Esperion Therapeutics (ESPR 8.72%), a specialty pharmaceutical company focused on cardiovascular disease, delivered higher-than-expected GAAP results in its latest earnings release. On August 5, 2025, it reported results. Revenue (GAAP) was $82.4 million, well above the analyst estimate of $63.05 million (GAAP). The GAAP earnings per share (EPS) loss narrowed to $0.02, compared to the expected GAAP loss of $0.15. The company also achieved positive operating income from ongoing operations for the first time. This quarter showed solid growth in U.S. net product sales, which increased 42% year-over-year to $40.3 million (GAAP), and progress in international collaborations, supporting management’s goal of reaching sustainable profitability in early 2026.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.02) | $(0.15) | $(0.33) | 93.9% |
| Revenue (GAAP) | $82.4 million | $63.05 million | $73.8 million | 11.6% |
| U.S. Net Product Revenue | $40.3 million | $28.3 million | 42.4% | |
| Collaboration Revenue | $42.1 million | $45.5 million | (7.4%) | |
| Operating Expenses | $67.4 million | $71.3 million | (5.5%) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Key Success Factors
Esperion develops and commercializes prescription medicines to lower cholesterol and reduce cardiovascular risk for patients who are unable to achieve goals on statins. The company’s two main products, NEXLETOL and NEXLIZET, are oral therapies intended for patients who need more options to control their cholesterol levels, focusing particularly on those who cannot tolerate statins.
The main focus for the business in recent quarters has been expanding the market reach for its lead products, capitalizing on new regulatory approvals and updated treatment guidelines. Key to Esperion’s future will be broadening physician acceptance, securing insurance coverage, and driving international growth through strategic partnerships. Success depends on growing product adoption, increasing collaboration revenues, and managing costs as it works towards sustained profitability.
Quarterly Highlights: Financial, Operational, and Strategic Updates
The quarter saw a sizeable jump in revenue, with GAAP revenue reaching $82.4 million, driven by growth in both U.S. product sales and progress with global collaborations. U.S. net product revenue climbed 42% compared to the prior-year quarter, reflecting strong physician and patient uptake of NEXLETOL and NEXLIZET, which are oral cholesterol-lowering medications. Prescription activity rose, helped by improved access and payer coverage. Around 10% more retail prescriptions were filled versus the preceding quarter, and more than 28,000 healthcare professionals have now prescribed the company’s treatments as of Q2 2025. Nearly one quarter of prescriptions were written by physicians reached through digital touchpoints only.
Collaboration revenue, which reflects royalties and milestone payments from partners like Daiichi Sankyo Europe, made up over half of total revenue (GAAP). While collaboration revenue (GAAP) declined 7% year-over-year—due to a non-recurring settlement payment in the prior-year period—underlying trends are positive. Excluding one-time items, recurring collaboration revenue more than doubled compared to Q2 2024. More than 500,000 European patients have now received Esperion’s therapies through the partnership with Daiichi Sankyo. In Japan, approval and pricing decisions are targeted for late 2025, with Canada, Israel, and Australia set to follow with regulatory actions through 2026.
Operating expenses declined by 4.0% from the year-earlier period for the six months ended June 30, 2025, reflecting cost controls in research and development as well as general and administrative spending. Research and development (R&D) expenses dropped 37%, mainly due to lower spending on clinical studies and compensation costs, while sales and marketing costs also edged down. For the first time, Esperion delivered a positive operating income of approximately $15.0 million from its ongoing business, marking a key milestone.
One-time events this quarter included settlements with three companies over generic drug filings, which will delay generic entry for NEXLETOL in the United States until 2040. There were no declared or announced dividend changes during the period. The company does not currently pay a dividend.
Product Portfolio and Pipeline Developments
NEXLETOL and NEXLIZET, Esperion’s lead oral therapies, lower low-density lipoprotein cholesterol (LDL-C) by targeting an enzyme pathway different from statins. Both have gained expanded approvals in the U.S. and European Union following results from the CLEAR Outcomes trial, which demonstrated reduced cardiovascular risk in a broad spectrum of patients, including those unable or unwilling to take statins.
In addition to these marketed products, Esperion is developing a triple-combination oral therapy for LDL-C lowering, expected to be commercialized in 2027, aiming for potential U.S. launch in 2027. This new combination is designed to offer convenient, high-efficacy cholesterol reduction in a single tablet. The company also has an early-stage pipeline, including potential treatments for rare liver diseases using next-generation enzyme inhibitors.
Financial Position, Risks, and Outlook
Esperion’s cash balance was $86.1 million as of June 30, 2025, down from $144.8 million (GAAP) as of December 31, 2024. Continued negative cash flow, despite positive operating income from ongoing operations, remains a risk to watch. Debt levels are substantial, including $151.8 million in convertible notes as of June 30, 2025, and $295.9 million in royalty sale liabilities as of June 30, 2025. Management has reiterated full-year 2025 guidance for operating expenses of $215–$235 million and remains focused on achieving sustainable profitability beginning in the first quarter of 2026. There was no new dividend declared or changed this quarter. ESPR does not currently pay a dividend.
Looking ahead, management expects that recent progress in growing U.S. product sales and expanded international launches will be central to future revenue growth. No further updates on forward guidance were offered beyond the reiteration of expense targets and the goal for sustainable profitability in fiscal 2026. With generic risk deferred and continued expansion in its lead markets, the company’s trajectory depends on increasing both product and collaboration revenues. Investors should closely monitor cash burn, execution on international launches, and the scale-up of new product combinations as Esperion works to turn operational progress into durable profitability.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
