Executive Summary

Q2 2025 reflected a transition quarter: no revenue and higher operating expenses as Pelthos completed the merger with LNHC, closed a $50.1M PIPE, and launched ZELSUVMI on July 10 (post-quarter), while reporting a net loss of $3.45M and basic/diluted EPS of $(5.38) .
EPS beat the single-analyst S&P Global consensus by $0.88 (actual $(5.38) vs $(6.26)) despite increased R&D and professional fees tied to merger and pre-commercial readiness; however, coverage is thin (1 estimate) and revenue estimates for the quarter were unavailable .
Management emphasized early positive physician response to ZELSUVMI and commercial readiness (50 territory reps), while cautioning on funding needs given launch spend and pipeline priorities, even after the $50.1M raise and royalty agreements .
Key near-term stock catalysts: initial ZELSUVMI prescription/coverage traction updates, any announced pediatric infectious disease asset acquisition, and clarity on 2H25 revenue cadence versus FY revenue consensus* ($24.79M) .

What Went Well and What Went Wrong

What Went Well
- Commercial launch readiness for ZELSUVMI: built-out sales organization (50 territory sales managers) and early positive HCP response, with orders/prescriptions “meeting or exceeding” expectations (post-quarter launch) .
- Strategic financing and structure in place: closed $50.1M PIPE (including Ligand’s participation) and executed royalty monetization agreements to support ZELSUVMI and broader platform .
- EPS beat vs consensus: Q2 2025 EPS $(5.38) vs $(6.26)* consensus (one estimate), reflecting tighter G&A YoY (–8%) despite higher R&D and professional fees . Quote: “The past month has been defined by focus and execution.” — CEO Scott Plesha .
What Went Wrong
- Continued operating losses with higher spend: net loss widened YoY to $(3.45)M (from $(1.77)M) as R&D and professional fees rose sharply into launch and merger-related activities .
- Liquidity and going-concern caution: despite PIPE proceeds, management still highlights substantial doubt about ability to fund operations over 12 months given launch and pipeline costs absent further capital .
- No quantitative guidance or KPIs disclosed: the company provided no numeric launch metrics or formal financial guidance, limiting visibility for modeling .

Financial Results

Revenue and EPS (oldest → newest)

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD)	$0 (pre-revenue)	$0 (pre-revenue)	$0 (pre-revenue)
Basic & Diluted EPS ($)	$(3.07)	$(0.32)	$(5.38)
Net Loss ($USD)	$(1,771,619)	$(1,967,611)	$(3,448,939)
EPS Consensus (S&P Global)*	N/A	N/A	$(6.26)*
EPS Δ vs Consensus*	N/A	N/A	+$0.88*

Notes: EPS comparability is affected by share count changes and a 10-for-1 reverse split effective July 1, 2025; Q2 2025 EPS is presented post-split, while Q1 2025 reflects pre-split reporting bases .

Operating expenses (oldest → newest)

Operating Expense	Q2 2024 ($)	Q1 2025 ($)	Q2 2025 ($)
General & Administrative	1,209,874	1,090,049	1,110,084
Research & Development	12,955	194,298	514,814
Professional Fees	541,257	549,630	1,605,525
Total Opex	1,764,086	1,833,977	3,230,423

Liquidity and debt snapshot

Metric	Q1 2025	Q2 2025
Cash (end of period, $)	131,317	59,172
Total Loan Principal Outstanding ($)	2,506,628	2,267,916

Segment/KPIs

Segments: one reportable segment; pre-revenue during the period .
No ZELSUVMI quantitative launch KPIs disclosed in Q2 materials (product launched post-quarter on July 10) .

Guidance Changes

No formal numeric guidance was issued. Management indicated continued investment in ZELSUVMI awareness, pursuit of an additional FDA-approved pediatric infectious disease product, and the need for additional capital despite the PIPE to fund launch and pipeline .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	Not provided	Not provided	—
Gross/EBITDA/Margins	FY 2025	Not provided	Not provided	—
OpEx	FY/Q3 2025	Not provided	No numeric guidance; continued investment	—
Other (OI&E, Tax, Dividends)	FY 2025	Not provided	Not provided	—

Earnings Call Themes & Trends

No Q2 2025 earnings call transcript was available; we searched filings and transcripts and found none.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q2 2025)	Trend
Commercial launch readiness	Building toward launches; no revenue; pre-revenue biotech focus	Completed sales build (50 TSMs); launch of ZELSUVMI planned/executed post-quarter; positive HCP response	Improving/Executing
Financing & capital	IPO in 2024; bridge notes; going-concern risk	$50.1M PIPE closed; royalty monetization; still substantial doubt vs 12-month runway	Strengthened but still tight
M&A/Asset strategy	Merger agreement with LNHC pending	Merger completed; evaluating a second FDA-approved pediatric infectious disease product	Advancing
R&D pipeline	CT2000 eye pain and CT3000 nerve block in preclinical/POC planning	Continued R&D; higher CMC spend; preclinical programs ongoing	Steady investment
Regulatory/legal	Routine disclosures; no material proceedings	Royalty agreements, board/officer changes; legal updates; controls weaknesses disclosed	Neutral/Operational
Controls & governance	Material weaknesses; improvements underway	Material weaknesses persist in Q2	Unchanged

Management Commentary

“The past month has been defined by focus and execution… we have successfully built out our commercial organization and launched our novel treatment for molluscum into the market.” — Scott Plesha, CEO .
“Orders and prescriptions [for ZELSUVMI] meeting or exceeding our sales expectations.” — Sai Rangarao, Chief Commercial Officer .
Strategy: invest in ZELSUVMI awareness, expand pipeline, monetize legacy pain programs, and evaluate an additional FDA-approved pediatric infectious disease asset .

Q&A Highlights

No Q2 2025 earnings call transcript was available; we searched and found none. As a result, there were no published Q&A clarifications on launch KPIs, payer coverage, or expense cadence for the second half.

Estimates Context

Q2 2025 EPS: $(5.38) vs S&P Global consensus $(6.26)* (1 estimate) — a beat of $0.88.* Coverage is minimal; interpret with caution .
FY 2025 revenue consensus: $24.79M* (2 estimates). With ZELSUVMI launching in July, visibility hinges on prescription uptake and reimbursement ramp rather than Q2 results.*

Metric	Q2 2025	FY 2025
Primary EPS Consensus Mean*	$(6.26)*	$(11.535)*
Actual EPS	$(5.38)	N/A
Revenue Consensus Mean*	N/A	$24,789,500*
# of EPS Estimates*	1*	2*
# of Revenue Estimates*	N/A	2*

Values with asterisks are retrieved from S&P Global.

Implications: The EPS beat (on thin coverage) is less informative than weekly/monthly launch indicators for ZELSUVMI. Absent quarterly revenue estimates and with launch post-quarter, consensus recalibration will depend on initial Rx trends, payer access, and gross-to-net assumptions.

Key Takeaways for Investors

Launch execution is now the story: monitor early ZELSUVMI TRx/NRx trends, payer coverage wins, and gross-to-net; management cites positive initial HCP response but provided no quantitative launch KPIs .
Funding improved but not solved: despite the $50.1M PIPE and royalty monetization, management still flags going-concern risk due to launch and pipeline spend; further capital or disciplined spend will be required in 12 months absent faster cash generation .
EPS beat vs a single estimate is secondary; the revenue inflection in 2H25 and 2026 will drive estimate revisions and the thesis.*
Watch potential inorganic catalyst: management is in advanced discussions to acquire a second FDA-approved pediatric infectious disease asset, which could broaden commercial scale and revenue base .
Operating expense cadence: Q2 showed step-ups in R&D (CMC) and professional fees (merger/launch support). Expect elevated OpEx through commercial build-out, then operating leverage if ZELSUVMI scales .
Governance/controls: material weaknesses remain; remediation progress will matter for execution credibility and financing flexibility .
Medium-term thesis: If ZELSUVMI establishes durable at-home standard-of-care positioning in molluscum, Pelthos can leverage its commercial platform into adjacent pediatric infectious indications and support selective R&D (CT2000/CT3000), but balance sheet discipline is essential .

Citations:

Q2 2025 8-K and press release (Item 2.02; Exhibit 99.1):
Q2 2025 10-Q financials, liquidity, risk, and subsequent events:
Q1 2025 10-Q for prior-quarter comparatives: