Biofrontera 2025 Q3 Earnings Net Loss Widens 17.3% Despite EPS Improvement

Biofrontera (BFRI) reported Q3 2025 earnings on Nov 12, 2025, with revenue declining 22.5% year-over-year and a mixed performance in profitability. The company’s adjusted guidance anticipates Q4 growth to offset Q3’s shortfall, though the net loss expanded despite improved EPS.

Revenue

Biofrontera’s total revenue for Q3 2025 fell to $6.99 million, a 22.5% decline from $9.01 million in the prior-year period, driven by advanced purchases ahead of 2024 price increases. Product revenues accounted for the entirety of the $6.99 million net total, reflecting a segment concentration in its core offerings.

Earnings/Net Income

The company narrowed its per-share loss to $0.62 in Q3 2025 from $0.98 in Q3 2024, a 36.7% improvement. However, the net loss widened to $6.65 million in Q3 2025, up 17.3% from $5.67 million in the prior year. This discrepancy highlights margin pressures despite reduced per-share losses.

Post-Earnings Price Action Review

The strategy of buying Biofrontera shares after its earnings announcement and holding for 30 days has historically underperformed, with a 3-year average return of -46.8% and a maximum drawdown of -65.3%. While two positive months emerged in the first year, the overall trend remained downward. High volatility and negative performance have hindered the strategy’s ability to capitalize on potential gains, underscoring market skepticism.

CEO Commentary

CEO Hermann Luebbert emphasized stable year-to-date 2025 revenues ($24.6 million) and a revamped commercial strategy, including data-driven sales and customer segmentation, to boost Ameluz-PDT adoption. Strategic milestones include acquiring U.S. rights to Ameluz/RhodoLED, reducing royalty rates to 12%–15%, and divesting Xepi for $3 million. Luebbert expressed optimism about FDA approvals for new indications, including acne vulgaris and superficial BCC, which could drive revenue expansion.

Guidance

Biofrontera expects Q4 2025 revenues to offset Q3 declines, delivering “substantial annual year-over-year growth.” The new royalty structure is projected to enhance gross margins, while $8.9 million in liquidity—comprising $3.4 million in cash, $2.5 million from financing, and $3 million from the Xepi divestiture—supports sustained operations. The company remains focused on progressing clinical trials for Ameluz in AK, BCC, and acne, with potential FDA approvals seen as key growth drivers.

Additional News

Biofrontera completed the acquisition of U.S. Ameluz and RhodoLED assets, reducing royalty payments to 12%–15% of net sales from 25%–35%. The company also finalized the $3 million divestiture of its Xepi antibiotic cream to Pelthos Pharmaceuticals, with potential milestone payments up to $6 million. Additionally, Biofrontera secured $2.5 million from an $11 million financing round led by existing investors. These moves aim to strengthen liquidity and operational flexibility while reducing long-term royalty burdens.

Price Action

The stock has faced downward pressure, with a 11.48% decline in the latest trading day and a 10.67% drop over the past week. However, it has posted a 3.37% gain month-to-date, reflecting short-term volatility amid strategic developments.

Analyst Outlook

Despite the Q3 revenue miss, analysts maintain a “buy” rating, with a median 12-month price target of $6.00, implying an 83.8% upside from its Nov 12 closing price of $0.97. The average peer group rating also stands at “buy,” underscoring confidence in long-term growth potential tied to FDA approvals and margin improvements.