CytoSorbents Corporation reported third‑quarter 2025 revenue of $9.5 million, a 10% year‑over‑year increase from $8.6 million in Q3 2024, but fell short of the $10.4 million consensus estimate. Adjusted net loss for the quarter was $2.6 million, or $0.04 per share, beating the analyst‑expected loss of $0.05 per share. Gross margin rose to 70% from 61% in the prior year, reflecting a stronger mix of high‑margin products and disciplined cost management.
The revenue growth was driven by record sales in distributor territories and robust performance in direct markets outside Germany, where demand for CytoSorb’s core products remained strong. In contrast, sales in Germany declined 3%, prompting a restructuring of the German sales force. The combination of international expansion and a temporary headwind in the domestic market explains the modest revenue miss relative to consensus.
Gross‑margin expansion to 70% was largely a result of higher pricing power in the core product line and improved operational leverage as volume increased. Cost controls implemented in the supply‑chain and manufacturing processes helped offset raw‑material price pressures, allowing the company to maintain a healthy margin despite the revenue shortfall. The margin improvement directly contributed to the EPS beat, as higher profitability offset the lower top line.
The EPS beat can be attributed to a combination of tighter cost discipline, a favorable product mix, and the elimination of one‑time restructuring charges that were present in prior periods. While revenue fell short of expectations, the company’s ability to preserve margin and reduce operating expenses enabled it to outperform earnings forecasts, underscoring management’s focus on operational efficiency.
Looking ahead, CytoSorbents is targeting cash‑flow break‑even by Q1 2026, a milestone that signals confidence in its long‑term financial sustainability. The company has also advanced its DrugSorb‑ATR regulatory pathway, with a pre‑submission meeting scheduled for late 2025 or early Q1 2026 and a De Novo application slated for Q1 2026. In addition, a recent amendment to its credit agreement secured an extra $2.5 million in cash and extended the interest‑only period, further strengthening the balance sheet. A workforce and cost‑reduction program is underway to accelerate the path to break‑even.
"CEO Dr. Phillip Chan said the quarter demonstrated the company’s ability to deliver strong core product sales while maintaining disciplined execution," said Chan. "We remain focused on achieving cash‑flow break‑even, advancing DrugSorb‑ATR, and strengthening our balance sheet to maximize shareholder value," he added. CFO Pete Mariani highlighted the company’s structural improvements and improved execution, noting that the cost‑reduction program is already delivering measurable savings. Investors responded positively to the results, reflecting confidence in the company’s margin expansion and strategic outlook.
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