Heron Therapeutics Inc (NASDAQ:HRTX) Reports Mixed Q3 2025 Results, Misses Revenue and Earnings Estimates

Heron Therapeutics Inc (NASDAQ:HRTX) reported its third-quarter 2025 financial results, delivering a mixed performance against analyst expectations. While the company demonstrated significant commercial progress with its key products, it fell short of revenue forecasts for the quarter, contributing to negative market sentiment in pre-market trading.

Financial Performance Versus Expectations

The biotechnology company reported Q3 2025 net revenue of $38.2 million, falling below the analyst consensus estimate of $39.8 million. This represents a 16.5% increase compared to the $32.8 million reported in the same quarter last year but missed market expectations by approximately 4%.

On the profitability front, Heron reported a non-GAAP earnings per share loss of $0.05, which was notably wider than the estimated loss of $0.0153 per share that analysts had projected. This earnings miss appears to have weighed more heavily on investor sentiment than the year-over-year revenue growth.

The company's performance through the first nine months of 2025 shows net revenue of $114.3 million, positioning the firm to meet its full-year guidance range of $153 million to $163 million, which aligns closely with analyst sales estimates of $159.6 million for the full year.

Market Reaction and Price Action

Following the earnings release, Heron Therapeutics experienced negative pressure in pre-market trading, with shares declining approximately 3.4%. This reaction suggests investors were disappointed with the quarterly revenue miss and wider-than-expected loss, despite the company maintaining its full-year outlook.

The recent trading pattern shows:

• Minimal movement over the past week
• A decline of approximately 12.6% over the past two weeks
• A drop of nearly 12% over the past month

This pre-earnings weakness may have reflected market anticipation of a challenging quarter, with the earnings release confirming some of these concerns.

Commercial Progress and Product Performance

Heron's earnings release highlighted substantial growth in its Acute Care franchise, which saw remarkable expansion during the quarter:

• ZYNRELEF Performance: Net revenue grew 49% in Q3 2025 compared to Q3 2024, reaching $9.3 million for the quarter
• APONVIE Growth: Demonstrated explosive growth with a 173% increase in Q3 2025 revenue compared to the prior year period, generating $3.0 million
• Acute Care Franchise: Overall growth of 67.2% year-over-year in Q3 2025

The company's oncology portfolio showed more modest performance, with CINVANTI revenue increasing 6% year-over-year while SUSTOL experienced declining revenue.

Financial Position and Outlook

Heron maintained its full-year 2025 guidance, reaffirming net revenue expectations of $153 million to $163 million and adjusted EBITDA of $9 million to $13 million. This guidance suggests confidence in the company's ability to achieve the higher end of its projected range, which would represent significant growth over 2024 performance.

The company's balance sheet showed $55.5 million in cash, cash equivalents, and short-term investments as of September 30, 2025, providing runway to continue commercial expansion efforts.

Forward-Looking Analysis

For the upcoming fourth quarter, analysts project revenue of $42.2 million and a loss of $0.0153 per share. Heron's ability to meet or exceed these estimates will be crucial for rebuilding investor confidence following the Q3 miss. The company's continued execution on its commercial initiatives, particularly the expanded ZYNRELEF label and dedicated sales forces for both ZYNRELEF and APONVIE, will be key drivers for achieving these targets.

The recent implementation of a permanent J-code for ZYNRELEF effective October 1, 2025, could provide additional reimbursement clarity and support future growth, though these benefits may not be fully reflected in Q3 results.

For detailed earnings estimates and future projections, investors can review additional information on Heron Therapeutics' earnings estimates page.

Disclaimer: This article provides financial analysis for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any particular security or investment strategy. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.