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Collegium Pharmaceutical Inc (NASDAQ:COLL) shares jumped 12.08% following the release of its Q2 2025 earnings presentation on August 7, 2025, which revealed substantial revenue growth and raised full-year guidance. The biopharmaceutical company, focused on pain management and ADHD treatments, reported record quarterly results driven by strong commercial execution across its product portfolio.
Quarterly Performance Highlights
Collegium delivered exceptional financial results for the second quarter of 2025, with product revenues reaching $188.0 million, representing a 29% increase compared to $145.3 million in Q2 2024. The company’s adjusted EBITDA grew 9% year-over-year to $105.1 million, while generating $72.4 million in cash from operations.
"We are well-positioned for continued growth as a leading, diversified biopharmaceutical company committed to improving the lives of people living with serious medical conditions," said Vikram Karnani, President and Chief Executive Officer of Collegium Pharmaceutical.
The company’s cash position strengthened significantly, with cash, cash equivalents, and marketable securities totaling $222.2 million at quarter-end, an increase of $59.4 million from December 2024. This represents a sequential improvement from the $197.8 million reported at the end of Q1 2025.
As shown in the following quarterly financial highlights:
Detailed Financial Analysis
The company’s growth was primarily driven by Jornay PM, its ADHD medication, which saw prescriptions increase 23% year-over-year to 186,000 in Q2 2025. The prescriber base for Jornay PM also expanded by 23% to 26,000 physicians, while its market share in the branded long-acting methylphenidate market rose to 23%, a 7.6 percentage point gain from Q2 2024.
The impressive performance metrics for Jornay PM are illustrated in this chart:
Collegium’s pain management portfolio also demonstrated solid performance. Xtampza ER revenue reached $52.6 million, up 18% year-over-year, while Belbuca revenue was $52.6 million, representing a 1% increase compared to Q2 2024.
However, the growth came with significantly higher operating expenses, which more than doubled year-over-year to $61.9 million from $30.3 million in Q2 2024. This 104% increase reflects substantial investments in the company’s commercial infrastructure, particularly the expansion of its ADHD sales force to approximately 180 representatives to support Jornay PM growth.
The company’s balance sheet remains healthy, with net debt to adjusted EBITDA ratio at approximately 1.4x at the end of Q2 2025. Management expects this ratio to improve to below 1.0x by year-end, demonstrating Collegium’s commitment to deleveraging while pursuing growth opportunities.
Strategic Initiatives
Collegium outlined three strategic pillars that form the foundation of its growth strategy: driving significant Jornay PM growth, maximizing the pain portfolio, and strategically deploying capital.
For Jornay PM, the company has implemented several initiatives to accelerate adoption, including expanding its sales force, leveraging non-personal promotion channels, and launching digital marketing campaigns targeting caregivers and patients, particularly for the "back-to-school" season.
The company expects Jornay PM revenue to reach $140-145 million in 2025, representing a 42% increase from $100.7 million in 2024, as shown in this forecast:
In terms of capital deployment, Collegium has maintained a disciplined approach focused on three areas: expanding its portfolio through business development, opportunistically repurchasing shares, and rapidly paying down debt. The company completed a $25 million accelerated share repurchase program in July 2025 and has repurchased $222 million in shares since 2021.
The company’s capital allocation strategy is outlined here:
"We are committed to increasing shareholder value by growing revenues, adjusted EBITDA, and strategically deploying capital," said Karnani. "Our strong track record of using cash to fuel highly successful business development opportunities positions us well for the future."
Forward-Looking Statements
Based on the strong Q2 performance, Collegium raised its full-year 2025 financial guidance across all key metrics. The company now expects product revenues to reach $745-760 million, up from the previous guidance of $735-750 million, representing a 19% year-over-year increase.
Jornay PM revenue guidance was raised to $140-145 million from the previous target of over $135 million, reflecting a 42% year-over-year growth. Adjusted EBITDA is now expected to be $440-455 million, up from $435-450 million, representing a 12% increase from 2024.
The updated guidance demonstrates management’s confidence in continued strong performance through the remainder of 2025:
Collegium’s long-term vision focuses on three growth vectors: maintaining its pain portfolio, expanding its neuropsychiatry presence with Jornay PM, and pursuing further expansion through product diversification and capital deployment. The company expects to end 2025 with a net leverage ratio below 1.0x, providing financial flexibility for future growth initiatives.
The company’s business highlights and strong performance across key metrics position Collegium Pharmaceutical for continued success in its next phase of growth:
With its diversified product portfolio, strong commercial execution, and disciplined financial management, Collegium appears well-positioned to deliver on its growth objectives and create value for shareholders in the coming quarters.
Full presentation:
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