Delcath Systems Inc (NASDAQ:DCTH) Reports Q3 2025 Revenue Miss, Meets EPS Estimates

Delcath Systems Inc (NASDAQ:DCTH) reported its third quarter 2025 financial results, delivering revenue growth that fell short of analyst expectations while meeting earnings projections. The interventional oncology company's performance reflects both commercial progress and ongoing investments in clinical development.

Quarterly Financial Performance

The company reported total revenue of $20.6 million for the third quarter of 2025, representing significant growth compared to the $11.2 million recorded in the same period last year. However, this figure came in below analyst estimates of $21.3 million. The revenue composition showed strong performance from the company's flagship product HEPZATO KIT, which generated $19.3 million, while CHEMOSAT contributed $1.3 million in sales.

Key financial metrics from the quarter include:

• Revenue miss versus estimates: Approximately 3.6% below expectations
• EPS of $0.02, matching analyst projections
• Gross margins of 87%, improving from 85% in Q3 2024
• Net income of $0.8 million, compared to $1.9 million in the prior year period
• Non-GAAP adjusted EBITDA of $5.3 million, substantially improved from $1.0 million in Q3 2024

Market Reaction and Business Updates

Following the earnings release, Delcath shares experienced downward pressure in pre-market trading, declining approximately 5.5%. This market reaction appears to reflect investor concern over the revenue miss despite the company meeting earnings expectations. The stock has faced challenges in recent weeks, with declines of approximately 16.6% over the past two weeks and 11.9% over the past month.

The company highlighted several business developments during the quarter, including the expansion to 25 active treatment centers across the United States. Clinical progress included the first patient dosing in the global Phase 2 trial of HEPZATO in combination with trifluridine-tipiracil and bevacizumab for liver-dominant metastatic colorectal cancer. Additionally, positive results from the Phase 2 CHOPIN trial evaluating CHEMOSAT with ipilimumab and nivolumab in metastatic uveal melanoma were presented at the European Society of Medical Oncology Annual Congress.

Financial Position and Outlook

Delcath maintained a strong balance sheet with $88.9 million in cash and investments as of September 30, 2025, with no debt outstanding. The company generated $4.8 million in cash from operations during the quarter, a significant improvement from the $3.6 million used in operations during the same period last year.

Looking forward, management provided full-year 2025 financial guidance projecting total CHEMOSAT and HEPZATO KIT revenue between $83-85 million, which would represent approximately 150% volume growth over 2024 levels. This outlook compares to analyst sales estimates of $91.7 million for the full year. The company also expects gross margins in the range of 85-87% and positive adjusted EBITDA and cash flow in each quarter of 2025.

For the upcoming fourth quarter, analysts project revenue of $21.3 million, which the company's guidance trajectory appears to align with, though specific quarterly breakdowns were not provided in the release.

Operational Expenses and Investments

The company demonstrated disciplined investment in growth initiatives during the quarter. Research and development expenses increased to $8.0 million from $3.9 million in the prior year period, primarily due to clinical team expansion and initiation of Phase 2 trials in metastatic colorectal cancer and metastatic breast cancer. Selling, general and administrative expenses rose to $10.3 million from $7.0 million, reflecting continued commercial expansion activities.

CEO Gerard Michel commented on the results, stating, "While revenue results in the quarter reflected the impact of NDRA discounts and seasonal factors, our fundamentals remain strong. We are confident that the growing clinical validation of HEPZATO positions us well to drive continued progress and long-term value for patients and shareholders."

For more detailed earnings information and analyst estimates, visit the Delcath Systems earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The author has no position in Delcath Systems Inc. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.