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Scorpius Holdings, Inc. (SCPX)·Q3 2024 Earnings Summary

Executive Summary

  • Q3 2024 revenue was $0.9M (+28.6% YoY), with net loss of $10.1M and diluted EPS of ($1.43); cost actions continue but revenue scale remains modest .
  • Nine-month 2024 revenue reached $5.2M (+142% YoY) with operating expenses down 23.5% YTD; management reiterated being on track toward positive cash flow as cost savings run-rate is expected to exceed $2M annually .
  • Liquidity tightened sharply post-quarter: cash and short-term investments fell from $4.8M (9/30) to $0.8M (11/14), raising near-term financing risk despite a weighted BD pipeline “exceeding $100M” .
  • No S&P Global consensus estimates were available for SCPX; therefore, no beat/miss assessment vs Wall Street is possible (consensus unavailable via S&P Global).

What Went Well and What Went Wrong

  • What Went Well

    • Cost discipline: 9M’24 operating expenses down 23.5% YoY; cost savings initiatives expected to exceed $2M annually .
    • Business development momentum: management cited “higher-than-ever” weighted pipeline and partnerships, positioning the company to capture high-margin government and biopharma opportunities; selection to the Medical CBRN Defense Consortium (MCDC) expands access to U.S. biosecurity projects .
    • CEO tone constructive: “Scorpius continued to make strides in Q3… key partnerships, disciplined financial management, and growth across our manufacturing and development services” .

  • What Went Wrong

    • Scale and losses: Q3 revenue remained small at $0.9M while net loss was $10.1M; non-operating expense ($0.9M) included a $0.7M loss on partial debt extinguishment .
    • Liquidity risk: cash and short-term investments dropped from $4.8M (9/30) to $0.8M by 11/14, indicating urgent funding needs absent near-term revenue step-up .
    • Financing constraints and listing history: filings note prior late filings that render SCPX ineligible to use Form S-3 until June 2025 and past notices of noncompliance from NYSE American; this can constrain capital-raising flexibility .

Financial Results

Revenue and EPS vs prior periods and estimates (USD)

MetricQ3 2023Q1 2024Q2 2024Q3 2024Q3 2024 Consensus
Revenue ($USD Millions)$0.7 $3.5 $0.8 $0.9 N/A (S&P Global consensus unavailable)
Diluted EPS ($)($100.82) ($0.16) ($26.98) ($1.43) N/A (S&P Global consensus unavailable)

Operating and cost profile (USD)

MetricQ3 2023Q1 2024Q2 2024Q3 2024
Cost of Revenues ($M)$0.5 $0.9 $0.8 $0.9
R&D Expense ($M)$5.2 $3.9 $3.6 $4.3
SG&A Expense ($M)$6.1 $5.0 $5.0 $5.6
Non-Operating (Income)/Expense ($M)$0.1 $0.7 income N/A$0.9 expense (incl. $0.7M loss on partial debt extinguishment)
Net Loss ($M)$(13.1) $(4.4) $(8.9) $(10.1)

Margins (derived)

MetricQ3 2023Q1 2024Q2 2024Q3 2024
Gross Margin %28.6% 74.3% 0.0% 0.0%

KPIs and balance highlights

KPIQ1 2024Q2 2024Q3 2024
Revenue Backlog ($M)$10.8 (as of 3/31/24) ——
Weighted Opportunity Pipeline—“Surpasses $100M” weighted opps “Higher-than-ever” and “now exceeding $100M” (qualitative reaffirmation)
Cost Savings Run-Rate——>$2M annually expected
Cash & ST Investments ($M)$1.7 (3/31/24) —$4.8 (9/30/24) → $0.8 (11/14/24)

Notes:

  • Estimates: S&P Global consensus unavailable for SCPX this quarter, so no beat/miss assessment.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Positive Cash Flow TargetNear-term (timing not specified)Anticipated path to positive cash flow post financing; “anticipate this funding… enable us to achieve our goal of positive cash flow” (Q2 release) “On track to achieve positive cash flow” (Q3 release) Maintained/reaffirmed
Cost Savings Run-RateOngoing—Cost savings expected to exceed $2M annually Introduced/quantified
Pipeline OutlookOngoingWeighted pipeline “surpasses $100M” (Q2) “Higher-than-ever” pipeline; positioned for high-margin gov’t/biopharma opps Strengthened qualitatively

No formal numeric guidance was issued for revenue, margins, opex, OI&E, or tax rate in Q3 materials.

Earnings Call Themes & Trends

No Q3 2024 earnings call transcript was available in our sources; company may not have hosted a call or a transcript was not published (not found in document search or on major transcript aggregators).

TopicPrevious Mentions (Q1, Q2 2024)Current Period (Q3 2024)Trend
Cost DisciplineQ1: OpEx down 34% YoY; net loss down 64% . Q2: OpEx down 25% YoY .9M OpEx down 23.5% YoY; savings >$2M run-rate expected .Sustained cost focus; quantified run-rate savings.
Pipeline/BD MomentumQ1: Backlog $10.8M (3/31) . Q2: Weighted opps surpass $100M .“Higher-than-ever” pipeline; new client wins; gov’t engagements .Improving pipeline narrative.
Government/Defense—MCDC selection enables collaboration on CBRN countermeasures .New channel opened.
Regulatory/Policy Tailwinds—BIOSECURE Act (House passage 9/9/24) cited as supportive of U.S. biomanufacturing .Potential policy tailwind.
Liquidity/Capital MarketsQ1: Post-offer cash noted; financing strengthened balance sheet . Q2: Confidence funding would accelerate growth and path to cash flow .Cash fell to $0.8M by 11/14; S-3 ineligible until June 2025; past NYSE notices disclosed .Deteriorating liquidity conditions despite pipeline.

Management Commentary

  • Strategic posture: “Scorpius continued to make strides in Q3, driven by key partnerships, disciplined financial management, and growth across our manufacturing and development services.”
  • On growth and cost: “We are proud to report a 142% year-over-year increase in revenue for the nine months ended September 30, 2024… Alongside this revenue growth, we achieved a 23.5% reduction in operating expenses… cost savings initiatives, expected to exceed $2 million annually… keep us on track to achieve positive cash flow.”
  • Government opportunity: “Our selection to join the Medical CBRN Defense Consortium (MCDC) underscores Scorpius’ commitment to advancing U.S. biosecurity.”
  • Pipeline and outlook: “Our future looks promising with a higher-than-ever weighted average pipeline of business development opportunities across diverse sectors… positioned… to become a leading CDMO.”

Q&A Highlights

No Q3 2024 earnings call transcript was available; we could not extract Q&A themes or clarifications (no transcript found in company filings or aggregator searches).

Estimates Context

  • S&P Global/Capital IQ consensus estimates for Q3 2024 were unavailable for SCPX; thus, we cannot assess beats/misses vs Wall Street this quarter.
  • Implication: Absent external estimates, investor focus will likely center on sequential/YoY trends, liquidity runway, cost execution, and conversion of the BD pipeline.

Key Takeaways for Investors

  • Liquidity is the near-term swing factor: cash and short-term investments declined to $0.8M by 11/14; additional financing or rapid contract conversion appears necessary despite cost reductions .
  • Operating leverage requires revenue scale: Q3 and Q2 revenues ($0.9M and $0.8M) were insufficient to offset OpEx; conversion from pipeline/backlog to manufacturing revenue is the key catalyst .
  • Policy/government channel optionality: MCDC membership and BIOSECURE Act backdrop may open higher-margin government opportunities—watch for awarded contracts as catalysts .
  • Cost program tangible but needs revenue: 9M OpEx down 23.5% YoY and >$2M run-rate savings help, but sustained improvement depends on revenue mix shift to higher-margin manufacturing .
  • Capital markets constraints: S-3 ineligibility until June 2025 and past NYSE notices may complicate capital-raising; consider partnership or non-dilutive alternatives .
  • Short-term trading implication: Stock likely sensitive to any financing updates, contract wins (especially government/MCDC-related), or reversal in cash trend; volatility risk elevated given liquidity profile .
  • Medium-term thesis: If pipeline converts and U.S. biosecurity/manufacturing demand persists, pathway to breakeven improves; execution on capacity utilization at San Antonio and contract closure pace are the primary drivers .

Appendix: Source Documents Read

  • Q3 2024 Form 8-K (Item 2.02) and Exhibit 99.1 press release (full content reviewed) .
  • Company IR press releases for Q1 2024 and Q2 2024 (prior two quarters) .
  • Q2 2024 10-Q and Q3 2024 10-Q (EPS, net loss, disclosures on capital markets constraints) .

Additional Q3 2024 press coverage corroborating Exhibit 99.1:

  • IR portal and GlobeNewswire distribution of Q3 2024 results .