ADMA BIOLOGICS, INC.
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 5, 2025
ADMA$12.73-3.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001140361-25-029177
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001140361-25-040578
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 140 previous paragraphs and 137 current paragraphs.
94 unchanged; 35 reworded; 7 added; 10 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 7 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Cost of product revenue was $58.6 million for the three months ended September 30, 2025, as compared to $60.2 million for the three months ended September 30, 2024, a decrease of $1.6 million, or 2.6%, due to a more favorable product mix.
Current report
As a result of the repayment of all obligations outstanding under the Ares Credit Facility (as defined in Liquidity and Capital Resources below), we have incurred prepayment penalties and wrote off the remaining unamortized debt issuance costs and discount associated with that facility, which resulted in recognition of debt extinguishment losses of $2.2 million during the three months ended September 30, 2025. No debt extinguishment losses were incurred as part of debt repayments made during the three months ended September 30, 2024.
Current report
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Current report
As a result of the $30 million prepayment we made in May 2025 and repayment of all obligations then outstanding under the Ares Credit Facility in August 2025, we have incurred prepayment penalties and wrote off the remaining debt issuance costs and discount associated with that facility, which resulted in recognition of debt extinguishment losses of $3.3 million during the nine months ended September 30, 2025. No debt extinguishment losses were incurred as part of debt repayments made during the nine months ended September 30, 2024.
Current report
Other income, net, was $1.2 million and $1.4 million during the nine months ended September 30, 2025 and 2024, respectively.
Current report
Ares Credit Agreement
Current report
JPM Credit Agreement
Removed paragraphs (10)
Previous report
As a result of the prepayment we made on our term loan in May 2025, we incurred a prepayment penalty in the amount of $0.5 million and recorded a partial write-down of unamortized debt discount of approximately $0.7 million, for a loss on this partial extinguishment of debt in the amount of $1.2 million.
Previous report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Previous report
As a result of the prepayment we made on our term loan in May 2025, we incurred a prepayment penalty in the amount of $0.5 million and recorded a partial write-down of unamortized debt discount of approximately $0.7 million, for a loss on this partial extinguishment of debt in the amount of $1.2 million.
Previous report
Other income, net, was $0.8 million during the six months ended June 30, 2025 and 2024.
Previous report
Borrowings under the term loan bore interest at the adjusted Term SOFR for a three‑month tenor in effect on the day that is two business days prior to the first day of the applicable calendar quarter plus 6.50% (the “Initial SOFR Term Loan Applicable Margin”). Borrowings under the revolving facility initially bore interest at the adjusted Term SOFR for a three‑month tenor in effect on the day that is two business days prior to the first day of the applicable calendar quarter plus 3.75% (the “SOFR Revolving Facility Applicable Margin”). As of June 30, 2025 and December 31, 2024, the interest rate on the term loan was approximately 10.81% and 10.85%, respectively, and the interest rate on the revolving facility was approximately 8.05% and 8.34%, respectively.
Previous report
On the Ares Maturity Date, we would have been required to pay Ares the entire outstanding principal amount underlying the Ares Loans and any accrued and unpaid interest thereon. Prior to the Ares Maturity Date, there were no scheduled principal payments on the Ares Credit Facility, and we were required to make quarterly interest payments during the term of Ares Credit Facility. We were permitted to prepay the outstanding principal under the revolving facility, together with any accrued but unpaid interest on the prepaid principal amount, at any time and from time to time upon three business days’ prior written notice with no prepayment premium. However, in the event that we prepaid an amount under the revolving facility that was greater than 50% of the current $72.5 million outstanding balance, or $36,250,000, we would have still been required to pay an amount of interest on the revolving facility that would have been payable had $36,250,000 been outstanding, through the term of Ares Credit Facility. We were permitted to prepay the outstanding principal on the term loan, together with any accrued but unpaid interest on the prepaid principal amount, at any time and from time to time upon three business days’ prior written notice, subject to the payment to Ares of a prepayment premium equal to (i) 1.5% of the prepaid principal amount, if prepaid after the first anniversary of the Ares Closing Date and on or prior to the second anniversary of the Ares Closing Date, or (ii) 1.0% of the prepaid principal amount, if prepaid on or prior to the third anniversary of the Ares Closing Date.
Previous report
All of our obligations under the Ares Credit Agreement were secured by a first-priority lien and security interest in substantially all of our tangible and intangible assets, including intellectual property and all of the equity interests in our subsidiaries. The Ares Credit Agreement contained certain representations and warranties, affirmative covenants, negative covenants and conditions that are customarily required for similar financings. The negative covenants included certain financial covenants, including maximum total leverage ratios and a $15.0 million liquidity covenant, and also restricted or limited our ability and the ability of our subsidiaries to, among other things and subject to certain exceptions contained in the Ares Credit Agreement, incur new indebtedness; create liens on assets; engage in certain fundamental corporate changes, such as mergers or acquisitions, or changes to our or our subsidiaries’ business activities; make certain Investments or Restricted Payments (each as defined in the Ares Credit Agreement); engage in certain affiliate transactions; or enter into, amend or terminate any other agreements that have the impact of restricting our ability to make loan repayments under the Ares Credit Agreement. As of June 30, 2025, we were in compliance with all of the covenants contained in the Ares Credit Agreement.
Previous report
Events of default on the Ares Loans included, among others, non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments, cross-defaults to material contracts and events constituting a change of control. If there was an event of default, we would have incurred an increase in the rate of interest on the Ares Loans of 2% per annum.
Previous report
On the JPM Closing Date, we used the proceeds of the JPM Credit Facilities to terminate and pay in full all of the outstanding obligations under the Ares Credit Facility, including the outstanding principal of all loans, all accrued and unpaid interest thereon, and any unpaid fees, charges, premiums (including prepayment premiums) and costs, and expenses related thereto. We may also use the proceeds of the JPM Credit Facilities to finance share repurchases and for working capital and general corporate purposes.
Reworded paragraphs (35)
Previous wording
In April 2025, the FDA approved our Prior Approval Supplement (the “PAS”) for our innovative yield enhancement production process (the “Yield Enhancement”) benefiting both ASCENIV and BIVIGAM. This PAS approval amends the Biologic License Application (BLA) approvals for ASCENIV and BIVIGAM and is intended to be the process the Company will manufacture these products on a go-forward basis. The production methods approved in this PAS are expected to result in additional bulk drug yield from the same starting raw material source plasma volumes and the Company believes it should experience meaningful revenue and earnings accretion beginning as early as the second half of 2025 and accelerating further into 2026 and beyond. This innovative process has demonstrated an ability to increase ASCENIV and BIVIGAM production yields by approximately 20% from the same starting source plasma volume.
Current wording
In April 2025, the FDA approved our Prior Approval Supplement (the “PAS”) for our innovative yield enhancement production process (the “Yield Enhancement”) benefiting both ASCENIV and BIVIGAM. This PAS approval amends the Biologic License Application (BLA) approvals for ASCENIV and BIVIGAM and will continue to be the process by which the Company will manufacture these products on a go-forward basis. The production methods approved in this PAS have started to result in additional bulk drug yield from the same starting raw material source plasma volumes and the Company believes it should experience meaningful revenue and earnings accretion beginning in the fourth quarter of 2025 and accelerating further into 2026 and beyond. This innovative process has demonstrated an ability to increase ASCENIV and BIVIGAM production yields by 20% or more from the same starting source plasma volume.
Previous wording
As discussed above in Note 14 − Subsequent Events, to our condensed consolidated financial statements included in this Form 10-Q, in July 2025, we acquired real estate in Boca Raton, FL for a total purchase price of $12.6 million, which included deposits aggregating $0.5 million made in May 2025. This real estate purchase is intended to allow the Company to expand its production operations and related activities as well as provide for certain redundancies for ambient and cold-chain storage of raw materials, work in process and finished goods inventory.
Current wording
In July 2025, the Company completed the acquisition of real estate in Boca Raton, FL for a total purchase price of $12.6 million. This real estate purchase is intended to allow the Company to expand its production operations and related activities as well as provide for certain redundancies for ambient and cold-chain storage of raw materials, work in process and finished goods inventory.
Previous wording
Some of the estimates and assumptions we are required to make under U.S. GAAP require difficult, subjective and/or complex judgments about matters that are inherently uncertain and, as a result, actual results could differ from those estimates. Due to the estimation processes involved, the following summary of accounting estimates and their application are considered to be critical to understanding our business operations, financial condition and results of operations. For a description of our significant accounting policies, see Note 2 to the Consolidated Financial Statements included in our 2024 10-K. Estimates and assumptions used in projecting future liquidity and capital requirements are described in Note 1 to the condensed consolidated financial statements appearing elsewhere in this Form 10-Q.
Current wording
Some of the estimates and assumptions we are required to make under U.S. GAAP require difficult, subjective and/or complex judgments about matters that are inherently uncertain and, as a result, actual results could differ from those estimates. Due to the estimation processes involved, the following summary of accounting estimates and their application are considered to be critical to understanding our business operations, financial condition and results of operations. For a description of our significant accounting policies and estimates, see Note 2 to the Consolidated Financial Statements included in our 2024 10-K.
Previous wording
We recorded total revenues of $122.0 million for the three months ended June 30, 2025, as compared to $107.2 million for the three months ended June 30, 2024, an increase of $14.8 million, or approximately 14%. The increase is primarily related to increased sales volume of ASCENIV, as we experienced increased physician, payer and patient acceptance and utilization of this product. During the three months ended June 30, 2025, and as previously disclosed in our Form 10-Q for the three months ended March 31, 2025 that was filed with the Securities and Exchange Commission (the “SEC”) on May 7, 2025 (the "2025 1Q 10-Q"), we voluntarily withdrew three lots of BIVIGAM (such a withdrawal, hereinafter referred to as the “Voluntary Withdrawal”) as a precautionary measure. This resulted in a reduction in revenue of $0.2 million for credits issued to customers that were impacted by this Voluntary Withdrawal during the current period. This action was proactively initiated, and we believe this matter to be resolved. Excluding the $12.6 million adjustment we recorded in the second quarter of 2024 to decrease our accrual for U.S. Medicaid rebates (which had the effect of increasing 2024 revenues by $12.6 million), our second quarter 2025 revenue increased $27.4 million, or 29%, as compared to the second quarter of 2024.
Current wording
We recorded total revenues of $134.2 million for the three months ended September 30, 2025, as compared to $119.8 million for the three months ended September 30, 2024, an increase of $14.4 million, or approximately 12%. The increase is primarily related to increased sales volume of ASCENIV, as we experienced increased physician, payer and patient acceptance and utilization of this product.
Previous wording
For the three months ended June 30, 2025, we had gross profit of $67.2 million, as compared to $57.5 million for the same period of a year ago, which represents a gross margin in the second quarter of 2025 of 55.1%, as compared to 53.6%, or 47.4% excluding the $12.6 million adjustment recorded in the second quarter of 2024 to decrease our accrual for U.S. Medicaid rebates (which had the effect of increasing 2024 revenue by $12.6 million) in the second quarter of 2024. This improvement in gross margin is primarily driven by a significantly more favorable mix of higher margin IG sales in 2025 as compared to 2024.
Current wording
For the three months ended September 30, 2025, we had gross profit of $75.6 million, as compared to $59.7 million for the same period of a year ago, which represents a gross margin in the third quarter of 2025 of 56.3%, as compared to 49.8% for the third quarter of 2024. This improvement in gross margin is primarily driven by a more favorable product mix and operational efficiencies that reduced manufacturing costs.
Previous wording
Research and development (“R&D”) expenses totaled $1.0 million for the second quarter of 2025, as compared to $0.6 million for the second quarter of 2024. The increase is primarily due to expenses incurred during the second quarter related to our S. pneumoniae hyperimmune globulin program, SG-001.
Current wording
Research and development (“R&D”) expenses totaled $1.5 million for the third quarter of 2025, as compared to $0.4 million for the third quarter of 2024. The increase is primarily due to expenses incurred during the third quarter of 2025 related to ourS. pneumoniae hyperimmune globulin program, SG-001.
Previous wording
Plasma Center Operating Expenses increased from $0.9 million for the three months ended June 30, 2024 to $1.2 million for the three months ended June 30, 2025. The increase is primarily due to higher employee-related costs.
Current wording
Plasma Center Operating Expenses increased from $1.0 million for the three months ended September 30, 2024 to $1.3 million for the three months ended September 30, 2025. The increase is primarily due to higher employee-related costs.
Previous wording
Selling, general and administrative (“SG&A”) expenses increased $5.6 million to $22.2 million for the three months ended June 30, 2025, as compared to $16.6 million, for the three months ended June 30, 2024. The increase is primarily driven by higher compensation-related costs due to increased headcount to support the growth of our business and manufacturing operations. In addition, higher stock-based compensation costs, insurance premium costs and higher professional fees contributed to this increase.
Current wording
Selling, general and administrative (“SG&A”) expenses increased $3.2 million to $21.8 million for the three months ended September 30, 2025, as compared to $18.6 million for the three months ended September 30, 2024. The increase is primarily driven by higher compensation costs due to increased headcount to support the growth of our business and manufacturing operations. In addition, higher insurance premiums, professional fees and software expenses contributed to this increase.
Previous wording
Interest expense for the six months ended June 30, 2025 was $3.8 million, as compared to $7.6 million for the six months ended June 30, 2024, primarily driven by the decrease in debt balances due to principal repayments made in 2024 and 2025.
Current wording
Interest expense for the three months ended September 30, 2025 was $1.7 million, as compared to $3.5 million for the three months ended September 30, 2024, primarily driven by the decrease in debt balances due to principal repayments made in 2024 and the lower JPM Term Loan Facility (as defined in Liquidity and Capital Resources below) interest rate.
Previous wording
Other income, net, for the three months ended June 30, 2025 was $0.3 million, as compared to $0.4 million for the three months ended June 30, 2024.
Current wording
Other income, net, for the three months ended September 30, 2025 was $0.4 million, as compared to $0.6 million for the three months ended September 30, 2024.
Previous wording
The provision for income taxes of $5.9 million for the three months ended June 30, 2025 represented an effective tax rate of 14.7%, as compared to the provision of $3.8 million for the three months ended June 30, 2024, with an effective tax rate of 10.6%. As of June 30, 2024, the Company had a full valuation allowance for its net deferred tax assets, and the effective tax rate for the three months ended June 30, 2024 differed from the federal statutory tax rate of 21% primarily due to the recognition of deferred tax assets for the net operating losses. The Company released its valuation allowance in December 2024, and the effective tax rate for the three months ended June 30, 2025 differed from the federal statutory rate primarily due to the excess tax benefits on stock-based compensation.
Current wording
The provision for income taxes of $11.1 million for the three months ended September 30, 2025 represented an effective tax rate of 23.3%, as compared to the provision of $0.8 million for the three months ended September 30, 2024, with an effective tax rate of 2.3%. As of September 30, 2024, the Company had a full valuation allowance for its net deferred tax assets, and the effective tax rate for the three months ended September 30, 2024 differed from the federal statutory tax rate of 21% primarily due to the recognition of deferred tax assets for the net operating losses. The Company released its valuation allowance in December 2024, and the effective tax rate for the three months ended September 30, 2025 differed from the federal statutory rate primarily due to the excess tax benefits on stock-based compensation.
Previous wording
The following table presents a summary of the changes in our results of operations for the six months ended June 30, 2025, compared to the six months ended June 30, 2024:
Current wording
The following table presents a summary of the changes in our results of operations for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024:
Previous wording
We recorded total revenues of $236.8 million for the six months ended June 30, 2025, as compared to $189.1 million for the six months ended June 30, 2024, an increase of $47.7 million, or approximately 25%. The increase is primarily related to increased sales volume of ASCENIV, as we experienced increased physician, payer and patient acceptance and utilization of this product. During the six months ended June 30, 2025, and as previously disclosed in the 2025 1Q 10-Q, we effected the Voluntary Withdrawal as a precautionary measure. This resulted in a reduction in revenue of $4.0 million for credits issued to customers that were impacted by this Voluntary Withdrawal during the current period. This action was proactively initiated, and we believe this matter to be resolved. Excluding the $12.6 million adjustment we recorded in the second quarter of 2024 to decrease our accrual for U.S. Medicaid rebates (which had the effect of increasing 2024 revenues by $12.6 million), our revenues for the six months ended June 30, 2025 increased $60.3 million, or 34%, as compared to the six months ended June 30, 2024.
Current wording
We recorded total revenues of $371.0 million for the nine months ended September 30, 2025, as compared to $308.9 million for the nine months ended September 30, 2024, an increase of $62.1 million, or approximately 20%. The increase is primarily related to increased sales volume of ASCENIV, as we experienced increased physician, payer and patient acceptance and utilization of this product. During the nine months ended September 30, 2025, and as previously disclosed in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025, we voluntarily withdrew three lots of BIVIGAM (such a withdrawal, hereinafter referred to as the “Voluntary Withdrawal”) as a precautionary measure. This resulted in a reduction in revenue of $4.0 million for credits issued to customers that were impacted by this Voluntary Withdrawal during the current year. This action was proactively initiated, and we believe this matter to be resolved. Excluding the $12.6 million adjustment we recorded in the second quarter of 2024 to decrease our accrual for U.S. Medicaid rebates (which had the effect of increasing 2024 revenues by $12.6 million), our revenues for the nine months ended September 30, 2025 increased $74.7 million, or 25%, as compared to the nine months ended September 30, 2024.
Previous wording
Cost of product revenue was $54.8 million for the three months ended June 30, 2025, as compared to $49.7 million for the three months ended June 30, 2024. This increase is primarily attributable to volume-driven increases in product revenue costs related to the increased sales of our IG products of $10.9 million, partially offset by $5.9 million of lower product revenue costs related to the reduction in plasma and intermediates sales.
Current wording
Cost of product revenue was $167.1 million for the nine months ended September 30, 2025, as compared to $152.7 million for the nine months ended September 30, 2024. This increase is primarily attributable to higher volume of our IG products of $21.9 million and Plasma products of $9.5 million, partially offset by $8.8 million of lower product revenue costs related to the reduction in plasma and intermediates sales, reduction of inventory losses and unabsorbed manufacturing costs.
Previous wording
For the six months ended June 30, 2025, we had gross profit of $128.3 million, as compared to $96.6 million for the same period of a year ago, which represents a gross margin in 2025 of 54.2%, as compared to 51.1%, or 47.6% when excluding the $12.6 million adjustment recorded in the second quarter of 2024 to decrease our accrual for U.S. Medicaid rebates (which had the effect of increasing 2024 revenue by $12.6 million) in the same period of 2024. This improvement in gross margin is primarily driven by a significantly more favorable mix of higher margin IG sales in 2025 as compared to 2024, along with the operational efficiencies achieved resulting in a reduction in other manufacturing costs.
Current wording
For the nine months ended September 30, 2025, we had gross profit of $203.9 million, as compared to $156.2 million for the same period of a year ago, which represents a gross margin in 2025 of 55%, as compared to 50.6%, or 48.5% when excluding the $12.6 million adjustment recorded in the second quarter of 2024 to decrease our accrual for U.S. Medicaid rebates (which had the effect of increasing 2024 revenue by $12.6 million) in the second quarter of 2024. This improvement in gross margin is primarily driven by a significantly more favorable mix of higher margin IG sales in 2025 as compared to 2024, along with the operational efficiencies achieved resulting in a reduction in other manufacturing costs.
Previous wording
Research and development (“R&D”) expenses totaled $1.9 million for the six months ended June 30, 2025, as compared to $1.0 million for the six months ended June 30, 2024. The increase is primarily due to expenses incurred in 2025 related to the ASCENIV pediatric study and our S. pneumoniae hyperimmune globulin program, SG-001.
Current wording
Research and development (“R&D”) expenses totaled $3.4 million for the nine months ended September 30, 2025, as compared to $1.4 million for the nine months ended September 30, 2024. The increase is primarily due to expenses incurred in 2025 related to the ASCENIV pediatric study and our S. pneumoniae hyperimmune globulin program, SG-001.
Previous wording
Plasma Center Operating Expenses increased from $1.9 million for the six months ended June 30, 2024 to $2.4 million for the six months ended June 30, 2025. The increase is primarily due to an increase in employee-related costs of $0.5 million.
Current wording
Plasma Center Operating Expenses increased from $3.0 million for the nine months ended September 30, 2024 to $3.7 million for the nine months ended September 30, 2025. The increase is primarily due to an increase in employee-related costs of $0.7 million.
Previous wording
Amortization expense mainly pertains to the amortization of internally developed software and was $0.1 million and $0.3 million for the six months ended June 30, 2025 and 2024, respectively.
Current wording
Amortization expense mainly pertains to the amortization of internally developed software and was $0.1 million and $0.4 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Selling, general and administrative (“SG&A”) expenses increased $14.0 million to $46.3 million for the six months ended June 30, 2025, as compared to $32.2 million, for the six months ended June 30, 2024. The increase is primarily driven by higher compensation-related costs due to increased headcount to support the growth of our business and manufacturing operations. In addition, higher stock-based compensation costs, insurance premium costs and higher professional fees contributed to this increase.
Current wording
Selling, general and administrative (“SG&A”) expenses were $68.1 million for the nine months ended September 30, 2025, an increase of $17.3 million as compared to $50.8 million for the nine months ended September 30, 2024. The increase is primarily driven by higher compensation costs due to increased headcount to support the growth of our business and manufacturing operations. In addition, higher insurance premiums, professional fees and software expenses contributed to this increase.
Previous wording
Interest expense for the three months ended June 30, 2025 was $1.8 million, as compared to $3.8 million for the three months ended June 30, 2024, primarily driven by the decrease in debt balances due to principal repayments made in 2024 and 2025.
Current wording
Interest expense for the nine months ended September 30, 2025 was $5.5 million, as compared to $11.1 million for the nine months ended September 30, 2024, primarily driven by the decrease in debt balances due to principal repayments made in 2024 and lower JPM Term Loan Facility interest rate.
Previous wording
The provision for income taxes of $12.4 million for the six months ended June 30, 2025, represented an effective tax rate of 16.9%, as compared to $4.4 million for the six months ended June 30, 2024, with an effective tax rate of 8.1%. As of June 30, 2024, the Company had a full valuation allowance for its net deferred tax assets, and the effective tax rate for the six months ended June 30, 2024 differed from the federal statutory tax rate of 21% primarily due to the recognition of deferred tax assets for the net operating losses. The Company released its valuation allowance in December 2024, and the effective tax rate for the six months ended June 30, 2025 differed from the federal statutory rate primarily due to the excess tax benefits on stock-based compensation.
Current wording
The provision for income taxes of $23.5 million for the nine months ended September 30, 2025 represented an effective tax rate of 19.4%, as compared to $5.2 million for the nine months ended September 30, 2024, with an effective tax rate of 5.7%. As of September 30, 2024, the Company had a full valuation allowance for its net deferred tax assets, and the effective tax rate for the nine months ended September 30, 2024 differed from the federal statutory tax rate of 21% primarily due to the recognition of deferred tax assets for the net operating losses. The Company released its valuation allowance in December 2024, and the effective tax rate for the nine months ended September 30, 2025 differed from the federal statutory rate primarily due to the excess tax benefits on stock-based compensation.
Previous wording
Because EBITDA, Adjusted EBITDA and Adjusted net income are measures not deemed to be in accordance with U.S. GAAP and are susceptible to varying calculations, our EBITDA, Adjusted EBITDA and Adjusted net income may not be comparable to similarly titled measures of other companies, including companies in our industry, because other companies may calculate EBITDA, Adjusted EBITDA and Adjusted net income in a different manner than we calculate these measurements. Although the Company uses Adjusted EBITDA as one of several financial measures to assess its operating performance, its use is limited as it excludes certain significant operating expenses. EBITDA, Adjusted EBITDA and Adjusted net income are not intended to represent cash flows for the periods presented, nor have they been presented as an alternative to operating income, net income or as an indicator of operating performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP. The following table presents the reconciliation of net income to EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024:
Current wording
Because EBITDA, Adjusted EBITDA and Adjusted net income are measures not deemed to be in accordance with U.S. GAAP and are susceptible to varying calculations, our EBITDA, Adjusted EBITDA and Adjusted net income may not be comparable to similarly titled measures of other companies, including companies in our industry, because other companies may calculate EBITDA, Adjusted EBITDA and Adjusted net income in a different manner than we calculate these measurements. Although the Company uses Adjusted EBITDA as one of several financial measures to assess its operating performance, its use is limited as it excludes certain significant operating expenses. EBITDA, Adjusted EBITDA and Adjusted net income are not intended to represent cash flows for the periods presented, nor have they been presented as an alternative to operating income, net income or as an indicator of operating performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP. The following table presents the reconciliation of net income to EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2025 and 2024:
Previous wording
Adjusted EBITDA increased for the three and six months ended June 30, 2025, as compared to the same periods of a year ago, by $6.2 million and $27.7 million, respectively. The improvement is primarily due to the increased sales and gross profit in 2025.
Current wording
Adjusted EBITDA increased for the three and nine months ended September 30, 2025, as compared to the same periods of a year ago, by $13.4 million and $41.1 million, respectively. The improvement is primarily due to the increased sales and gross profit in 2025.
Previous wording
The following table presents the reconciliation of Net income to Adjusted net income for the three and six months ended June 30, 2025 and 2024:
Current wording
The following table presents the reconciliation of Net income to Adjusted net income for the three and nine months ended September 30, 2025 and 2024:
Previous wording
(b) Excludes estimated tax effect of the add-backs of $0.3 and $1.4 million for the three and six months ended June 30, 2025, respectively.
Current wording
(b) Excludes estimated tax effect of the add-backs of $0.6 and $2.1 million for the three and nine months ended September 30, 2025, respectively.
Previous wording
At June 30, 2025, we had working capital of $324.6 million, primarily consisting of $191.5 million of inventory, cash and cash equivalents of $90.3 million and $109.7 million of accounts receivable, partially offset by current liabilities of $74.9 million, as compared to working capital at December 31, 2024 of $275.9 million, primarily consisting of $170.2 million of inventory, cash and cash equivalents of $103.1 million and accounts receivable of $50.0 million, partially offset by current liabilities of $55.5 million. Our material cash requirements are primarily comprised of:
Current wording
At September 30, 2025, we had working capital of $346.2 million, primarily consisting of $196.7 million of inventory, cash and cash equivalents of $61.4 million and $137.7 million of accounts receivable, partially offset by current liabilities of $56.5 million, as compared to working capital at December 31, 2024 of $275.9 million, primarily consisting of $170.2 million of inventory, cash and cash equivalents of $103.1 million and accounts receivable of $50.0 million, partially offset by current liabilities of $55.5 million. Our material cash requirements are primarily comprised of:
Previous wording
Interest on our debt;
Current wording
Principal amortizations and interest on our debt;
Previous wording
As discussed above in Note 14 − Subsequent Events, to our condensed consolidated financial statements included in this Form 10-Q, in July 2025, we acquired real estate in Boca Raton, FL for a total purchase price of $12.6 million, which included deposits aggregating $0.5 million made in May 2025. This property was purchased to add redundancies, expand operations and prepare for future growth opportunities. In addition, our end-to-end production cycle time from procurement of raw materials to commercial release of finished product can take between seven and 12 months or potentially longer, requiring substantial inventories of raw material plasma and other manufacturing and laboratory testing materials and single use disposables.
Current wording
In July 2025, we completed the acquisition of real estate in Boca Raton, FL for a total purchase price of $12.6 million. This real estate purchase is intended to allow the Company to expand its production operations and related activities as well as provide for certain redundancies for ambient and cold-chain storage of raw materials, work in process and finished goods inventory. Our end-to-end production cycle time from procurement of raw materials to commercial release of finished product can take between seven and 12 months or potentially longer, requiring substantial inventories of raw material plasma and other manufacturing and laboratory testing materials and single use disposables.
Previous wording
We currently anticipate, based upon our projected revenue and expenditures, that our current cash, cash equivalents and accounts receivable, along with our projected future operating cash flow, will be sufficient to fund our operations, as currently conducted, through the first half of 2026 and beyond. Based on current operations and assuming continued market acceptance and utilization of our finished drug products, we do not anticipate the need to raise additional capital at this time. However, should the market for our products or political, economic or inflationary conditions change, we may need to seek additional capital which may not be available due to a variety of potential factors beyond our control (see “Risk Factors” appearing elsewhere in this report).
Current wording
We currently anticipate, based upon our projected revenue and expenditures, that our current cash, cash equivalents and accounts receivable, along with our projected future operating cash flow, will be sufficient to fund our operations, as currently conducted, through the third quarter of 2026 and beyond. Based on current operations and assuming continued market acceptance and utilization of our finished drug products, we do not anticipate the need to raise additional capital at this time. However, should the market for our products or political, economic or inflationary conditions change, we may need to seek additional capital which may not be available due to a variety of potential factors beyond our control (see “Risk Factors” appearing elsewhere in this report).
Previous wording
On August 14, 2024, we repaid $30.0 million against the revolving credit facility and the outstanding balance on the revolving credit facility as of March 31, 2025 was $42.5 million. On December 19, 2024, we repaid $30.0 million against the term loan facility and the outstanding balance on the term loan facility as of March 31, 2025 was $32.5 million. On May 5, 2025, we borrowed $30.0 million under our revolving credit facility, which we used to concurrently repay an additional $30.0 million against the term loan facility on May 6, 2025, as a result of which, the Company recorded debt extinguishment losses of $1.2 million during the three and six months ended June 30, 2025. Following such transactions, and as of June 30, 2025, we had $72.5 million outstanding under our revolving credit facility and $2.5 million outstanding under our term loan facility.
Current wording
On August 14, 2024, we repaid $30.0 million against the revolving credit facility and the outstanding balance on the revolving credit facility as of March 31, 2025 was $42.5 million. On December 19, 2024, we repaid $30.0 million against the term loan facility and the outstanding balance on the term loan facility as of March 31, 2025 was $32.5 million. On May 5, 2025, we borrowed $30.0 million under our revolving credit facility, which we used to concurrently repay an additional $30.0 million against the term loan facility on May 6, 2025, as a result of which, the Company recorded debt extinguishment losses of $1.2 million. In August 2025, the Company repaid all remaining obligations outstanding under the Ares Credit Facility using the proceeds from the JPM Term Loan Facility, defined below, and recorded related debt extinguishment losses of $2.2 million.
Previous wording
On August 5, 2025 (the “JPM Closing Date”), we and all of our subsidiaries entered into a Credit Agreement (the “JPM Credit Agreement”) with the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent (“JPMorgan”). The JPM Credit Agreement provides for $300 million of senior secured credit facilities, consisting of (a) a term loan in the aggregate principal amount of $75 million (the “JPM Term Loan Facility”) and (b) a revolving credit facility in the aggregate principal amount of $225 million (the “JPM Revolving Facility”). We may also request, subject to customary conditions, additional incremental revolving commitments or term loans in an aggregate principal amount not to exceed $100 million (together with the JPM Term Loan Facility and the JPM Revolving Facility, the “JPM Credit Facilities”). The JPM Term Loan Facility has a maturity date of August 5, 2028 (the “JPM Term Maturity Date”) and the JPM Revolving Facility has a maturity date of August 5, 2028 or any earlier date on which the commitments under the JPM Revolving Facility are reduced to zero or otherwise terminated pursuant to the terms of the JPM Credit Agreement (the “JPM Revolving Maturity Date”).
Current wording
On August 5, 2025 (the “JPM Closing Date”), we and all of our subsidiaries entered into a Credit Agreement (the “JPM Credit Agreement”) with the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent (“JPMorgan”). The JPM Credit Agreement provides for $300 million of senior secured credit facilities, consisting of (a) a term loan in the aggregate principal amount of $75 million, which was drawn in full on the JPM Closing Date (the “JPM Term Loan Facility”) and (b) a revolving credit facility in the aggregate principal amount of $225 million (the “JPM Revolving Facility”). We may also request, subject to customary conditions, additional incremental revolving commitments or term loans in an aggregate principal amount not to exceed $100 million (together with the JPM Term Loan Facility and the JPM Revolving Facility, the “JPM Credit Facilities”). The JPM Term Loan Facility has a maturity date of August 5, 2028 (the “JPM Term Maturity Date”) and the JPM Revolving Facility has a maturity date of August 5, 2028 or any earlier date on which the commitments under the JPM Revolving Facility are reduced to zero or otherwise terminated pursuant to the terms of the JPM Credit Agreement (the “JPM Revolving Maturity Date”). In addition to repaying amounts outstanding under the Ares Credit Facility, under the JPM Credit Agreement, proceeds of the JPM Credit Facilities may also be used to finance share repurchases and for working capital and general corporate purposes.
Previous wording
Cash provided by operating activities for the six months ended June 30, 2025 was $1.5 million, a decrease of $42.0 million from the same period of a year ago, primarily due to the unfavorable impact of the timing of sales and due to inventory investments made in 2025 to support the Company’s manufacturing and distribution objectives, partially offset by higher net income and favorable impact of timing of payments. The following table illustrates the primary components of our cash flows from operations:
Current wording
Cash provided by operating activities for the nine months ended September 30, 2025 was $14.8 million, a decrease of $53.7 million from the same period of a year ago, primarily due to the unfavorable impact of the timing of sales and due to inventory investments made in 2025 to support the Company’s manufacturing and distribution objectives. The following table illustrates the primary components of our cash flows from operations:
Previous wording
Net cash used in investing activities for the six months ended June 30, 2025 and 2024 was $7.2 million and $4.7 million, respectively. The increase is primarily related to the roof replacement at the Boca Facility in the amount of $1.3 million, due to capital expenditures associated with the Yield Enhancement project. While as of June 30, 2025 we had no firm commitments for capital expenditures with the exception of the July 2025 purchase of the real estate in Boca Raton, FL, we expect our total capital expenditures will be between $18.0 million and $21.6 million for the remainder of fiscal 2025, mainly for additional upgrades to the Boca Facility manufacturing operations, related operational systems, and the purchase of the real estate in Boca Raton, FL, which was completed in July 2025. Of the total remaining 2025 capital expenditures, $13.0 million represents the acquisition cost and improvements of the new Boca Raton real estate.
Current wording
Net cash used in investing activities for the nine months ended September 30, 2025 and 2024 was $21.6 million and $5.8 million, respectively. The increase is primarily related to the roof replacement at the Boca Facility in the amount of $1.3 million, capital expenditures associated with the Yield Enhancement project and the acquisition of the real estate in Boca Raton, FL in the amount of $12.6 million. While as of September 30, 2025, we had no firm commitments for capital expenditures, we expect our total capital expenditures will be between $4.0 million and $6.0 million for the remainder of fiscal 2025, mainly for additional upgrades to the Boca Facility manufacturing operations and related operational systems.
Previous wording
Net cash used in financing activities was $7.1 million and $1.8 million for the six months ended June 30, 2025 and 2024, respectively. The increase is primarily due to higher taxes paid in connection with shares that were withheld from RSUs that vested during the period, as a result of an increase in the value of our common stock as compared to 2024.
Current wording
Net cash used in financing activities was $34.9 million and $27.3 million for the nine months ended September 30, 2025 and 2024, respectively. The increase is primarily due to share repurchases, higher taxes paid in connection with shares that were withheld from RSUs that vested during the period, as a result of an increase in the value of our common stock as compared to 2024, lower proceeds from option exercises, higher principal payments on term debt due to the payoff of the obligations outstanding under the Ares Credit Facility and related penalties, partially offset by the debt proceeds related to the JPM Credit Facilities.
Previous wording
Inflation impacted a number of facets of our business during the six months ended June 30, 2025 and 2024 at each of our business segments. We experienced price increases for, among other items, certain raw materials, consumable supplies, services for repairs and maintenance of our facilities, utilities, shipping and freight charges, fuel surcharges and labor costs, among other expenses. Based upon the macroeconomic environment, publicly available information and reports from the U.S. government, we expect this trend to continue in 2025 and potentially longer, which could have a significant impact on our future results of operations. In addition, some of our third-party inventory purchase agreements provide for scheduled price increases that are tied to various consumer price indexes, which have resulted in higher than historical percentage price increases and could result in higher source plasma and other raw material and supplies costs in 2025 and beyond. Also, in a higher inflationary environment, we may not be able to raise the prices of our products to maintain the rate of inflation, and this may affect our product margins. We are unable to predict when these external drivers of inflation will subside.
Current wording
Inflation impacted a number of facets of our business during the nine months ended September 30, 2025 and 2024 at each of our business segments. We experienced price increases for, among other items, certain raw materials, consumable supplies, services for repairs and maintenance of our facilities, utilities, shipping and freight charges, fuel surcharges and labor costs, among other expenses. Based upon the macroeconomic environment, publicly available information and reports from the U.S. government, we expect this trend to continue through the remainder of 2025 and potentially longer, which could have a significant impact on our future results of operations. In addition, some of our third-party inventory purchase agreements provide for scheduled price increases that are tied to various consumer price indexes, which have resulted in higher than historical percentage price increases and could result in higher source plasma and other raw material and supplies costs in the fourth quarter of 2025 and beyond. Also, in a higher inflationary environment, we may not be able to raise the prices of our products to maintain the rate of inflation, and this may affect our product margins. We are unable to predict when these external drivers of inflation will subside.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Cost of product revenue was $108.5 million for the six months ended June 30, 2025, as compared to $92.5 million for the six months ended June 30, 2024. This increase is primarily attributable to volume-driven increases in product revenue costs related to the increased sales of our IG products of $23.9 million, partially offset by $8.0 million of lower product revenue costs related to the reduction in plasma and intermediates sales.