NYSE$SDEV

NovaBay Pharmaceuticals Inc · Q1 2025 earnings

Q1 2025 earnings · · After market close · Investor relations

Briefing

NovaBay Pharmaceuticals, Inc. reported its financial results for the first quarter ended March 31, 2025, highlighting significant changes due to asset divestitures and a focus on strategic alternatives.

NovaBay Pharmaceuticals, Inc. reported a net income of $7.67 million for Q1 2025, a substantial improvement from a net loss of $3.214 million in Q1 2024. This positive shift was primarily driven by a significant gain from discontinued operations, specifically the Avenova Asset Divestiture. The company's continuing operations, however, still reported a net loss and operating loss, with increased general and administrative expenses due to strategic initiatives and one-time severance costs. The company's cash and cash equivalents increased significantly due to proceeds from divestitures, and management believes existing cash will be sufficient through May 15, 2026, though uncertainty remains regarding its long-term strategic direction.

  • Net income significantly improved to $7.67 million in Q1 2025, compared to a net loss of $3.214 million in Q1 2024, primarily due to gains from discontinued operations.
  • The Avenova Asset Divestiture contributed a net income of $10.47 million from discontinued operations, while the Wound Care Divestiture added $0.53 million.
  • General and administrative expenses for continuing operations increased by 18% to $2.701 million, driven by non-recurring strategic initiatives and severance costs.
  • Cash and cash equivalents saw a substantial increase to $8.467 million as of March 31, 2025, up from $0.43 million at December 31, 2024, largely due to divestiture proceeds.

Headline financials

Total Revenue

$0.00

Previous: $2.63M-100.0%
EPS (adj)

$1.44

Previous: -$4.90+129.4%
Net Loss from Continuing Operations

-$3.33M

No prior period
Net Income from Discontinued Operations

$11M

No prior period
Basic EPS from Continuing Operations

-$0.63

No prior period
Basic EPS from Discontinued Operations

$2.07

No prior period
Diluted EPS from Continuing Operations

-$0.61

No prior period
Diluted EPS from Discontinued Operations

$2.03

No prior period
Impairment of Long-Lived Assets

$589K

No prior period
Operating Lease Expense

$71K

No prior period
Weighted-Average Remaining Lease Term (years)

2.3

No prior period
Weighted-Average Discount Rate

0.1%

No prior period
Total Current Assets, Discontinued Operations (Avenova)

$1.18M

No prior period
Total Current Liabilities, Discontinued Operations (Avenova)

$1.15M

No prior period
Gain on Divestiture (Avenova)

$10.7M

No prior period
Net Sales, Discontinued Operations (Wound Care)

$122K

No prior period
Gain on Divestiture (Wound Care)

$500K

No prior period
Avenova net sales

$433K

No prior period
General and administrative expenses

$2.7M

No prior period
Net Income

$7.67M

Previous: -$3.21M+338.6%
Operating Income

-$3.29M

Previous: -$2.44M-35.1%

Revenue & EPS history

NovaBay · Revenue · Quarterly

$0

Q1 2025-100%vs Q1 2024
Beat estimate in 3 of 14 quarters(21%)
ActualEstimate

Forward guidance

NovaBay Pharmaceuticals, Inc. expects its existing cash and cash equivalents to be sufficient to cover planned operating expenses through at least May 15, 2026. However, the company acknowledges significant uncertainty regarding its strategic direction following recent divestitures, as it continues to explore various strategic alternatives beyond dissolution.

Tailwinds

  • Existing cash and cash equivalents are believed to be sufficient to meet planned operating expenses through at least May 15, 2026.
  • The company's Board has approved a plan for voluntary liquidation and dissolution, providing a clear potential path forward.
  • Exploration of alternative strategic transactions, including mergers, reverse mergers, strategic partnerships, investments, licensing, and sub-licensing, continues.
  • The company aims to maximize remaining value for the company and stockholders through its strategic decisions.
  • Continued performance of transition services for PRN under the PRN Transition Services Agreement through May 19, 2025, provides some near-term revenue.

Headwinds

  • Significant uncertainty remains regarding the company's strategic direction in the near term.
  • Potential for unknown or future claims and liabilities to arise.
  • Changing circumstances may cause the company to expend cash significantly faster than currently anticipated.
  • The company has significantly reduced its assets, operations, and current/expected revenue following recent divestitures.
  • The company has incurred net losses and generated negative cash flows from operations since inception and expects to incur further losses as it pursues strategic initiatives.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

-0.9%

Avg return

Earnings day

-3.9%

Avg return

5 days after

-6.5%

Avg return

30 days after

37%

24 / 65 earnings

Positive

+74.0%

Q2 2016

Best reaction

-51.1%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%
Q4 2026+8.7%+8.7%-6.5%
Q3 2025+0.0%+3.8%+46.2%
Q2 2025+3.3%+71.7%+331.7%
Q1 2025-1.8%-3.5%+7.0%
Q3 2024-2.9%+8.3%-19.4%
Q2 2024+11.6%+0.9%-81.6%
Q1 2024-9.9%-11.1%-14.0%
Q4 2023-13.7%-23.1%-38.5%
Q3 2023-2.9%+0.0%-12.1%
Q2 2023-1.5%-11.6%-10.1%
Q1 2023-0.8%-26.5%-30.6%
Q4 2022+3.0%+3.0%-30.3%
Q3 2022-3.4%-34.0%-44.4%
Q2 2022-10.0%-16.1%-41.9%
Q1 2022+4.9%+11.1%+22.2%
Q4 2021-3.0%-6.3%-25.0%
Q3 2021-7.6%-7.1%-1.8%
Q2 2021+0.4%-7.9%+0.0%
Q1 2021-5.6%-5.3%-5.3%
Q4 2020-9.2%-12.9%-20.8%
Q3 2020-1.3%-6.5%+11.3%
Q2 2020-16.2%-24.3%-42.6%
Q1 2020-8.9%-11.6%-25.0%
Q4 2019-13.3%-31.8%+2.3%
Q3 2019-11.6%-15.9%-15.9%
Q2 2019-2.5%-26.3%-55.9%
Q1 2019-51.1%-15.1%-62.8%
Q4 2018-4.2%-22.4%-20.8%
Q3 2018+7.2%+6.4%+13.6%
Q2 2018-10.2%-9.9%-40.3%
Q1 2018+4.3%+1.4%-4.4%
Q4 2017+2.9%+5.7%-4.3%
Q3 2017+4.4%+9.5%-18.6%
Q2 2017+2.4%+8.2%+3.5%
Q1 2017-6.7%-12.3%-14.1%
Q4 2016-0.9%+1.6%-13.0%
Q3 2016-12.6%-10.4%-13.6%
Q2 2016+74.0%+63.9%+27.7%
Q1 2016+5.7%
Q4 2015+7.1%
Q3 2015-7.3%
Q2 2015-4.0%
Q1 2015+11.2%
Q4 2014-5.6%
Q3 2014-0.0%
Q2 2014+5.1%
Q1 2014-4.4%
Q4 2013+0.0%
Q3 2013+1.0%
Q2 2013+2.1%
Q1 2013+6.3%
Q4 2012+2.4%
Q3 2012-2.3%
Q2 2012-2.5%
Q1 2012-0.8%
Q4 2011-4.2%
Q4 2009-4.2%
Q3 2011-9.1%
Q2 2011+11.4%
Q4 2010+11.4%
Q1 2011+1.5%
Q3 2010-0.2%
Q2 2010-0.5%
Q1 2010+4.3%

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