Biofrontera Q2 Revenue Jumps 15%
(NASDAQ:BFRI) reported fiscal second quarter results for the period ended June 30, 2025, with total revenues rising to $9 million from $7.8 million a year earlier, representing a 15% year-over-year increase. The company highlighted transformative progress toward operational independence, margin expansion, and late-stage clinical advances that could expand its addressable market. The following insights examine margin transformation, commercial execution, and long-term growth drivers for investors.
Cost of revenues (GAAP) declined by 42% year-over-year in the fiscal second quarter, driven by a structural shift from a 25%-35% transfer price to a 12% royalty as part of the restructuring with Biofrontera AG. This change, effective for the 2025 fiscal year to date, materially improves unit economics as Ameluz volume reaches all-time highs and provides a buffer against potential tariff impacts as manufacturing transitions in-house.
This cost structure evolution positions the company for sustainable gross margin improvement and enhances financial resilience by aligning royalties with realized U.S. revenues.
Source Fool.com
