ADMA BIOLOGICS, INC.
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
ADMA$12.73-3.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001140361-25-017747
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001140361-25-029177
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 103 previous paragraphs and 140 current paragraphs.
63 unchanged; 35 reworded; 33 added; 4 removed; 1 previous and 9 current paragraphs rearranged.
Tables are not compared: 5 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (33)
Current report
Trends and Developments
Current report
In July 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted, which includes numerous changes to existing tax law including extending or making permanent certain business provisions initially established under the 2017 Tax Cuts and Jobs Act, which were set to expire. The OBBBA permanently eliminates the requirement to capitalize and amortize U.S.-based research and experimental expenditures, making these expenditures fully deductible in the period incurred. The OBBBA also permanently extends recognition of the accelerated bonus depreciation on qualifying assets in the period acquired. We expect these provisions to result in a reduction of current income tax liabilities and a corresponding reduction to income tax expense. While we are still evaluating these and other changes contained in the law, we do not expect these changes to have a material effect on our financial statements, including our effective tax rate.
Current report
As discussed above in Note 14 − Subsequent Events, to our condensed consolidated financial statements included in this Form 10-Q, in July 2025, we acquired real estate in Boca Raton, FL for a total purchase price of $12.6 million, which included deposits aggregating $0.5 million made in May 2025. This real estate purchase is intended to allow the Company to expand its production operations and related activities as well as provide for certain redundancies for ambient and cold-chain storage of raw materials, work in process and finished goods inventory.
Current report
For the three months ended June 30, 2025, we had gross profit of $67.2 million, as compared to $57.5 million for the same period of a year ago, which represents a gross margin in the second quarter of 2025 of 55.1%, as compared to 53.6%, or 47.4% excluding the $12.6 million adjustment recorded in the second quarter of 2024 to decrease our accrual for U.S. Medicaid rebates (which had the effect of increasing 2024 revenue by $12.6 million) in the second quarter of 2024. This improvement in gross margin is primarily driven by a significantly more favorable mix of higher margin IG sales in 2025 as compared to 2024.
Current report
Plasma Center Operating Expenses increased from $0.9 million for the three months ended June 30, 2024 to $1.2 million for the three months ended June 30, 2025. The increase is primarily due to higher employee-related costs.
Current report
Selling, general and administrative (“SG&A”) expenses increased $5.6 million to $22.2 million for the three months ended June 30, 2025, as compared to $16.6 million, for the three months ended June 30, 2024. The increase is primarily driven by higher compensation-related costs due to increased headcount to support the growth of our business and manufacturing operations. In addition, higher stock-based compensation costs, insurance premium costs and higher professional fees contributed to this increase.
Current report
Loss on Extinguishment of Debt
Current report
As a result of the prepayment we made on our term loan in May 2025, we incurred a prepayment penalty in the amount of $0.5 million and recorded a partial write-down of unamortized debt discount of approximately $0.7 million, for a loss on this partial extinguishment of debt in the amount of $1.2 million.
Current report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Current report
Revenues
Current report
We recorded total revenues of $236.8 million for the six months ended June 30, 2025, as compared to $189.1 million for the six months ended June 30, 2024, an increase of $47.7 million, or approximately 25%. The increase is primarily related to increased sales volume of ASCENIV, as we experienced increased physician, payer and patient acceptance and utilization of this product. During the six months ended June 30, 2025, and as previously disclosed in the 2025 1Q 10-Q, we effected the Voluntary Withdrawal as a precautionary measure. This resulted in a reduction in revenue of $4.0 million for credits issued to customers that were impacted by this Voluntary Withdrawal during the current period. This action was proactively initiated, and we believe this matter to be resolved. Excluding the $12.6 million adjustment we recorded in the second quarter of 2024 to decrease our accrual for U.S. Medicaid rebates (which had the effect of increasing 2024 revenues by $12.6 million), our revenues for the six months ended June 30, 2025 increased $60.3 million, or 34%, as compared to the six months ended June 30, 2024.
Current report
Research and Development Expenses
Current report
Research and development (“R&D”) expenses totaled $1.9 million for the six months ended June 30, 2025, as compared to $1.0 million for the six months ended June 30, 2024. The increase is primarily due to expenses incurred in 2025 related to the ASCENIV pediatric study and our S. pneumoniae hyperimmune globulin program, SG-001.
Current report
Plasma Center Operating Expenses
Current report
Amortization of Intangibles
Current report
Selling, General and Administrative Expenses
Current report
Selling, general and administrative (“SG&A”) expenses increased $14.0 million to $46.3 million for the six months ended June 30, 2025, as compared to $32.2 million, for the six months ended June 30, 2024. The increase is primarily driven by higher compensation-related costs due to increased headcount to support the growth of our business and manufacturing operations. In addition, higher stock-based compensation costs, insurance premium costs and higher professional fees contributed to this increase.
Current report
Interest Expense
Current report
Loss on Extinguishment of Debt
Current report
As a result of the prepayment we made on our term loan in May 2025, we incurred a prepayment penalty in the amount of $0.5 million and recorded a partial write-down of unamortized debt discount of approximately $0.7 million, for a loss on this partial extinguishment of debt in the amount of $1.2 million.
Current report
Other Income, Net
Current report
Other income, net, was $0.8 million during the six months ended June 30, 2025 and 2024.
Current report
Provision for Income Taxes
Current report
Research and development activities; and
Current report
Index
Current report
On August 5, 2025 (the “JPM Closing Date”), we and all of our subsidiaries entered into a Credit Agreement (the “JPM Credit Agreement”) with the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent (“JPMorgan”). The JPM Credit Agreement provides for $300 million of senior secured credit facilities, consisting of (a) a term loan in the aggregate principal amount of $75 million (the “JPM Term Loan Facility”) and (b) a revolving credit facility in the aggregate principal amount of $225 million (the “JPM Revolving Facility”). We may also request, subject to customary conditions, additional incremental revolving commitments or term loans in an aggregate principal amount not to exceed $100 million (together with the JPM Term Loan Facility and the JPM Revolving Facility, the “JPM Credit Facilities”). The JPM Term Loan Facility has a maturity date of August 5, 2028 (the “JPM Term Maturity Date”) and the JPM Revolving Facility has a maturity date of August 5, 2028 or any earlier date on which the commitments under the JPM Revolving Facility are reduced to zero or otherwise terminated pursuant to the terms of the JPM Credit Agreement (the “JPM Revolving Maturity Date”).
Current report
On the JPM Closing Date, we used the proceeds of the JPM Credit Facilities to terminate and pay in full all of the outstanding obligations under the Ares Credit Facility, including the outstanding principal of all loans, all accrued and unpaid interest thereon, and any unpaid fees, charges, premiums (including prepayment premiums) and costs, and expenses related thereto. We may also use the proceeds of the JPM Credit Facilities to finance share repurchases and for working capital and general corporate purposes.
Current report
Index
Current report
Interest on borrowings under the JPM Credit Facilities will accrue at an applicable rate equal to (i) an alternate base rate plus an applicable spread (each such borrowing, an “ABR Borrowing”) or (ii) Term SOFR plus an applicable spread (each such borrowing, a “Term Benchmark Borrowing”), in each case based on the lower of the applicable rates set forth in the JPM Credit Agreement, which are based on our total leverage ratio. These applicable spreads range from 150 basis points to 200 basis points over the alternate base rate and 250 basis points to 300 basis points over Term SOFR, in each case, as determined in accordance with the provisions of the JPM Credit Agreement. We have agreed to pay a commitment fee at specified rates set forth in the JPM Credit Agreement, which, based on our total leverage ratio, ranges from 30 basis points to 35 basis points on the daily amount of the undrawn portion of the aggregate commitments of the lenders under the JPM Revolving Facility. At our request, each borrowing initially shall be either an ABR Borrowing or a Term Benchmark Borrowing, and we may thereafter elect to convert any such borrowing to a different type. During the occurrence and continuance of an Event of Default (as defined in the JPM Credit Agreement), all borrowings shall accrue interest at a rate per annum equal to 2% plus the applicable rate.
Current report
On the JPM Revolving Maturity Date, we will repay the unpaid principal amount outstanding under the JPM Revolving Facility. Under the JPM Term Loan Facility, we will make principal payments in accordance with and on the dates specified in the amortization schedule set forth in the JPM Credit Agreement, with the remaining unpaid principal amount to be paid in full on the JPM Term Maturity Date. We may prepay at any time and from time to time any borrowing in whole or in part, without premium or penalty (other than, if applicable, any break funding expenses), subject to customary notice requirements.
Current report
Net Cash Provided by Operating Activities
Current report
Index
Removed paragraphs (4)
Previous report
Selling, general and administrative (“SG&A”) expenses were $24.1 million for the three months ended March 31, 2025, an increase of $8.4 million from the three months ended March 31, 2024. The increase is primarily driven by higher employee-related costs of $4.2 million due to increase in headcount to support revenue growth, and higher share-based compensation expense related to the increase in the fair value of the Company’s common stock, an increase in audit fees of $1.8 million, legal and other professional services of $1.3 million, software maintenance expense of $0.5 million, and other costs of $0.7 million. SG&A expenses as a percentage of net revenues increased from 19.1% in the first quarter of 2024 to 21.0% in the first quarter of 2025.
Previous report
(a)
Previous report
Conducting required post-marketing clinical trials for ASCENIV; and
Previous report
Net Cash Used in Operating Activities
Reworded paragraphs (35)
Previous wording
The following discussion of our financial condition and results of operations, which refers to our historical results, should be read in conjunction with the other sections of this Quarterly Report on Form 10-Q, including “Risk Factors” and our unaudited consolidated financial statements and the notes thereto appearing elsewhere herein, and in conjunction with the Management’s Discussion and Analysis of Financial Condition and Results of Operations set forth in our Annual Report on Form 10-K for the year ended December 31, 2024, filed on March 18, 2025 (the “2024 10-K”). The various sections of this discussion contain a number of forward-looking statements, all of which are based on our current expectations and could be affected by the uncertainties and risk factors described throughout or referenced within this Quarterly Report on Form 10-Q. See “Special Note Regarding Forward-Looking Statements.” Our actual results may differ materially from our current expectations.
Current wording
The following discussion of our financial condition and results of operations, which refers to our historical results, should be read in conjunction with the other sections of this Quarterly Report on Form 10-Q (this “Form 10-Q”), including “Risk Factors” and our unaudited consolidated financial statements and the notes thereto appearing elsewhere herein, and in conjunction with the Management’s Discussion and Analysis of Financial Condition and Results of Operations set forth in our Annual Report on Form 10-K for the year ended December 31, 2024, filed on March 18, 2025 (the “2024 10-K”). The various sections of this discussion contain a number of forward-looking statements, all of which are based on our current expectations and could be affected by the uncertainties and risk factors described throughout or referenced within this Form 10-Q. See “Special Note Regarding Forward-Looking Statements.” Our actual results may differ materially from our current expectations.
Previous wording
We manufacture these products at our FDA-licensed, plasma fractionation and purification facility located in Boca Raton, Florida with a peak annual processing capability of up to 600,000 liters (the “Boca Facility”). Based on current production yields, our completed and ongoing supply chain enhancements and capacity expansion initiatives, we believe this facility has the potential to produce sufficient quantities of our immune globulin (“IG”) products.
Current wording
We manufacture these products at our FDA-licensed, plasma fractionation and purification facility located in Boca Raton, FL with a peak annual processing capability of up to 600,000 liters (the “Boca Facility”). Based on current production yields, our completed and ongoing supply chain enhancements and capacity expansion initiatives, we believe this facility has the potential to produce sufficient quantities of our immune globulin (“IG”) products.
Previous wording
For the year ended December 31, 2024, we achieved net income of $197.7 million, the first time in our history that we achieved net income on a GAAP basis, and we generated positive cash flow from operations of $118.7 million, the full details of which can be found in our 2024 Form 10-K for the year ended December 31, 2024, filed on March 18, 2025. Our improved operating results are primarily the result of the substantial revenue growth driven by the continued physician, patient and payer acceptance of ASCENIV.
Current wording
For the year ended December 31, 2024, we achieved net income of $197.7 million, the first time in our history that we achieved net income on a GAAP basis, and we generated positive cash flow from operations of $118.7 million, the full details of which can be found in the 2024 10-K. Our improved operating results are primarily the result of the substantial revenue growth driven by the continued physician, patient and payer acceptance of ASCENIV.
Previous wording
In April 2025, the FDA approved our Prior Approval Supplement (the “PAS”) for our innovative yield enhancement production process (the “Yield Enhancement”) benefiting both ASCENIV and BIVIGAM. Such approval is expected to result in meaningful revenue and earnings accretion beginning in the second half of 2025 and accelerating further into 2026 and beyond. This innovative process has demonstrated an ability to increase ASCENIV and BIVIGAM production yields by approximately 20% from the same starting plasma volume.
Current wording
In April 2025, the FDA approved our Prior Approval Supplement (the “PAS”) for our innovative yield enhancement production process (the “Yield Enhancement”) benefiting both ASCENIV and BIVIGAM. This PAS approval amends the Biologic License Application (BLA) approvals for ASCENIV and BIVIGAM and is intended to be the process the Company will manufacture these products on a go-forward basis. The production methods approved in this PAS are expected to result in additional bulk drug yield from the same starting raw material source plasma volumes and the Company believes it should experience meaningful revenue and earnings accretion beginning as early as the second half of 2025 and accelerating further into 2026 and beyond. This innovative process has demonstrated an ability to increase ASCENIV and BIVIGAM production yields by approximately 20% from the same starting source plasma volume.
Previous wording
We anticipate filing our supplemental Biologics License Application (“sBLA”) in mid-2025, with potential FDA approval in the first half of 2026, for the expansion of ASCENIV’s label to include the pediatric setting for patients who are two years and older.
Current wording
In June 2025, we filed our supplemental Biologics License Application (“sBLA”) for the expansion of ASCENIV’s label to include the pediatric setting for patients who are two years and older and we anticipate potential FDA approval in the first half of 2026.
Previous wording
Some of the estimates and assumptions we are required to make under U.S. GAAP require difficult, subjective and/or complex judgments about matters that are inherently uncertain and, as a result, actual results could differ from those estimates. Due to the estimation processes involved, the following summary of accounting estimates and their application are considered to be critical to understanding our business operations, financial condition and results of operations. For a description of our significant accounting policies, see Note 2 to the Consolidated Financial Statements included in our 2024 10-K. Estimates and assumptions used in projecting future liquidity and capital requirements are described in Note 1 to the condensed consolidated financial statements appearing elsewhere in this Quarterly Report on Form 10-Q.
Current wording
Some of the estimates and assumptions we are required to make under U.S. GAAP require difficult, subjective and/or complex judgments about matters that are inherently uncertain and, as a result, actual results could differ from those estimates. Due to the estimation processes involved, the following summary of accounting estimates and their application are considered to be critical to understanding our business operations, financial condition and results of operations. For a description of our significant accounting policies, see Note 2 to the Consolidated Financial Statements included in our 2024 10-K. Estimates and assumptions used in projecting future liquidity and capital requirements are described in Note 1 to the condensed consolidated financial statements appearing elsewhere in this Form 10-Q.
Previous wording
The following table presents a summary of the changes in our results of operations for the three months ended March 31, 2025, our first fiscal quarter, compared to the three months ended March 31, 2024:
Current wording
The following table presents a summary of the changes in our results of operations for the three months ended June 30, 2025, compared to the three months ended June 30, 2024:
Previous wording
We recorded total revenues of $114.8 million for the three months ended March 31, 2025, as compared to $81.9 million for the three months ended March 31, 2024, an increase of $32.9 million, or approximately 40%. The increase is primarily related to increased sales of ASCENIV, as we experience increased physician, payer and patient acceptance and utilization of ASCENIV. During the three months ended March 31, 2025, as a precautionary measure, we voluntarily withdrew three lots of BIVIGAM (such a withdrawal, hereinafter referred to as the “Voluntary Withdrawal”). During the same period, the Company recorded a reduction to revenue of $3.8 million for credits issued to customers for the related product returns, which partially offset the increase driven by increased sales of ASCENIV.
Current wording
We recorded total revenues of $122.0 million for the three months ended June 30, 2025, as compared to $107.2 million for the three months ended June 30, 2024, an increase of $14.8 million, or approximately 14%. The increase is primarily related to increased sales volume of ASCENIV, as we experienced increased physician, payer and patient acceptance and utilization of this product. During the three months ended June 30, 2025, and as previously disclosed in our Form 10-Q for the three months ended March 31, 2025 that was filed with the Securities and Exchange Commission (the “SEC”) on May 7, 2025 (the "2025 1Q 10-Q"), we voluntarily withdrew three lots of BIVIGAM (such a withdrawal, hereinafter referred to as the “Voluntary Withdrawal”) as a precautionary measure. This resulted in a reduction in revenue of $0.2 million for credits issued to customers that were impacted by this Voluntary Withdrawal during the current period. This action was proactively initiated, and we believe this matter to be resolved. Excluding the $12.6 million adjustment we recorded in the second quarter of 2024 to decrease our accrual for U.S. Medicaid rebates (which had the effect of increasing 2024 revenues by $12.6 million), our second quarter 2025 revenue increased $27.4 million, or 29%, as compared to the second quarter of 2024.
Previous wording
Cost of product revenue was $53.7 million for the three months ended March 31, 2025, as compared to $42.8 million for the three months ended March 31, 2024. This increase is primarily attributable to volume-driven increases in product revenue costs related to the increased sales of our IG products of $12.4 million, partially offset by $1.1 million of lower product revenue costs related to plasma sales.
Current wording
Cost of product revenue was $54.8 million for the three months ended June 30, 2025, as compared to $49.7 million for the three months ended June 30, 2024. This increase is primarily attributable to volume-driven increases in product revenue costs related to the increased sales of our IG products of $10.9 million, partially offset by $5.9 million of lower product revenue costs related to the reduction in plasma and intermediates sales.
Previous wording
Research and development (“R&D”) expenses totaled $0.8 million for the first quarter of 2025, as compared to $0.5 million for the first quarter of 2024. The increase is primarily due to expenses incurred during the first quarter of 2025 related to the ASCENIV pediatric study.
Current wording
Research and development (“R&D”) expenses totaled $1.0 million for the second quarter of 2025, as compared to $0.6 million for the second quarter of 2024. The increase is primarily due to expenses incurred during the second quarter related to our S. pneumoniae hyperimmune globulin program, SG-001.
Previous wording
Amortization expense mainly pertains to the amortization of internally developed software and was less than $0.1 million and $0.2 million for the three months ended March 31, 2025 and 2024 respectively.
Current wording
Amortization expense mainly pertains to the amortization of internally developed software and was less than $0.1 million and $0.1 million for the three months ended June 30, 2025 and 2024 respectively.
Previous wording
Interest expense for the three months ended March 31, 2025 was $2.0 million, as compared to $3.8 million for the three months ended March 31, 2024, primarily driven by the decrease in debt balances due to principal repayments made throughout 2024.
Current wording
Interest expense for the three months ended June 30, 2025 was $1.8 million, as compared to $3.8 million for the three months ended June 30, 2024, primarily driven by the decrease in debt balances due to principal repayments made in 2024 and 2025.
Previous wording
Other income, net, for the three months ended March 31, 2025 was $0.5 million, as compared to $0.3 million for the three months ended March 31, 2024.
Current wording
Other income, net, for the three months ended June 30, 2025 was $0.3 million, as compared to $0.4 million for the three months ended June 30, 2024.
Previous wording
The provision for income taxes of $6.5 million for the three months ended March 31, 2025 represented an effective tax rate of 19.6%, as compared to the provision of $0.6 million for the three months ended March 31, 2024, with an effective tax rate of 3.2%. As of March 31, 2024, the Company had a full valuation allowance for its net deferred tax assets, and the effective tax rate for the three months ended March 31, 2024 differed from the federal statutory tax rate of 21% primarily due to the recognition of deferred tax assets for the net operating losses. The Company released its valuation allowance in December 2024, and the effective tax rate for the three months ended March 31, 2025 differed from the federal statutory rate primarily due to the excess tax benefits on stock-based compensation.
Current wording
The provision for income taxes of $5.9 million for the three months ended June 30, 2025 represented an effective tax rate of 14.7%, as compared to the provision of $3.8 million for the three months ended June 30, 2024, with an effective tax rate of 10.6%. As of June 30, 2024, the Company had a full valuation allowance for its net deferred tax assets, and the effective tax rate for the three months ended June 30, 2024 differed from the federal statutory tax rate of 21% primarily due to the recognition of deferred tax assets for the net operating losses. The Company released its valuation allowance in December 2024, and the effective tax rate for the three months ended June 30, 2025 differed from the federal statutory rate primarily due to the excess tax benefits on stock-based compensation.
Previous wording
For the three months ended March 31, 2025, we had gross profit of $61.1 million, as compared to $39.1 million for the same period of a year ago, which represents a gross margin in the first quarter of 2025 of 53.2%, as compared to 47.8% in the first quarter of 2024. This improvement in gross margin is primarily driven by a significantly more favorable mix of higher margin IG sales in 2025 as compared to 2024, along with the operational efficiencies achieved resulting in a reduction in other manufacturing costs.
Current wording
For the six months ended June 30, 2025, we had gross profit of $128.3 million, as compared to $96.6 million for the same period of a year ago, which represents a gross margin in 2025 of 54.2%, as compared to 51.1%, or 47.6% when excluding the $12.6 million adjustment recorded in the second quarter of 2024 to decrease our accrual for U.S. Medicaid rebates (which had the effect of increasing 2024 revenue by $12.6 million) in the same period of 2024. This improvement in gross margin is primarily driven by a significantly more favorable mix of higher margin IG sales in 2025 as compared to 2024, along with the operational efficiencies achieved resulting in a reduction in other manufacturing costs.
Previous wording
Plasma Center Operating Expenses increased from $1.0 million for the three months ended March 31, 2024 to $1.3 million for the three months ended March 31, 2025. The increase is primarily due to an increase in donor fees of $0.8 million and wages and benefits of $0.5 million, largely offset by a decrease of $1.0 million in donor testing expenses.
Current wording
Plasma Center Operating Expenses increased from $1.9 million for the six months ended June 30, 2024 to $2.4 million for the six months ended June 30, 2025. The increase is primarily due to an increase in employee-related costs of $0.5 million.
Previous wording
EBITDA, Adjusted EBITDA and Adjusted net income are important non-GAAP financial measures used by our management and Board of Directors to assess our operating performance. We use EBITDA, Adjusted EBITDA and Adjusted net income as key performance measures because we believe that they facilitate operating performance comparisons from period to period that exclude, in the case of Adjusted net income, items that are expected to be non-recurring, and in the case of EBITDA and Adjusted EBITDA, potential differences driven by the impact of variations of non-cash items such as depreciation and amortization, as well as, in the case of Adjusted EBITDA, stock-based compensation or certain one-time and non-recurring items. In addition, we believe that EBITDA, Adjusted EBITDA and Adjusted net income and similar measures are widely used by investors, securities analysts, ratings agencies and other parties in evaluating companies in our industry as a measure of financial performance and debt-service capabilities. See below for a reconciliation of our EBITDA, Adjusted EBITDA and Adjusted net income to net income, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
Current wording
EBITDA, Adjusted EBITDA and Adjusted net income are important non-GAAP financial measures used by our management and Board to assess our operating performance. We use EBITDA, Adjusted EBITDA and Adjusted net income as key performance measures because we believe that they facilitate operating performance comparisons from period to period that exclude, in the case of Adjusted net income, items that are expected to be non-recurring, and in the case of EBITDA and Adjusted EBITDA, potential differences driven by the impact of variations of non-cash items such as depreciation and amortization, as well as, in the case of Adjusted EBITDA, stock-based compensation or certain one-time and non-recurring items. In addition, we believe that EBITDA, Adjusted EBITDA and Adjusted net income and similar measures are widely used by investors, securities analysts, ratings agencies and other parties in evaluating companies in our industry as a measure of financial performance and debt-service capabilities. See below for a reconciliation of our EBITDA, Adjusted EBITDA and Adjusted net income to net income, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
Previous wording
Because EBITDA, Adjusted EBITDA and Adjusted net income are measures not deemed to be in accordance with U.S. GAAP and are susceptible to varying calculations, our EBITDA, Adjusted EBITDA and Adjusted net income may not be comparable to similarly titled measures of other companies, including companies in our industry, because other companies may calculate EBITDA, Adjusted EBITDA and Adjusted net income in a different manner than we calculate these measurements. Although the Company uses Adjusted EBITDA as one of several financial measures to assess its operating performance, its use is limited as it excludes certain significant operating expenses. EBITDA, Adjusted EBITDA and Adjusted net income are not intended to represent cash flows for the periods presented, nor have they been presented as an alternative to operating income, net income or as an indicator of operating performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP. The following table presents the reconciliation of net income to EBITDA and Adjusted EBITDA for the three months ended March 31, 2025 and 2024:
Current wording
Because EBITDA, Adjusted EBITDA and Adjusted net income are measures not deemed to be in accordance with U.S. GAAP and are susceptible to varying calculations, our EBITDA, Adjusted EBITDA and Adjusted net income may not be comparable to similarly titled measures of other companies, including companies in our industry, because other companies may calculate EBITDA, Adjusted EBITDA and Adjusted net income in a different manner than we calculate these measurements. Although the Company uses Adjusted EBITDA as one of several financial measures to assess its operating performance, its use is limited as it excludes certain significant operating expenses. EBITDA, Adjusted EBITDA and Adjusted net income are not intended to represent cash flows for the periods presented, nor have they been presented as an alternative to operating income, net income or as an indicator of operating performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP. The following table presents the reconciliation of net income to EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024:
Previous wording
Adjusted EBITDA increased by $21.5 million for the three months ended March 31, 2025, as compared to the same period of a year ago. The improvement is primarily due to the substantial increase in operating income.
Current wording
Adjusted EBITDA increased for the three and six months ended June 30, 2025, as compared to the same periods of a year ago, by $6.2 million and $27.7 million, respectively. The improvement is primarily due to the increased sales and gross profit in 2025.
Previous wording
The following table presents the reconciliation of Net income to Adjusted net income for the three months ended March 31, 2025 and 2024:
Current wording
The following table presents the reconciliation of Net income to Adjusted net income for the three and six months ended June 30, 2025 and 2024:
Previous wording
(b) Excludes estimated tax effect of the add-backs of $1.3 million.
Current wording
(b) Excludes estimated tax effect of the add-backs of $0.3 and $1.4 million for the three and six months ended June 30, 2025, respectively.
Previous wording
At March 31, 2025, we had working capital of $298.3 million, primarily consisting of $172.2 million of inventory, cash and cash equivalents of $71.6 million and $99.4 million of accounts receivable, partially offset by current liabilities of $53.5 million, as compared to working capital at December 31, 2024 of $275.9 million, primarily consisting of $170.2 million of inventory, cash and cash equivalents of $103.1 million and accounts receivable of $50.0 million, partially offset by current liabilities of $55.5 million. Our material cash requirements are primarily comprised of:
Current wording
At June 30, 2025, we had working capital of $324.6 million, primarily consisting of $191.5 million of inventory, cash and cash equivalents of $90.3 million and $109.7 million of accounts receivable, partially offset by current liabilities of $74.9 million, as compared to working capital at December 31, 2024 of $275.9 million, primarily consisting of $170.2 million of inventory, cash and cash equivalents of $103.1 million and accounts receivable of $50.0 million, partially offset by current liabilities of $55.5 million. Our material cash requirements are primarily comprised of:
Previous wording
Boca Facility maintenance, improvements, repairs and supplies;
Current wording
The Boca Facility maintenance, improvements, repairs and supplies;
Previous wording
As we continue to onboard new staff and expand production at the Boca Facility, we may also decide to use cash on hand, in whole or in part, to purchase additional real estate to add redundancies, expand operations and prepare for future growth opportunities. In addition, our end-to-end production cycle time from procurement of raw materials to commercial release of finished product can take between seven and 12 months or potentially longer, requiring substantial inventories of raw material plasma and other manufacturing and laboratory testing materials and single use disposables.
Current wording
As discussed above in Note 14 − Subsequent Events, to our condensed consolidated financial statements included in this Form 10-Q, in July 2025, we acquired real estate in Boca Raton, FL for a total purchase price of $12.6 million, which included deposits aggregating $0.5 million made in May 2025. This property was purchased to add redundancies, expand operations and prepare for future growth opportunities. In addition, our end-to-end production cycle time from procurement of raw materials to commercial release of finished product can take between seven and 12 months or potentially longer, requiring substantial inventories of raw material plasma and other manufacturing and laboratory testing materials and single use disposables.
Previous wording
We currently anticipate, based upon our projected revenue and expenditures, that our current cash, cash equivalents and accounts receivable, along with our projected future operating cash flow, will be sufficient to fund our operations, as currently conducted, through the end of 2025 and beyond. Based on current operations and assuming continued market acceptance and utilization of our finished drug products, we do not anticipate the need to raise additional capital at this time. However, should the market for our products or political, economic or inflationary conditions change, we may need to seek additional capital which may not be available due to a variety of potential factors beyond our control (see “Risk Factors” appearing elsewhere in this report).
Current wording
We currently anticipate, based upon our projected revenue and expenditures, that our current cash, cash equivalents and accounts receivable, along with our projected future operating cash flow, will be sufficient to fund our operations, as currently conducted, through the first half of 2026 and beyond. Based on current operations and assuming continued market acceptance and utilization of our finished drug products, we do not anticipate the need to raise additional capital at this time. However, should the market for our products or political, economic or inflationary conditions change, we may need to seek additional capital which may not be available due to a variety of potential factors beyond our control (see “Risk Factors” appearing elsewhere in this report).
Previous wording
On December 18, 2023 (the “Ares Closing Date”), we and all of our subsidiaries entered into a senior secured credit facility (the “Ares Credit Agreement”) with Ares Capital Corporation and certain credit funds affiliated with Ares Capital Corporation (collectively, “Ares”). The Ares Credit Agreement provided for a total of $135.0 million in senior secured credit facilities (the “Ares Credit Facility”) consisting of (i) a term loan in the aggregate principal amount of $62.5 million and (ii) a revolving credit facility in the aggregate principal amount of $72.5 million (collectively, the “Ares Loans”), both of which were fully drawn on the Ares Closing Date. The Ares Credit Facility has a maturity date of December 20, 2027.
Current wording
On December 18, 2023 (the “Ares Closing Date”), we and all of our subsidiaries entered into a senior secured credit facility (the “Ares Credit Agreement”) with Ares Capital Corporation and certain credit funds affiliated with Ares Capital Corporation (collectively, “Ares”). The Ares Credit Agreement provided for a total of $135.0 million in senior secured credit facilities (the “Ares Credit Facility”) consisting of (i) a term loan in the aggregate principal amount of $62.5 million and (ii) a revolving credit facility in the aggregate principal amount of $72.5 million (collectively, the “Ares Loans”), both of which were fully drawn on the Ares Closing Date. The Ares Credit Facility had a maturity date of December 20, 2027 (the “Ares Maturity Date”).
Previous wording
On August 14, 2024, we repaid $30.0 million against the revolving credit facility and the outstanding balance on the revolving credit facility as of March 31, 2025 was $42.5 million. On December 19, 2024 we repaid $30.0 million against the term loan facility and the outstanding balance on the term loan facility as of March 31, 2025 was $32.5 million. On May 5, 2025, we borrowed $30.0 million under our revolving credit facility, which we used to concurrently repay an additional $30.0 million against the term loan facility on May 6, 2025. Following such transactions, we had $72.5 million outstanding under our revolving credit facility and $2.5 million outstanding under our term loan facility.
Current wording
On August 14, 2024, we repaid $30.0 million against the revolving credit facility and the outstanding balance on the revolving credit facility as of March 31, 2025 was $42.5 million. On December 19, 2024, we repaid $30.0 million against the term loan facility and the outstanding balance on the term loan facility as of March 31, 2025 was $32.5 million. On May 5, 2025, we borrowed $30.0 million under our revolving credit facility, which we used to concurrently repay an additional $30.0 million against the term loan facility on May 6, 2025, as a result of which, the Company recorded debt extinguishment losses of $1.2 million during the three and six months ended June 30, 2025. Following such transactions, and as of June 30, 2025, we had $72.5 million outstanding under our revolving credit facility and $2.5 million outstanding under our term loan facility.
Previous wording
Borrowings under the term loan bear interest at the adjusted Term SOFR for a three‑month tenor in effect on the day that is two business days prior to the first day of the applicable calendar quarter plus 6.50% (the “Initial SOFR Term Loan Applicable Margin”). Borrowings under the revolving facility initially bear interest at the adjusted Term SOFR for a three‑month tenor in effect on the day that is two business days prior to the first day of the applicable calendar quarter plus 3.75% (the “SOFR Revolving Facility Applicable Margin”). As of March 31, 2025 and December 31, 2024, the interest rate on the term loan was approximately 10.80% and 10.85%, respectively, and the interest rate on the revolving facility was approximately 8.05% and 8.34%, respectively.
Current wording
Borrowings under the term loan bore interest at the adjusted Term SOFR for a three‑month tenor in effect on the day that is two business days prior to the first day of the applicable calendar quarter plus 6.50% (the “Initial SOFR Term Loan Applicable Margin”). Borrowings under the revolving facility initially bore interest at the adjusted Term SOFR for a three‑month tenor in effect on the day that is two business days prior to the first day of the applicable calendar quarter plus 3.75% (the “SOFR Revolving Facility Applicable Margin”). As of June 30, 2025 and December 31, 2024, the interest rate on the term loan was approximately 10.81% and 10.85%, respectively, and the interest rate on the revolving facility was approximately 8.05% and 8.34%, respectively.
Previous wording
On the Ares Maturity Date, we are required to pay Ares the entire outstanding principal amount underlying the Ares Loans and any accrued and unpaid interest thereon. Prior to the Ares Maturity Date, there are no scheduled principal payments on the Ares Credit Facility, and we are required to make quarterly interest payments during the term of Ares Credit Facility. We may prepay the outstanding principal under the revolving facility, together with any accrued but unpaid interest on the prepaid principal amount, at any time and from time to time upon three business days’ prior written notice with no prepayment premium. However, in the event that we prepay an amount under the revolving facility that is greater than 50% of the current $72.5 million outstanding balance, we will still be required to pay interest on 50% of this balance, or $36.3 million, through the term of Ares Credit Facility. We may prepay the outstanding principal on the term loan, together with any accrued but unpaid interest on the prepaid principal amount, at any time and from time to time upon three business days’ prior written notice, subject to the payment to Ares of a prepayment premium equal to (i) the present value as of such date of all remaining required interest payments on the principal amount being repaid plus 1.5% of the prepaid principal amount, if prepaid on or prior to the first anniversary of the Ares Closing Date, (ii) 1.5% of the prepaid principal amount, if prepaid after the first anniversary of the Ares Closing Date and on or prior to the second anniversary of the Ares Closing Date, or (iii) 1.0% of the prepaid principal amount, if prepaid on or prior to the third anniversary of the Ares Closing Date.
Current wording
On the Ares Maturity Date, we would have been required to pay Ares the entire outstanding principal amount underlying the Ares Loans and any accrued and unpaid interest thereon. Prior to the Ares Maturity Date, there were no scheduled principal payments on the Ares Credit Facility, and we were required to make quarterly interest payments during the term of Ares Credit Facility. We were permitted to prepay the outstanding principal under the revolving facility, together with any accrued but unpaid interest on the prepaid principal amount, at any time and from time to time upon three business days’ prior written notice with no prepayment premium. However, in the event that we prepaid an amount under the revolving facility that was greater than 50% of the current $72.5 million outstanding balance, or $36,250,000, we would have still been required to pay an amount of interest on the revolving facility that would have been payable had $36,250,000 been outstanding, through the term of Ares Credit Facility. We were permitted to prepay the outstanding principal on the term loan, together with any accrued but unpaid interest on the prepaid principal amount, at any time and from time to time upon three business days’ prior written notice, subject to the payment to Ares of a prepayment premium equal to (i) 1.5% of the prepaid principal amount, if prepaid after the first anniversary of the Ares Closing Date and on or prior to the second anniversary of the Ares Closing Date, or (ii) 1.0% of the prepaid principal amount, if prepaid on or prior to the third anniversary of the Ares Closing Date.
Previous wording
All of our obligations under the Ares Credit Agreement are secured by a first-priority lien and security interest in substantially all of our tangible and intangible assets, including intellectual property and all of the equity interests in our subsidiaries. The Ares Credit Agreement contains certain representations and warranties, affirmative covenants, negative covenants and conditions that are customarily required for similar financings. The negative covenants include certain financial covenants, including maximum total leverage ratios and a $15.0 million liquidity covenant, and also restrict or limit our ability and the ability of our subsidiaries to, among other things and subject to certain exceptions contained in the Ares Credit Agreement, incur new indebtedness; create liens on assets; engage in certain fundamental corporate changes, such as mergers or acquisitions, or changes to our or our subsidiaries’ business activities; make certain Investments or Restricted Payments (each as defined in the Ares Credit Agreement); engage in certain affiliate transactions; or enter into, amend or terminate any other agreements that have the impact of restricting our ability to make loan repayments under the Ares Credit Agreement. As of March 31, 2025, we were in compliance with all of the covenants contained in the Ares Credit Agreement.
Current wording
All of our obligations under the Ares Credit Agreement were secured by a first-priority lien and security interest in substantially all of our tangible and intangible assets, including intellectual property and all of the equity interests in our subsidiaries. The Ares Credit Agreement contained certain representations and warranties, affirmative covenants, negative covenants and conditions that are customarily required for similar financings. The negative covenants included certain financial covenants, including maximum total leverage ratios and a $15.0 million liquidity covenant, and also restricted or limited our ability and the ability of our subsidiaries to, among other things and subject to certain exceptions contained in the Ares Credit Agreement, incur new indebtedness; create liens on assets; engage in certain fundamental corporate changes, such as mergers or acquisitions, or changes to our or our subsidiaries’ business activities; make certain Investments or Restricted Payments (each as defined in the Ares Credit Agreement); engage in certain affiliate transactions; or enter into, amend or terminate any other agreements that have the impact of restricting our ability to make loan repayments under the Ares Credit Agreement. As of June 30, 2025, we were in compliance with all of the covenants contained in the Ares Credit Agreement.
Previous wording
Events of default on the Ares Loans include, among others, non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments, cross-defaults to material contracts and events constituting a change of control. If there is an event of default, we will incur an increase in the rate of interest on the Ares Loans of 2% per annum.
Current wording
Events of default on the Ares Loans included, among others, non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments, cross-defaults to material contracts and events constituting a change of control. If there was an event of default, we would have incurred an increase in the rate of interest on the Ares Loans of 2% per annum.
Previous wording
Cash used in operations for the three months ended March 31, 2025, was $19.7 million, an increase of $17.5 million from the same period of a year ago, primarily due to the unfavorable impact of the timing of sales, partially offset by higher net income. The following table illustrates the primary components of our cash flows from operations:
Current wording
Cash provided by operating activities for the six months ended June 30, 2025 was $1.5 million, a decrease of $42.0 million from the same period of a year ago, primarily due to the unfavorable impact of the timing of sales and due to inventory investments made in 2025 to support the Company’s manufacturing and distribution objectives, partially offset by higher net income and favorable impact of timing of payments. The following table illustrates the primary components of our cash flows from operations:
Previous wording
Net cash used in investing activities for the three months ended March 31, 2025 and 2024 was $4.7 million and $2.4 million, respectively. The increase is primarily related to the roof replacement at the Boca Facility in the amount of $1.3 million and due to capital expenditures associated with the Yield Enhancement project. While we currently have no firm commitments for capital expenditures, we expect our total capital expenditures will be between $7.3 million and $13.3 million for the remainder of fiscal 2025, mainly for additional upgrades to the Boca Facility manufacturing operations and related operational systems.
Current wording
Net cash used in investing activities for the six months ended June 30, 2025 and 2024 was $7.2 million and $4.7 million, respectively. The increase is primarily related to the roof replacement at the Boca Facility in the amount of $1.3 million, due to capital expenditures associated with the Yield Enhancement project. While as of June 30, 2025 we had no firm commitments for capital expenditures with the exception of the July 2025 purchase of the real estate in Boca Raton, FL, we expect our total capital expenditures will be between $18.0 million and $21.6 million for the remainder of fiscal 2025, mainly for additional upgrades to the Boca Facility manufacturing operations, related operational systems, and the purchase of the real estate in Boca Raton, FL, which was completed in July 2025. Of the total remaining 2025 capital expenditures, $13.0 million represents the acquisition cost and improvements of the new Boca Raton real estate.
Previous wording
Net cash used in financing activities was $7.1 million and $1.4 million for the three months ended March 31, 2025 and 2024, respectively. The increase is due to additional taxes paid in connection with shares that were withheld from RSUs that vested during the period, partially offset by $1.0 million in proceeds from the exercise of stock options in 2024.
Current wording
Net cash used in financing activities was $7.1 million and $1.8 million for the six months ended June 30, 2025 and 2024, respectively. The increase is primarily due to higher taxes paid in connection with shares that were withheld from RSUs that vested during the period, as a result of an increase in the value of our common stock as compared to 2024.
Previous wording
Inflation impacted a number of facets of our business during the three months ended March 31, 2025 and 2024 at each of our business segments. Disruptions in the global economy have impeded global supply chains, resulted in longer lead times and delays in procuring certain raw materials, and resulted in inflationary cost increases in certain raw materials, labor and transportation. We also experienced price increases for, among other items, consumable supplies, services for repairs and maintenance of our facilities, utilities, shipping and freight charges, fuel surcharges and labor costs, among other expenses. Based upon the macroeconomic environment, publicly available information and reports from the U.S. government, we expect this trend to continue in 2025. Although we cannot predict the extent to which future domestic and global economic conditions, including, but not limited to, supply chain constraints, tariffs or trade wars, changes in federal regulatory policies or priorities, general economic and geopolitical conditions, or the continuing conflicts in Europe, the Middle East and surrounding areas will impact us, such factors could have a significant impact on our future results of operations. In addition, some of our third-party inventory purchase agreements provide for scheduled price increases that are tied to various consumer price indices, which have resulted in higher than historical percentage price increases and could result in higher source plasma and other raw material and supplies costs in 2025 and beyond. Also, in a higher inflationary environment, we may not be able to raise the prices of our products to maintain the rate of inflation and this may affect our product margins.
Current wording
Inflation impacted a number of facets of our business during the six months ended June 30, 2025 and 2024 at each of our business segments. We experienced price increases for, among other items, certain raw materials, consumable supplies, services for repairs and maintenance of our facilities, utilities, shipping and freight charges, fuel surcharges and labor costs, among other expenses. Based upon the macroeconomic environment, publicly available information and reports from the U.S. government, we expect this trend to continue in 2025 and potentially longer, which could have a significant impact on our future results of operations. In addition, some of our third-party inventory purchase agreements provide for scheduled price increases that are tied to various consumer price indexes, which have resulted in higher than historical percentage price increases and could result in higher source plasma and other raw material and supplies costs in 2025 and beyond. Also, in a higher inflationary environment, we may not be able to raise the prices of our products to maintain the rate of inflation, and this may affect our product margins. We are unable to predict when these external drivers of inflation will subside.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
The following table presents a summary of the changes in our results of operations for the six months ended June 30, 2025, compared to the six months ended June 30, 2024:
Current report — wording carried from elsewhere
See Non-GAAP Financial Measures appearing at the end of this discussion
Current report — wording carried from elsewhere
Cost of Product Revenue and Gross Profit
Current report — wording carried from elsewhere
Cost of product revenue was $108.5 million for the six months ended June 30, 2025, as compared to $92.5 million for the six months ended June 30, 2024. This increase is primarily attributable to volume-driven increases in product revenue costs related to the increased sales of our IG products of $23.9 million, partially offset by $8.0 million of lower product revenue costs related to the reduction in plasma and intermediates sales.
Current report — wording carried from elsewhere
Amortization expense mainly pertains to the amortization of internally developed software and was $0.1 million and $0.3 million for the six months ended June 30, 2025 and 2024, respectively.
Current report — wording carried from elsewhere
Interest expense for the six months ended June 30, 2025 was $3.8 million, as compared to $7.6 million for the six months ended June 30, 2024, primarily driven by the decrease in debt balances due to principal repayments made in 2024 and 2025.
Current report — wording carried from elsewhere
The provision for income taxes of $12.4 million for the six months ended June 30, 2025, represented an effective tax rate of 16.9%, as compared to $4.4 million for the six months ended June 30, 2024, with an effective tax rate of 8.1%. As of June 30, 2024, the Company had a full valuation allowance for its net deferred tax assets, and the effective tax rate for the six months ended June 30, 2024 differed from the federal statutory tax rate of 21% primarily due to the recognition of deferred tax assets for the net operating losses. The Company released its valuation allowance in December 2024, and the effective tax rate for the six months ended June 30, 2025 differed from the federal statutory rate primarily due to the excess tax benefits on stock-based compensation.
Current report — wording carried from elsewhere
All of our obligations under the JPM Credit Agreement are secured by a first-priority lien and security interest in substantially all of the tangible and intangible assets, including intellectual property and equity interests, of us and all of our subsidiaries.
Current report — wording carried from elsewhere
The JPM Credit Agreement contains certain representations and warranties, affirmative covenants, negative covenants and conditions that are customarily required for similar financings. The negative covenants include certain financial covenants, including a maximum total leverage ratio of 2.50 to 1.00 and a minimum fixed charge coverage ratio of 1.20 to 1.00. The negative covenants also restrict or limit our ability and the ability of our subsidiaries to, among other things and subject to certain exceptions contained in the JPM Credit Agreement, incur new indebtedness; create liens on assets; engage in certain fundamental corporate changes; make certain investments; dispose of certain assets; engage in sale and leaseback transactions or swap agreements; make certain Restricted Payments (as defined in the JPM Credit Agreement); engage in certain affiliate transactions; enter into any other agreements that have the impact of restricting our ability to make loan repayments under the JPM Credit Agreement; or amend certain material documents.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Management’s Discussion and Analysis of Financial Condition and Results of Operations.