Delcath Systems 2025 Q2 Earnings Strong Performance as Net Income Surges 119.6%

Delcath Systems (DCTH) reported its fiscal 2025 Q2 earnings on Aug 07th, 2025, delivering a significant revenue and profitability beat. The results far exceeded expectations, with the company turning from a net loss to a profit and raising full-year revenue guidance. The stock price declined post-earnings, but historical data showed the buy-and-hold strategy after positive earnings outperformed the market.

Revenue
Delcath Systems’ total revenue surged 211.0% year-over-year to $24.16 million in Q2 2025, driven primarily by the HEPZATO KIT. Specifically, revenue from the HEPZATO KIT reached $22.5 million in the U.S., while CHEMOSAT generated $1.7 million in Europe. The substantial growth in HEPZATO KIT sales reflected strong demand and broader market adoption, underpinning the company's robust top-line performance.

Earnings/Net Income
Delcath Systems returned to profitability in Q2 2025, with net income reaching $2.70 million, compared to a net loss of $13.74 million in the same period last year. This represented a 119.6% positive swing and marked a record high for the company’s fiscal Q2 net income in seven years. Earnings per share (EPS) also improved significantly, rising from a loss of $0.48 in 2024 Q2 to $0.08 in 2025 Q2, representing a 116.7% positive change.

Price Action
The stock price of Delcath Systems declined 14.40% on the latest trading day, 2.65% over the past week, and 13.07% month-to-date. Despite this short-term decline, the post-earnings performance historically favored long-term investors, as a strategy of buying shares after the positive Q2 results delivered impressive returns.

Post-Earnings Price Action Review
A strategy of purchasing Delcath Systems shares following its Q2 revenue increase and holding for 30 days yielded a total return of 205.35% over the past three years, significantly outperforming the benchmark return of 51.69% by a margin of 153.66%. With an annualized return of 45.88% and no maximum drawdown, the strategy demonstrated exceptional risk-adjusted performance, validating the long-term investment potential of the company post-earnings.

CEO Commentary
Delcath Systems CEO Thomas J. Lei, M.D., emphasized the company's strong operational execution and increasing market demand for its therapies. He highlighted the growth drivers, including expanded access to its chemotherapy infusion systems and successful clinical outcomes. Looking ahead, Lei underscored ongoing R&D investments and commercial expansion as key priorities, expressing optimism about the company’s ability to sustain growth and navigate challenges in reimbursement and market access.

Guidance
Delcath Systems guided for continued revenue growth and EPS expansion for the remainder of 2025, based on current adoption and procedural trends. The company expects to maintain disciplined capital spending and operational efficiency while prioritizing product innovation and commercial execution. Full-year 2025 revenue for CHEMOSAT and HEPZATO KIT is projected to be in the range of $93 to $96 million, reflecting more than a 150% increase over 2024.

Additional News
Delcath Systems announced the activation of three new U.S. centers, bringing the total to 20 active centers with an additional 10 accepting referrals. The company also declared its intention to join a Medicaid National Drug Rebate Agreement (NDRA) to expand patient access starting July 1, 2025. Additionally, regulatory approval was received in the EU and UK for a clinical study evaluating HEPZATO in refractory metastatic colorectal cancer with liver-dominant disease. CEO Gerard Michel expressed confidence in HEPZATO’s long-term growth potential, driven by physician engagement and clinical outcomes.