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Scorpius Holdings, Inc. (SCPX)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue collapsed to $0.21M, down 94% year over year and 76% sequential versus the most recent available quarter (Q3 2024); EPS was -$1.16, reflecting deep operating losses and restructuring charges .
  • Liquidity is acute: cash and short-term investments were ~$0.2M at March 31, 2025, and the company disclosed going concern uncertainty and defaults under related-party promissory notes in the quarter’s 10-Q .
  • NYSE American suspended trading and initiated delisting proceedings in April 2025, with shares moving to OTC Pink; management had earlier explored strategic alternatives with A.G.P., and announced operational streamlining and cost reductions .
  • No formal numerical guidance was provided; prior commentary about “on track to achieve positive cash flow” from Q3 2024 is inconsistent with the Q1 2025 results and liquidity profile, implying a likely reset of expectations .

What Went Well and What Went Wrong

  • What Went Well

    • Management executed strategic cost reductions and operational streamlining, citing a refocus on core CDMO capabilities to drive long-term value .
    • Continued positioning as a U.S.-based biomanufacturing partner, highlighting domestic facilities and compliance capabilities .
    • Prior quarter strategic progress included joining the Medical CBRN Defense Consortium (MCDC), aiming at government countermeasure contracts .

  • What Went Wrong

    • Revenue fell to $0.21M as a major customer migrated to a larger CDMO in 2024; Q1 revenue sank from $3.51M a year ago and $0.9M in Q3 2024 .
    • Liquidity stress intensified: cash/short-term investments ~$0.2M and defaults on related-party notes; the 10-Q flags going concern uncertainty .
    • Exchange suitability deteriorated: April 2025 suspension and delisting proceedings by NYSE American on low selling price grounds, further constraining capital access and investor base .

Financial Results

MetricQ1 2024Q3 2024Q1 2025
Revenue ($USD)$3,513,948 $900,000 $212,264
EPS ($USD)-$31.38 -$1.43 -$1.16
Cost of Revenues ($USD)$938,212 $900,000 $376,157
Gross Profit ($USD)$2,575,736 $0 -$163,893
Gross Margin %73.3% (calc from revenue and cost) 0.0% (calc from revenue and cost) -77.2% (calc from revenue and cost)
Net Loss Attributable ($USD)-$4,417,549 -$10,100,000 -$10,714,555
Net Income Margin %-126% (calc from net loss and revenue) -1122% (calc from net loss and revenue) -5047% (calc from net loss and revenue)

Notes:

  • Prior quarter Q4 2024 detailed quarterly data was not found in filings; Q3 2024 is used as the most recent available comparison period .
  • No S&P Global consensus estimates were available via tool due to missing mapping; see Estimates Context.

KPIs and Liquidity

KPIQ3 2024FY 2024Q1 2025
Cash, Cash Equivalents & Short-term Investments ($USD)$4.8M (Sept 30, 2024) $1.2M (Dec 31, 2024) ~$0.2M (Mar 31, 2025)
Backlog ($USD)—$1.1M (Dec 31, 2024) —
Deferred Revenue ($USD)——Not detailed in press release; see 10-Q for movements

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash flowQ3 2024 forward“On track to achieve positive cash flow” (qualitative) No formal guidance in Q1 2025 materials; going concern flagged Effectively withdrawn/reset (qualitative to none)
Cost savings2024–2025Cost savings initiatives “expected to exceed $2M annually” Strategic cost reductions implemented; no numeric update Maintained qualitatively
Revenue/Margins/Tax/OpExQ1 2025None availableNone provided; NT 10-Q warned results would deteriorate YoY Maintained “no formal guidance”

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was found.

TopicPrevious Mentions (Q-2: Q3 2024)Previous Mentions (Q-1: Q4 2024)Current Period (Q1 2025)Trend
Government/biodefense positioningJoined MCDC; targeting U.S. biosecurity contracts; BIOSECURE Act context Not availableStrategic focus on U.S.-based CDMO capabilities Stable emphasis; commercialization traction unclear
Cost discipline>$2M annual cost savings; margin focus Not availableStrategic cost reductions/streamlining; large restructuring charges recorded Intensified actions but near-term pain
Customer pipeline“Higher-than-ever weighted average pipeline” Not availableMajor customer churn drove collapse in Q1 revenue Negative momentum
Listing/Capital markets——NYSE American suspension & delisting proceedings; OTC trading Deteriorating
Strategic alternatives——Engaged A.G.P. to explore strategic alternatives Active process, outcomes uncertain

Management Commentary

  • “The current biotech funding environment has created real headwinds for many of our clients… we took decisive steps to streamline our operations, reduce our cost structure, and refocus on our core CDMO capabilities… focused on executing our business strategy and driving value for shareholders.” — CEO Jeff Wolf, April 30, 2025 .
  • “Scorpius continued to make strides in Q3, driven by key partnerships, disciplined financial management… on track to achieve positive cash flow.” — CEO Jeff Wolf, Nov 14, 2024 .

Q&A Highlights

  • No Q1 2025 earnings call transcript found; consequently, there were no published Q&A clarifications for guidance, liquidity, or customer pipeline [Search returned none].

Estimates Context

  • We attempted to retrieve S&P Global consensus for Q1 2025 (EPS, revenue, EBITDA, target price). The request failed due to missing Capital IQ mapping for SCPX; therefore, Wall Street consensus comparisons are unavailable at this time [GetEstimates error].
  • Given the magnitude of revenue decline and restructuring, estimates are likely to reset lower; we recommend revisiting once S&P Global mapping is available.

Key Takeaways for Investors

  • Revenue base is unstable post-customer migration; Q1 2025 revenue of $0.21M underscores fragile demand and limited scale utilization .
  • Liquidity is the primary risk: ~$0.2M cash and going concern uncertainty with disclosed defaults on related-party notes; capital access likely strained by delisting .
  • Strategic alternatives process (A.G.P.) is a near-term catalyst but outcome/timing uncertain; diligence should focus on balance sheet remedies (financing, asset sale, partnership) .
  • Operational streamlining is necessary but insufficient without customer acquisition and capacity utilization; monitor backlog rebuild and government contract wins (e.g., MCDC opportunities) .
  • Short-term trading implications: heightened event risk (financing, restructuring, delisting finalization); stock likely driven by liquidity headlines rather than fundamentals .
  • Medium-term thesis hinges on converting U.S.-based CDMO positioning into recurring revenue, restoring backlog, and achieving cash flow breakeven; absent evidence of pipeline conversion, risk/reward skews negative .
  • No formal guidance; prior positive-cash-flow commentary should be treated cautiously given Q1 results and disclosures .