DCTH just reported pretty solid Q1 earnings and the stock is up 22%.
First Quarter 2025 Financial Results
- Total revenue of $19.8 million, compared with $3.1 million in the first quarter of 2024
- HEPZATO KIT™ revenue of $18.0 million, compared to $2.0 million in the first quarter of 2024
- CHEMOSAT® revenue of $1.8 million, compared to $1.1 million in the first quarter of 2024
- Gross margins of 86%, compared to 71% in the first quarter of 2024
- Net income of $1.1 million, compared to a net loss of $11.1 million in the same quarter of 2024
- Non-GAAP positive adjusted EBITDA in the first quarter of $7.6 million, compared to a loss of $7.3 million in the first quarter of 2024
- Cash and investments of $58.9 million as of March 31, 2025
- Cash provided by operations of $2.2 million in the quarter
Business Highlights and Updates
- Activated three new U.S. centers in the first quarter and two more so far in the second quarter of 2025, bringing the current total to 19 active centers, with 10 additional centers accepting referrals
- Received FDA clearance of an IND application for a phase 2 clinical trial of HEPZATO™ in liver-dominant metastatic breast cancer
- Announced publication of comparative analysis from randomized portion of FOCUS Study in metastatic uveal melanoma
- The exercise of 1.62 million Series F warrants resulted in $16.2 million of funding in 2025. The warrants were issued in 2020 as a component of a private placement and had an exercise price of $10.00 per share and expired on May 5, 2025
As I said previously, this company’s revenue is highly predictable, as it’s essentially equal to cost-per-treatment * treatments-per-center * number-of-activated-centers. The management has been executing on their guidance very solidly and consistently. The majority of revenue comes from the US, and currently, there are 19 activated US centers (17 by end of Q1). Usually, it takes 6-7 months to activate a new center, so with 10 additional centers accepting referrals now, DCTH will likely have at least 29 activated US centers by end of year and can potentially meet their goal to have 30 by end of year. The monthly average treatments done per US center were slightly above 2, and the management guided that the average treatments per center will likely stay consistently slightly below 2 as they open new centers. 29 activated centers by end of year will ensure triple-digit YoY revenue growth at least till Q4, as they had 14 activated centers in 24 Q4 with similar average treatments per center.
Stay long.
Luffy