Sign in

    SURMODICS (SRDX)

    Q2 2025 Earnings Summary

    Reported on Jan 1, 1970
    Pre-Earnings PriceN/ADate unavailable
    Post-Earnings PriceN/ADate unavailable
    Price ChangeN/A
    MetricYoY ChangeReason

    Total Revenue

    12% decline (from $32.0M to $28.1M)

    Total Revenue fell 12% YoY primarily due to a significant decline in the Medical Device segment—especially the steep 73% drop in License Fees – SurVeil DCB (from $1.1M to $0.3M)—which more than offset a modest 4% increase in In Vitro Diagnostics revenue.

    Medical Device Segment

    16% decline (from $24.8M to $20.7M)

    Medical Device revenue dropped 16% YoY largely because the high-margin license fee sub-segment for SurVeil DCB collapsed by roughly 73%, reflecting the absence of the prior-year boost from initial orders, thereby dragging down the overall segment revenue despite potential stability in other product lines.

    In Vitro Diagnostics (IVD)

    4% increase (from $7.1M to $7.4M)

    IVD revenue showed modest resilience, rising 4% YoY, which suggests that normalized purchasing patterns and steady demand helped counter deeper declines in other segments, even though the overall revenue mix shifted unfavorably.

    Operating Performance

    Swing from an operating income of $659K to a loss of $4.01M

    Operating performance deteriorated sharply as the decline in core revenue combined with rising costs pushed the operating income into a loss—a reversal from a modest profit in the prior period—highlighting increased cost pressures and challenges in sustaining the previously robust margins.

    Net Income

    Swing from a profit of $247K to a loss of $5.21M

    Net income swung dramatically due to the compounding effect of lower revenues, especially in the Medical Device segment, and higher operating expenses; this shift magnified the impact on the bottom line, turning a small profit into a significant loss.

    R&D Expenses

    Increased by about 30% (from $2.448M to $3.185M)

    R&D expenses rose by 30% YoY as the company increased its investment in new product development and continued advancement in platforms like Pounce thrombectomy and Sublime radial access, indicating a strategic push for innovation despite short-term cost pressures.

    SG&A Expenses

    Increased by about 15% (from $13.093M to $15.045M)

    SG&A expenses grew by 15% YoY largely driven by merger-related charges and increased administrative costs, reflecting an integration cost burden that was not present in the prior period and had a direct impact on overall margins.

    Total Assets

    Declined by roughly 10.7% (from $182.8M to $163.2M)

    Total assets decreased by 10.7% YoY primarily due to a contraction in current assets, driven by lower cash balances and reduced investments (e.g., available-for-sale securities), reflecting the operational challenges and tighter liquidity conditions compared to the previous period.

    Cash and Cash Equivalents

    Fell by about 11% (from $33.03M to $29.18M)

    Cash and cash equivalents decreased by approximately 11% YoY as lower revenue inflows and higher operational outflows combined with reduced liquidity measures, signaling cash flow pressures relative to the prior period.

    Research analysts covering SURMODICS.