Crescita Reports Third Quarter 2025 Results
Executive Summary
- Crescita Therapeutics reported Q3‑2025 revenue of $5.393 M, up 50% year‑over‑year, driven by strong manufacturing volumes and a $902 K termination payment from Croma Pharma.
- Net income turned positive at $0.753 M ($0.04 per share) versus a loss of $1.036 M in Q3‑2024; Adjusted EBITDA improved to $0.262 M from a negative $0.681 M.
- Completed acquisition of Laboratoire Provence‑Canada Inc.’s assets for cash consideration of $0.775 M and secured an exclusive five‑year supply agreement, expanding recurring manufacturing revenue.
Key Details
- Financial Highlights (Q3‑2025 vs Q3‑2024)
- Revenue: $5.393 M vs $3.594 M (+$1.799 M)
- Gross profit: $2.855 M vs $1.967 M (+$0.888 M)
- Operating expenses: $3.017 M vs $3.139 M (‑$0.122 M)
- Net income: $0.753 M vs a loss of $(1.036) M
- Adjusted EBITDA: $0.262 M vs $(0.681) M
-
Cash balance end‑quarter: $8.308 M (↑$0.124 M)
-
Asset Acquisition – Laboratoire Provence‑Canada Inc.
- Purchase price: cash $0.775 M (assets fair‑value estimated at $1.383 M).
- Included accounts receivable, inventories, equipment, customer network, and Bacti Control® IP.
-
Expected to boost manufacturing volumes and plant utilization.
-
Exclusive Five‑Year Supply Agreement
- Secured exclusive contract to manufacture products for a former LPC CMO client (branded & private‑label).
-
Enhances recurring revenue base; prior year LPC CMO generated >$0.5 M sales.
-
Share Repurchases (NCIB)
- Q3 repurchased 253,594 shares at $0.47 average price ($121 K cash).
-
YTD total repurchased 436,692 shares at $0.51 average price ($223 K cash).
-
Termination of Licensing Agreement with Croma Pharma
- Mutual termination; Crescita regained rights to Pliaglis® in eight territories.
- Received €575,000 (€≈$902 K CAD) termination payment.
-
Company seeking new partners for commercialization in those markets.
-
Impairment & Convertible Note Adjustments
- Impairment charge of $0.281 M on investment in associate “The Best You” (TBY).
-
Fair‑value loss on convertible note receivable: $0.349 M (re‑measurement to $0.300 M).
-
Cash Flow Summary
- Operating cash provided: $1.173 M (Q3) vs $0.424 M prior year.
- Investing cash used: $(0.821 M) (includes $0.775 M LPC acquisition).
-
Financing cash used: $(0.239 M) (primarily share repurchases).
-
Segment Performance
- Manufacturing revenue surged to $2.700 M from $0.434 M YoY, driving overall growth.
- Skincare segment slightly down; Licensing revenue fell due to lower Pliaglis® sales.
Notable Quotes
“Our third quarter results reflected growth in our Manufacturing segment, driven by the timing and fulfillment of significant volumes for new and existing clients.” – Serge Verreault, President & CEO
“The acquisition of assets from Laboratoire Provence‑Canada Inc., together with a newly signed five‑year exclusive supply agreement, bolsters our recurring revenue and capitalizes on our manufacturing capabilities.” – Serge Verreault, President & CEO