Cryo-Cell suspends quarterly dividend amid profitability concerns

OLDSMAR, Fla. - Cryo-Cell International, Inc. (NYSE American:CCEL), currently trading at $4.55 and near its 52-week low of $4.51, announced Thursday it will not declare a quarterly cash dividend for the third quarter of fiscal 2025, citing lower-than-expected profitability as the reason for the suspension. The stock has declined over 40% in the past six months.

The cord blood banking company, which claims to be the world’s first private cord blood bank established in 1992, indicated that future dividend decisions will depend on various factors including financial performance, capital requirements, and strategic priorities. According to InvestingPro data, the company generates $32 million in annual revenue with a healthy 76% gross margin, though its current ratio of 0.6 suggests tight liquidity.

Cryo-Cell did not provide specific details about the financial shortfall that led to the dividend suspension, nor did it offer a timeline for when shareholders might expect dividend payments to resume.

The company’s business includes private and public cord blood banking services, with operations that span 87 countries according to the company. Cryo-Cell also maintains a public banking program in partnership with Duke University and operates cord blood donation sites in several hospitals.

In recent years, Cryo-Cell has worked to diversify its business model beyond traditional cord blood storage. In February 2021, the company entered into a license agreement with Duke University aimed at transforming into a cellular therapy company. The following year, it launched ExtraVault, a biostorage and distribution service targeting biopharmaceutical companies and healthcare institutions. While currently unprofitable, InvestingPro analysis suggests the company could return to profitability this year. Subscribers can access 5 additional ProTips and detailed financial metrics for deeper insights into CCEL’s transformation.

This announcement was made in a company press release statement.

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