Cytosorbents 2025 Q3 Earnings Strong Revenue Growth but Missed Targets as Net Loss Widens 14.5%

Cytosorbents reported third-quarter 2025 results with a 10% year-over-year revenue increase to $9.5 million, yet the company missed revenue estimates by $0.52 million. Despite a non-GAAP EPS beat of -$0.04, the net loss expanded to $3.17 million, reflecting persistent operational challenges. Management outlined a path to cash flow breakeven by Q1 2026 through cost-cutting and workforce reductions.

Revenue

Cytosorbents achieved $9.5 million in total revenue for Q3 2025, a 10% year-over-year increase driven by robust performance in distributor territories and near-record direct sales outside Germany. Product revenue, which constitutes the entirety of the company’s revenue stream, rose to $9.48 million, underscoring growth in core markets despite a 3% decline in Germany.

Earnings/Net Income

The company reported a non-GAAP EPS of -$0.04, aligning with the prior year’s figure of -$0.05, but the net loss widened to $3.17 million, a 14.5% increase from $2.77 million in Q3 2024. Despite stable EPS, the net loss highlights ongoing financial pressures, with the company reporting sustained losses for 12 consecutive years in the same quarter.

Post-Earnings Price Action Review

The strategy of buying Cytosorbents shares on the date of its revenue raise announcement and holding for 30 days showed mixed performance over the past three years. While 66.67% of the six quarters with revenue raises saw immediate stock price gains averaging 6.67%, long-term performance was muted, with 30-day average gains of 2.83%. Of 12 quarters, six reported revenue increases, but one 30-day holding period resulted in a loss, underscoring market volatility. Investors adopting this approach must weigh short-term optimism against long-term unpredictability.

CEO Commentary

CEO Phillip Chan emphasized progress in executing the long-term growth strategy, noting trailing 12-month core product sales reached $37 million as of September 30, 2025. He outlined five priorities: accelerating growth in the CytoSorb business, securing FDA approval for DrugSorb-ATR, achieving cash flow breakeven by Q1 2026, strengthening the balance sheet, and maximizing shareholder value. Chan acknowledged challenges in Germany, where direct sales declined 3%, and announced restructuring efforts to revitalize the region.

Guidance

CFO Peter Mariani confirmed the company’s focus on cost-cutting initiatives, including a 10% workforce reduction and production expense cuts, to achieve cash flow breakeven by Q1 2026. The amended $2.5 million credit facility with Avenue Partners provides liquidity to support these efforts. Mariani also highlighted the submission of a DrugSorb-ATR pre-submission package to the FDA, with a de novo application expected in Q1 2026.

Additional News

Cytosorbents announced a strategic workforce and cost reduction program to accelerate its path to cash flow breakeven, targeting Q1 2026. The company also filed a pre-submission meeting request for DrugSorb-ATR with the FDA, aiming for regulatory clarity in late 2025 or early 2026. Additionally, Cytosorbents amended its loan agreement with Avenue Partners, extending the interest-only period through December 2026 and securing an additional $2.5 million in liquidity. These moves underscore efforts to stabilize operations while advancing key product milestones.