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Kamada Ltd (KMDA) reported a strong financial performance for Q2 2025, with earnings per share (EPS) of $0.19, significantly exceeding the forecasted $0.08. The company’s revenue also doubled expectations, reaching $88.77 million compared to the anticipated $44.39 million. According to InvestingPro data, the company maintains a "GREAT" financial health score of 3.36, with analysts maintaining a "Strong Buy" consensus. Despite these positive results, the stock fell 2.41% in pre-market trading, closing at $7.3 and later trading at $6.97.
Key Takeaways
- Kamada’s EPS surpassed forecasts by 137.5%.
- Revenue for Q2 2025 was $88.77 million, nearly double the expected amount.
- The stock price declined by 2.41% post-earnings, despite strong financial results.
- The company continues to expand its biosimilar product line.
- Kamada reduced operating expenses, improving profitability.
Company Performance
Kamada demonstrated robust performance in Q2 2025, with a significant increase in revenue and net income compared to the previous year. The company has effectively managed its operating expenses, contributing to a 35% increase in adjusted EBITDA. This performance is in line with industry trends of growth in the biosimilar and plasma-derived product markets.
Financial Highlights
- Revenue: $88.77 million (up 11% YoY for H1 2025)
- Earnings per share: $0.19 (up from $0.08 YoY)
- Adjusted EBITDA: $22.5 million (up 35% YoY)
- Gross margin: 45%
- Cash balance: $66 million
Earnings vs. Forecast
Kamada’s actual EPS of $0.19 exceeded the forecast of $0.08 by 137.5%. Revenue also surpassed expectations, with a reported $88.77 million against the forecasted $44.39 million. This significant earnings surprise highlights the company’s strong operational efficiency and market demand for its products.
Market Reaction
Despite the strong earnings report, Kamada’s stock declined by 2.41% in pre-market trading. The stock’s performance may reflect broader market trends or investor caution regarding future growth prospects. Currently trading at $6.97, the stock remains within its 52-week range of $5.17 to $9.15. InvestingPro data shows the stock trades with notably low volatility (Beta: 0.11) and appears slightly undervalued based on their Fair Value model.
Outlook & Guidance
Kamada projects 2025 revenue between $178 million and $182 million, with an adjusted EBITDA of $40 million to $44 million. The company anticipates launching two additional biosimilars in 2025, expected to contribute significantly to future revenue. Wall Street analysts tracked by InvestingPro set price targets ranging from $11 to $20, suggesting significant upside potential. The company’s comprehensive Pro Research Report, available to subscribers, provides detailed analysis of growth prospects and valuation metrics. Kamada’s strategic focus on expanding its product portfolio and operational efficiency positions it well for continued growth.
Executive Commentary
Amir London, CEO, expressed confidence in Kamada’s growth trajectory, stating, "We believe that there is enough business and enough opportunity for multiple new technologies." He also highlighted ongoing efforts to identify strategic acquisition targets, saying, "We are actively screening and doing due diligence on some multiple targets."
Risks and Challenges
- Potential market saturation in the biosimilar space could limit growth.
- Macroeconomic pressures may impact consumer spending and healthcare budgets.
- Regulatory hurdles for new product approvals could delay market entry.
- Competition from other pharmaceutical companies remains a challenge.
Q&A
During the earnings call, analysts focused on Kamada’s growth drivers, particularly the performance of products like Glacia and VariSig. Questions also addressed the company’s plans for future product launches and strategic acquisitions, reflecting investor interest in Kamada’s long-term strategy.
Full transcript - Kamada Ltd (KMDA) Q2 2025:
Conference Operator: Greetings and welcome to the Kamada Limited Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brian Ritchie, Managing Director of LifeSci Advisors.
Thank you. You may begin.
Brian Ritchie, Managing Director, LifeSci Advisors: Thank you. This is Brian Ritchie with LifeSci Advisors. Thank you all for participating in today’s call. Joining me from Kamada are Amir London, Chief Executive Officer and Jaime Orlov, Chief Financial Officer. Earlier today, Kamada announced its financial results for the three months and six months ended 06/30/2025.
If you have not received this news release, please go to the Investors page of the company’s website at www.kamada.com. Before we begin, I would like to caution that comments made during this conference call by management will contain forward looking statements that involve risks and uncertainties regarding the operations and future results of Kamada. I encourage you to review the company’s filings with the Securities and Exchange Commission, including, without limitation, the company’s Forms 20 F and six ks, which identify specific factors that may cause actual results or events to differ materially from those described in the forward looking statements. Furthermore, the content of this conference call contains time sensitive information that is accurate only as of the date of the live broadcast, Wednesday, 08/13/2025. Amada undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this conference call.
With that said, it’s my pleasure to turn the call over to Amir London, CEO. Amir?
Amir London, Chief Executive Officer, Kamada: Thank you, Brian. My thanks also to our investors and analysts for your interest in Commodore and for participating in today’s call. I’m pleased to report that our results for the second quarter and the 2025 were strong and that we continue to generate significant profitable growth. Total revenues for the first half of the year were $88,800,000 representing an 11% year over year increase, and adjusted EBITDA was $22,500,000 up 35% year over year and representing a 25% margin of revenues. For the second quarter, revenues were $44,800,000 up 5% over the prior year quarter, and adjusted EBITDA was $10,900,000 up 20% year over year.
These impressive results were driven by the diversity of our product portfolio and disciplined management of operational expenses. We expect to continue generating profitable growth through the remainder of 2025 and based on a positive outlook, we are increasing our adjusted EBITDA guidance to between $40,000,000 to $44,000,000 and reiterating our annual revenue guidance of $178,000,000 to $182,000,000 The midpoint of our updated 2025 guidance represents increase of approximately 12% in revenues and approximately 23% in adjusted EBITDA respectively, over our last year 2024 results. We’re excited for growth prospects in our business over both the near and longer term, guided by our four pillar growth strategy of organic commercial growth, business development and M and A transactions, our plasma collection operation, and the advancement of our pivotal Phase III Inhaled AAT program. As you may recall, last quarter we announced the initiation of a comprehensive post marketing research program for Cytogam, which we believe will help demonstrate the advantages of the product in the prevention and management of CMV disease. Although CMV disease continues to be a significant risk factor for organ rejection and mortality in transplantation, for years no new up to date clinical data regarding the benefits of Cytogarm was published.
To address this, we developed this program in collaboration with leading key opinion leaders to explore advancement of novel CMV disease management. The research studies supported by this program will focus on late onset CMV prevention and mitigation of active CMV disease, exploring alternative dosing strategies, and investigating potential new applications of Cytogram. We believe that the data generated by this program will support further product utilization for Cytogram, leading to additional organic growth. Our revenue growth for the first half of the year compared to the first six months of twenty twenty four was primarily due to increased sales of Glacier in ex U. S.
Market and VariSig sales in The U. S. As well as Glacier royalty payments. This positive trend is indicative of the diversity of our portfolio and our successful marketing activities across different territories and medical specialties. Also, as part of our activities to advance organic growth, following our first biosimilar product launch in Israel last year, which is expected to generate approximately $2,500,000 in revenues in 2025, we anticipate launching two additional biosimilars later this year and have several others in the pipeline to be launched in the coming years.
We believe that this portfolio will become an increasingly important portion of our Distribution business with annual sales of between $15,000,000 to $20,000,000 within the next five years. Moving to business development and M and A. We are currently conducting active due diligence of several potential commercial targets. During the balance of 2025 and into 2026, we expect to secure compelling in licensing collaboration and or M and A transactions, which will enrich our portfolio of marketed products and complement our existing commercial operations. We anticipate that such transactions will generate operational and or commercial synergies with our current commercial portfolio and support future profitable growth.
In addition, we continue to ramp up plasma collection at our three Texas based plasma centers and are happy to announce earlier this week the U. S. FDA approval of a state of the art center in Houston, Texas. We’re especially appreciative of the work of a dedicated team of plasma collection experts who achieved inspection and licensure of its facility on schedule. As previously stated, this center has annual collection capacity of approximately 50,000 liters of plasma, and each of our two centers in Houston and in San Antonio is expected to generate annual revenues of between $8,000,000 to $10,000,000 in sales of normal source plasma at full capacity.
Turning now to our ongoing pivotal Phase III INNOVATE clinical trial for inhaled alpha-one antitrypsin therapy. We continue to advance this program with its revised enrollment goal of approximately 180 subjects and we are on track to conduct an interim futility analysis by the end of this year 2025. With that, I’ll turn the call over to Jaime for a detailed discussion of our financial results for the first quarter for the 2025 and first six months of the year. Please go ahead, Jaime. Thank you.
Jaime Orlov, Chief Financial Officer, Kamada: Thank you, Amir. As Amir stated at the top of the call, our results for the second quarter and six months ended 06/30/2025 were strong. Total revenues were $44,800,000 in the 2025, up 5% compared to the $42,500,000 in the 2024. Other revenues for the six months of twenty twenty five were $88,800,000 an 11% increase from the $80,200,000 generated in the 2024. As Amir indicated earlier, the increase in revenue was driven by the diversity of the company’s portfolio.
Gross profit and gross margins were 18,900,000.0 42% in the 2025 compared to $19,000,000 and 45% in the 2024. Gross profit and gross margins for the 2025 were $39,700,000 and 45% compared to $35,700,000 and 45% in the 2024. The decrease in gross profitability in the 2025 is attributable to change in product and territory sales mix, whereas during this quarter, the increase in revenue was generated by ex U. S. Sales as compared to sales mix in the equivalent quarter last year.
Operating expenses including R and D, sales and marketing and G and A and other expenses totaled $11,900,000 in the 2024 as compared to $13,300,000 in the 2024. The decrease in operating expenses, which was also demonstrated in the first quarter of the year is indicative of our ability to adequately manage our operational expenditure while continuing to generate meaningful revenue growth. Net income was $7,400,000 or $0.13 per diluted share in the 2025 as compared to $4,400,000 or $08 per diluted share in the 2024. Net income for the six months of 2025 was $11,300,000 or $0.19 per diluted share as compared to net income of 6,800,000.0 or $0.12 per diluted share in the 2024. The increase in net income is attributable to increase in operating profits, which increased by 54% for the first half of the year and 25% for the second quarter as well as changes in the financial and tax expenses between the periods.
Adjusted EBITDA was $10,900,000 in the 2025, up 20% from the $9,100,000 achieved in the 2024. Adjusted EBITDA was $22,500,000 in the 2025, a 35% increase compared to the 16,600,000.0 for the 2024. As Amir indicated, we’re increasing our adjusted EBITDA guidance for the year to between $40,000,000 and $44,000,000 Cash provided by operating activities was $8,000,000 in the 2025 and we continue to maintain a strong cash position even after the special dividend payment. And we ended the first half with a cash balance of $66,000,000 that is planned to be used to fund new business development initiatives. Before turning the call over to you for questions, I would like to indicate that we are continuing to monitor the evolving tariff situation closely.
Based on presently available information, our assessment is that the recently imposed tariffs are not applicable to drug products. To date, we have not experienced impact or interruptions of our operations or ability to maintain cost and pricing as a result of the tariffs. With that, we will open the call to questions.
Conference Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue.
Please go ahead.
Annabel, Analyst: Hi, everyone. Thanks for taking my question and congratulations on a good quarter. So just a couple from me. It seems like for the last two quarters, Glauzy and Verazig have been the growth drivers, I guess, reasons you’ve stated, especially Verazig. But can you give us an idea about dynamics behind KEDRAB and Cytogam, which I guess had been the growth drivers?
Is it more difficult year over year comps? Are they performing as expected? Or maybe are physicians just slowing down on adoption of Cytogam until the next batch of data? Just any color there would be great. And then I’ll just follow-up after that.
Amir London, Chief Executive Officer, Kamada: Hi, Annabel. Yes, we mentioned specifically Glacia, ex U. S. And royalties and Varisig because these are the products which have a significant contribution to our year over year growth. KedRAB and Cytogram are performing according to our expectations.
As you know, the KedRAB contract with Kedrion has like a four year it’s an eight year with a four year committed volumes. Kedrion buys the product, we supply them according to the inventory management. We continue to see in market growth. But in general, the numbers are similar to 2024 numbers. Cytogam is going according to the plan.
We expect that the growth will come once we have the additional clinical and medical data, which we are currently collecting. But I think in general, it’s an opportunity to emphasize the strengths and diversity of the portfolio. We’ve six FDA approved products and marketed in over 35 countries, over 25 products in our distribution business, the soon to be plasma sales. We have a very strong organic growth that’s coming from multiple products. This year, it’s been mainly glass and Varizig.
Previous years it’s been Cytogam and KedRAB. But all in all, it’s a very strong diverse portfolio that allows us to continue maintaining the growth year after year.
Annabel, Analyst: Yes, definitely noted. And then you have a solid cash position for a profitable company. But is it sufficient for impactful BD given its decline in the last couple of quarters? How should we think about the balance of your internal investments that you’re obviously making quite a few and then the external BD and how that might be funded?
Amir London, Chief Executive Officer, Kamada: So, we plan to utilize to use our existing cash if needed. We have additional sources for additional funding in multiple vehicles of funding that we can put to work. We are looking and screening for commercial stage assets. I think the fact that we’re looking for commercial assets gives us a lot of bandwidth in terms of the ability to fund those transactions. We’re mainly focused on plasma derived products as well as specialty pharma and within the specialty pharma, the transportation field.
And as I mentioned during the call, we would like to leverage our supply chain capabilities, commercial infrastructure, take advantage of the synergies. And we are actively screening and doing due diligence on some multiple targets and hopeful that it will be mature over the next few months into 2026 and have meaningful impact on our 2026 performance. Funding to the scale of the transaction we’re looking to do, we will have sufficient funding execute those transactions.
Annabel, Analyst: Okay, if I can just squeeze in one more on the inhaled AAT program. Obviously, we’re just waiting for the interim analysis right now. But can you sort of describe the competitive landscape there have been? I guess, some more developments, whether it’s gene therapy, other programs, anything that we should be watching for that might change the potential market opportunity there?
Amir London, Chief Executive Officer, Kamada: Yes, good question. So, there is lot of activity in the ALPHA-one space in general. Our in health program is the most advanced one in terms of an efficacy study in a pivotal stage. So, there’s no other Phase III pivotal studies that are structured around efficacy endpoint. We are making progress and the other companies are also making progress.
I think you and other people following this space know that there are maybe two or three additional technologies which are currently being developed. The market is growing, growing. We see the growth through our royalties from Takeda. So, the 678% annual growth is actually happening. What used to be $05,000,000,000 market is like $1,300,000,000 $1,400,000,000 market.
We believe that by the time that we are going to have the results from our study, this is going to be like a $2,000,000,000 market. So we believe that there is enough business and enough opportunity for multiple new technologies and multiple new players. We believe that our technology being like a second generation augmentation therapy with better ease of use and quality of life with hopefully, if we are successful in the study, efficacy data will be a very strong competitor and player in the alpha-one space in general.
Annabel, Analyst: Great. Thank you for taking my questions.
Amir London, Chief Executive Officer, Kamada: Of course.
Conference Operator: The next question is from James Sidoti from Sidoti and Company. Please go ahead.
James Sidoti, Analyst, Sidoti and Company: Hi, good afternoon. Thanks for taking the question. As you said, the quarter really demonstrated how diverse your different revenue streams are. The one that grew this quarter in particular was the distributed revenue segment, I guess, with the launch of the new product, the new biosimilar product. Was there onetime sales in the quarter?
Or how should we view this distribution channel going forward?
Amir London, Chief Executive Officer, Kamada: Thanks, James. No, this is not one time sale. The launch of the biosimilar product and the future launches, we expect two more by the end of this year, is going to build on an existing infrastructure of our commercial activity in the Israeli market, and this is something that we will continue growing. You also have seen that we had better gross margin this quarter. The more we launch biosimilars and based on our innovative portfolio in Israel will help us also improve our margins.
So this is a process that has started and will continue over the next few years.
James Sidoti, Analyst, Sidoti and Company: Okay. So there was no stocking or channel filling in the quarter. These were you think these types of numbers you think will be going forward?
Amir London, Chief Executive Officer, Kamada: Correct.
James Sidoti, Analyst, Sidoti and Company: Okay. And then a similar question on the SG and A expense. I mean, down pretty significantly from a year over year, down significantly year over year. Were there one time things there that helped that or do you think you’ll stay around these levels?
Amir London, Chief Executive Officer, Kamada: So we’re very conscious about our expenses. I think we’ve been very disciplined in the way that we deploy investment and ongoing expenses. There’s been a slight, I’ll say, kind of fluctuation between quarters and between the first six months of the year and the second six months of the year. So the second six months of the year might be a little bit higher, again, a little bit higher in general. But I think what’s very highly promising and I think all analysts and investors need to look at this, our ability to generate a good and improved rate of EBITDA from top line.
And we said in the past that when we were under 20% EBITDA of top line that we are targeting 25% and above. I think we’ve been able to demonstrate this over the last few quarters and this is our goal to continue to be profitable. And from every dollar we make that we will have a bigger portion all the way to the bottom line EBITDA.
James Sidoti, Analyst, Sidoti and Company: Okay. And then last question for me, something I asked three months ago. You said the tax rate would continue to be a little bit lumpy in 2025. What was responsible for the tax credit in the June? And where do you think the tax rate will be in September and December?
Amir London, Chief Executive Officer, Kamada: I’ll refer this question to Jaime. Jaime?
Jaime Orlov, Chief Financial Officer, Kamada: Yeah. I’ll take the this question. So we anticipate the the Israeli entity or the parent company is is reporting in in Israeli shekels. Over the course of the last quarter, there’s been fluctuations in the currency exchange between the shekel, the Israeli shekel and and US dollars that affected our results for tax purposes and made the change. Overall, we still have the opinion that by the 2025, the company will be utilizing all of its tax losses carry forward and we will be moving into
Amir London, Chief Executive Officer, Kamada: tax
Jaime Orlov, Chief Financial Officer, Kamada: payments. Right now, the changes that you see are mostly in deferred tax, either assets or liabilities, which are causing the bumpiness as you alluded to.
James Sidoti, Analyst, Sidoti and Company: Okay. So so when those those NOLs are used up, you know, as you look into 2026 and beyond, what what do you think will be an effective tax rate?
Jaime Orlov, Chief Financial Officer, Kamada: Well, we’re looking at anywhere between 20% or 25%.
James Sidoti, Analyst, Sidoti and Company: Alright. Thank you.
Conference Operator: There are no further questions at this time. I would like to turn the floor back over to Amir London for closing comments.
Amir London, Chief Executive Officer, Kamada: Thank you very much. In closing, we continue to invest in the four pillar growth strategy with continued progress made in organic growth of our existing commercial portfolio, business development and M and A transaction to support and expedite our growth, expansion of our Plasma Collection operation and the progression of our AET therapy program. We look forward to continuing to support clinicians and patients with those important life saving products that we develop, manufacture, and commercialize. We thank you all for your interest in Kamada, and we are committed to creating long term shareholder value. We hope you all stay healthy and safe.
Thank you for participating in today’s call.
Conference Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
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