Executive Summary

Q3 2025 delivered a dramatic EPS upside driven by investment gains: Basic EPS of $1.16 and diluted EPS of $1.13, versus S&P Global consensus of -$0.04, with net income of $48.4M; the beat was primarily from $61.5M of “Financial income (loss), net” tied to fair‑value gains in Alpha Tau and Scilex, while core operations posted a ~$2.4M operating loss . Consensus values from S&P Global.*
No product revenue was recognized in Q3; nine‑month YTD revenue remained $2.0M from recognition related to the HTIT license, with no Q3 contribution .
Strategy pivoted to independent execution on oral insulin: HTIT JV was terminated on Oct 23; management plans to initiate a focused 60‑patient U.S. trial targeting high‑responder subgroups to validate efficacy efficiently .
Balance sheet strength and capital actions: Total assets rose 42% YoY to $220.5M; cash and equivalents were $52.2M at quarter‑end; the Board adopted a shareholder rights plan (one right per share, $10 exercise price) on Nov 17; buybacks continued (165,374 shares in Q3) .
Near‑term catalysts: potential completion of Scilex warrant repurchase second tranche by Dec 31, 2025 ($14M), launch/readouts from the 60‑patient oral insulin trial, and continued mark‑to‑market effects from the investment portfolio .

What Went Well and What Went Wrong

What Went Well
- Material EPS beat on non‑operating gains: Q3 “Financial income (loss), net” of $61.5M (vs. $(15.4)M YoY) drove net income $48.4M; CEO highlighted “complete $100 million cash repayment from Scilex” and “substantial unrealized gains” from Alpha Tau .
- Balance sheet momentum: Total assets increased 42% YoY to $220.5M; equity rose to $203.3M; cash and equivalents at $52.2M provide funding flexibility .
- Capital returns and protections: Ongoing buyback (165,374 shares in Q3) and adoption of a rights plan to protect shareholders in potential hostile scenarios (one right per share at $10, triggers at 15%; expires in 3 years) .
What Went Wrong
- Core operations remain loss‑making: Q3 operating loss of $2.43M, reflecting R&D and G&A with no operating revenue recognized in the quarter .
- HTIT JV fell through: JV termination on Oct 23 removed an external funding/manufacturing path; company pivoting to independent development .
- Estimate base remains thin: Only one analyst estimate in S&P Global for Q3, limiting breadth of Street validation and potentially adding volatility to “beat/miss” interpretations. Consensus values from S&P Global.*

Financial Results

Overall P&L snapshot by quarter (USD Millions, except per‑share)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($)	$2.0	$0.0	$0.0
Operating Income (Loss) ($)	$(4.50)	$(2.49)	$(2.43)
Financial Income (Loss), net ($)	$(2.56)	$15.37	$61.47
Net Income ($)	$(7.64)	$13.26	$48.39
Basic EPS ($)	$(0.19)	$0.32	$1.16
Diluted EPS ($)	$(0.19)	$0.31	$1.13

Versus S&P Global consensus (quarterly)

Metric	Q3 2025 Consensus	Q3 2025 Actual
EPS ($)	-0.04*	1.16
Revenue ($)	0.0*	0.0

Notes: Consensus values from S&P Global.*

Additional balance sheet and cash flow highlights

Total assets: $220.5M (+42% YoY)
Cash and equivalents: $52.2M at Sep 30, 2025
Buybacks: 165,374 shares repurchased in Q3 (avg price $2.18)

KPIs and Disclosures

Reportable segments: Single segment focused on R&D; investment activity monitored separately by CODM .
Scilex Option Agreement: First tranche completed ($13.0M for 3.13M warrants on Sep 30); second tranche ($14.0M for 3.37M warrants) remains open through Dec 31, 2025 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue/Margins/OpEx	FY/Q4 2025	None	No formal numeric guidance provided	Maintained none [10‑Q/PRs]
Oral insulin program	2025–2026	JV‑dependent path; pending Phase 3 design	HTIT JV terminated; initiate focused 60‑patient U.S. trial targeting high responders	Revised/independent
HTIT JV	Oct 2025	JV execution delayed by U.S.‑China constraints	JV terminated Oct 23, 2025	Terminated
Shareholder rights plan	Nov 2025	N/A	One right per share, $10 exercise price; triggers at ≥15% ownership; payable/record Nov 27, 2025; 3‑year term; redeemable at $0.012 per right	New
Buyback	Ongoing	Program extended May 21, 2025	Q3 repurchases of 165,374 shares; ~$16.8M remaining authorization at 9/30	Active
Scilex warrant repurchase	2H25	Option signed July 2025	First tranche done ($13.0M); second tranche ($14.0M) open until Dec 31, 2025	In progress
One‑time cash dividend (concept)	Forward	Previously discussed	Management “plans for a one‑time dividend” (no amounts/timing)	Indicative only

Earnings Call Themes & Trends

No Q3 earnings call transcript was available; themes below reflect MD&A, 8‑K/PRs, and the shareholder letter.

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Oral insulin R&D execution	Revised Phase 3 design targeting high responders submitted; plans paused amid JV uncertainty	JV terminated; initiating 60‑patient U.S. trial to efficiently validate efficacy in high‑responder subgroups	Pivot to independent, focused trial
U.S.‑China/tariffs & supply chain	Trade tensions jeopardized JV closings and supply/manufacturing support	JV terminated due to unsatisfied closing conditions	Deteriorated → independent path
Investment portfolio performance	Q1 financial income (loss) net: $(2.56)M	Q2: $15.37M ; Q3: $61.47M (Alpha Tau, Scilex revaluation)	Strong positive momentum
Capital allocation	Buyback authorized/extended; early‑stage real estate/loan investments	Q3 buybacks; shareholder rights plan adopted	Active returns and protections
Liquidity & assets	Cash $74.5M at Q1; deposits stepped down as investments deployed	Cash $52.2M; assets $220.5M (+42% YoY)	Strong asset base, ample cash

Management Commentary

“Our disciplined investment strategy is delivering strong results. The complete $100 million cash repayment from Scilex, combined with substantial unrealized gains from our Alpha Tau position and other investments, has driven our $65 million net income and positioned us with greater financial flexibility…” — CEO Nadav Kidron .
On R&D direction: “We are initiating a 60‑patient, US‑based trial… designed to use the smallest adequately powered population… providing a cost‑effective approach to generate additional compelling evidence” .
On shareholder returns: management reiterated commitment to rewarding shareholders and referenced plans for a one‑time dividend (non‑binding) .

Q&A Highlights

No Q3 earnings call transcript was available; therefore, no Q&A themes or guidance clarifications to report for the period. (We searched for “earnings-call-transcript” and none were available for Q3 2025.)

Estimates Context

EPS: Actual basic EPS of $1.16 vs. S&P Global consensus of -$0.04 (1 estimate). Revenue: Actual $0 vs. $0 consensus. The large upside reflects fair‑value and investment‑related gains, not core operating revenue or margin expansion . Consensus values from S&P Global.*
Implication: Given sparse coverage and non‑operating drivers, forward EPS estimates may rise but could remain volatile and sensitive to market marks on Alpha Tau/Scilex holdings rather than underlying operating trends.

Key Takeaways for Investors

Q3 upside was investment‑driven: $61.5M in financial income fueled EPS beat; operating loss persisted amid minimal operating revenue .
Strategic reset to independence: Termination of HTIT JV removes dependency risk; the focused 60‑patient U.S. trial is the near‑term R&D catalyst .
Strong balance sheet and shareholder posture: Assets +42% YoY to $220.5M; cash $52.2M; active buybacks; newly adopted rights plan defends against hostile actions .
Watch Scilex warrant option: Second tranche ($14M) decision by Dec 31, 2025, plus ongoing note/royalty cash flows could add non‑operating income .
Risk lens: Earnings power is currently tied to fair‑value marks in the investment book (Alpha Tau/Scilex); estimate dispersion and volatility likely until operating milestones (oral insulin) re‑anchor the narrative .
Trading setup: The magnitude of the EPS beat vs. consensus, adoption of a rights plan, and near‑term catalysts (trial initiation, Scilex tranche) are potential stock movers—recognize that beats are non‑operational and could reverse with market marks .
Medium‑term thesis: If the 60‑patient trial validates the high‑responder strategy and partnerships follow, the narrative can transition from investment gains to clinical value creation; until then, capital allocation discipline and portfolio monetization remain the earnings drivers .

Sources:

Q3 2025 10‑Q (filed Nov 13, 2025): financial statements, MD&A, liquidity, segment reporting, Scilex option details .
8‑K with earnings press release (Nov 17, 2025): headline metrics, CEO quote .
Press release: shareholder rights plan (Nov 17, 2025) .
Q2 2025 10‑Q (Aug 14, 2025): prior‑quarter P&L, JV delays, buyback extension .
Q1 2025 10‑Q (May 15, 2025): prior‑quarter P&L, revised Phase 3 plans .
Shareholder letter PR (Oct 23, 2025): trial plans, investment portfolio commentary, dividend intent .

Estimates: Consensus EPS and revenue values are from S&P Global via GetEstimates; coverage was 1 estimate.*

ORAMED PHARMACEUTICALS INC. (ORMP)·Q3 2025 Earnings Summary