Lexaria Bioscience Corp (LEXXW) Q2 2025 Earnings Report

Lexaria Bioscience reported Q2 2025 revenue of $174,000 with a gross profit of $174,000, yielding a near-100% gross margin under a licensing-driven model. However, the quarter carried substantial operating losses, with EBITDA of approximately -$2.75 million and net income of -$2.71 million, translating to an EPS of -$0.15. Revenue increased 20% year over year but declined ~5.4% quarter over quarter, and operating cash flow remained negative at -$1.50 million for the quarter, producing negative free cash flow of the same magnitude.

Looking at the four-quarter trailing view (Q2 2025, Q1 2025, Q4 2024, Q3 2024), Lexaria generated roughly $525.9k in revenue against about $523.2k in gross profit, implying an extremely high gross margin due to the low or zero cost of revenue in licensing arrangements. The four-quarter net income totaled about -$9.38 million, underscoring a persistent burn driven by R&D and corporate expenses rather than scale revenue. The balance sheet shows a liquid position with cash and equivalents of about $6.47 million and minimal debt, supporting a current ratio of ~4.24 and a cash/short-term investment balance of roughly $6.54 million. While liquidity is solid for a small-cap biotech, the company remains unprofitable with limited near-term revenue visibility. Management commentary from the earnings call is not included in the provided data, so quoted insights from executives are not available in this compilation.