PetVivo Holdings reported QQ2 2025 results with a meaningful sequential revenue uplift and an exceptionally high gross margin, but the quarter remains cash-burn negative and driven by substantial operating expenses. Revenue of 200,720 (USD thousands) and gross profit of 179,558 yield a gross margin of approximately 89.46%, underscoring a favorable product mix or pricing dynamics on a per-unit basis, alongside a relatively modest cost of revenue relative to top-line growth. Yet, operating losses persisted as R&D, G&A, and SG&A outlays remained elevated (R&D 465,174; G&A 1,267,117; Selling and SG&A 1,887,424, with total operating expenses of 2,352,598). Net income was negative at 2,175,493, reflecting the combination of heavy operating expenses and other income/expense dynamics, despite a 62% QoQ revenue increase. The quarter’s cash flow was negative, with operating cash flow of -1,600,293 and free cash flow of -1,585,115, contributing to a cash balance of 126,239 at period end. Key takeaways for investors center on (1) the resilience of gross margin and potential profit leverage as scale and mix improve, (2) the sustained cash burn tied to aggressive R&D and SG&A investments, and (3) the need for durable top-line growth and/or strategic partnerships to unlock profitability. The development of Kush and the broader pipeline remains a critical catalyst, but meaningful profitability will hinge on managing operating costs and converting pipeline milestones into revenue traction.
Operating Expenses: 2,352,598; R&D 465,174; G&A 1,267,117; SG&A (Selling, General & Administrative) 1,887,424; total operating expenses offset by gross profit yielded EBITDA -2,173,040 and operating income -2,173,040 (margin approx -10.83%).
Net Income: -2,175,493; Net margin -10.84%; EPS -0.11; Weighted average shares 20,099,095.
EBITDA: -2,173,040; EBITDA margin -10.83%.
Cash flow and balance sheet
Financial Highlights
Revenue and profitability
- Revenue: 200,720 (USD thousands); QoQ change +62.20%; YoY change -3.20%.
- Gross Profit: 179,558; Gross margin 0.895 (89.46%); QoQ change +62.12%; YoY change +170.20%.
- Operating Expenses: 2,352,598; R&D 465,174; G&A 1,267,117; SG&A (Selling, General & Administrative) 1,887,424; total operating expenses offset by gross profit yielded EBITDA -2,173,040 and operating income -2,173,040 (margin approx -10.83%).
- Net Income: -2,175,493; Net margin -10.84%; EPS -0.11; Weighted average shares 20,099,095.
- EBITDA: -2,173,040; EBITDA margin -10.83%.
Cash flow and balance sheet
- Net cash from operating activities: -1,600,293; free cash flow: -1,585,115.
- Cash and cash equivalents at period end: 126,239; total assets: 3,186,744; total liabilities: 2,777,573; total stockholders’ equity: 409,171.
- Leverage and liquidity: current ratio 0.671; quick ratio 0.471; cash ratio 0.0679; debt-to-equity 2.69; total debt to capitalization 0.729; long-term debt to capital 0.690.
- Returns and efficiency: ROA -0.68%; ROE -5.32%; asset turnover 0.063; gross margin 89.5%; operating margin -10.83%.
Valuation (as of QQ2 2025 data)
- Price-to-sales: 2.56; price-to-book: 1.26; enterprise value to sales/other metrics show negative EV due to cash/debt configuration; price-to-earnings negative (loss year).
Notes: All monetary figures are USD, reported in thousands where applicable. The quarter shows a very high gross margin but is foregrounded by substantial R&D and SG&A outlays that drive a negative bottom line and cash burn.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
200.72K
-3.20%
62.20%
Gross Profit
179.56K
170.20%
62.12%
Operating Income
-2.17M
26.20%
-6.29%
Net Income
-2.18M
40.58%
-6.27%
EPS
-0.11
60.71%
0.00%
Key Financial Ratios
currentRatio
0.67
grossProfitMargin
89.5%
operatingProfitMargin
-1083%
netProfitMargin
-1084%
returnOnAssets
-68.3%
returnOnEquity
-532%
debtEquityRatio
2.69
operatingCashFlowPerShare
$-0.08
freeCashFlowPerShare
$-0.08
priceToBookRatio
1.26
priceEarningsRatio
-0.06
Net Income vs. Revenue
Expense Breakdown
Management Commentary
transcriptHighlights: No management call transcript data were provided with the QQ2 2025 results. As such, no thematic quotes or management-specific commentary can be extracted from the transcript. When the transcript becomes available, insert quotes grouped by themes (strategy, operations, market conditions) with context and significance.
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Forward Guidance
There is no explicit management guidance in the provided data. Given the current trajectory, forward-looking assessment hinges on three potential catalysts: (1) Kush commercialization and adjacent pipeline products translating to meaningful revenue inflection, (2) strategic partnerships or licensing deals that monetize the pipeline with lower cash burn, and (3) operating leverage as scale improves and product mix shifts toward higher-margin offerings. Achievability depends on securing timely regulatory approvals, market uptake in veterinary practice, and the company’s ability to manage R&D intensity and SG&A costs during the expansion phase. Investors should monitor management commentary on product adoption timelines, pipeline milestones, potential collaborations, and any changes in capex or working capital requirements that could alter the cash burn trajectory.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
PETVW Focus
89.46%
-10.83%
-5.32%
-5.91%
PETV
89.50%
-10.83%
-5.32%
-1.09%
IINNW
0.00%
0.00%
0.00%
0.00%
NLSPW
0.00%
0.00%
22.00%
-19.60%
ZIVOW
0.00%
0.00%
3.59%
-1.80%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the QQ2 2025 results, PetVivo presents a high-risk, high-uncertainty profile. The company demonstrates a compelling gross margin and a clear pathway through its Kush product and pipeline, but near-term profitability remains elusive due to heavy R&D and SG&A outlays and persistent cash burn. The investment thesis hinges on successful monetization of Kush and pipeline milestones, the ability to secure strategic partnerships or licensing deals to unlock revenue without proportional cost growth, and disciplined cost management to convert top-line growth into meaningful earnings. In the near term, investors should expect continued volatility tied to product development timelines, regulatory progress, and financing needs. A caveat is the low liquidity of the balance sheet and the potential for dilution if new funding rounds occur. Monitoring milestones include pipeline advancement, regulatory progress, partnerships, and any guidance on ramping revenue with improved operating leverage.
Key Investment Factors
Growth Potential
High gross margin on current revenue base suggests potential for profitability if the top-line scales and cost structure is optimized. The Kush product and pipeline of 17 therapeutic devices indicate multiple levers for revenue growth and potential licensing upside, subject to regulatory clearance, market adoption, and partner incentives.
Profitability Risk
Key risks include continued operating losses due to sustained R&D and SG&A expenditure, dependence on a few core products for near-term revenue, regulatory and reimbursement uncertainties in veterinary and human applications, and cash runway concerns unless new financing or revenue growth accelerates. The balance sheet shows sizeable accumulated deficits relative to equity, heightening liquidity risk for near-term milestones.
Financial Position
Early-stage profitability risk with heavy investment cadence. Cash burn remains a critical consideration even as gross margin remains robust. Leverage is moderate to high (debt to equity and capital) given the observed balance sheet, necessitating careful monitoring of cash flow, cost controls, and potential financing strategies.
SWOT Analysis
Strengths
Very high gross margin (~89.5%), suggesting favorable product mix or pricing on core revenue stream.
Resilient top-line growth QoQ (+62.0%) signaling potential early demand expansion or seasonal uptick.
PetVivo has an established niche in veterinary medical devices with Kush as a flagship product, providing a foundation for pipeline monetization.
Diversified cost structure with a sizeable R&D and pipeline that could unlock future revenue streams if milestones are achieved.
Weaknesses
Sustained operating losses due to heavy R&D and SG&A spending, resulting in negative cash flow.
Large accumulated deficit relative to equity indicating dependence on external financing and potential dilution risk.
Limited visible short-term revenue diversification; reliance on select products and partnerships for growth.
Liquidity risk given negative operating cash flow and modest cash balance for a company of this scale.
Opportunities
Commercialization of Kush and pipeline devices could unlock meaningful revenue growth and higher-margin opportunities.
Potential licensing or strategic partnerships could monetize the pipeline while reducing cash burn.
Expansion beyond veterinary into related human clinical applications could broaden addressable market.
Threats
Regulatory hurdles and reimbursement dynamics could delay or cap market adoption.
Competition in veterinary devices and biotech could erode pricing power or market share.
Macro funding environment and capital market conditions could impact equity/debt financing options.