Emergent BioSolutions Inc. has reported its financial results for the third quarter of 2025, showing total revenues of $231.1 million, beating the high end of Q3 guidance by $21.0 million. The company's net income for the quarter was $51.2 million, with a net income margin of 22%.
Compared to the third quarter of 2024, the company experienced a 21% decrease in total revenues, with net income down 55%. Adjusted EBITDA for Q3 2025 was $87.8 million, with an adjusted EBITDA margin of 38%.
The gross margin percentage for Q3 2025 was 54%, representing an expansion of 300 basis points (bps) compared to the prior year. Furthermore, the adjusted gross margin percentage was 61%, marking an increase of 200 bps versus the prior year.
For the year-to-date 2025 versus 2024, the company reported a 30% decrease in total revenues, but a significant improvement in net income, which increased from a loss of $159.3 million in 2024 to a net income of $107.2 million in 2025. Adjusted EBITDA for the year-to-date 2025 was $193.9 million, a 20% increase from the prior year.
The report also highlighted several recent business updates, including contract modifications for various products, the introduction of new products to the distribution platform, and the recognition of multiple naloxone awareness days throughout the quarter.
In terms of specific product sales, revenues from naloxone products decreased by 21% for Q3 2025 compared to the same period in 2024. Additionally, revenues from anthrax MCM products decreased by 88%, smallpox MCM products decreased by 37%, and revenues from other product sales increased by 91%.
The company's operating expenses saw a significant reduction in Q3 2025 compared to Q3 2024. Cost of product and services sales decreased by 30%, research and development expenses decreased by 2%, and selling, general, and administrative expenses decreased by 49%.
Regarding capital expenditures, there was a 41% decrease in Q3 2025 compared to Q3 2024, mainly due to lower development activities across the company’s facilities.
The company manages its business with a focus on three operating segments: commercial products, MCM products, and services. The report provided detailed segment information, including revenues, cost of sales, gross margin, and adjusted gross margin for the commercial products and MCM products segments.
Following these announcements, the company's shares moved -2.27%, and are now trading at a price of $9.47. For the full picture, make sure to review Emergent BioSolutions's 8-K report.
