Heron Therapeutics (HRTX) Q4 2025 earnings summary

Executive summary

• Achieved $154.9 million in net revenue for 2025, a 7.4% increase year-over-year, with adjusted EBITDA of $14.7 million, surpassing guidance and driven by strong Acute Care franchise growth.

• Completed significant refinancing of convertible debt, strengthening the balance sheet and eliminating capital structure overhang.

• Acute Care franchise saw robust momentum, with ZYNRELEF and APONVIE driving substantial growth; Oncology franchise generated over $105 million despite SUSTOL wind-down.

• Fourth quarter 2025 marked record Acute Care results, with 57.3% year-over-year growth.

Financial highlights

• Total net product sales for 2025 reached $154.9 million, up from $144.3 million in 2024, with gross margin at 73%.

• Adjusted EBITDA for 2025 was $14.7 million, more than doubling the previous year and exceeding guidance.

• FY 2025 net loss was $(20.2) million, improved from $(110.6) million in FY 2023.

• Cash, cash equivalents, and short-term investments totaled $46.6 million at year-end 2025.

• Q4 2025 net product sales were $40.6 million, with Acute Care net sales at $16.3 million and Oncology supportive care at $24.2 million.

Outlook and guidance

• 2026 guidance: net product sales of $173 million–$183 million and adjusted EBITDA of $10 million–$20 million, reflecting continued growth in ZYNRELEF and APONVIE.

• Strategy is to remain EBITDA positive in 2026 while making targeted commercial investments; free cash flow generation targeted for 2027.

• Management anticipates continued share gains and revenue expansion in 2026, supported by commercial momentum and improved reimbursement.

• SUSTOL planned wind-down for potential future product enhancement.