Opko Health (OPK -7.42%), a diversified healthcare company operating in diagnostics and pharmaceuticals, released its second quarter 2025 results on July 31, 2025. The company reported a significant revenue miss, with total GAAP revenue at $156.8 million, compared to analyst expectations of $165.7 million for Q2 2025. Its net loss per share on a GAAP basis reached $0.19, wider than estimates for a $0.11 loss and sharply higher than the prior-year figure in Q2 2025. Results were affected by lower diagnostics revenues due to asset sales, flat pharmaceutical product revenues, and the impact of a one-time charge related to a convertible note exchange in Q2 2025. Cost-cutting and divestitures helped reduce some operating losses, but overall, the quarter underscored ongoing restructuring and financial challenges for the business.

MetricQ2 2025Q2 2025 EstimateQ2 2024Y/Y Change
EPS (GAAP)($0.19)($0.11)($0.01)1,800%
Revenue (GAAP)$156.8 million$165.7 million$182.2 million(14.0%)
Operating Loss($60.0 million)($61.7 million)-2.8%
Pharmaceuticals Revenue$40.7 million$40.5 million0.5%
Diagnostics Revenue$101.1 million$129.4 million(21.8%)

Source: Analyst estimates for the quarter provided by FactSet.

Business Overview and Recent Focus

Opko Health focuses on two main business areas: pharmaceutical products and diagnostics services. Its pharmaceutical portfolio includes therapies for chronic kidney disease, hormonal disorders, and infectious diseases. Its diagnostics unit, BioReference, provides medical laboratory testing, including specialized cancer screening.

Recently, the company has been working to streamline operations through asset sales and cost reductions, particularly within its diagnostics business. Managing regulatory approvals for both medication and diagnostic tests, along with investing in research and partnerships, are also key drivers for the company’s performance.

Quarterly Highlights and Developments

The quarter saw a substantial drop in consolidated revenues, primarily due to declining diagnostics sales following the sale of certain BioReference assets in Q2 2025. Diagnostics revenue (GAAP) fell to $101.1 million, down from $129.4 million in Q2 2024. This revenue contraction was a direct result of asset divestitures, though BioReference’s ongoing cost-cutting and restructuring led to improved operating results for the reduced business in Q2 2025.

Pharmaceutical revenues stayed nearly flat versus the previous year, at $40.7 million in Q2 2025. Rayaldee’s performance was unchanged, with $7.2 million in revenue for both Q2 2025 and Q2 2024. NGENLA, a once-weekly growth hormone injection marketed by Pfizer, saw profit share slide from $6.3 million in Q2 2024 to $6.1 million. These results highlight a lack of revenue growth in the company’s most important product lines, with product revenue at $40.7 million in Q2 2025 compared to $40.5 million in Q2 2024, and Rayaldee sales steady at $7.2 million for both periods, underscoring the need for new growth drivers from the existing pipeline.

On the pipeline and partnership front, regulatory advances were a bright spot. The U.S. Food and Drug Administration (FDA) approved a supplemental application for the 4Kscore test, a blood test that helps assess the likelihood of aggressive prostate cancer. This approval is expected to expand access to more physicians, particularly as most primary care providers do not routinely perform digital rectal exams. In research and development, OPKO continued to invest in multiple early-stage programs, including immunotherapies in collaboration with major partners such as Merck, and advanced work on GLP-1/glucagon therapies aimed at metabolic liver disease.

One-time financial actions had a major impact on the quarter’s reported results. The company recognized a $91.7 million nonrecurring charge related to the exchange of convertible notes for equity and cash during Q2 2025. While this substantially worsened the reported net loss, it was not a recurring operating expense. Additionally, OPKO’s board authorized an extra $100 million in share repurchase capacity, with $58.5 million spent under the program as of the end of Q2 2025. The company’s cash position shrank to $285.4 million as of June 30, 2025, down from $431.9 million at year-end 2024.

Product Lines and Innovation Pipeline

OPKO Health’s pharmaceutical business is anchored by Rayaldee, an oral vitamin D prohormone for patients with chronic kidney disease, and NGENLA, a human growth hormone therapy developed with Pfizer for pediatric growth hormone deficiency. Rayaldee sales held steady at $7.2 million in Q2 2025. NGENLA’s gross profit share also remained nearly flat and has not yet demonstrated a rebound in Q2 2025, despite prescription growth suggested by public data. There was no material growth from other pharmaceutical products to offset these trends.

The diagnostics segment, led by BioReference, focuses on medical laboratory testing. The 4Kscore prostate cancer test, designed to predict the risk of aggressive disease using a blood sample, received FDA approval for expanded use during Q2 2025. However, the segment as a whole continues to see revenue pressure after recent asset divestitures. The company expects further revenue reduction upon the anticipated sale of its oncology testing assets to Labcorp, a leading laboratory services company. Operating costs in the diagnostics segment have come down sharply, and management expects that the remaining core operations will be profitable before nonrecurring and noncash expense items.

Financial Outlook and Key Watch Items

Management maintained its full-year 2025 revenue guidance of $675 million to $685 million, despite the weak quarter. This implies a substantially stronger performance in the second half of the year. The company also guided for full-year 2025 costs and expenses of $825 million to $875 million. BARDA contract revenue guidance for 2025 was slightly lowered, and research and development spending is expected to remain elevated, reflecting ongoing investment in early-stage programs supported by the Biomedical Advanced Research and Development Authority (BARDA).

These include the impact of additional cost reduction initiatives expected to reach $10 million annually, and the anticipated completion of the Labcorp asset sale, which will reshape the diagnostics business. Returning to profitability in core diagnostics and pharmaceutical operations remains a key target. No new dividend was declared, and OPK does not currently pay a dividend. Cash burn and share count dilution are ongoing areas of focus, particularly as research spending continues and new product launches remain at least a year or more away.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.