Heron Therapeutics reported its fourth‑quarter 2025 results, posting net revenue of $40.6 million—slightly above the consensus estimate of $40.3 million—and a GAAP earnings per share of $‑0.02, a modest improvement over the $‑0.03 consensus. The company also reaffirmed its 2026 outlook, projecting revenue of $173 million to $183 million and adjusted EBITDA of $10 million to $20 million.
Revenue for the quarter fell 0.5% from $40.8 million in Q4 2024, but the decline was narrow compared with the 7.4% year‑over‑year increase in full‑year 2025 revenue, which reached $154.9 million versus $144.2 million in 2024. The company’s total adjusted EBITDA rose to $14.7 million, up from $6.4 million in 2024, reflecting stronger operating leverage and a higher mix of high‑margin products.
The GAAP loss per share of $‑0.02 beat the $‑0.03 estimate, but some analysts noted the loss was slightly wider than the $‑0.0204 consensus. Management attributed the improvement to disciplined cost management and a favorable product mix, while acknowledging that the company still faces a small net loss as it continues to invest in growth initiatives.
Gross margin improved to roughly 73%, driven by cost discipline and a shift toward higher‑margin Acute Care products. The company’s Acute Care franchise grew 65.1% year‑over‑year, while its Oncology segment declined 7.8% due to the planned wind‑down of SUSTOL. The company also completed the transition to a vial‑access needle for its flagship product ZYNRELEF and secured permanent, product‑specific J‑Codes from CMS for both ZYNRELEF and APONVIE, which should simplify reimbursement and accelerate adoption.
CEO Craig Collard highlighted the company’s “exceptional momentum” entering 2026, citing the success of strategic initiatives such as the Vial Access Needle transition and the J‑Code approvals. CFO Ira Duarte emphasized that the company remains EBITDA‑profitable while shifting its mix toward higher‑growth assets, describing the 2025 results as an “important milestone” that demonstrates the ability to grow revenue without sacrificing financial discipline.
Investors reacted positively to the earnings release, with the market citing the revenue beat, the strong 2026 guidance, and the continued expansion of the Acute Care franchise as key drivers of optimism.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.