Arctic Bioscience (ABS) Q3 2025 TU earnings summary

Executive summary

• Statistically significant anti-inflammatory effects of HRO350 were demonstrated in the HeROPA/Europa studies, with improved skin symptoms and quality of life in psoriasis and confirmation of benefits in the per-protocol population.

• Clinical glaucoma studies confirmed neuroprotective potential and vision improvement with ROMEGAⓇ herring caviar oil, with plans for larger trials and ongoing partner discussions.

• Strong Nutra sales rebound in the Americas, with new customers and leads driving growth, and further expansion expected through 2026.

• Operational focus on cost reduction, with OPEX down by NOK 8.9 million year-over-year and minimal CAPEX in pharma following study completions.

• NOK 2.5 million grant awarded for oral aquaculture vaccine development, and Arctic Orphan (ABS302) project reached a key product formulation milestone.

Financial highlights

• Q3 2025 sales revenues were NOK 8.7 million, down from NOK 11.1 million in Q3 2024, with Nutra revenues slightly down year-over-year due to recall impacts.

• Gross margin for Q3 2025 was 21.6%, down from 31.8%/33.5% in Q3 2024, impacted by recall-related costs and a NOK 2.3 million provision in 2024.

• EBITDA for YTD Q3 2025 was NOK -21.4 million, improved from NOK -31.0 million in 2024.

• Available liquidity at quarter-end was NOK 7.0–7.5 million, with ongoing focus on cost control and income growth.

• American market revenue grew by over NOK 6 million year-over-year, surpassing 2024's total.

Outlook and guidance

• Anticipates strong year-end and further growth in Americas and B2B channels, with recurring business from new customers and B2C expansion in Northern Europe and Asia pending regulatory approvals.

• Strategic partnerships and regulatory engagement for HeROPA/HRO350 development are being pursued, with further development to be funded through partnerships or project-specific funding.

• Liquidity situation is closely monitored, with ongoing board assessment and positive bank dialogue.

• Significant upside potential in cost supplement business expected in 2026.