Surmodics Inc (NASDAQ:SRDX) Beats Q3 Earnings Estimates Despite Revenue Challenges, Raises Full-Year Guidance

Surmodics Inc (NASDAQ:SRDX) Reports Q3 Earnings Beat Amid Mixed Revenue Performance

Surmodics Inc, a provider of medical device and in vitro diagnostic technologies, posted better-than-expected earnings for its fiscal third quarter ended June 30, 2025, while revenue came in slightly below analyst projections. The company also raised its full-year guidance, signaling confidence in its operational improvements despite ongoing challenges in its drug-coated balloon business.

Key Financial Highlights

• Revenue: $29.6 million, down 3% year-over-year but slightly ahead of internal expectations when excluding declining SurVeil™ drug-coated balloon (DCB) license fee revenue. Analysts had anticipated $28.6 million.
• Earnings Per Share (EPS): Non-GAAP diluted EPS of $0.06, beating the consensus estimate of a loss of $0.19 per share. GAAP net loss narrowed to $(5.3) million from $(7.6) million in the prior-year period.
• Adjusted EBITDA: Improved to $3.4 million, up from $1.6 million in Q3 2024, reflecting cost controls and growth in key product lines.

Market Reaction

Shares of Surmodics rose approximately 2.5% in pre-market trading, suggesting investor optimism around the earnings beat and improved profitability metrics. The stock had been relatively flat over the past week but gained nearly 13% over the last month, likely in anticipation of a solid quarterly report.

Business Segment Performance

• Medical Device Revenue: Declined 5% year-over-year to $22.2 million, weighed down by lower SurVeil DCB sales. However, the Pounce Thrombectomy Platform saw 35% growth, offsetting some of the weakness.
• In Vitro Diagnostics (IVD) Revenue: Increased 6% to $7.4 million, driven by broad-based demand across product lines.

Updated Fiscal 2025 Guidance

Surmodics raised its full-year revenue outlook to a range of $116.5 million to $118.5 million, up from prior guidance of $114 million to $117 million. The company now expects a GAAP net loss of $(1.70) to $(1.55) per share, slightly wider than previous projections, but improved its non-GAAP net loss forecast to $(0.35) to $(0.20) per share, up from $(0.62) to $(0.42).

Strategic Developments

• The company continues to navigate its pending acquisition by private equity firm GTCR, which remains subject to regulatory approval.
• Commercialization of the Pounce XL Thrombectomy System, launched in April 2025, is progressing well, contributing to revenue growth.
• The TRANSCEND clinical trial for the SurVeil DCB demonstrated non-inferiority to a competitor’s product, though commercial adoption remains sluggish.

Outlook vs. Analyst Estimates

Analysts had projected full-year 2025 revenue of $118 million, aligning with Surmodics’ updated guidance. However, the company’s non-GAAP EPS outlook remains slightly below the consensus estimate of $(0.19), suggesting lingering profitability challenges.

Conclusion

Surmodics delivered a mixed but generally positive quarter, with earnings outperforming expectations and revenue stabilizing outside of its declining DCB segment. The market’s positive reaction reflects optimism around cost management and growth in newer products like the Pounce Thrombectomy Platform.

For more detailed earnings estimates and historical performance, visit Surmodics’ earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research before making any financial decisions.