Surmodics (SRDX) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $29.6 million, down 3% year-over-year, with a net loss of $5.3 million, improved from $7.6 million last year.

• Adjusted EBITDA rose to $3.4 million from $1.6 million year-over-year, reflecting operational improvements.

• The company is being acquired for $43.00 per share in cash, pending regulatory approval and litigation resolution.

• A cyber incident in June 2025 caused $1.9 million in costs, with $1.7 million expected to be recovered via insurance.

• Merger-related charges totaled $5.3 million in Q3 and $10.1 million for the nine months ended June 30, 2025.

Financial highlights

• Product sales declined 5% year-over-year in Q3 2025 to $16.8 million; nine-month product sales fell 11% to $48.3 million.

• Product gross margin was 48.8% in Q3 2025, down from 51.9% in Q3 2024, due to lower SurVeil DCB sales and production inefficiencies.

• Non-GAAP net income was $0.8 million ($0.06 per diluted share), compared to a non-GAAP net loss of $3.9 million ($0.27 per share) last year.

• Cash and investments totaled $32.7 million as of June 30, 2025.

• Working capital was $56.6 million at quarter end, down from $60.8 million at September 30, 2024.

Outlook and guidance

• Fiscal 2025 revenue guidance is $116.5–$118.5 million, a 6–8% decrease from 2024; excluding SurVeil DCB license fees, revenue expected at $115.0–$117.0 million, down 3–5%.

• SurVeil DCB product revenue is expected to decline by $7.5 million in fiscal 2025 compared to 2024.

• No further SurVeil DCB license fee revenue will be recognized after March 31, 2025.

• Product gross profit and margin are expected to decline for the remainder of fiscal 2025 due to lower SurVeil DCB sales and under-absorption.

• Guidance assumes $16 million in merger-related charges for fiscal 2025.