Elite Pharmaceuticals reported QQ2 2025 results that demonstrate top-line momentum and a robust product development pipeline, even as the company incurs substantial near-term profitability headwinds linked to upfront investments and non-cash warrant liabilities. Revenue for the quarter reached $18.88 million, up 33% year over year, and gross margin stood at 43.4%. However, net income was negative at $11.04 million and EBITDA was negative at $8.71 million, driven largely by non-operational charges and ramp-up costs surrounding the Elite product line and pipeline investments. Operating income was $3.48 million, reflecting a positive, though modest, operating margin of 18.5%, with year-to-date revenue of $37.70 million (+63% YoY). The company generated positive operating cash flow of $1.46 million in the six months ended September 30, 2024, signaling cash generation from ongoing operations that is expected to support further capacity expansion and pipeline rollouts.
Management reiterated a strategic emphasis on pipeline development as the lifeblood of growth, with several Near-Term ANDAs approaching commercialization (Hydrocodone/APAP, Oxycodone/APAP, Methadone) and a CNS ANDA pending FDA decision expected around November 23. A 35,000 sq ft new building with two packaging lines and significantly enhanced DEA storage capacity is progressing to enable multiple launches over the next 12â24 months. Management projects continued revenue growth and an expanding gross profit runway as volume scales and fixed costs dilute with higher production throughput. While the near-term earnings remain pressured by upfront investments and the noncash warrant liability, the foundation remains for a higher-trajectory earnings profile once new products achieve scale and regulatory milestones are cleared.