Liquidia 2025 Q1 Earnings Mixed Results as Net Loss Widens 27.5%

Liquidia Corporation (NASDAQ: LQDA) reported its fiscal 2025 Q1 earnings on May 08th, 2025. The company experienced a mixed quarter, with revenue increasing by 5% compared to the previous year, yet net losses widened significantly. The net loss for Q1 2025 was reported at $38.4 million, or $0.45 per share, which is a 27.5% increase from Q1 2024. Despite the financial challenges, Liquidia remains optimistic about upcoming FDA actions, particularly regarding YUTREPIA. The company has issued guidance in line with previous expectations, anticipating FDA approval by late May, which could potentially boost future performance.

Revenue

Liquidia’s total revenue for Q1 2025 increased by 5.0%, reaching $3.12 million, compared to $2.97 million in Q1 2024. This growth was primarily driven by the sales performance under the promotion agreement with Sandoz for Treprostinil Injection in the United States.

Earnings/Net Income

Liquidia's losses deepened in Q1 2025, with the net loss widening to $38.37 million, representing a 27.5% increase from $30.08 million in Q1 2024. The loss per share increased to $0.45, reflecting ongoing financial challenges.

Post Earnings Price Action Review

Over the past five years, Liquidia's strategy of purchasing shares after a quarter with declining revenue has yielded impressive returns. Despite a maximum drawdown of -80.92%, the approach delivered a 139.03% return, outperforming the benchmark by 46.47%. The resilience of this strategy is underscored by a Sharpe ratio of 0.24 and a CAGR of 19.12%. However, it is crucial to note the high volatility associated with this strategy, with a maximum volatility of 80.69%, indicating significant risk alongside the potential for high returns.

CEO Commentary

Dr. Roger Jeffs, CEO of Liquidia, emphasized the company's readiness for the FDA's decision on the YUTREPIA NDA, expressing confidence in its potential as a leading treatment for PAH and PH-ILD. He highlighted strategic efforts in commercial preparation and ongoing clinical developments to support growth.

Guidance

Liquidia is preparing for the FDA's decision on YUTREPIA by May 24, 2025. The company plans to leverage up to $100 million in additional financing for commercial and clinical development, including pediatric studies, while remaining committed to evaluating its other clinical programs.

Additional News

Liquidia recently celebrated a legal victory with the dismissal of United Therapeutics' challenge to its YUTREPIA NDA amendment, paving the way for potential FDA approval. The company also completed enrollment for Cohort A in the ASCENT study, showing promising interim data. Furthermore, Liquidia is set to present at the BofA Securities 2025 Health Care Conference, providing a business update and discussing future strategies.