Executive Summary
Aytu BioPharma completed a strategic pivot in 2024, exiting the consumer health business and winding down its Texas Grand Prairie manufacturing footprint to focus resources on its prescriptionRx business (ADHD and pediatric portfolios). For the year ended June 30, 2024, net revenue declined to $81.0 million from $107.4 million in the prior year, reflecting the wind-down in consumer health and payer-driven variability in pediatric scripts. Despite lower top-line revenue, the company achieved a meaningful profitability turnaround, with consolidated adjusted EBITDA of $9.2 million for fiscal 2024, a sizable swing from negative EBITDA in 2022 and 2023. Management cites the improvement in operating profile as a cornerstone of investor value creation, including debt refinancing with Eclipse, extension of the revolving facility, and removal of going-concern language. In 2024, Rx gross margins improved to 75% (vs 71% prior year) driven by a favorable mix and efficiency gains after transitioning ADHD production to a U.S.–based contract manufacturer, while overall company margins rose to 67% from 62%. ADHD revenue rose 23% year-over-year, supporting a narrative of accelerating core prescription growth, though pediatric revenues contracted sharply due to payer changes. Early 2025 data indicated continued ADHD unit demand strength (year-to-date unit growth ~26% vs. prior period) and early signs of pediatric stabilization, with ongoing commercial initiatives via the RxConnect platform designed to improve payer coverage and patient access. Management guides to returning Rx-revenue and adjusted EBITDA growth in fiscal 2025, signaling a path to higher profitability as the company scales its RxConnect-enabled commercial engine and modestly expands its product slate. Overall, the company presents a cautiously optimistic, debt-leaning turnaround story with a disciplined balance sheet, improving gross margins, and a laser focus on profitability and free cash flow generation in 2025.
Key Performance Indicators
QoQ: -0.09% | YoY:-41.51%
QoQ: -48.13% | YoY:-2 259.76%
QoQ: -59.76% | YoY:-87.68%
QoQ: -59.62% | YoY:-40.68%
Key Insights
Revenue and profitability: 2024 net revenue $81.0 million (YoY decline vs. 2023); Rx net revenue $65.2 million (down from $73.8 million); ADHD full-year revenue $57.8 million (+23% YoY), pediatric revenue $7.3 million (down from $25.4 million); consumer health revenue declined to $15.8 million for the year and was divested in 2024. Q4 2024 Rx segment revenue $14.6 million vs $23.3 million in Q4 2023. Gross margins: companywide 67% in 2024 (vs 62% 2023); Rx gross margin 75% in 2024 (vs 71% prior ...
Financial Highlights
Revenue and profitability: 2024 net revenue $81.0 million (YoY decline vs. 2023); Rx net revenue $65.2 million (down from $73.8 million); ADHD full-year revenue $57.8 million (+23% YoY), pediatric revenue $7.3 million (down from $25.4 million); consumer health revenue declined to $15.8 million for the year and was divested in 2024. Q4 2024 Rx segment revenue $14.6 million vs $23.3 million in Q4 2023. Gross margins: companywide 67% in 2024 (vs 62% 2023); Rx gross margin 75% in 2024 (vs 71% prior year). Operating and net results: operating loss for 2024 was $5.3 million; net loss $15.8 million; quarterly EBITDA: consolidated adjusted EBITDA $1.5 million in Q4 2024 (vs $7.7 million in Q4 2023); full-year adjusted EBITDA $9.2 million (vs $3.5 million in 2023). Cash flow and liquidity: cash and cash equivalents $20.0 million at 6/30/2024; net cash used by operating activities $(0.788) million; free cash flow $(0.788) million; balance sheet improvements include refinancing of debt with Eclipse, extension of the revolver to 2028, and a reduction in the current portion of long-term debt to < $2.0 million. Current ratio 0.995, quick ratio 0.792, cash ratio 0.321. Shareholder metrics: basic shares outstanding ~5.54 million.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
17.98M |
-41.51% |
-0.09% |
| Gross Profit |
11.91M |
-35.87% |
1.82% |
| Operating Income |
-3.65M |
-2 259.76% |
-48.13% |
| Net Income |
-4.62M |
-87.68% |
-59.76% |
| EPS |
-0.83 |
-40.68% |
-59.62% |
Key Financial Ratios
operatingProfitMargin
-20.3%
operatingCashFlowPerShare
$-0.14
freeCashFlowPerShare
$-0.14
Management Commentary
Key themes from management discussion and Q4/Q1 commentary: (1) Strategy/portfolio: The 2024 pivot toward a pure-play Rx business, wind-down of consumer health, and consolidation of manufacturing to a U.S.-based contract manufacturer improved the operating profile and reduced fixed costs. (2) Financial performance: Adjusted EBITDA improved meaningfully to $9.2 million for the year, with Rx-adjusted EBITDA of $10.8 million; 2024 gross margins rose to 75% for Rx and 67% company-wide. (3) Operational progress: ADHD unit demand strengthened (ADHD scripts up 26% in the latest period, with cumulative YoY ADHD revenue up 23% for the year); pediatric prescriptions experienced payer-driven volatility but show early signs of stabilization and improving coverage. (4) Balance sheet/financing: The debt refinancing with Eclipse reduced interest expense (approx. 350 bps lower rate) and extended debt maturity to 2028, reclassifying much of the debt to long-term; the revolving facility was extended to 2028, enhancing liquidity. (5) Outlook/Guidance: Management asserts confidence in returning to revenue growth and EBITDA expansion in fiscal 2025, with RxConnect enabling scale and potential addition of new products with minimal incremental infrastructure.
During fiscal 2024, adjusted EBITDA improved 162% to $9.2 million compared to $3.5 million in fiscal 2023.
— Josh Disbrow
RxConnect is innovative and is also highly leverageable to enable scale for our current products and future products that we believe can be added to the promotional mix in the future.
— Josh Disbrow
Forward Guidance
Management guidance emphasizes a return to growth in fiscal 2025, with Rx revenue and adjusted EBITDA expected to exceed fiscal 2024 levels. Key drivers include: (i) continued ADHD prescription demand leveraging RxConnect-based pricing guarantees and expanded payer coverage; (ii) anticipated stabilization and growth in the pediatric portfolio as payer changes normalize and coverage improves; (iii) potential addition of new, relatively low-capex products via the RxConnect distribution network; (iv) ongoing cost discipline from the wind-down of the consumer health business and the Grand Prairie manufacturing closure. Risks to guidance include continued payer volatility, reliance on a relatively small Rx portfolio, macro payer and regulatory changes, and potential delays in commercialization of any added products. Monitoring points for investors: ADHD unit growth trajectory (tracking 20–30% YoY growth in units), pediatric coverage expansion (guaranteed payer pathways and covered lives), gross-to-net dynamics for ADHD vs pediatric lines, and the monetization potential of any new RxConnect opportunities, as well as liquidity and debt service costs amid a prolonged maturity profile.