Endo (NDOI) Q1 2025 earnings summary

Executive summary

• First quarter 2025 revenues were $393 million, down 6% year-over-year, with adjusted EBITDA of $99 million, reflecting branded segment growth but declines in sterile injectables and generics; net loss narrowed to $129 million from $154 million year-over-year.

• XIAFLEX® revenues grew 7% year-over-year to $121 million, driven by volume growth in Peyronie's disease (+9%) and Dupuytren's contracture (+5%).

• Strategic transformation advanced with the planned merger with Mallinckrodt and divestiture of the International Pharmaceuticals business, both expected to close in 2025.

• Fresh start accounting was applied following emergence from bankruptcy, resulting in significant changes to asset and liability values.

Financial highlights

• Q1 2025 revenues were $393 million, down from $420 million in Q1 2024, mainly due to competitive pressures in sterile injectables and generics, partially offset by branded segment growth.

• Adjusted EBITDA was $99 million, compared to $146 million in Q1 2024, mainly due to lower revenues, margin compression, and increased R&D investments.

• Adjusted net income was $24 million, down from $131 million in Q1 2024, impacted by lower EBITDA and higher interest expense.

• Net loss for Q1 2025 was $128.6 million, compared to $154.2 million in Q1 2024, primarily due to lower reorganization expenses, offset by higher non-cash amortization and interest expense.

• Ended Q1 2025 with $370 million in unrestricted cash and a net debt to adjusted EBITDA ratio of 3.6x.

Outlook and guidance

• Full-year 2025 revenue guidance reaffirmed at $1,775–$1,860 million, with adjusted EBITDA expected between $620–$650 million.

• Segment revenue guidance: Branded $895–$920 million, Sterile Injectables $360–$395 million, Generics $450–$475 million, International ~$70 million.

• Revenue and EBITDA are expected to be higher in the second half of 2025, driven by XIAFLEX seasonality and new sterile product launches.

• Guidance includes International Pharmaceuticals until divestiture closes and excludes impacts from potential tariff changes.