Heron Therapeutics 2025 Q1 Earnings Beats Expectations with Net Income Swinging 183.4%

Heron Therapeutics reported its fiscal 2025 Q1 earnings on May 6th, 2025, showcasing a strong performance. The company exceeded revenue expectations with a reported $38.9 million, surpassing the consensus estimate of $37.08 million, marking a 12.2% increase from the previous year. EPS also surprised positively, turning a profit at $0.01 compared to the expected -$0.01. Heron revised its adjusted EBITDA guidance upward, reflecting confidence in future growth and operational efficiency.

Revenue
Heron Therapeutics experienced impressive growth, with total revenue climbing to $38.90 million, a 12.2% increase from the $34.67 million reported in Q1 2024. The acute care franchise notably contributed to this surge, with revenue increasing by 89.4%. ZYNRELEF demonstrated strong performance, achieving a 60.4% revenue growth. Oncology revenue slightly declined, with CINVANTI showing modest growth while SUSTOL faced a 20.9% decrease.

Earnings/Net Income
Heron Therapeutics returned to profitability with EPS of $0.02, a 200.0% positive change from a loss of $0.02 per share in Q1 2024. Net income reached $2.63 million, marking a 183.4% swing from the previous year's loss. This record high fiscal Q1 net income showcases a successful turnaround in profitability.

Price Action
The stock price of Heron Therapeutics edged down by 0.82% during the latest trading day, gained 3.42% in the most recent full trading week, and jumped 13.08% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Heron Therapeutics shares after their revenue equal quarter and holding for 30 days has been challenging, yielding an annualized ROI of -5.05% from November 7, 2022, to November 7, 2023. Despite the overall loss, a profit factor of 0.86 suggests potential outperformance in specific trades. With an average holding time of 4 days and 17 hours and 0.24 trades per week, the strategy remains short-term in nature, possibly influenced by market volatility and the company's brief performance trends.

CEO Commentary
Craig Collard, CEO of Heron Therapeutics, expressed enthusiasm for the company's Q1 results, emphasizing targeted product growth for ZYNRELEF and APONVIE while maintaining CINVANTI's presence in clinics. He highlighted ZYNRELEF's formulary status covering 19% of orthopedic procedures and opportunities for deeper adoption through an expanded label and new partnerships. Collard also noted a record quarterly adjusted EBITDA and net income, reinforcing a commitment to profitability and consistent execution.

Guidance
Heron Therapeutics revised its adjusted EBITDA guidance for 2025 to a range of $4 million to $12 million, reflecting strong Q1 performance and operational efficiencies. The CEO expressed confidence in meeting consensus revenue numbers for the year, driven by new account onboarding and strategic partnerships. The company anticipates continued growth from APONVIE and ZYNRELEF, aiming for sustainable, scalable growth through optimized commercial performance and strategic team expansion.

Additional News
In recent non-earnings related news, Heron Therapeutics has made headlines with a settlement agreement with Mylan Pharmaceuticals regarding the CINVANTI and APONVIE patent litigations, allowing generic market entry by June 2032. Mark Hensley joined the company as Chief Operating Officer, bringing expertise from Veloxis Pharmaceuticals, which is expected to enhance Heron's growth strategies. Additionally, the FDA approvals for ZYNRELEF expanded its label, offering a promising outlook for its market adoption and growth.