Elutia (ELUT -0.46%), a medical technology company specializing in biologic products for device protection and surgical reconstruction, released its second-quarter earnings on August 14, 2025, reporting results for the period ended June 30. The company saw its bottom-line loss per share narrow compared to the same period last year, but operating losses increased due to higher litigation expenses. Revenue came in at $6.26 million, just below the analyst consensus of $6.55 million, and was nearly unchanged from the prior year. The quarter reflected a mix of progress and ongoing challenges, with notable growth in EluPro and margin gains, while declines in other product lines and persistent losses highlighted areas for improvement.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | ($0.26) | ($0.17) | ($1.13) | 77.0 % |
| Revenue (GAAP) | $6.26 million | $6.55 million | $6.29 million | (0.5 %) |
| Adjusted Gross Margin | 62.4 % | 58.0 % | 4.4 pp | |
| Net Loss | $9.6 million | $28.2 million | 66.0 % | |
| Adjusted EBITDA (Non-GAAP) | ($3.8 million) | ($2.6 million) | (46.6 %) |
Source: Analyst estimates provided by FactSet.
What Elutia Does and Where It Focuses
Elutia develops biologic-based medical products that protect implantable devices from infection and support soft-tissue reconstruction. Its main revenue drivers are device protection products, such as the BioEnvelope family, and regenerative matrices for women’s health and soft tissue repair.
The company’s future depends on innovation in drug-eluting products, expanding clinical adoption, scaling distribution partnerships, and maintaining compliance in a tightly regulated industry. EluPro, a bioenvelope that releases antibiotics to protect cardiac implantable devices, is a key example of its focus on pioneering technology.
Quarter in Detail: Highlights, Product Updates, and Financial Drivers
During the quarter, most progress came from EluPro, the first FDA-cleared drug-eluting bioenvelope for cardiac devices. The BioEnvelope segment saw a significant increase in sales, driven by EluPro adoption. EluPro made up about two-thirds of BioEnvelope sales and grew strongly over the previous quarter. Hospitals with value analysis committee (VAC) approvals for EluPro climbed past 160 as of the end of the period, and the customer base expanded rapidly since the January 2025 launch. Average spend per EluPro customer was much higher than for legacy CanGaroo bioenvelope customers. Revenue from distributor sales via the Boston Scientific partnership made up approximately one-third of EluPro’s segment revenue.
While the device protection segment expanded, SimpliDerm—Elutia’s regenerative matrix for soft tissue repair—generated $2.0 million in net sales, down from the prior year. This decline contributed to the overall flat revenue, and management said it is exploring "strategic alternatives" for this product line. Cardiovascular products, recently brought back in-house after a distributor relationship, contributed $0.7 million in net sales, also down from the prior year. Management expects revenue in cardiovascular to improve over coming quarters through expanded distributor relationships and direct sales models.
Gross margin improved on an adjusted basis, supported by the growing share of EluPro in the mix and early benefits from scale. The company resolved 27 additional litigation cases related to its FiberCel product, settling a total of 97 out of 110 open cases. Higher litigation expenses contributed to increased operating losses for the period.
The company’s net loss improved sharply compared to the same period last year, primarily reflecting large non-operating losses in the prior year. On a non-GAAP basis, adjusted EBITDA loss widened. The cash position as of June 30 stood at $8.5 million, down from $13.2 million as of December 31, 2024, with ongoing cash burn driven by investing in product launches and litigation settlements. Total liabilities were $75.7 million as of June 30, 2025, resulting in negative equity.
EluPro was awarded two Medical Device Network Excellence Awards, and five new peer-reviewed publications strengthened its clinical profile. The company continued to progress with its next-generation NXT-41 platform for reconstructive surgery, targeting a market with a potential $1.5 billion opportunity, as referenced by management in August 2025. Broader adoption and sales of EluPro were enabled by a combined 900-person salesforce, thanks to the Boston Scientific partnership, with distribution reach supporting ongoing hospital conversions and customer wins.
Looking Ahead
Elutia’s management did not provide quantitative financial guidance for the next quarter or the full fiscal year. However, the CEO stated the company expects BioEnvelope sales to approach a $20 million annualized run rate by year-end 2025. The company may pursue divestitures or partnerships, particularly for SimpliDerm, and indicated ongoing exploration of options for the broader portfolio and pipeline.
Investors should watch for further acceleration in EluPro sales, stabilization or recovery of the SimpliDerm and cardiovascular segments, and continued improvement in margins. The company’s reliance on additional capital, progress in litigation settlements, and strategic actions around its product mix remain central to its outlook.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
