MediWound Ltd (NASDAQ:MDWD) Reports Q3 2025 Earnings: Revenue Misses, EPS Beats Estimates

MediWound Ltd (NASDAQ:MDWD) has announced its financial results for the third quarter of 2025, revealing a mixed performance against analyst expectations. The company's report highlights both progress in its clinical pipeline and a financial outcome that fell short of revenue forecasts, providing a complex picture for investors.

Financial Performance Versus Estimates

The company's top-line results for the quarter showed growth but did not meet the bar set by Wall Street. MediWound reported revenue of $5.4 million, which represents a 23% increase compared to the $4.4 million reported in the same quarter last year. However, this figure came in below the analyst consensus estimate of $6.8 million.

On the bottom line, the company reported a net loss of $2.7 million, or $0.24 per share. This performance was notably better than the analyst estimate for a loss of $0.83 per share. The improvement in per-share loss compared to the prior year, which was $0.98 per share, was primarily driven by non-cash financial income from the revaluation of warrants.

Key financial metrics from the quarter include:

• Reported Revenue: $5.4 million
• Estimated Revenue: $6.8 million
• Variance: -20.6%
• Reported EPS: -$0.24
• Estimated EPS: -$0.83
• Variance: +71.1%

Market Reaction and Price Action

The market's initial reaction to the earnings report has been negative. In pre-market trading following the release, the stock is down approximately 2%. This suggests that investors are focusing more on the revenue miss than the better-than-expected earnings per share. The negative price action indicates that the market was likely anticipating stronger top-line growth or was disappointed by the company's performance against sales estimates.

Corporate and Pipeline Highlights

Beyond the financial figures, the earnings press release detailed several significant operational milestones. The company is advancing its late-stage clinical programs and expanding its manufacturing capabilities.

• EscharEx Program: Enrollment is ongoing in the VALUE Phase III trial for venous leg ulcers. The company also received constructive feedback from the FDA and plans to initiate a clinical trial for diabetic foot ulcers in the second half of 2026. An independent assessment estimated a peak sales opportunity of approximately $831 million for EscharEx.
• NexoBrid Expansion: Commissioning has been completed for the expanded NexoBrid manufacturing facility, which is expected to be fully operational by the end of 2025. This expansion will increase production capacity sixfold to meet growing global demand. The company also reported that its partner, Vericel, saw NexoBrid's highest quarterly revenue since launch, with a 38% year-over-year increase.
• Strengthened Balance Sheet: MediWound reinforced its financial position by completing a $30 million equity financing from healthcare-focused investors. As of September 30, 2025, the company reported $60 million in cash, cash equivalents, and short-term deposits.

Looking Ahead

The press release did not provide a specific financial outlook for the coming quarters to compare against existing analyst estimates. For the full year 2025, analysts are currently estimating a loss per share of $2.81 on sales of $24.5 million. Looking to the next quarter, the consensus estimate for Q4 2025 is a loss of $0.87 per share on revenue of $8.0 million. The absence of formal guidance from management leaves investors to weigh the operational progress against the recent revenue shortfall.

For a detailed overview of future earnings estimates and historical performance, review the earnings and estimates data for MDWD.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any security. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.