Aytu BioPharma 2026 Q1 Earnings Net Income Surges 33.3% Despite Revenue Drop

Aytu BioPharma (AYTU) reported fiscal 2026 Q1 earnings on Nov 13, 2025, with revenue declining 16.2% year-over-year to $13.89 million. The company’s net income, however, rose 33.3% to $1.97 million, surpassing expectations. Management confirmed the EXXUA launch remains on track for Q4 2025, with guidance emphasizing cost discipline and market access preparations.

Revenue

The ADHD Portfolio remained the largest contributor at $13.16 million, while the Pediatric Portfolio saw a decline to $715,000. Other segments generated $17,000, resulting in total net revenue of $13.89 million. The revenue drop was attributed to a prior-year one-time rebate benefit, which had inflated 2025 Q1 results. Excluding this, the ADHD Portfolio showed 10% year-over-year growth.

Earnings/Net Income

Earnings per share (EPS) fell 12.5% to $0.21, reflecting a mix of revenue declines and EXXUA-related investments. However, net income surged 33.3% to $1.97 million, marking a record high for Q1 in 11 years. The EPS decline contrasts with the net income growth, underscoring cost management and operational efficiency efforts.

Post-Earnings Price Action Review

Aytu BioPharma’s stock edged up 0.49% daily but fell 13.45% month-to-date. The strategy of buying AYTU when revenue beats estimates and holding for 30 days shows potential, given Q1’s 10.05% outperformance over the Zacks Consensus. EXXUA’s launch in the $22B MDD market, bolstered by a patent extension through 2030, positions the company for long-term growth. Despite a $0.08 quarterly loss, operational efficiencies and reduced expenses suggest a path to profitability. Strategic realignment, including lifecycle management and IP expansion, further strengthens AYTU’s market position.

CEO Commentary

CEO Josh Disbrow highlighted EXXUA’s readiness for Q4 2025, emphasizing KOL engagement and sales force training. He noted ADHD Portfolio stability, excluding the one-time rebate, and confidence in EXXUA’s market impact. The Pediatric Portfolio’s decline was attributed to supplier delays, but Disbrow expressed optimism about post-launch recovery.

Guidance

The EXXUA commercial launch remains on schedule, with manufacturing, sales training, and payer discussions finalized. The ADHD Portfolio is expected to maintain stability, with sequential growth and 10% year-over-year gains (excluding the rebate). Adjusted EBITDA is projected to return to positive territory in subsequent quarters, excluding EXXUA launch costs.

Additional News

Aytu BioPharma extended its EXXUA method-of-use patent to 2030, enhancing long-term exclusivity. The company also announced cost-cutting measures, reducing operating expenses to $10.2 million in Q1. Additionally, Aytu reiterated its commitment to the ADHD Portfolio’s growth through RxConnect platform enhancements and a new authorized generic. These moves reinforce its focus on operational efficiency and market share retention.