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CUMBERLAND PHARMACEUTICALS INC (CPIX)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 net revenues were $10.84M, up 10% year over year, but down sequentially from Q1’s $11.71M; GAAP net loss narrowed to $0.74M versus $1.09M loss in Q2 2024, while adjusted earnings for the quarter were $0.37M ($0.02 diluted EPS), and YTD adjusted earnings reached $2.76M ($0.18 per share) .
  • Mix was balanced: Sancuso $3.1M, Kristalose $2.8M, Vibativ $2.7M, Caldolor $1.6M; operating expenses were $11.6M; YTD operating cash flow was $4.74M, cash was $16.09M, and total equity rose to $27.99M .
  • Near‑term catalysts: end‑of‑Phase II FDA meeting for ifetroban (DMD cardiomyopathy) in the fall; Vizient contract expands Vibativ access; Vibativ approval in China and launch preparation in the Middle East should support international traction .
  • No formal revenue/EPS guidance was provided; Wall Street consensus (S&P Global) for Q2 2025 EPS and revenue was unavailable, limiting beat/miss analysis; consider monitoring upcoming events for estimate recalibration (Values retrieved from S&P Global) .

What Went Well and What Went Wrong

What Went Well

  • 10% YoY revenue growth with diversified brand contribution; adjusted quarterly earnings positive at $0.37M and YTD adjusted earnings of $2.76M ($0.18/share), supported by $4.74M YTD operating cash flow .
  • Strategic advances: Vizient contract for Vibativ 4‑Vial Starter Pak broadens provider access; China approval and Middle East shipments position Vibativ for international growth .
  • R&D momentum: ifetroban Phase II DMD trial showed 5.4% LVEF improvement with reduced cardiac damage biomarkers; FDA end‑of‑Phase II meeting scheduled for fall (CEO: “we are scheduled to meet with them this fall to discuss our clinical program and also discuss the development pathway forward.”) .

What Went Wrong

  • Sequential revenue decline vs Q1 ($10.84M vs $11.71M) and operating loss in Q2 (EBIT −$0.75M); GAAP net loss −$0.74M .
  • Operating expenses remained elevated at $11.6M; R&D increased YoY (Q2: $1.47M vs $1.06M), reflecting pipeline investment but pressuring quarterly profitability .
  • Vaprisol manufacturing transition awaiting FDA inspection at the new site, delaying full relaunch and revenue acceleration in that brand .

Financial Results

Core P&L vs prior periods (chronological: Q4 2024 → Q1 2025 → Q2 2025)

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD)$10,435,569 $11,713,055 $10,837,363
Net Income ($USD)−$1,903,814 $1,257,068 −$740,740
Diluted EPS ($USD)−$0.14 $0.08 −$0.05
Operating Income (EBIT) ($USD)−$1,842,039 $1,291,947 −$747,478
Gross Profit Margin %81.1% (1 − 1,976,473/10,435,569) 87.8% (1 − 1,425,714/11,713,055) 81.4% (1 − 2,011,389/10,837,363)
EBIT Margin %−17.6% (−1,842,039/10,435,569) 11.0% (1,291,947/11,713,055) −6.9% (−747,478/10,837,363)

YoY and sequential comparison for Q2 2025

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD)$9,848,849 $11,713,055 $10,837,363
Diluted EPS ($USD)−$0.08 $0.08 −$0.05
Gross Profit Margin %82.6% (1 − 1,710,944/9,848,849) 87.8% (1 − 1,425,714/11,713,055) 81.4% (1 − 2,011,389/10,837,363)
EBIT Margin %−10.4% (−1,026,688/9,848,849) 11.0% (1,291,947/11,713,055) −6.9% (−747,478/10,837,363)

Segment/Product revenue breakdown

Product Revenue ($USD)Q1 2025Q2 2025
Kristalose$3,500,000 $2,800,000
Sancuso$2,300,000 $3,100,000
Vibativ$1,400,000 $2,700,000
Caldolor$1,300,000 $1,600,000
Total Net Revenues$11,713,055 $10,837,363

KPIs and Balance Sheet Snapshot

KPIQ2 2025
Operating Expenses (Quarter)$11,584,841
YTD Operating Cash Flow$4,742,318
Cash & Equivalents$16,087,281
Credit Facility Outstanding$5,240,733 (long term), $0 current
Total Assets$67,907,149
Total Liabilities$40,228,222
Total Shareholders’ Equity$27,989,795

Non-GAAP

  • Adjusted earnings Q2 2025: $367,126; adjusted diluted EPS: $0.02; YTD adjusted earnings: $2,764,869; adjusted diluted EPS: $0.18 (excludes taxes, D&A, SBC, interest income/expense) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/QuarterNoneNoneMaintained: No formal guidance
EPSFY/QuarterNoneNoneMaintained: No formal guidance
Operating ExpensesFY/QuarterNoneNoneMaintained: No formal guidance
Other (OI&E, tax rate, segments)FY/QuarterNoneNoneMaintained: No formal guidance

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Ifetroban (DMD cardiomyopathy)2024: Orphan & Rare Pediatric designations; program progress . Q1: positive Phase II top‑line; late‑breaking MDA presentation; preparing full report/EoPII meeting .5.4% LVEF improvement; reduced cardiac damage biomarkers; FDA end‑of‑Phase II meeting scheduled for fall .Advancing toward regulatory next steps
Vibativ (international)Q1: China approval; Middle East shipments prep .Preparing China launch; shipments to Saudi Arabia; Vizient 4‑vial starter pack expands US access .Strengthening global and US distribution
Sancuso (oncology)Q1: expanded oncology sales force; revised sampling; patient support hub .Continued favorable sales; brand contributed $3.1M in Q2 .Sales execution traction
Caldolor (pediatric/older patients)2024: pediatric labeling; outcomes vs ketorolac . Q1: only non‑opioid injection for infants; children’s hospitals adoption .May publication shows safety/efficacy in ≥60 yrs post‑op .Broader clinical validation
Vaprisol (manufacturing)Q1: partner addressing FDA Form 483/warning letter; file after resolution .Awaiting FDA inspection of new site before filing branded manufacturing approval .Regulatory clearance pending
AI/Tech initiativesQ1: digital marketing agency; enhanced patient support hub .Partnership with Qureight deep learning analytics for IPF imaging and outcomes .Increased use of advanced analytics
Macro/tariffs/supply chainLimited explicit commentary .Standard forward‑looking risk references (rates/inflation/tariffs) .Monitoring macro risks

Management Commentary

  • CEO: “We’ve enjoyed a strong first half... a series of positive developments during the second quarter... we are scheduled to meet [with FDA] this fall to discuss our clinical program and... development pathway forward.” .
  • CFO: “Net revenue... was $10.8M, a 10% increase... YTD net income was $0.5M... adjusted earnings were $2.8M or $0.18 a share... we held $68M in total assets, including $16M in cash.” .
  • CEO press release: “We have had a strong first half... We look forward to building on this success... as we continue our mission of... improve the quality of patient care.” .
  • VP, Organizational Development: highlighted Caldolor’s pediatric use and older patient study; Sancuso sales expansion; Vizient availability for Vibativ; manufacturing status for Vaprisol .

Q&A Highlights

  • No analyst questions were recorded on the call; management invited follow‑up conversations with shareholders. This limits external guidance clarifications and reduces visibility into near‑term consensus expectations .

Estimates Context

  • Wall Street consensus (S&P Global) for Q2 2025 EPS and revenue was unavailable, preventing direct beat/miss assessment; coverage appears limited for CPIX at the quarterly level. Values retrieved from S&P Global.
  • Historical context: FY 2024 actuals in S&P Global show revenue $37.87M and EBITDA −$1.53M, consistent with company disclosures (Values retrieved from S&P Global) .

Key Takeaways for Investors

  • Mix and execution: Oncology (Sancuso) and anti‑infectives (Vibativ) drove Q2; Kristalose and Caldolor remain steady—diversification supports resilience despite sequential revenue variability .
  • Profit trajectory: Q2 GAAP loss narrowed YoY, but profitability remains sensitive to R&D and amortization; adjusted earnings and strong YTD operating cash flow underscore underlying cash generation .
  • International upside: Vibativ’s China approval and Middle East shipments are material expansion levers; the Vizient contract should aid domestic uptake and hospital access .
  • Pipeline catalyst: Ifetroban’s end‑of‑Phase II FDA meeting in the fall is a binary narrative driver; positive regulatory feedback could reset medium‑term expectations .
  • Watch Vaprisol timing: Manufacturing site inspection clearance is needed before branded production can fully resume—monitor FDA site status for brand contribution recovery .
  • Estimates gap: With limited consensus data, traders should anchor on company milestones and execution (events, regulatory, distribution) and reassess after Q3 data points (Values retrieved from S&P Global) .
  • Balance sheet: $16.09M cash, $27.99M equity, $40.23M liabilities; liquidity supported by operating cash flow and $20M credit line capacity—adequate to bridge pipeline and commercialization activities .