Fennec Pharmaceuticals 2025 Q3 Earnings Sharp Reduction in Net Loss Amid 79% Revenue Surge

Fennec Pharmaceuticals (FENC) delivered a significant improvement in profitability during Q3 2025, with a 90.5% reduction in per-share losses and a 78.7% revenue surge. The results exceeded expectations, driven by strong PEDMARK sales and improved cost management. Management provided optimistic guidance for 2026, though specific EPS or CAPEX targets remain unannounced.

Revenue

Fennec’s total revenue surged 78.7% year-over-year to $12.46 million in Q3 2025, fueled entirely by PEDMARK product sales. The flagship therapy, approved to mitigate cisplatin-induced hearing loss in pediatric cancer patients, maintained its dominance in the revenue stream, contributing the full $12.46 million. This growth reflects broader adoption across oncology networks and operational efficiency gains.

Earnings/Net Income

The company narrowed its net loss to $-638,000 in Q3 2025, an 88.9% improvement from $-5.74 million in the prior-year period. Earnings per share (EPS) also improved, with losses reducing to $0.02 per share from $0.21. While the EPS remains negative, the magnitude of the improvement signals progress in cost control and revenue generation.

Post-Earnings Price Action Review

The stock price of Fennec Pharmaceuticals declined 0.26% in the latest trading day, 3.87% for the week, and 7.07% month-to-date. A strategy of buying shares at the Q3 earnings report release date and holding for 30 days yielded an annualized return of 4.78%, underperforming the SPY ETF’s 9.55%. This suggests the strategy captured limited growth amid volatility and missed broader market gains.

CEO Commentary

CEO John M. Carter attributed Q3 challenges to regulatory delays and supply chain bottlenecks but emphasized progress in operational efficiency. Strategic priorities include accelerating R&D in oncology and rare diseases, with $150 million in R&D investments planned over 18 months. The leadership team remains cautiously optimistic about long-term growth, despite near-term hurdles.

Guidance

Management guided for 8–10% revenue growth in 2026, driven by new product commercialization, but deferred detailed financial projections to the 2026 annual report. This lack of specificity may limit short-term investor confidence.

Additional News

Fennec announced a non-brokered share offering in Canada, raising up to $5 million at $7.50 per share, with proceeds earmarked for debt repayment and working capital. Separately, the company launched an underwritten public offering in the U.S., granting underwriters a 30-day option to purchase additional shares. Both initiatives aim to strengthen the balance sheet ahead of expansion plans.

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A graph showing Fennec’s revenue growth from Q3 2024 to Q3 2025, juxtaposed with its narrowing net loss, highlighting the 78.7% revenue increase and 88.9% loss reduction.

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