ImmuCell (ICCC -5.66%), a specialist in animal health products for the dairy and beef industries, issued its earnings results for the second quarter of fiscal 2025 on August 14, 2025. The company posted $6.4 million in revenue (GAAP), up 18% from the same period last year, and earned $0.06 per diluted share (GAAP) versus a loss of $0.20 per share a year ago. No Wall Street consensus estimates were available for the quarter due to limited coverage, but these numbers mark a substantial turnaround from recent losses and operational disruptions. The period saw a normalization of production, improved gross margin to 44% of product sales, and the elimination of distributor backlogs. Overall, the quarter reflected meaningful operational progress after a difficult stretch.
| Metric | Q2 2025 | Q2 2024 | Y/Y Change |
|---|---|---|---|
| EPS – Diluted | $0.06 | ($0.20) | n/m |
| Revenue | $6.4 million | $5.5 million | 18% |
| Gross Margin | 44% | 22% | 22 pp |
| Net Income | $502,000 | ($1.5 million) | n/m |
| Adjusted EBITDA | $1.4 million | ($619,000) | n/m |
ImmuCell’s Business and Focus Areas
ImmuCell develops and manufactures animal health products, focusing on solutions for the dairy and beef sectors. Its primary business revolves around the First Defense® product line, which offers Immediate Immunity™ therapy to prevent scours, a key cause of newborn calf mortality.
Recently, the company has concentrated on two critical areas: expanding its First Defense® product range and commercializing Re-Tain®, a pharmaceutical-grade Nisin treatment for subclinical mastitis in dairy cows. Control of production quality, process reliability, and protection of intellectual property underpin these efforts. Performance has also depended on effective inventory and cost management as the company navigates regulatory paths and moves towards broader market penetration.
Quarter Review: Momentum, Metrics, and Key Developments
ImmuCell’s revenue climbed 18%, bolstered by inventory restocking at its distributors and the clearing of backlogged orders. The company stated that “product sales increased by 18% to approximately $6.4 million (GAAP) compared to Q2 2024.” Notably, year-to-date revenue (GAAP) reached $14.5 million for the six months ended June 30, 2025, up 14% over the first half of 2024, showing significant growth over trailing periods as well.
A sharp recovery in gross margin was another standout, as gross margin (GAAP) improved to 44%, up from 22% in Q2 2024. Gross margin (GAAP) reached 44%, double the prior year’s 22%, as the effects of prior contamination events abated and production processes stabilized. “We improved our gross margin as a percentage of sales to 44% and 43% during the three-month and six-month periods ended June 30, 2025, respectively,” Net income (GAAP) swung to a profit of $502,000, compared to a net loss of ($1.5) million in Q2 2024, reflecting the improved margin and operational performance.
Adjusted EBITDA, which measures earnings before interest, taxes, depreciation, amortization, and stock-based compensation, improved to $1.4 million (non-GAAP). The successful elimination of order backlogs allowed distributors to restock inventories, a dynamic that lifted reported revenue but may not indicate sustainable end-user demand. The company noted, “We effectively eliminated the backlog of orders as of June 30, 2025,” commented Michael F. Brigham, President and CEO of ImmuCell. “We have re-filled distributors with the inventory that they would like to hold as we enter the third quarter when sales are generally lower.”
On the product front, Re-Tain® (a non-antibiotic treatment for subclinical mastitis in dairy cows) entered investigational use to gather real-world market feedback in the second half of 2025; this initiative is not expected to generate significant revenue or profit. For the immediate term, no new contamination events were reported, supporting operational improvements and providing confidence in the reliability of supply.
Outlook and What to Watch
ImmuCell provided quantitative guidance on production capacity and revenue expectations for Re-Tain®. Management commented that the third quarter is typically weaker due to seasonality, with its sales cycle peaking at year-end and into the first quarter. Feedback from Re-Tain®’s real-world use is anticipated by early 2026.
Investors should monitor true demand trends for First Defense® as distributor inventory levels normalize and pipeline refilling slows. Near-term financial results may reflect inventory timing more than underlying farm-level demand. In addition, tracking both the adoption of Re-Tain® and operational reliability -- including absence of contamination events -- will be critical for gauging future earnings quality and long-term growth.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
