Surmodics 2025 Q3 Earnings Loss Narrows 29.6%

Surmodics (SRDX) released its third-quarter fiscal 2025 earnings on August 8, 2025, showing a narrowing net loss and revised financial guidance. While revenue dipped slightly year-over-year, the company highlighted strong performance in key product areas and progress toward strategic objectives, including an upcoming acquisition.

The company raised its fiscal 2025 guidance following a better-than-expected third-quarter performance, with leadership emphasizing ongoing cost controls and anticipated revenue growth in key platforms.

Revenue
Surmodics reported total revenue of $29.57 million for fiscal 2025 Q3, a 2.6% decline from $30.34 million in the same period a year ago. The Medical Device segment generated $22.21 million, serving as the primary revenue driver, while the In Vitro Diagnostics (IVD) segment contributed $7.35 million. Corporate revenue was reported as $0, consistent with prior reporting periods.

Earnings/Net Income
Surmodics narrowed its net loss to $5.32 million in 2025 Q3, a 29.6% reduction from a $7.55 million loss in 2024 Q3. On a per-share basis, the company’s loss decreased to $0.37 from $0.53, representing a 30.2% improvement. The earnings trend reflects cost discipline and operational adjustments, marking a modest but meaningful recovery.

Price Action
Surmodics’ stock edged up 1.17% on the latest trading day but declined 1.72% for the week. Month-to-date, however, the stock gained 14.82%, indicating improved investor sentiment in recent weeks.

Post-Earnings Price Action Review
A historical strategy of buying Surmodics shares on the day of its quarterly earnings and selling after 30 days has underperformed significantly. Over the past three years, this strategy returned -46.62%, underperforming the benchmark by 107.21%. Despite a Sharpe ratio of -0.72, indicating high risk, the strategy’s maximum drawdown was recorded at 0%, suggesting no major losses during the backtesting period.

CEO Commentary
Gary Maharaj, President and CEO of Surmodics, highlighted strong business performance across key segments despite a 3% year-over-year revenue decline. The CEO noted 35% growth in Pounce Thrombectomy Platform sales, 37% growth in R&D and other revenue, and 6% growth in the IVD segment. He emphasized strategic priorities including product development, cost control, and completing the pending acquisition. Notably, the company incurred $2.5 million in merger-related expenses while still achieving improvements in net loss and Adjusted EBITDA.

Guidance
Surmodics raised its fiscal 2025 financial guidance based on the strong third-quarter results and updated expectations for the remainder of the year. The company anticipates continued growth in the Pounce Thrombectomy Platform and IVD portfolio, alongside ongoing cost controls and progress toward completing the acquisition by an affiliate of GTCR. Leadership also reiterated a focus on delivering value to stakeholders while managing regulatory challenges related to the FTC and federal court actions.

Additional News
In the three weeks surrounding August 8, 2025, Surmodics remained focused on its pending acquisition by an affiliate of GTCR, a strategic milestone for the company. While no major C-level changes or dividend announcements were reported, the deal is expected to significantly influence the company’s future operations and financial structure. Additionally, Surmodics demonstrated a clear commitment to cost control and operational efficiency, which underpinned its improved financial results and revised guidance.