milestones (values/availability via S&P Global data).*

What Went Well and What Went Wrong

What Went Well

  • Strong top-line and margin quality: Net revenues up 38% YoY to $11.71M; gross margin ~87.8% driven by portfolio mix and low COGS ($1.43M) .
  • Profitability and cash generation: GAAP diluted EPS $0.08; adjusted EPS $0.16; cash from operations $3.90M; CEO: “We have enjoyed a strong start to the year…” and highlighted momentum across brands and partnerships .
  • Strategic milestones: Vibativ approval in China (provides access to world’s second-largest pharma market; launch later this year), and positive Phase II DMD top-line results for ifetroban selected for late-breaking presentation .

What Went Wrong

  • Non-GAAP reliance and one-time benefit: Adjusted EPS excludes non-cash items and Q1 benefited from a $3M milestone payment associated with Vibativ China approval; investors should normalize earnings power ex-milestones .
  • Prior quarter headwinds: Q3 2024 was impacted by Hurricane Helene—product returns and IV fluid shortages hurt Vibativ shipments, underscoring vulnerability to supply chain disruptions .
  • Vaprisol relaunch timing: Manufacturing partner addressing FDA Form 483/warning letter issues before filing for branded production; timing remains contingent on FDA resolution .

Financial Results

Multi-Quarter Comparison (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Net Revenues ($USD)$9,085,826 $10,435,569 $11,713,055
GAAP Diluted EPS ($)(0.11) (0.14) 0.08
Adjusted Diluted EPS ($, non-GAAP)(0.02) (0.02) 0.16
Operating Income (Loss) ($)(1,694,432) (1,842,039) 1,291,947
Net Income (Loss) ($)(1,536,969) (1,901,637) 1,248,184
Cost of Products Sold ($)1,323,013 1,976,473 1,425,714
Gross Margin (%)85.4% (calc) 81.1% (calc) 87.8% (calc)

Notes: Gross margin is calculated from disclosed revenues and COGS.

Year-over-Year (Q1 2025 vs Q1 2024)

MetricQ1 2024Q1 2025YoY Change
Net Revenues ($USD)$8,497,701 $11,713,055 +38%
GAAP Diluted EPS ($)(0.14) 0.08 +$0.22
Operating Income (Loss) ($)(1,869,250) 1,291,947 +$3,161,197
Net Income (Loss) ($)(1,902,472) 1,248,184 +$3,150,656
Cash from Operations ($)(2,136,647) 3,898,517 +$6,035,164

Product Revenue Breakdown

ProductQ3 2024Q4 2024Q1 2025
Kristalose ($USD)$3.6M $4.4M $3.5M
Sancuso ($USD)$2.6M $2.4M $2.3M
Vibativ ($USD)$1.0M $2.1M $1.4M
Caldolor ($USD)$1.3M $1.4M $1.3M

Note: Q1 total net revenue includes other brands/adjustments beyond the four disclosed products .

KPIs and Balance Sheet

KPIQ4 2024Q1 2025
Total Assets ($USD)$75,583,410 $69,935,878
Cash & Equivalents ($USD)$17,964,184 $15,108,413
Total Liabilities ($USD)$53,037,433 $41,595,259
Revolving Line of Credit ($USD)$10,176,170 LT; $5,100,000 current $5,240,733 LT; $0 current
Shareholders’ Equity ($USD)$22,853,494 $28,657,020
Diluted Wtd Avg Shares13,971,228 15,259,824
Cash from Operations ($USD)(year) (612,186) (quarter) 3,898,517

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue growthFY 2025“Double-digit revenue growth” communicated in Q4 2024 call No explicit update in Q1 call; operational momentum cited Maintained (implicitly)
Operating cash flowFY 2025“Positive cash flow from operations” (Q4 call) Q1 delivered $3.9M CFO ; no explicit FY updateTracking ahead; no formal update
Product launches2025Vibativ China launch “later this year” Reiterated expectation Maintained
OpEx, OI&E, tax rate, dividendsN/ANot providedNot providedN/A

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
AI/technology initiativesNone notedPartnership with Qureight to apply deep-learning imaging analytics in IPF Phase II (FIGHTING FIBROSIS) New initiative; supportive of R&D data quality
Supply chainHurricane Helene drove returns and IV fluid shortages impacting Vibativ (Q3) No new constraints mentioned; product shipments normalized Improving/normalizing
Tariffs/macroNot a focusNot discussedNeutral
Product performanceSteady Kristalose; Sancuso expanding with HUB & sampling; Caldolor pediatric label; Vibativ smaller pack (Q3/Q4) Kristalose/Sancuso growth; Caldolor children’s hospitals; Vibativ China approval Positive trajectory
Regional trendsSaudi Arabia Vibativ launch prep (Q3); China approval (Feb) China launch expected later this year Building international
Regulatory/legalOrphan Drug + Rare Pediatric for DMD (Q3/Q4) End-of-Phase II FDA meeting planned for DMD; systemic sclerosis top-line later in year Advancing toward pivotal steps
R&D executionDMD Phase II breakthrough; systemic sclerosis nearing completion; IPF enrolling (Q3/Q4) DMD top-line presented; IPF AI analytics partnership; systemic sclerosis enrollment complete Continued progress

Management Commentary

  • CEO A.J. Kazimi: “We have enjoyed a strong start to the year… Our optimism is driven by strong performance from our approved brands, the expansion of international partnerships, meaningful progress across our clinical development programs and the potential for strategic acquisitions.” .
  • CFO John Hamm on portfolio additions: “We’re pleased to see that the additions of Vibativ and Sancuso to our product portfolio continue to positively impact our financial performance.” .
  • On China: “Our potent antibiotic Vibativ received approval from the regulatory authorities in China… we look forward to the launch of Vibativ expected later this year.” .
  • On DMD program: “First successful Phase II study specifically targeting the cardiac complications of [DMD]… preparing for an end-of-Phase II meeting with the FDA.” .

Q&A Highlights

  • No analyst Q&A occurred on the Q1 2025 call; management invited investors to schedule private discussions and referenced replay availability .

Estimates Context

  • S&P Global consensus data for CPIX’s Q1 2025 revenue and EPS was unavailable; GetEstimates returned actuals only and no consensus or estimate counts for EPS/revenue. Investors should note that beat/miss vs Street cannot be determined from S&P Global for this quarter.*
  • Where available, S&P Global data showed actual revenue for Q3 2024: $9.09M, Q4 2024: $10.44M, Q1 2025: $11.71M; EBITDA actuals Q3 2024: $(0.58)M, Q4 2024: $(0.35)M, Q1 2025: $2.32M (actuals only; no consensus).*
MetricQ3 2024Q4 2024Q1 2025
Revenue Consensus Mean ($USD)N/A*N/A*N/A*
Primary EPS Consensus Mean ($)N/A*N/A*N/A*
Actual Revenue ($USD)$9,085,826*$10,435,569*$11,713,055*
Actual EBITDA ($USD)$(578,396)*$(345,645)*$2,323,531*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Core brands are scaling with high gross margins; Kristalose and Sancuso driving consistent contribution while Caldolor’s pediatric label expands addressable use-case in children’s hospitals .
  • Profitability inflected in Q1 on strong operations and a $3M Vibativ milestone; model normalized earnings excluding milestones to assess durability .
  • Vibativ’s China approval and expected launch are meaningful international catalysts; incremental revenue streams could de-risk domestic volatility seen in Q3 2024 .
  • Pipeline momentum is underappreciated: DMD Phase II breakthrough supports an end-of-Phase II FDA meeting; systemic sclerosis top-line later this year; IPF study enhanced by an AI analytics partnership (Qureight) .
  • Balance sheet improved with lower credit facility utilization and higher equity; funding flexibility remains via a $20M line of credit (expandable to $25M) .
  • Trading implication: Micro-cap liquidity and lack of Street coverage can amplify moves around milestone and clinical readouts; near-term focus should be on China launch timing and systemic sclerosis/DMD regulatory steps .
  • Medium-term thesis: Execution on international commercialization plus clinical de-risking for ifetroban programs could transform revenue mix and valuation; watch for non-GAAP adjustments and one-time items when assessing trend earnings .