Executive Summary

Q2 2025 revenue was $140.9M, above company guidance by $21M but below Street consensus; adjusted EPS was $0.16 and adjusted EBITDA $28.5M with 20% margin, reflecting improved mix and cost structure . Revenue consensus was $146.4M and EPS consensus was -$0.49, so revenue missed while EPS beat; adjusted EBITDA materially exceeded consensus (definitions differ) [Q2 2025 values from S&P Global*].
Management raised FY25 profitability guidance: adjusted EBITDA to $175–$200M (from $150–$200M) and adjusted gross margin to 50–52% (from 48–51%); total revenue range narrowed to $765–$835M .
Segment composition: Naloxone declined 44% YoY on lower OTC and Canada volumes/pricing mix, Smallpox MCM rose 127% on VIGIV timing; “All other revenues” fell due to 2024 Janssen settlement and Camden sale .
Liquidity strengthened: cash $267.3M, net debt $432.7M, net leverage 1.9x vs 9.9x a year ago; Q3 revenue outlook set at $180–$210M .
Near-term catalysts: continued international MCM demand (48% of YTD MCM revenue), incremental contract modifications, and naloxone demand stabilization with NARCAN rebound and KLOXXADO expansion via NARCANDirect .

What Went Well and What Went Wrong

What Went Well

Adjusted profitability expansion: adjusted EBITDA up to $28.5M (20% margin) and adjusted gross margin to 49% in Q2; operating expenses down 70% YoY on restructuring and divestitures .
MCM strength and mix: Smallpox MCM revenue up 127% YoY on VIGIV timing; MCM gross margin improved to 44% and segment adjusted GM held at 55% .
Strategic wins and contracts: $51.9M VIGIV modification, $62.4M BAT modification, $65M Ontario NARCAN agreement; management: “raising the low end/midpoint of full year 2025 profitability guidance” .

Quote: “Our second quarter results exceeded the top end of our revenue guidance by $21 million… we are raising the low end/midpoint of full year 2025 profitability guidance” — Joe Papa, CEO .

What Went Wrong

Top line pressure vs prior year: total revenue down 45% YoY; Naloxone down 44% YoY on unfavorable price/volume mix and lower OTC/Canada sales; Anthrax MCM down 70% on timing .
“All other revenues” down 79% YoY driven by lapping 2024 Janssen $50M settlement and Camden facility sale .
Commercial Products margin compression: commercial GM % fell to 32% from 48% on lower branded and OTC NARCAN and unfavorable mix; segment adjusted GM fell to 46% .

Financial Results

Consolidated Performance vs prior quarters

Metric	Q4 2024	Q1 2025	Q2 2025
Total Revenues ($USD Millions)	$194.7	$222.2	$140.9
Diluted EPS ($USD)	-$0.58	$1.19	-$0.22
Adjusted EPS ($USD)	$0.05	$0.71	$0.16
Adjusted EBITDA ($USD Millions)	$21.0	$77.6	$28.5
Adjusted EBITDA Margin %	—	35%	20%
Adjusted Gross Margin %	40%	58%	49%

Notes: Adjusted metrics per company definitions and reconciliations .

Q2 2025 vs Q2 2024 Segment Breakdown

Metric ($USD Millions)	Q2 2024	Q2 2025
Naloxone (Product sales, net)	$120.0	$67.5
Anthrax MCM	$38.7	$11.6
Smallpox MCM	$17.9	$40.6
Other Products	$6.8	$6.2
Total Product Sales, net	$183.4	$125.9
All Other Revenues	$71.3	$15.0
Total Revenues	$254.7	$140.9

Drivers: Naloxone declines from lower OTC/Canada sales and unfavorable mix; Smallpox increase from VIGIV timing; “All other revenues” down due to Janssen settlement and Camden sale .

Q2 2025 KPIs and Operating Expenses

KPI ($USD Millions unless noted)	Q2 2024	Q2 2025
Cost of Product and Services Sales, net	$296.1	$66.9
R&D Expense	$32.7	$12.5
SG&A Expense	$85.9	$43.7
Capital Expenditures	$4.6	$2.9
Capex as % of Total Revenues	2%	2%
Cash and Equivalents (6/30/25)	—	$267.3
Gross Debt (6/30/25)	—	$700.0
Net Debt (6/30/25)	—	$432.7
Net Leverage (TTM Adjusted EBITDA)	9.9x (Q2’24)	1.9x (Q2’25)

Guidance Changes

Metric	Period	Previous Guidance (05/07/2025)	Current Guidance (08/06/2025)	Change
Total Revenues ($M)	FY 2025	$750–$850	$765–$835	Narrowed; raised low end
Net Income ($M)	FY 2025	$20–$70	$40–$65	Raised low end/midpoint
Adjusted Net Income ($M)	FY 2025	$20–$70	$45–$70	Raised low end/midpoint
Adjusted EBITDA ($M)	FY 2025	$150–$200	$175–$200	Raised low end/midpoint
Adjusted Gross Margin %	FY 2025	48–51%	50–52%	Raised
MCM Products Revenue ($M)	FY 2025	$435–$485	$440–$475	Raised low end; narrowed
Commercial Products Revenue ($M)	FY 2025	$265–$315	$265–$300	Lowered top end
Total Revenues ($M)	Q3 2025	—	$180–$210	New quarterly guide

Key assumptions (FY25): Interest expense ~$50M; R&D ~7–8% of revenues; SG&A ~26–27% of revenues; Capex ~$16M; D&A ~$100M; diluted share count ~54M .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024 / Q1 2025)	Current Period (Q2 2025)	Trend
Naloxone demand & pricing	Competitive dynamics; prior “Public Interest pricing adjustments”; Q1 NARCAN down YoY but category leadership maintained	“NARCAN demand rebounded by ~50% vs Q1”; pricing “relatively stable” in recent months; integration of KLOXXADO into NARCANDirect	Stabilizing demand; platform expansion
International MCM mix	Q1: ~$91M international MCM (~60%)	YTD: international MCM is 48% of segment revenue; 7 contract modifications YTD	Sustained high mix
Tariffs/macro	Actively managing inventory to minimize tariffs	“Expect minimal impact from tariffs on EBS products”	Minimal impact maintained
Regulatory / mpox	ACAM2000 mpox EUL (WHO) pending; TEMBEXA MOSA trial initiating	MOSA trial enrolling; mpox publication on brincidofovir; ongoing WHO engagement	Advancing evidence base
Capital allocation & leverage	Net leverage 3.3x YE’24; liquidity $200M	Net leverage 1.9x; cash $267M; active $50M buyback (~1.1M shares in Q2)	Rapid deleveraging

Management Commentary

“We are making solid progress against key turnaround priorities, driven by improved profitability, expanding margins and sustained positive cash flow… With sustained demand for… NARCAN… and KLOXXADO… as well as an encouraging outlook in our medical countermeasures business, we remain confident in our full year guidance” — Joe Papa, CEO .
“Adjusted net income for the second quarter was $9M… we saw significant year over year improvements in both adjusted gross margin and adjusted EBITDA margin, driven by strategic divestitures, cost reduction actions, and continued execution of government contracts” — Rich Lindahl, CFO .
“We are raising the low end and midpoint of our full year 2025 adjusted EBITDA guidance and narrowing the 2025 revenue range… We expect a stronger back half” — Rich Lindahl, CFO .

Q&A Highlights

Naloxone pricing and market growth: pricing characterized as “relatively stable”; naloxone market expected to grow low-to-mid single digits, primarily in volume terms; litigation settlement funds and public programs support demand .
Market share resilience: EBS expects to maintain majority share via competitive pricing, platform ease (NARCANDirect), and product breadth (NARCAN + KLOXXADO) .
SG&A trajectory: Q2 SG&A presented as a reasonable run-rate for rest of year, “plus/minus ~5%” .
MCM contracts: company expects additional revenue-generating contract modifications in H2; incorporated into guidance .

Estimates Context

Q2 2025 actuals vs Wall Street consensus (S&P Global):

Metric	Q2 2025 Consensus	Q2 2025 Actual
Revenue ($USD Millions)	$146.4*	$140.9
Primary EPS ($USD)	-$0.49*	$0.16*

Revenue missed Street by ~$5.5M while beating company guidance by $21M [Q2 2025 values from S&P Global*].
EPS significantly beat consensus (normalized vs reported definitions vary); GAAP diluted EPS was -$0.22 while adjusted EPS was $0.16 .
Values retrieved from S&P Global*.

Key Takeaways for Investors

Profitability trajectory intact: Q2 adjusted EBITDA margin 20% and adjusted GM 49% reflect structural cost actions and favorable MCM mix; FY25 profitability guidance raised at mid-year .
Top line composition matters: Smallpox MCM timing and VIGIV uplift offset Naloxone decline; watch contract timing and international orders as primary revenue swing factors .
Naloxone stabilization: demand rebounded vs Q1 and pricing is stable; KLOXXADO expansion through NARCANDirect adds breadth across channels (public interest, B2B, retail) .
Balance sheet de-risking: cash up to $267M, net leverage 1.9x, supporting optionality for bolt-ons and internal R&D; buyback adds shareholder return lever .
Near-term trading lens: Q3 revenue guide $180–$210M provides visibility; monitor incremental MCM awards and naloxone sell-through for 2H cadence .
Risk checks: revenue volatility from government procurement timing; competitive naloxone dynamics; macro/regulatory (e.g., WHO EUL for ACAM2000) can affect mix and margins .
Narrative drivers: turnaround execution, international MCM scale, and sustained cash flow are the key stock catalysts per management commentary .

Appendix citations:

Press release and 8-K data: Q2 2025 results and guidance ; segments and OpEx ; balance sheet and leverage .
Prior quarters: Q1 2025 financials and guidance ; Q4 2024 financials and adjusted metrics .
Other Q2 press releases: VIGIV contract mod ; BAT contract mod ; KLOXXADO via NARCANDirect ; mpox publication ; House OTC naloxone recognition .
Earnings call transcript highlights: demand, pricing, SG&A run-rate, contracts outlook .

Emergent BioSolutions Inc. (EBS)·Q2 2025 Earnings Summary