Biofrontera Inc. reported preliminary unaudited revenue of $17.0 million to $17.5 million for the fourth quarter ended December 31 2025, a 35%‑39% year‑over‑year increase over the $12.6 million recorded in Q4 2024 and the highest quarterly revenue in the company’s history.
Full‑year 2025 revenue guidance of $41.5 million to $42.0 million represents an 11%‑13% increase over the $37.3 million reported for 2024, and sits slightly above the consensus estimate of $40.94 million, indicating a modest upside for the year‑end outlook.
Gross‑margin performance has improved markedly: the company’s gross profit margin was 67.5% in Q3 2025, up from 64.41% in the prior twelve months and 47.1% in 2024. Management projects margins to reach 75%‑80% as the October 2025 royalty‑based cost structure—effectively a renegotiated license and supply agreement with Biofrontera AG—reduces transfer pricing and lowers cost of goods sold.
The transaction with Biofrontera AG, completed in December 2025, transferred full U.S. rights for the Ameluz® photodynamic therapy platform and the RhodoLED lamp system. The deal eliminates inter‑company pricing and aligns margins with the specialty‑pharma benchmark, directly supporting the projected margin expansion and strengthening the company’s financial foundation.
Revenue growth was driven by several factors: a December pricing adjustment lifted Ameluz® sales, the installed RhodoLED lamp base grew to roughly 750 units, and the company is preparing FDA submissions for new indications—including superficial basal cell carcinoma, body‑site actinic keratosis, and acne vulgaris—expected to broaden the addressable market in 2026.
CEO Hermann Luebbert said, “We are very pleased with our fourth‑quarter performance, driven by strong execution across the business, continued growth of Ameluz® PDT, and the pricing adjustment introduced in December. The transformational transaction with Biofrontera AG meaningfully improves our gross‑margin profile and further strengthens our financial foundation.” He added that pending positive outcomes of the Phase 3 actinic keratosis study, the company plans to submit a supplemental NDA in summer 2026 to expand Ameluz® use beyond the face and scalp.
Analysts noted that the full‑year revenue guidance slightly exceeds consensus, while Q3 2025 revenue of $6.99 million fell short of the $7 million estimate. The guidance reflects confidence in the pipeline and margin gains, but the company’s net loss and cash burn remain a concern for investors.
Market reaction has been tempered by concerns over persistent net losses and cash burn, despite the record revenue and margin expansion. Investors are watching the company’s ability to translate higher sales into profitability and the timing of FDA approvals for the new indications.
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