Elutia Inc. reported its third‑quarter 2025 financial results, posting a revenue miss and an earnings‑per‑share shortfall while achieving a notable expansion in gross margins. The company’s performance highlights the challenges of its current product mix and the benefits of its recent strategic pivot.
Total revenue for the quarter was $3.3 million, a 10.8% decline from $3.7 million in the same period last year. The drop was largely driven by a 22% decline in SimpliDerm sales, which fell to $2.4 million from $3.1 million, while the Cardiovascular segment grew 68% to $0.9 million from $0.6 million, partially offsetting the overall revenue decline.
Earnings per share were –$0.19, missing the consensus estimate of –$0.15 by $0.04. The miss reflects the combined impact of lower revenue and higher operating expenses, which rose to $7.1 million from $11.0 million YoY as the company focused on core platform development and cost discipline.
GAAP gross margin expanded to 55.8% from 48.9% in the prior year, driven by a higher mix of higher‑margin products and the cost savings realized after the sale of the BioEnvelope business. Adjusted gross margin also improved to 63.9% from 56.3% YoY, underscoring the company’s ability to generate more profit per dollar of sales in its new product mix.
Operating expenses fell to $7.1 million, a 35% reduction from $11.0 million in Q3 2024, reflecting disciplined spending on research and development and a shift away from legacy product lines.
Net loss for the quarter was $0.4 million, compared with a net income of $3.3 million in Q3 2024, illustrating the company’s transition from profitability to a focus on building its next‑generation platform.
Management did not issue new guidance for the remainder of the year but reiterated its focus on maintaining liquidity and the potential need for additional financing if required.
The company’s strategic pivot is underscored by the $88 million sale of its BioEnvelope business to Boston Scientific, which has provided capital to accelerate the development of the NXT‑41x antibiotic‑eluting biomatrix aimed at the breast reconstruction market, a $1.5 billion opportunity in the U.S.
Investors reacted negatively to the revenue miss and EPS shortfall, but noted the company’s margin improvement and strategic shift as positive tailwinds, indicating a cautious but not entirely dismissive market view.
Despite short‑term revenue weakness, Elutia’s margin gains and strategic pivot position it for future growth as it moves toward commercialization of its NXT‑41x platform.
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