CytoSorbents Corp (CTSO) Q1 2025 Earnings Call Highlights: Navigating Challenges and ...

In This Article:

  • Revenue: $8.7 million, a 3% year-over-year decline, flat on a constant currency basis.

  • Gross Margin: 71%, consistent with the 2024 average, but lower than 76% in Q1 2024.

  • Operating Loss: Improved by 17% to $3.9 million from $4.7 million in 2024.

  • Net Loss: $1.5 million or $0.02 per share, compared to $6.1 million or $0.11 per share in the prior year.

  • Adjusted Net Loss: $3.7 million or $0.06 per share, consistent with the prior year's adjusted net loss.

  • Adjusted EBITDA Loss: Improved by 17% to $2.7 million from $3.3 million in the prior year.

  • Cash, Cash Equivalents, and Restricted Cash: $13.1 million as of March 31, compared to $9.8 million at the end of the previous year.

  • Product Sales: $8.7 million for CytoSorb in Q1 2025.

  • Operating Expenses: Reduced by 12% to $10.1 million from $11.5 million in the prior year.

  • R&D Expenses: Reduced by 26% following the completion of the STAR-T trial.

  • Headcount Reduction: 15% reduction in headcount as part of cost-cutting efforts.

  • Shareholder Rights Offering: Raised $6.8 million, net of expenses, increasing liquidity by $11.8 million.

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • CytoSorbents Corp (NASDAQ:CTSO) reported a solid gross margin performance of 71%, consistent with the 2024 average, indicating effective pricing and cost controls.

  • The company is making progress towards reaching near breakeven by the second half of 2025, with sufficient cash to fund initiatives.

  • CytoSorb, the flagship product, is used in over 270,000 devices across more than 70 countries, demonstrating its global reach and acceptance.

  • The company is actively preparing for the potential commercial launch of DrugSorb ATR in the U.S. and Canada, which could open a significant market opportunity.

  • CytoSorbents Corp (NASDAQ:CTSO) has strengthened its balance sheet with a successful shareholder rights offering, increasing available liquidity by $11.8 million.

Negative Points

  • Product sales in the first quarter of 2025 were $8.7 million, representing a 3% year-over-year decline.

  • The company faced temporary disruptions in its German direct sales segment due to strategic reorganization, impacting overall sales.

  • The FDA issued a denial letter for DrugSorb ATR, citing remaining open issues, which could delay its market entry.

  • Health Canada's review of the DrugSorb ATR application is experiencing delays, extending beyond target timelines.

  • The company reported a net loss for the quarter of $1.5 million, although this was an improvement from the previous year.