Executive Summary

Q2 2025 net revenues were $2.817M, down 48% year over year due to ongoing competition from generic L‑Glutamine; operating expenses fell ~33% YoY, driving a smaller net loss of $1.135M and EPS of $(0.02) versus $(0.03) in Q2 2024 .
Sequentially, revenues improved versus Q1 2025 ($2.406M), while operating discipline continued; loss from operations narrowed to $(0.370)M in Q2 from $(0.980)M in Q1 .
Liquidity remains tight: cash and cash equivalents fell to $0.886M at quarter‑end (vs. $1.333M in Q1 and $1.389M at YE 2024), with substantial current liabilities and stockholders’ deficit persisting .
No earnings call transcript or explicit quantitative guidance updates were provided; prior commentary (April) suggested FY 2025 net revenues could “reach or exceed 2024 levels” absent unexpected developments—unchanged in Q2 disclosures .

What Went Well and What Went Wrong

What Went Well

Operating expenses decreased meaningfully to $3.037M from $4.554M in Q2 2024, reflecting cost actions including late‑2024 reductions in force .
Loss from operations narrowed to $(0.370)M vs $(0.980)M in Q1 2025, indicating improved operational efficiency despite revenue pressure .
Management highlighted a smaller net loss versus the prior year due to decreased other expense, including favorable changes in fair value of conversion features and a nonrecurring lease modification gain: “We achieved modest net income due to a substantial decrease in other expense” (context: smaller net loss) .

What Went Wrong

Net revenue decline of 48% YoY, attributed to sustained competition from generic L‑Glutamine, continued to pressure topline and profitability .
Cash declined to $0.886M at quarter‑end, while current liabilities remained high, reinforcing balance sheet constraints and going‑concern risks flagged in filings .
Leadership transition: CFO Yasushi Nagasaki resigned effective June 30, 2025, with the Controller promoted to Chief Accounting Officer—adds execution risk during a period of financial stress .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Revenues, Net ($USD Thousands)	$5,377	$2,406	$2,817
Cost of Goods Sold ($USD Thousands)	$241	$225	$150
Gross Profit ($USD Thousands)	$5,136	$2,181	$2,667
Operating Expenses ($USD Thousands)	$4,554	$3,161	$3,037
Income (Loss) from Operations ($USD Thousands)	$582	$(980)	$(370)
Total Other Expense ($USD Thousands)	$(2,735)	$(1,346)	$(1,355)
Net Income (Loss) ($USD Thousands)	$(2,184)	$(2,330)	$(1,135)
Diluted EPS ($USD)	$(0.03)	$(0.04)	$(0.02)
Weighted Avg Shares (Units)	63,355,121	61,845,963	63,865,571
Cash and Cash Equivalents ($USD Thousands)	$1,389 (Dec 31, 2024)	$1,333 (Mar 31, 2025)	$886 (Jun 30, 2025)

Additional comparisons:

Revenue YoY change: −48% .
Key driver: U.S. sales decline due to mid‑2024 introduction of generic L‑Glutamine .

No Wall Street consensus estimates were available via S&P Global for Q2 2025; comparisons to estimates are unavailable. Values retrieved from S&P Global.*

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Revenues	FY 2025	“Reach or exceed 2024 levels absent unexpected developments” (April 14, 2025)	No update/quantitative range provided in Q2 materials	Maintained (no explicit update)
Operating Expenses	FY 2025	Not provided	Not provided	N/A
EPS	FY 2025	Not provided	Not provided	N/A
Liquidity/Capital	FY 2025	Ongoing debt/going‑concern risks noted in filings	Similar risk language reiterated (Q2 PR references going concern)	Maintained risk disclosure

Earnings Call Themes & Trends

No earnings call transcript was available for Q2 2025; themes are drawn from press releases and 8‑K disclosures.

Topic	Previous Mentions (Q4 2024; Q1 2025)	Current Period (Q2 2025)	Trend
Competition from Generics	FY 2024: inventory shortages were primary headwind; generics surfaced mid‑2024	Explicitly cited as ongoing driver of U.S. sales decline and 48% YoY revenue drop	Intensifying impact
Cost Actions/OpEx Discipline	Q1: OpEx down vs prior year; loss from operations improved to < $1M	OpEx down ~33% YoY; loss from operations narrowed to $(0.370)M	Improving efficiency
Liquidity/Balance Sheet	FY 2024: cash $1.389M; high liabilities; going‑concern risks	Cash $0.886M; risk language reiterated	Deteriorating liquidity
Leadership/Finance Org	N/A	CFO resigned; Controller promoted to CAO	Transition underway
Geographic/Regulatory	FY 2024: international approvals (Middle East), pending SA approval	International footprint reiterated; SA approval still pending	Stable narrative

Management Commentary

“We experienced a 48% decline in net revenue for the three months ended June 30, 2025 as compared to the same period in 2024 due to ongoing competition from generic L‑Glutamine, partially offset by a 33% reduction in operating expenses” — Willis Lee, Chairman & CEO .
“We realized loss from operations of $0.4 million compared to income from operations of $0.6 million in the prior year” — Willis Lee .
Prior quarter: “Q1 2025 net revenues were comparable to the same period last year… improved the loss from operations to less than $1 million” — Willis Lee .

Q&A Highlights

No Q2 2025 earnings call transcript was found; Q&A themes and clarifications were not available in public transcripts [ListDocuments: 0 results for earnings-call-transcript Jul–Sep 2025].

Estimates Context

S&P Global Wall Street consensus estimates for Q2 2025 revenue and EPS were unavailable for EMMA; comparisons to consensus cannot be made. Values retrieved from S&P Global.*
Given the documented 48% YoY revenue decline driven by generics, any forward sell‑side revisions would likely incorporate continued U.S. pressure and cost controls, but no explicit Street context was available in S&P Global data .

Key Takeaways for Investors

Topline pressure from generic L‑Glutamine remains the primary headwind; management explicitly ties the 48% YoY decline to U.S. competition .
Cost reductions are tangible and ongoing, lowering OpEx by ~33% YoY and improving operating loss sequentially; continued discipline is critical to offset revenue headwinds .
Liquidity risk is elevated: cash fell to $0.886M with substantial current liabilities and a stockholders’ deficit; going‑concern language persists—funding actions and liability management are pivotal near‑term catalysts .
Organizational change (CFO resignation; Controller to CAO) introduces execution risk but may accelerate cost/control initiatives; monitor subsequent disclosures for continuity in financial strategy .
International markets and pending Saudi authorization remain strategic levers; any progress could partially offset U.S. generic pressure .
Near‑term trading: sensitivity to financing announcements, debt restructuring, and any distribution/market access updates as revenue mix adapts to generics .
Medium‑term thesis: hinges on defending Endari® against generics, expanding international access, sustaining OpEx discipline, and stabilizing the balance sheet—watch for tangible improvements in cash generation and liabilities trajectory .

Emmaus Life Sciences, Inc. (EMMA)·Q2 2025 Earnings Summary