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Aytu BioPharma Reports Fiscal 2025 Third Quarter Operational and Financial Results

1. AYTU's Q3 2025 net revenue increased 32% to $18.5 million. 2. Net income surged to $4.0 million from a loss of $2.9 million. 3. ADHD portfolio revenue grew by 25% year-over-year to $15.4 million. 4. Pediatric products saw a remarkable 77% revenue increase to $3.1 million. 5. Adjusted EBITDA rose to $3.9 million compared to $0.9 million last year.

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Why Very Bullish?

The strong revenue and income growth significantly improve investor sentiment. Similar past reports led to stock price increases.

How important is it?

The significant revenue growth and positive net income mark a turnaround for AYTU, impacting shareholder expectations.

Why Short Term?

Immediate positive investor reactions are expected from this performance report, similar to prior earnings surprises.

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ADHDKARBRVO
Wednesday, 14 May 2025 04:05 PM Net income of $4.0 million, or $0.65 and $0.21 net income per share basic and diluted, respectivelyAdjusted EBITDA1 of $3.9 millionTotal net revenue of $18.5 million up 32% year-over-yearCompany to host conference call and webcast today, May 14, 2025, at 4:30 p.m. Eastern timeDENVER, CO / ACCESS Newswire / May 14, 2025 / Aytu BioPharma, Inc. (the "Company" or "Aytu") (Nasdaq:AYTU), a pharmaceutical company focused on commercializing novel therapeutics, today announced operational and financial results for the fiscal 2025 third quarter.​Q3 2025 HighlightsNet revenue increased 32% to $18.5 million versus $14.0 million in Q3 fiscal 2024.ADHD Portfolio (Adzenys XR-ODT® and Cotempla XR-ODT®) net revenue increased 25% to $15.4 million versus $12.3 million in Q3 fiscal 2024.Pediatric Portfolio (Karbinal® ER, Poly-Vi-Flor® and Tri-Vi-Flor®) net revenue increased 77% to $3.1 million versus $1.7 million in Q3 fiscal 2024.Net income of $4.0 million, or $0.65 and $0.21 net income per share basic and diluted, respectively, compared to a net loss of $2.9 million, or $0.52 net loss per share basic and diluted in Q3 fiscal 2024.Adjusted EBITDA was $3.9 million compared to $0.9 million in Q3 fiscal 2024.Cash and cash equivalents were $18.2 million at March 31, 2025.Management Discussion"I am extremely pleased with the operating and financial performance Aytu achieved during the 2025 third fiscal quarter, resulting in strong revenue growth of 32% led by improvement in both our ADHD and Pediatric portfolios, and net income of $0.65 and $0.21 per share basic and diluted, respectively," noted Josh Disbrow, Chief Executive Officer of Aytu. "The multi-year, strategic realignment to focus on our profitable prescription pharmaceutical business and maximize the unique capabilities of our now streamlined organization is beginning to fully manifest in our financial performance.""With the commercial prescription infrastructure near full optimization, we remain focused on leveraging our platform through the pursuit of additional in-licensed or acquired products that can utilize the capabilities of our CNS-focused sales team and the broader Aytu RxConnect patient access platform. The entire team is executing effectively as we drove 25% net revenue growth in the ADHD Portfolio and 77% growth in the Pediatric Portfolio, while also reducing companywide operating expenses by 13% year over year. Increasing revenues across the portfolio while streamlining operations and reducing OpEx is evidence of our plan starting to bear fruit and become more visible to our stockholders.""With net income of $4.0 million and adjusted EBITDA of $3.9 million during the quarter, we utilized the opportunity to further improve the balance sheet through the continued pay down of our long-term loan with Eclipse, our senior lending partner, and other fixed payment arrangements. We remain focused on strengthening our balance sheet, seeking complementary product opportunities, and driving the business towards positive cash flows," Disbrow concluded.Net Revenue by PortfolioThree Months EndedMarch 31,20252024(in thousands)ADHD Portfolio$15,389$12,326Pediatric Portfolio3,0591,729Other*4(30)Total net revenue$18,452$14,025*Other includes discontinued or deprioritized products.Q3 2025 Financial ResultsNet revenue for the third quarter of fiscal 2025 was $18.5 million, compared to $14.0 million for the prior year.The ADHD Portfolio (Adzenys XR-ODT® and Cotempla XR-ODT®) experienced a 25% increase in net revenue to $15.4 million in the third quarter of fiscal 2025, compared to the prior year period. Sequentially, ADHD Portfolio net revenue increased 11% compared to the second quarter of fiscal 2025. ADHD Portfolio growth was primarily driven by improvements in gross-to-nets through assertive management of our brands' economics as enabled through Aytu RxConnect.The Pediatric Portfolio (Karbinal® ER, Poly-Vi-Flor® and Tri-Vi-Flor®) experienced a 77% increase in net revenue to $3.1 million in the third quarter of fiscal 2025, compared to the prior year period. Sequentially, Pediatric Portfolio net revenue increased 27% compared to the second quarter of fiscal 2025. Pediatric Portfolio growth reflects the positive effects from the Company's recently implemented return-to-growth plan as well as an improvement in gross-to-nets.Gross profit was $12.8 million, or 69% of net revenue, in the third quarter of fiscal 2025, compared to $10.4 million, or 74% of net revenue, in the same quarter last year. The decrease in gross profit percentage is primarily related to increased cost of sales in the Company's ADHD inventory. The inventory's higher cost resulted from the allocation of certain overhead costs associated with the Company's now closed Grand Prairie, Texas manufacturing facility, to a reduced amount of ADHD product being produced there. This situation occurred as the Company ramped up production at its contract manufacturer and concurrently decreased production at Grand Prairie, Texas. This higher cost inventory is expected to be liquidated in the coming quarters as the Company continues to sell these products through its distribution channels, resulting in a normalization of gross profit percentage.Operating expenses, excluding amortization of intangible assets and restructuring costs, were $9.5 million in the third quarter of fiscal 2025 compared to $10.8 million in the prior year period. The decrease is primarily a result of continued cost reduction efforts and improved operational efficiencies as part of the Company's overall strategic realignment.Income from operations was $2.4 million for the third quarter of fiscal 2025 compared to loss from operations of $1.6 million in the prior year period. Net income from discontinued operations, net of tax for the third quarter of fiscal 2025 was $0.1 million compared to net loss from discontinued operations, net of tax of $0.6 million in the year ago period. Discontinued operations pertain to the Consumer Health business which was successfully wound down and divested in the first quarter of fiscal 2025.Net income during the third quarter of fiscal 2025 was $4.0 million, or $0.65 and $0.21 net income per share basic and diluted, respectively, compared to a net loss of $2.9 million, or $0.52 net loss per share basic and diluted, in the prior year period. The fiscal 2025 third quarter results were impacted by $2.3 million of derivative warrant liabilities gain due primarily to the decrease in the Company's stock price, compared to a derivative warrant liabilities gain of $1.0 million in the third quarter of fiscal 2024.Adjusted EBITDA was $3.9 million in the third quarter of fiscal 2025, compared to $0.9 million in the prior year period.Cash and cash equivalents were $18.2 million at March 31, 2025, compared to $20.4 million at December 31, 2024. The Company paid down a combined $2.5 million in long-term debt and other fixed payment arrangements during the third quarter of fiscal 2025.Conference Call DetailsDate and Time: Wednesday, May 14, 2025, at 4:30 p.m. Eastern time.Call-in Information: Interested parties can access the conference call by dialing (888) 506-0062 for United States callers or +1 (973) 528-0011 for international callers and using the participant access code 314386.Webcast Information: The webcast will be accessible live and archived at https://www.webcaster4.com/Webcast/Page/2142/52282, and accessible on the Investors section of the Company's website at https://investors.aytubio.com/ under Events & Presentations.Replay: A teleconference replay of the call will be available until May 28, 2025, at (877) 481-4010 for United States callers or +1 (919) 882-2331 for international callers and using replay access code 52282.About Aytu BioPharma, Inc.Aytu is a pharmaceutical company focused on commercializing novel therapeutics. The Company's prescription products include Adzenys XR-ODT® (amphetamine) extended-release orally disintegrating tablets (see Full Prescribing Information, including Boxed WARNING) and Cotempla XR-ODT® (methylphenidate) extended-release orally disintegrating tablets (see Full Prescribing Information, including Boxed WARNING) for the treatment of attention deficit hyperactivity disorder (ADHD), Karbinal® ER (carbinoxamine maleate), an extended-release antihistamine suspension indicated to treat numerous allergic conditions, and Poly-Vi-Flor® and Tri-Vi-Flor®, two complementary fluoride-based prescription vitamin product lines available in various formulations for infants and children with fluoride deficiency. To learn more, please visit aytubio.com.Forward-Looking StatementsThis press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"). All statements other than statements of historical facts contained in this press release, are forward-looking statements. Forward-looking statements are generally written in the future tense and/or are preceded by words such as "may," "will," "should," "forecast," "could," "expect," "suggest," "believe," "estimate," "continue," "anticipate," "intend," "plan," or similar words, or the negatives of such terms or other variations on such terms or comparable terminology. All statements other than statements of historical facts contained in this presentation, are forward-looking statements. These statements are predictions and are subject to risks and uncertainties that could cause the actual events or results to differ materially. These risks and uncertainties include, among others, risks associated with: the Company's overall financial and operational performance, potential adverse changes to the Company's financial position or our business, the results of operations, strategy and plans, changes in capital markets and the ability of the Company to finance operations in the manner expected, risks relating to gaining market acceptance of our products, our partners performing their required activities, our anticipated future cash position, regulatory and compliance challenges and future events under current and potential future collaborations. We also refer you to (i) the risks described in "Risk Factors" in Part I, Item 1A of our most recent Annual Report on Form 10‑K and in the other reports and documents we file with the United States Securities and Exchange Commission.​Footnote 1Aytu uses the term adjusted EBITDA, which is a term not defined under United States generally accepted accounting principles ("U.S. GAAP"). The Company uses this term because it is a widely accepted financial indicator utilized to analyze and compare companies on the basis of operating performance. The Company believes that presenting adjusted EBITDA by certain categories allows investors to evaluate the various performance of these categories. The Company's method of computation of adjusted EBITDA may or may not be comparable to other similarly titled measures used by other companies. We believe that net income (loss) is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted EBITDA. See below for a reconciliation of net income (loss) to adjusted EBITDA.Contacts for InvestorsRyan Selhorn, Chief Financial OfficerAytu BioPharma, Inc.[email protected]Robert Blum or Roger WeissLytham Partners[email protected]Aytu BioPharma, Inc.Unaudited Consolidated Statements of Operations(in thousands, except share and per share data)Three Months EndedMarch 31,20252024Net revenue$18,452$14,025Cost of sales5,6463,664Gross profit12,80610,361Operating expenses:Selling and marketing5,1945,352General and administrative4,1094,831Research and development162611Amortization of intangible assets920920Restructuring costs-244Total operating expenses10,38511,958Income (loss) from operations2,421(1,597)Other income, net3670Interest expense(900)(1,257)Derivative warrant liabilities gain2,2611,017Income (loss) from continuing operations before income tax expense3,818(1,767)Income tax benefit (expense)122(521)Net income (loss) from continuing operations3,940(2,288)Net income (loss) from discontinued operations, net of tax54(599)Net income (loss)$3,994$(2,887)Basic weighted-average common shares outstanding6,134,6345,533,555Diluted weighted-average common shares outstanding8,204,4535,533,555Net income (loss) per share:Basic - continuing operations$0.64$(0.41)Diluted - continuing operations$0.20$(0.41)Basic - discontinued operations, net of tax$0.01$(0.11)Diluted - discontinued operations, net of tax$0.01$(0.11)Basic - net income (loss)$0.65$(0.52)Diluted - net income (loss)$0.21$(0.52)Aytu BioPharma, Inc.Unaudited Consolidated Balance Sheets(in thousands, except share data)March 31,June 30,20252024ASSETSCurrent assets:Cash and cash equivalents$18,173$20,006Accounts receivable, net35,82523,526Inventories11,05812,141Prepaid expenses and other current assets7,4565,097Current assets of discontinued operations-1,121Total current assets72,51261,891Non-current assets:Property and equipment, net546693Operating lease right-of-use assets1,111829Intangible assets, net48,71152,453Other non-current assets1,3212,185Non-current assets of discontinued operations-44Total non-current assets51,68956,204Total assets$124,201$118,095LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable$12,041$10,314Accrued liabilities41,72738,143Revolving credit facility10,0282,395Current portion of debt1,8571,857Other current liabilities5,0538,962Current liabilities of discontinued operations-557Total current liabilities70,70662,228Non-current liabilities:Debt, net of current portion9,53510,877Derivative warrant liabilities4,12512,745Other non-current liabilities4,9374,529Total non-current liabilities18,59728,151Stockholders' equity:Preferred stock, par value $.0001; 50,000,000 shares authorized; no shares issued or outstanding--Common stock, par value $.0001; 200,000,000 shares authorized; 6,170,162 and 5,972,638 shares issued and outstanding, respectively11Additional paid-in capital348,614347,688Accumulated deficit(313,717)(319,973)Total stockholders' equity34,89827,716Total liabilities and stockholders' equity$124,201$118,095Aytu BioPharma, Inc.Unaudited Reconciliation of Net Income (Loss) to Adjusted EBITDA(in thousands)Three Months EndedMarch 31,20252024Net income (loss) - GAAP$3,994$(2,887)Interest expense9001,257Income tax (benefit) expense(122)521Depreciation and amortization1,2871,449Stock-based compensation expense139699Other income, net(36)(70)Derivative warrant liabilities gain(2,261)(1,017)Restructuring costs-244Pipeline research and development costs96136Net (income) loss from discontinued operations, net of tax(54)599Adjusted EBITDA - non-GAAP$3,943$931Aytu BioPharma, Inc.Unaudited Fiscal 2024 Quarterly and Full Year Consolidated Statements of Operations Adjusted for Discontinued Operations(in thousands)Three Months EndedTwelve Months EndedJune 30, 2024March 31, 2024December 31, 2023September 30, 2023June 30, 2024(as adjusted)Net revenue$14,593$14,025$18,748$17,817$65,183Cost of sales3,5413,6644,1454,77916,129Gross profit11,05210,36114,60313,03849,054Operating expenses:Selling and marketing5,4225,3525,2186,09122,083General and administrative4,0284,8314,8006,29519,954Research and development1,0426115215952,769Amortization of intangible assets9219209189243,683Restructuring costs1,912244--2,156Total operating expenses13,32511,95811,45713,90550,645(Loss) income from operations(2,273)(1,597)3,146(867)(1,591)Other income, net1207096584870Interest expense(1,253)(1,257)(1,266)(1,283)(5,059)Derivative warrant liabilities gain (loss)1,4631,017(577)(5,907)(4,004)Loss on debt extinguishment(594)---(594)(Loss) income from continuing operations before income tax expense(2,537)(1,767)1,399(7,473)(10,378)Income tax expense(841)(521)(780)-(2,142)Net (loss) income from continuing operations(3,378)(2,288)619(7,473)(12,520)Net loss from discontinued operations, net of tax(1,239)(599)(839)(647)(3,324)Net loss$(4,617)$(2,887)$(220)$(8,120)$(15,844)Aytu BioPharma, Inc.Unaudited Fiscal 2024 Reconciliation of Net Loss Adjusted for Discontinued Operations to Adjusted EBITDA(in thousands)Three Months EndedTwelve Months EndedJune 30, 2024March 31, 2024December 31, 2023September 30, 2023June 30, 2024(as adjusted)Net loss - GAAP$(4,617)$(2,887)$(220)$(8,120)$(15,844)Interest expense1,2531,2571,2661,2835,059Income tax expense841521780-2,142Depreciation and amortization1,3981,4491,5101,5535,910Stock-based compensation expense2436997077252,374Other income, net(120)(70)(96)(584)(870)Derivative warrant liabilities (gain) loss(1,463)(1,017)5775,9074,004One-time transactions150--8511,001Restructuring costs1,912244--2,156Loss on extinguishment of debt594---594Pipeline research and development costs59913696152983Net loss from discontinued operations, net of tax1,2395998396473,324Adjusted EBITDA - non-GAAP$2,029$931$5,459$2,414$10,833SOURCE: Aytu BioPharma, Inc.

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