TherapeuticsMD (TXMD 4.98%), a specialty pharmaceutical company focused on women’s health products, released its second quarter results on August 12, 2025, reporting a swing to profitability, with GAAP net income from continuing operations of $545 thousand and higher license revenue from royalties ($1.0 million) for Q2 2025. Net income from continuing operations (GAAP) was $545 thousand ($0.05 per share), compared to a net loss of $(1.05) million ($(0.09) per share) in the prior-year period, with license revenue increasing to $1.0 million from $234 thousand. Results exceeded those of the previous year as the company benefited from increased license income and a sharp reduction in operating expenses. The results show a continuation of TherapeuticsMD’s transformation into a lean, royalty-focused company, following its exit from research, development, and direct commercial activities.
| Metric | Q2 2025 | Q2 2024 | Y/Y Change |
|---|---|---|---|
| EPS (GAAP) | $0.05 | $(0.09) | $0.14 |
| Revenue | $1.0 million | $0.23 million | 334.8 % |
| Total Operating Expenses | $1.65 million | N/A | N/A |
| Net Income (Loss) from Continuing Operations | $0.55 million | $(1.05) million | N/A |
About TherapeuticsMD and Recent Business Priorities
TherapeuticsMD was previously a women’s healthcare company focused on products for menopause relief and contraception. In December 2022, it transitioned to a pharmaceutical royalty company. Its main source of income is now royalties from licensed products under the Mayne License Agreement. Each product addresses specific needs related to hormone therapy and contraception, with revenue coming from licensing agreements executed with partners.
TherapeuticsMD ended its own research and development and direct sales efforts in December 2022. Instead, it has pivoted fully to a royalty-receiving business model. In this setup, it relies on commercial partners, such as Mayne Pharma, to market and distribute its products. The company’s performance now depends on licensing revenue, the commercial execution of its partners, and finding ways to boost returns without developing new products itself.
Quarterly Highlights and Key Metrics
The main story from the second quarter of 2025 is the company’s return to profitability. Net income from continuing operations (GAAP) was $545 thousand, a substantial turnaround from last year’s loss. This improvement reflects not only higher royalty payments but also the absence of the one-time impairment charges that impacted the previous year’s results.
License revenue climbed sharply to $1.0 million, more than four times the revenue of the same period last year. The earnings disclosure credits this increase to stronger sales of licensed products by partners under the Mayne License Agreement. This revenue channel is now the foundation of the company’s business, with all sales executed by third parties who pay royalties on product performance. The company reported that license revenue is “primarily from the Mayne License Agreement,” emphasizing its dependence on this partnership. No new deals or additional product launches were noted for the period.
Total operating expenses (GAAP) fell to $1.65 million, a drop of 45.5% from the prior year. The decline in total operating expenses is largely because Q2 2024 included a significant non-recurring impairment. The new lower cost base reflects a typical royalty business, where ongoing expenses are kept minimal due to the exit from developing and selling products directly. With no ongoing research and development spending, the company’s focus is on cash preservation and operational efficiency.
Cash and cash equivalents totaled $6.1 million as of June 30, 2025. The strength of its cash balance, in absence of meaningful organic growth, will largely depend on continued performance by the licensing partners and the potential for favorable strategic outcomes.
Product Portfolio and Strategic Developments
TherapeuticsMD’s licensed products, including IMVEXXY (vaginal estrogen therapy), BIJUVA (combined estradiol and progesterone oral capsule), and ANNOVERA (progesterone and ethinyl estradiol contraceptive ring), serve core needs in women’s health. However, all direct product development and sales are now managed by licensees. There is no internal research pipeline, and the company has confirmed it is not pursuing additional drug approvals or scientific studies. This means all future product lifecycle management and regulatory compliance rest with the licensing partners, not TherapeuticsMD itself.
The current business is highly reliant on performance under the Mayne License Agreement. There were no updates on new alliances, distribution expansions, or additional partnerships in the quarter. Similarly, no regulatory milestones or compliance issues were reported, as these matters are now the domain of the licensees. There was no mention of one-time gains, new product launches, or significant changes to the royalty structure or licensing arrangements during the period.
The earnings release also noted that the company continues to review “strategic alternatives,” which could include an acquisition, merger, or asset sale. The language used makes it clear there are no guarantees of any transaction or specific outcome, and neither a timeline nor a concrete proposal has been provided. This ongoing review has continued for several quarters without resolution, creating uncertainty about the business’s direction. It remains dependent on existing agreements to generate cash.
No new dividend was announced. TXMD does not currently pay a dividend.
Outlook and What to Watch Ahead
The company did not provide financial guidance for the upcoming quarter or fiscal year and stated that it will not disclose further details on its strategic review unless required. This lack of forward-looking information leaves investors with few clues as to expected revenue, cash flow, or earnings trends in the months ahead. The business model, now fully focused on royalties, is predictable in terms of costs but variable depending on the commercial performance of licensees.
Looking ahead, areas to monitor include updates on the ongoing “strategic alternatives” process and possible changes with key partners. Cash preservation, continued cost discipline, and execution of current licensing agreements will all be essential for the stability of TherapeuticsMD in the absence of new development or commercial initiatives.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
