Executive Summary

Q1 2025 results reflected a small royalty-driven business: license revenue grew 25.8% year over year to $0.393M, while net loss from continuing operations narrowed to $(0.636)M (vs. $(0.809)M in Q1 2024) and diluted EPS was $(0.06) .
Operating expenses fell 13.1% YoY to $1.264M, attributed to “increased efficiencies realized as a royalty-based business” .
Cash and equivalents were $5.7M at March 31, 2025 (up from $5.1M at December 31, 2024), providing modest liquidity while the company evaluates strategic alternatives .
No formal guidance or call transcript was furnished; the company highlighted ongoing exploration of strategic alternatives and referenced risks including the potential impacts of Mayne Pharma’s agreement to be acquired by Cosette Pharmaceuticals on TXMD’s royalty streams .

What Went Well and What Went Wrong

What Went Well
- License revenue increased 25.8% YoY to $0.393M, primarily from the Mayne License Agreement, driven by changes in sales of licensed products .
- Total operating expenses decreased 13.1% YoY to $1.264M as the company realized efficiencies from its transition to a royalty-based model (“increased efficiencies realized as a royalty-based business”) .
- Cash and equivalents improved sequentially to $5.7M at quarter-end (from $5.1M at year-end 2024), preserving flexibility while strategic alternatives are evaluated .
What Went Wrong
- The company remains loss-making on a continuing operations basis (Q1 2025 net loss $(0.636)M), underscoring the small and variable nature of the royalty base .
- Sequentially, profitability deteriorated vs. Q4 2024, when S&P Global shows positive net income of $0.252M*, suggesting quarter-to-quarter volatility in royalty receipts (and therefore earnings) due to licensee sales dynamics. Values retrieved from S&P Global.*
- Risk disclosures flag uncertainties: outcome of disputes with Mayne Pharma, ability to remain listed on Nasdaq, and the potential impact of Mayne Pharma Group’s agreement to be acquired by Cosette Pharmaceuticals on TXMD’s royalties and stock volatility .

Headline P&L and liquidity

Metric	Q1 2024	Q4 2024	Q1 2025
License Revenue ($USD Millions)	$0.313	$0.667*	$0.393
Net Income (Loss) from Continuing Ops ($USD Millions)	$(0.809)	$0.252*	$(0.636)
Diluted EPS - Continuing Ops ($)	$(0.07)	$0.0099*	$(0.06)
Total Operating Expenses ($USD Millions)	N/A	$0.979*	$1.264
Cash & Equivalents ($USD Millions)	N/A	$5.1	$5.7

Notes: Asterisked values are from S&P Global; Values retrieved from S&P Global.*

YoY/Sequential drivers and context

YoY: Revenue +25.8% on changes in licensee product sales; opex −13.1% on efficiency gains; net loss narrowed y/y .
QoQ: S&P Global indicates Q4 2024 higher revenue and positive net income*, versus Q1 2025 smaller revenues/negative net income, highlighting volatility typical of a royalty-only model. Values retrieved from S&P Global.*

Estimates vs. Actuals (S&P Global)

Metric	Q1 2025 Actual	Q1 2025 Consensus	Surprise
Revenue ($USD Millions)	$0.393	N/A*	N/A
Diluted EPS ($)	$(0.06)	N/A*	N/A

Notes: S&P Global consensus for EPS and revenue was unavailable for Q1 2025; Values retrieved from S&P Global.*

Segment breakdown / KPIs

TXMD is a royalty company; no segment reporting and no product-level detail provided in the press releases .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue, margins, OpEx, EPS, tax, OI&E, segment KPIs	FY/Q1 2025	Not provided	Not provided	No formal guidance disclosed in press releases

Note: No earnings call transcript was furnished; themes are drawn from quarterly press releases.

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q1 2025)	Trend
Strategic alternatives	Company evaluating potential acquisition/merger/asset sale; no timetable	Continued evaluation; no assurance of outcome	Continued evaluation; no timetable; no assurance	Ongoing
Royalty-model cost structure	Optimization and cost reductions post-transition; Q2 opex $2.7M	Further optimization; Q3 opex $1.4M	Opex $1.264M, citing “increased efficiencies realized as a royalty-based business”	Improving efficiency
License revenue variability	License revenue $0.234M; change driven by sales of licensed products	License revenue $0.547M; negative $0.053M in Q3 2023 due to adjustments	License revenue $0.393M; change driven by sales of licensed products	Volatile but positive YoY
Liquidity	Cash $5.2M at 6/30/24	Cash $5.0M at 9/30/24	Cash $5.7M at 3/31/25	Stable to improving
Risk factors (Mayne/Cosette, Nasdaq)	Risks around licensee commercialization, Nasdaq, leadership, litigation	Similar risk set disclosed	Adds potential impact of Mayne’s agreement to be acquired by Cosette and volatility of TXMD stock	Elevated awareness

Strategic focus: “The Company continues to evaluate a variety of strategic alternatives that may include, but not be limited to, an acquisition, merger, other business combination, sale of assets, or other strategic transactions…” .
Operating model: Management attributed lower operating expenses to “increased efficiencies realized as a royalty-based business” .
Business model reminder: TXMD “is no longer engaging in research and development or commercial operations” and now primarily collects royalties from licensees .

No earnings call transcript was furnished with the Q1 2025 results; no Q&A highlights are available from company filings reviewed .

S&P Global consensus for Q1 2025 EPS and revenue was unavailable; as a result, no beat/miss can be determined from consensus. Values retrieved from S&P Global.*
Given the small absolute revenue base and royalty timing, analysts should assume quarter-to-quarter variability in revenues and profitability, with limited visibility absent issuer guidance .

TXMD is a small, royalty-only company; results are driven by licensee sales (primarily Mayne) and can be volatile quarter-to-quarter .
Cost discipline continues to reduce operating expenses; operating leverage is limited without a larger royalty base .
Liquidity improved to $5.7M cash, buying time as the board/management pursue strategic alternatives; however, no timetable or assurance of outcome was provided .
Risk disclosures explicitly call out the potential impact of Mayne Pharma Group’s agreement to be acquired by Cosette Pharmaceuticals and Nasdaq listing risks; both could influence future royalty receipts and stock volatility .
Absence of formal guidance and unavailable Street consensus limit near-term forecastability; trading likely pivots around updates on strategic alternatives and any licensee volume inflections .
Sequential swing from positive net income in Q4 2024 to a Q1 2025 net loss underscores revenue variability; investors should monitor licensee sales trends. Values retrieved from S&P Global.*
Any disclosure on resolution of disputes with Mayne Pharma or clarity on strategic paths (sale/merger/asset transaction) would be key stock catalysts .

Footnote: Asterisked figures denote values retrieved from S&P Global (Capital IQ).