Amphastar 2025 Q3 Earnings Strong EPS Beat Despite Lower Net Income

Amphastar (AMPH) reported mixed third-quarter results, with revenue rising modestly while net income declined sharply. The company exceeded both revenue and adjusted EPS estimates, though GAAP earnings fell year-over-year. Management emphasized strategic pipeline expansion and recent FDA approvals as growth catalysts, though explicit guidance for future periods remains absent.

Revenue

Amphastar’s total revenue for 2025 Q3 grew marginally to $191.84 million, up 0.3% from $191.21 million in the prior-year period. This performance outpaced Wall Street expectations, with revenue beating analyst estimates by $6.73 million. Key contributors included double-digit sales growth in BAQSIMI® (+14% year-over-year) and the launch of iron sucrose injection, which added $2.4 million to the quarter’s results. However, segments like Epinephrine, Glucagon, and Lidocaine faced headwinds due to pricing pressures and competitive dynamics, offsetting gains in other areas.

Earnings/Net Income

GAAP net income dropped 57.1% to $17.35 million in Q3 2025, compared to $40.43 million in Q3 2024, while GAAP diluted EPS fell to $0.37 from $0.78. Adjusted non-GAAP net income, however, stood at $44.7 million, or $0.93 per share, surpassing the $0.85 consensus estimate. Despite the GAAP decline, the adjusted EPS beat highlights the company’s ability to manage costs and leverage non-GAAP metrics for performance visibility.

Post-Earnings Price Action Review

The strategy of buying Amphastar shares following a revenue increase quarter-over-quarter and holding for 30 days has historically delivered strong returns. Over the past three years, this approach yielded a cumulative return of 31.2%, with an average annual return of 10%. This suggests a viable medium-term investment opportunity, particularly as the company navigates regulatory milestones and therapeutic innovation.

CEO Commentary

Dr. Jack Zhang highlighted double-digit BAQSIMI® growth and the FDA-approved iron sucrose injection as key achievements. The licensing agreement with Nanjing Anji Biotechnology for three novel peptides targeting oncology and ophthalmology underscores the company’s focus on pipeline diversification. Zhang expressed confidence in leveraging domestic manufacturing expertise to drive long-term value creation.

Guidance

Amphastar did not provide numerical guidance for future periods but reiterated optimism about growth through commercial momentum, strategic pipeline expansion, and recent regulatory approvals. Forward-looking statements emphasized confidence in leveraging domestic manufacturing capabilities and proprietary product development, though specific revenue, EPS, or margin targets remain unquantified.

Additional News

Within three weeks of the earnings release, Amphastar secured FDA approval for iron sucrose injection, a critical generic therapy expanding patient access. The company also announced an exclusive licensing agreement with Nanjing Anji Biotechnology to develop novel peptides for oncology and ophthalmology, signaling a strategic shift toward high-growth markets. Additionally, Amphastar scheduled a conference call to discuss Q3 results, with analysts noting the stock’s underperformance against broader market gains.