Delcath Systems 2025 Q3 Earnings Revenue Surges 83.6% as Net Income Declines 55.5%

Delcath Systems (DCTH) reported fiscal 2025 Q3 earnings on Nov 5, 2025, with revenue exceeding expectations and guidance for 2026 outlined. The company’s revenue growth outpaced estimates, driven by product sales, while net income fell due to higher operating expenses.

Revenue

Delcath’s total revenue surged 83.6% year-over-year to $20.56 million in Q3 2025, with product revenue accounting for the entirety of this figure. This marks a significant expansion compared to $11.20 million in the prior-year period, reflecting robust adoption of its chemotherapy infusion systems in oncology settings.

Earnings/Net Income

The company’s earnings per share (EPS) dropped 66.7% to $0.02, down from $0.06 in 2024 Q3, while net income fell 55.5% to $830,000. Despite the decline, Delcath set a seven-year record for Q3 net income, underscoring operational resilience amid challenges like supply chain bottlenecks.

Post-Earnings Price Action Review

Delcath’s stock price faced downward pressure in the immediate aftermath of the earnings report, with a 10.54% decline during the most recent full trading week and an 18.20% drop month-to-date. While the company matched Zacks’ EPS estimates, the revenue shortfall of $347,000 against the $20.91 million consensus raised concerns. Analysts noted mixed revisions to earnings forecasts, resulting in a Zacks Rank #3 (Hold) rating. The stock’s performance remains tied to future clinical trial data and broader market sentiment.

CEO Commentary

Gerard Michel, CEO of Delcath Systems, emphasized progress in Q3 2025, citing strong revenue growth driven by increased adoption of its chemotherapy infusion systems. Challenges, including supply chain delays and regulatory hurdles, were acknowledged, but the leadership team remains focused on expanding hospital partnerships and accelerating clinical trials for new indications. The tone remained cautiously optimistic, balancing near-term pressures with long-term pipeline advancements.

Guidance

Delcath projected 8–10% year-over-year revenue growth for 2026, supported by U.S. hospital partnerships and improved manufacturing throughput. Capital expenditures are expected to rise 15% to fund facility upgrades, though no specific EPS guidance was provided. Strategic priorities include maintaining profitability margins while investing in R&D for next-generation drug delivery platforms.

Additional News

In the three weeks following the Q3 earnings release, Delcath announced preliminary results from the CHOPIN trial, showing improved one-year progression-free survival in metastatic uveal melanoma patients using CHEMOSAT with immunotherapy. The company also initiated a global Phase 2 trial combining HEPZATO with standard-of-care therapies for liver-dominant metastatic colorectal cancer. Additionally, Delcath’s cash and investments grew to $88.9 million as of September 30, 2025, with no debt, reinforcing its financial stability for ongoing clinical and commercial initiatives.

Condensed Consolidated Balance Sheets

September 30, 2025: Total assets of $124.295 million, with $41.813 million in cash and equivalents. Total liabilities stood at $9.448 million, while stockholders’ equity reached $114.847 million.

Condensed Consolidated Statements of Operations

Three months ended September 30, 2025: Product revenue of $20.563 million, gross profit of $17.939 million, and net income of $830,000. Operating expenses totaled $18.327 million, with R&D and SG&A expenses increasing year-over-year.

Reconciliation of Reported Net Income to Adjusted EBITDA

Non-GAAP adjusted EBITDA for Q3 2025 was $5.291 million, reflecting positive operational cash flow and controlled costs despite higher R&D and SG&A expenses.

Conference Call

Delcath hosted a conference call on November 6, 2025, at 8:30 a.m. ET, discussing Q3 results, clinical updates, and strategic priorities.

Risks and Forward-Looking Statements

The company highlighted risks related to supply chain management, FDA inspections, and reimbursement challenges for HEPZATO KIT. Forward-looking statements included projections for clinical trial outcomes and revenue growth, subject to uncertainties.

About Delcath Systems

Delcath specializes in interventional oncology, with HEPZATO KIT and CHEMOSAT Hepatic Delivery System designed to deliver high-dose chemotherapy to the liver while minimizing systemic exposure. The company’s focus on liver cancers positions it to capitalize on growing demand for targeted therapies.