Executive Summary
Elite Pharmaceuticals Inc (ELTP) reported QQ3 2025 revenue of $14.36 million, down 7.6% year-over-year and 23.9% quarter-over-quarter. While gross margin remained robust at 42.6%, operating income was a modest $1.10 million, yielding an operating margin of 7.6%. The quarter featured a substantial drag from non-operating items, with total other income/expenses net at $(11.75) million and an overall net loss of $(10.89) million, or a net margin of −75.8%. EBITDA remained deeply negative at $(10.08) million, underscoring a structural run-rate cash burn despite a positive operating contribution. Cash flow from operations was negative at $(1.06) million for the quarter, contributing to a lower free cash flow of $(1.06) million and a year-end cash balance of $8.29 million.
Key Performance Indicators
QoQ: -23.92% | YoY:-7.56%
QoQ: -25.35% | YoY:-8.63%
QoQ: -68.50% | YoY:-68.92%
QoQ: 1.31% | YoY:-1 641.99%
QoQ: 2.91% | YoY:-1 528.57%
Key Insights
Revenue: $14.364 million; YoY change: −7.56%; QoQ change: −23.92%
Gross Profit: $6.119 million; Gross Margin: 42.60%; YoY Gross Margin change: −8.63%; QoQ: −25.35%
Operating Income: $1.098 million; Operating Margin: 7.64%; YoY: −68.92%; QoQ: −68.50%
Net Income: $(10.892) million; Net Margin: −75.83%; YoY: (extremely negative, driven by non-operating items); QoQ: +1.31%
EPS: $(0.01) per share; EPS Diluted: $(0.01)
EBITDA: $(10.085) million; EBITDA Margin: (−70.21%)
Balance Sheet: ...
Financial Highlights
Revenue: $14.364 million; YoY change: −7.56%; QoQ change: −23.92%
Gross Profit: $6.119 million; Gross Margin: 42.60%; YoY Gross Margin change: −8.63%; QoQ: −25.35%
Operating Income: $1.098 million; Operating Margin: 7.64%; YoY: −68.92%; QoQ: −68.50%
Net Income: $(10.892) million; Net Margin: −75.83%; YoY: (extremely negative, driven by non-operating items); QoQ: +1.31%
EPS: $(0.01) per share; EPS Diluted: $(0.01)
EBITDA: $(10.085) million; EBITDA Margin: (−70.21%)
Balance Sheet: total assets $90.76 million; total liabilities $54.31 million; stockholders’ equity $36.45 million
Liquidity: current ratio 3.27; quick ratio 1.90; cash ratio 0.57; cash & equivalents $8.29 million; inventory $20.16 million; accounts receivable $18.45 million
Leverage: total debt $11.18 million; net debt $2.88 million; debt/equity 0.31; debt to capitalization 23.5%
Cash Flow: Net cash provided by operating activities $(1.06) million; free cash flow $(1.06) million; cash at end of period $8.74 million
Capital Deployment: no dividends; no share repurchases in QQ3 2025; capex data not disclosed for the quarter
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
14.36M |
-7.56% |
-23.92% |
| Gross Profit |
6.12M |
-8.63% |
-25.35% |
| Operating Income |
1.10M |
-68.92% |
-68.50% |
| Net Income |
-10.89M |
-1 641.99% |
1.31% |
| EPS |
-0.01 |
-1 528.57% |
2.91% |
Key Financial Ratios
operatingProfitMargin
7.64%
operatingCashFlowPerShare
$-0
priceEarningsRatio
-13.27
Management Commentary
No earnings call transcript was provided for QQ3 2025 ELTP. As a result, there are no management quotes or theme-based insights to extract from a transcript. The analysis below relies on disclosed financial results and historical context.
Forward Guidance
There is no formal forward guidance disclosed in the provided data for QQ3 2025. Given the current trajectory, investors should monitor: (1) progress on abuse-deterrent opioid development and potential regulatory/commercial milestones; (2) the trajectory of contract manufacturing volume and the associated margin lift; (3) inventory levels and working capital optimization to reduce cash burn; (4) cost-reduction initiatives and potential restructuring that could improve EBITDA and net margins; and (5) industry pricing pressure and competitive dynamics in the generics space. Achievability of any qualitative guidance would hinge on stabilizing operating leverage, reducing non-operating charges, and converting positive operating income into sustained free cash flow.