MediWound Ltd (NASDAQ:MDWD) Reports Mixed Q2 2025 Results with Revenue Growth but Wider-Than-Expected Losses

MediWound Ltd (NASDAQ:MDWD) reported its second-quarter 2025 financial results, delivering mixed performance relative to analyst expectations. The company posted revenue of $5.7 million, a 43% sequential increase but slightly below the consensus estimate of $5.79 million. Earnings per share (EPS) came in at -$1.23, significantly wider than the anticipated -$0.58. The market reaction has been cautiously optimistic, with shares rising approximately 5% in pre-market trading, suggesting investors may be focusing on long-term growth prospects despite the earnings miss.

Financial Performance vs. Estimates

• Revenue: $5.7 million (up 43% QoQ, down 1.4% vs. estimates)
• EPS: -$1.23 (versus -$0.58 estimated)
• Gross Profit Margin: Improved to 23.5%, up from 8.8% in Q2 2024, reflecting a more favorable revenue mix.
• Operating Loss: Widened to $5.7 million from $4.5 million YoY, driven by increased R&D spending for the EscharEx® Phase III trial.

The net loss of $13.3 million included $6.6 million in non-cash financial expenses related to warrant revaluations, which weighed heavily on EPS. While revenue growth was solid, the higher-than-expected losses suggest that MediWound’s clinical and operational investments are pressuring profitability in the near term.

Market Reaction

The stock’s pre-market gain of ~5% indicates that investors may be looking past the earnings miss, focusing instead on:

• NexoBrid® Commercial Growth: U.S. partner Vericel reported a 52% YoY revenue increase for the burn treatment.
• EscharEx® Progress: Enrollment continues in the Phase III VALUE trial for venous leg ulcers, with interim data expected in mid-2026.
• Manufacturing Expansion: NexoBrid production capacity is on track to increase six-fold by year-end 2025.

Key Highlights from the Press Release

• Clinical Advancements:
  • EscharEx® added partnerships with Essity and Convatec, expanding its industry support.
  • NexoBrid received an additional $3.6 million in U.S. DoD funding for a room-temperature stable formulation.
• Financial Position: Cash reserves stood at $32.9 million as of June 30, 2025, down from $43.6 million at year-end 2024, with $11.9 million used for operations and capital expenditures in H1.

Outlook vs. Analyst Estimates

While the press release did not provide explicit forward guidance, analysts project:

• Q3 2025 Revenue: $6.8 million (vs. $5.7 million in Q2).
• Full-Year 2025 Revenue: $24.4 million (implying a ~25% YoY decline, likely due to reduced BARDA-funded development revenue).

The lack of formal guidance leaves room for interpretation, but the market’s positive reaction suggests optimism around MediWound’s pipeline and commercial execution.

Conclusion

MediWound’s Q2 results reflect a company in transition, balancing clinical investments with commercial growth. The revenue miss and deeper losses were offset by strong NexoBrid adoption and strategic progress in EscharEx development. Investors appear to be betting on long-term potential, though cash burn remains a watch item.

For detailed earnings estimates and historical performance, view the full earnings and estimates breakdown for MediWound.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.