Aytu BioPharma Soars 36.3% on Strong Q3 Earnings

Aytu BioPharma Inc (NASDAQ:AYTU) reported a 36.3% increase in pre-market trading on May 15, 2025, driven by strong financial performance in the third quarter of fiscal 2025.

Aytu BioPharma reported a significant financial turnaround in its fiscal 2025 third quarter earnings report, announcing a net income of $4.0 million. This marks a notable improvement from the prior-year loss, driven by a 32% increase in total revenue. The company's ADHD portfolio saw a 25% growth, while the pediatric portfolio experienced a 77% increase.

The company's strategic realignment to focus on high-margin prescription pharmaceuticals has shown positive results. The ADHD portfolio, including Adzenys XR-ODT and Cotempla XR-ODT, grew by 25% to $15.4 million. The pediatric portfolio, comprising Karbinal ER, Poly-Vi-Flor, and Tri-Vi-Flor, surged by 77% to $3.1 million. This diversified growth indicates sustainable momentum across multiple product lines.

Operational efficiencies have also contributed to Aytu's profitability. The company reduced operating expenses by 13% year-over-year, leading to an Adjusted EBITDA of $3.9 million, a 333% improvement from the previous year. The temporary gross margin compression from 74% to 69% is attributed to transitional manufacturing costs, which are expected to normalize in the coming quarters.

With a cash position of $18.2 million and growing positive cash flow, Aytu has strengthened its balance sheet by paying down $2.5 million in debt during the quarter. This financial flexibility positions the company well for pursuing complementary product acquisitions, leveraging their CNS-focused sales infrastructure and patient access platform.