Executive Summary

Q2 2024 net revenue rose 30% year over year to $16.37M, driven by higher ZTlido sales (+~16% gross product sales), ELYXYB growth (+~49% gross product sales), and initial Gloperba contribution; sequentially, revenue increased 50% from Q1’s $10.88M .
Net loss widened to $(37.58)M (EPS $(0.31)) from $(26.65)M (EPS $(0.19)) a year ago, largely reflecting non‑cash losses on derivative warrant liabilities and fair‑value changes to financing instruments (Oramed Note, FSF Deposit) despite improved operating loss versus Q2’23 .
Final reported results landed within the company’s July 1 preliminary ranges for the quarter (total product net sales $16.4–$18.2M, net loss $15–$20M preliminary; reported net revenue $16.37M and net loss $(37.58)M) with the variance chiefly due to other expenses below the operating line (derivative/fair‑value) versus prelim guidance focusing on operating lines .
Liquidity remains the principal risk: cash and cash equivalents were $6.89M at June 30, with negative working capital and “substantial doubt” about going concern; management is pursuing financings (e.g., $100M FSF commitment with $10M deposit received) and strategic actions (exploring Semnur/SEMDEXA separation) as potential catalysts .

What Went Well and What Went Wrong

What Went Well

Commercial traction: Q2 net revenue grew 30% YoY to $16.37M as ZTlido gross product sales rose ~16% and ELYXYB ~49%; Gloperba launched in June and contributed initial sales .
Operating discipline: Loss from operations improved to $(15.62)M from $(22.81)M in Q2’23, supported by lower R&D and SG&A versus prior year .
Management tone on June momentum: “ZTlido is surpassing in the month of June with the gross sales in the range of $22.0 million to $26.0 million mark for the first time,” CEO Jaisim Shah noted, highlighting second‑half trend improvement .

What Went Wrong

Bottom‑line pressure: Net loss widened to $(37.58)M from $(26.65)M YoY, driven by $15.28M loss on derivative warrant liabilities and $6.10M fair‑value losses on debt/liability instruments in the quarter .
Liquidity and working capital: Cash was $6.89M, accounts receivable $38.00M, with accrued rebates/fees of $125.06M and management’s explicit going‑concern warning, underscoring near‑term financing dependence .
Legal and financing overhangs: The secured Oramed Note (fair value $75.37M at quarter‑end) with scheduled amortizations and warrant‑related derivative liabilities ($30.01M) add volatility and constrain flexibility .

Financial Results

P&L summary vs prior year and prior quarter

Metric	Q2 2023	Q1 2024	Q2 2024
Net Revenue ($M)	12.582	10.884	16.370
Cost of Revenue ($M)	4.177	3.840	4.390
Loss from Operations ($M)	(22.814)	(19.478)	(15.623)
Net Loss ($M)	(26.649)	(24.377)	(37.582)
Diluted EPS ($)	(0.19)	(0.24)	(0.31)
Loss on Derivative Liability ($M)	0.082	0.457	15.284
Change in Fair Value of Debt/Liabilities ($M)	3.748	3.905	6.099

Drivers: YoY revenue growth tied to ZTlido (~~+16% gross product sales), ELYXYB (~~+49%), and Gloperba launch; net loss increase reflects higher non‑cash derivative and fair‑value charges despite improved operating loss .

Balance sheet and cash KPIs

KPI	Q2 2023	Q1 2024	Q2 2024
Cash & Cash Equivalents ($M)	34.1 (as of 6/30/23, per prelim release)	1.818 (as of 3/31/24)	6.888 (as of 6/30/24)
Accounts Receivable, Net ($M)	27.6 (as of 6/30/23, per prelim)	29.716 (as of 3/31/24)	38.004 (as of 6/30/24)
Accrued Rebates & Fees ($M)	89.658 (12/31/23 reference)	104.088 (as of 3/31/24)	125.063 (as of 6/30/24)
Oramed Note (Fair Value, $M)	—	92.923 (3/31/24)	75.370 (6/30/24)
Derivative Warrant Liabilities ($M)	—	6.941 (3/31/24)	30.005 (6/30/24)

Note: Cash & CE for Q2 2023 referenced from the company’s July 1, 2024 preliminary ranges as a YoY comparison datapoint .

Segment/Product disclosure

The company does not provide GAAP segment revenue by product; management commentary attributes growth to ZTlido, ELYXYB, and Gloperba (launched June 2024) .

Guidance Changes

Metric	Period	Previous Guidance	Current/Actual	Change
ZTlido net sales ($M)	Q2 2024 (quarter)	$15.8–$17.5 prelim	Included in net revenue $16.37M total; product detail not broken out	In‑line with prelim range
Total product net sales ($M)	Q2 2024 (quarter)	$16.4–$18.2 prelim	Net revenue reported $16.37M	In‑line with prelim range (lower end)
Operating Expenses ($M)	Q2 2024 (quarter)	$23–$26 prelim	Total operating costs & expenses $31.993M (includes multiple lines)	Not directly comparable; prelim referenced OpEx; reported includes full operating costs
Net Loss ($M)	Q2 2024 (quarter)	$(15)–$(20) prelim	$(37.582)M	Below prelim; delta reflects significant non‑operating losses (derivative/fair‑value)
Strategic update	June 2024	—	Board authorized exploring strategic alternatives for Semnur/SEMDEXA (spin, merger, dividend, etc.)	New disclosure

The company did not issue traditional forward FY or quarterly revenue/EPS guidance in the Q2 filings. Preliminary ranges were provided for Q2 and June month; actuals fell within revenue bounds but net loss was below the prelim range due to below‑the‑line fair‑value impacts .

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was available in our document corpus. Themes below draw from sequential 10‑Q MD&A and contemporaneous 8‑Ks.

Topic	Previous Mentions (Q1 2024)	Current Period (Q2 2024)	Trend
Liquidity/Going Concern	Substantial doubt; cash $1.82M; dependence on financings and product sales	Substantial doubt reiterated; cash $6.89M; FSF $100M commitment with $10M deposit; Oramed Note repayments continue	Slightly improved liquidity actions but risk unchanged
Product performance (ZTlido/ELYXYB)	Net revenue $10.88M; co‑pay disruption in Feb resolved; continued commercialization	Net revenue $16.37M; ZTlido gross product sales +~16% YoY; ELYXYB +~49% YoY; Gloperba launch	Improving
Pipeline (SEMDEXA/SP‑103/SP‑104)	SEMDEXA Phase 3 completed; SP‑103 Fast Track, Phase 2 top‑line positive; SP‑104 Phase 1 completed	Same statuses reiterated; SEMDEXA potential first FDA‑approved alternative; strategic review of Semnur	Strategic optionality added
Legal/Regulatory	ZTlido ANDA litigation trial scheduled July 8, 2024; Gloperba Takeda litigation settled (consent judgment May 3, 2024)	ZTlido trial held July 8–11; post‑trial briefing submitted; awaiting decision	Processed to decision phase
Financing structure	Underwritten offering (March), Registered Direct (April), ATM in place; Oramed Note outstanding	Oramed Note FV reduced to $75.37M; FSF $10M deposit and warrants; derivative warrant liability increased with issuances	Mixed: new financing path, higher derivative liability

Management Commentary

CEO perspective on June momentum and Q2 set‑up: “For the month of June 2024, sales were highlighted by year-over-year growth trends improving in the second half of the second quarter and ZTlido is surpassing in the month of June with the gross sales in the range of $22.0 million to $26.0 million mark for the first time” — Jaisim Shah, CEO .
Product focus and mission reiterated in Q2 10‑Q MD&A: Scilex “is an innovative revenue‑generating company focused on acquiring, developing and commercializing non‑opioid pain management products,” with commercialization of ZTlido, Gloperba, and ELYXYB, and late‑stage pipeline including SEMDEXA and SP‑103 .

Q&A Highlights

A Q2 2024 earnings call transcript was not available in our document search; thus, specific Q&A themes, clarifications, and tone shifts cannot be extracted from a call transcript at this time.

Estimates Context

Wall Street consensus (S&P Global) for Q2 2024 revenue/EPS could not be retrieved due to a service limit at the time of query; therefore, we cannot provide an S&P Global comparison for beats/misses. Values retrieved from S&P Global were unavailable due to rate limits.
Notably, the company’s July 1 preliminary update indicated total product net sales of $16.4–$18.2M for Q2; actual net revenue of $16.37M aligns to the lower bound of that range .

Key Takeaways for Investors

Commercial execution improved materially in Q2 with 30% YoY revenue growth and better operating loss, supported by ZTlido and ELYXYB strength and the Gloperba launch; watch for evidence of sustained momentum into 2H .
Reported net loss was driven by non‑cash derivative and fair‑value impacts (warrants, Oramed Note, FSF Deposit), which may continue to add earnings volatility; focus on operating profit trajectory as a cleaner measure of underlying performance progress .
Liquidity remains the top risk: negative working capital and going‑concern language persist; monitor execution on the FSF $100M financing (beyond the $10M deposit) and any additional funding/ATM usage .
Legal and strategic catalysts: outcome of the ZTlido ANDA trial (trial completed; decision pending) and potential Semnur/SEMDEXA separation could be stock‑moving events .
Balance sheet optics: rising accrued rebates/fees and growing receivables underscore the importance of gross‑to‑net management and cash conversion in the model .
Without formal forward guidance, use prelim updates and 10‑Q color to benchmark near‑term expectations; look for continued ZTlido share gains, ELYXYB adoption, and broader Gloperba uptake to support sequential growth .
Near‑term trading: stock is likely to react to financing milestones (FSF definitive close/terms), litigation outcomes, and any Semnur deal progress; downside risk centers on funding slippage and additional non‑cash P&L volatility .

Scilex Holding Co (SCLX)·Q2 2024 Earnings Summary