Collegium Pharmaceutical (COLL -1.13%), a specialty pharmaceutical firm focused on pain management and neuropsychiatry, reported its Q2 2025 earnings on August 7, 2025. GAAP revenue was $188.0 million and non-GAAP earnings per share was $1.68, both above Wall Street analysts' projections of $180.9 million (GAAP) revenue and $1.62 non-GAAP EPS, respectively. Net product revenue (GAAP) rose 29% year-over-year, fueled by ongoing growth in ADHD product Jornay PM. Despite top-line and earnings outperformance, rising operating expenses and declining GAAP net income highlight cost pressures. Overall, the company delivered a strong operating quarter, raised its full-year 2025 financial guidance, and continued to reinvest in commercial expansion.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.68 | $1.62 | $1.62 | 3.7% |
| Revenue (GAAP) | $188.0 million | $180.88 million | $145.3 million | 29.4% |
| Adjusted EBITDA | $105.1 million | $96.0 million | 9.5% | |
| Adjusted Operating Expenses | $61.9 million | $30.3 million | 104.2% | |
| Jornay PM Net Revenue | $32.6 million | N/A | N/A |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Recent Focus
Collegium Pharmaceutical operates in the specialty pharmaceutical sector, focusing on developing and commercializing medications for pain management and central nervous system disorders. Its chief products include pain drugs like Belbuca (a buprenorphine buccal film), Xtampza ER (an extended-release abuse-deterrent oxycodone), and Nucynta (tapentadol extended and immediate release tablets), as well as the ADHD treatment Jornay PM (a delayed-release, extended-release methylphenidate capsule).
Collegium has recently pivoted toward diversifying revenue beyond opioids, primarily through the acquisition and commercialization of Jornay PM, following the September 2024 acquisition of Ironshore and entry into the ADHD treatment sector. Growth in ADHD treatments is now a key business driver. Collegium’s success relies on regulatory compliance, maintaining market exclusivity through patents, product differentiation (particularly through abuse-deterrent technology in pain medicines), and the ability to expand its market presence in neuropsychiatry while managing risks from regulation and litigation in the opioid sector.
Quarter Highlights: Sales, Products, and Costs
During the quarter, revenue (GAAP) climbed to $188.0 million, a 29% increase from the prior-year period, surpassing consensus GAAP revenue estimates by $7.1 million. This performance was powered by exceptional results from Jornay PM, its signature ADHD medication, which generated $32.6 million in net revenue, up 23.0% year over year. Prescriptions for Jornay PM also set a record, reflecting over 26,000 healthcare providers now prescribing the drug, mirroring the prescription growth.
The pain franchise continued to drive a major portion of total sales, generating $155.4 million in net revenue—an increase of 7%. Belbuca, an opioid pain reliever delivered via buccal film, contributed $52.6 million in net revenue, and Xtampza ER, its extended-release oxycodone, also brought in $52.6 million in net revenue, up 18% year-over-year. Nucynta, a tapentadol-based pain medicine, delivered $46.4 million in net revenue (GAAP), increasing 4% year-over-year. While these pain products remain steady, their 7% year-over-year net revenue growth contrasts with the high momentum shown in the newer ADHD segment, where Jornay PM prescriptions grew 23% year-over-year.
Profitability on an adjusted basis remained healthy, with adjusted EBITDA of $105.1 million, reflecting a 9% increase from the prior-year quarter. However, GAAP operating costs rose sharply. Adjusted operating expenses more than doubled year-over-year, reaching $61.9 million compared to $30.3 million in Q2 2024, reflecting expanded investment in sales and marketing—especially for Jornay PM—as well as increased stock-based compensation and costs tied to recent acquisitions. The company's expansion of the ADHD sales force and ongoing promotional activity accounted for a large portion of this surge in spending.
GAAP net income fell to $12.0 million, down from $19.6 million in Q2 2024. underscoring that higher costs—such as amortization, selling, general and administrative expenses, and interest—increasingly eroded profitability under standard accounting measures (GAAP). While non-GAAP adjusted net income remained steady at $64.3 million, basic and diluted earnings per share on a GAAP basis both declined significantly year over year.
Product Portfolio and Strategy Updates
Jornay PM is a delayed-release, extended-release capsule for ADHD designed for evening dosing, giving patients symptom control from morning through evening. This product has become Collegium's lead growth driver, with the company investing significant resources to expand its prescriber base and market reach. The expansion of the ADHD-focused sales team to approximately 180 representatives was completed in Q1 2025, enabling the company to reach thousands of new healthcare providers and increase prescription rates, targeting a larger share of a market that management describes as growing 5% to 6% annually.
The core pain management products remain a crucial cash flow foundation for Collegium. Xtampza ER stands out for its use of the DETERx abuse-deterrent technology, and Xtampza ER is protected by issued U.S. patents projected to expire in 2025, 2030, and 2036, as well as by pending U.S. patent applications that, if issued, would expire in 2030 and 2036. Belbuca, delivered through a dissolvable film, and the Nucynta franchise also continue to generate steady revenues despite relatively low year-over-year growth. These assets help balance the risk profile as the company invests aggressively into new therapy areas like ADHD.
Intellectual property protection remains a key pillar of Collegium’s competitive strategy. The extension of market exclusivity for Xtampza ER and the Nucynta franchise shields the company from generic competition in the medium term. Regulatory compliance, specifically with Food and Drug Administration (FDA) and Drug Enforcement Administration (DEA) rules for controlled substances, also remains a constant focus, with no new regulatory enforcement actions or major setbacks reported.
From a financial position, Collegium ended the quarter with $222.2 million in cash, cash equivalents, and marketable securities. This capital gives the company flexibility both to repay debt—term notes payable fell by $30.1 million from year-end Q4 2024 to the end of the quarter—and to return value to shareholders. The company completed a $25 million share repurchase in July and authorized a new $150 million buyback program scheduled to run through December 2026.
Outlook and Guidance
Management lifted its target for 2025 full-year product revenues to a new range of $745 million to $760 million, reflecting increased confidence in product uptake—particularly in Jornay PM. Adjusted EBITDA is now projected in the range of $440 million to $455 million for full year 2025, up from earlier expectations. Forecasted adjusted operating expenses guidance was raised to $225–$235 million for full-year 2025, acknowledging both the continued heavy spend on commercial expansion and expected operating leverage in later periods.
For Jornay PM specifically, management increased its outlook for full-year 2025 Jornay PM net revenue to $140 million–$145 million, encouraged by prescriber and patient momentum ahead of the critical back-to-school period.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
