Crescita Reports Second Quarter 2025 Results

Executive Summary

• Crescita Therapeutics Inc. reported financial results for the second quarter ended June 30, 2025, showing significant year-over-year improvement with a return to net income after a prior-year loss.
• Revenue increased by 52.5% year-over-year to $6,233,000 CAD, driven by ramp-up in manufacturing volumes with a new customer, growth in the Skincare segment, and a one-time termination payment from Croma Pharma.
• The company mutually terminated its licensing agreement with Croma Pharma for Pliaglis®, regaining commercialization rights in key territories and receiving a €575,000 (CA$902,000) termination payment.

Key Details

• Q2-2025 Financial Highlights (vs Q2-2024):
  • Revenue: $6,233,000 (up from $4,088,000; +$2,145,000).
  • Gross Profit: $3,825,000 (up from $2,235,000; +$1,590,000).
  • Gross Margin: 61.4% (up from 54.7%).
  • Operating Expenses: $3,242,000 (down from $3,279,000; -$37,000).
  • Net Income: $798,000 (vs. Net Loss of $(926,000)).
  • Adjusted EBITDA: $964,000 (vs. $(686,000); +$1,650,000).
  • Ending Cash: $8,184,000 (down $354,000 from prior quarter).
• Six Months Ended June 30, 2025:
  • Revenue: $9,770,000 (up from $9,084,000).
  • Net Loss: $(134,000) (vs. $(1,552,000) in prior year).
  • Adjusted EBITDA: $285,000 (vs. $(1,011,000) in prior year).
• Segment Performance (Q2-2025):
  • Commercial Skincare: $3,153,000 (up from $2,972,000), driven by Aquafolia sales and Asian exports.
  • Licensing and Royalties: $1,277,000 (up from $491,000), boosted by the Croma termination payment.
  • Manufacturing and Services: $1,803,000 (up from $625,000), driven by new customer production ramp-up.
• Croma Pharma Termination:
  • Mutual termination of Commercialization and Development License Agreement for Pliaglis® in Germany, UK, Ireland, Switzerland, Brazil, Romania, Belgium, Netherlands, and Luxembourg.
  • Crescita regained all development and commercialization rights for Pliaglis in these territories.
  • Croma paid Crescita €575,000 (CA$902,000).
• Share Repurchases (NCIB):
  • Q2-2025: Repurchased 107,004 shares at weighted average price of $0.55/share for $59,000.
  • Six Months Ended June 30, 2025: Repurchased 183,098 shares at weighted average price of $0.56/share for $102,000.
• Balance Sheet & Cash Flow (Q2-2025):
  • Cash used in operating activities: $(3,000).
  • Cash used in investing activities: $(170,000).
  • Cash used in financing activities: $(175,000).

Notable Quotes

• “We are pleased with the positive results for the quarter, which showed significant year-over-year improvement and strengthened our position as we enter the second half of 2025. Q2 was marked by the successful fulfillment of key purchase orders with a new manufacturing customer, and the continued growth in our Skincare segment,” said Serge Verreault, President and CEO.
• “While non-recurring in nature, the mutual termination agreement with Croma added approximately $900,000 to our topline and cash balance. When excluding its impact on our results, we achieved a breakeven Adjusted EBITA for the quarter,” added Mr. Verreault.
• “Looking ahead, we are optimistic about our growth prospects and are actively exploring strategic opportunities to further strengthen our position and expand our market presence, including discussions with potential partners for Pliaglis for certain available European countries.”