BioHarvest Sciences Inc. (NASDAQ:BHST) reported a 41% rise in second-quarter revenue, driven by growth in its VINIA product line and contributions from its contract development and manufacturing (CDMO) business.
Revenue for the quarter ended June 30 rose to $8.5 million from $6 million a year earlier, in line with the company’s guidance.
Gross margins expanded to 60% from 52% as manufacturing scale and yields improved.
The company’s core VINIA capsule business grew 28%, accounting for about 80% of growth, while new products contributed the remaining 20%. The number of US active VINIA users reached 65,000, generating more than $60 million in cumulative revenue since the product’s US launch in May 2021.
BioHarvest also secured a Stage 1 CDMO contract to develop a plant-based fragrance compound from a threatened plant species and advanced its first pharmaceutical CDMO project to Stage 2, validating the platform for multiple molecule types.
Net loss widened to $4 million, or $0.24 per share, from $0.7 million, or $0.04 per share, a year earlier, mainly due to non-cash finance expenses linked to exchange rate impacts. Adjusted EBITDA loss was $1.3 million, compared with a $1.2 million loss a year earlier.
Cash and equivalents rose to $3.7 million as of June 30, from $2.4 million at the end of 2024.
Looking ahead, BioHarvest expects third-quarter revenue of at least $9.1 million and reiterated its forecast of reaching adjusted EBITDA breakeven in the fourth quarter. The company plans to launch three initiatives in the second half of the year, including a professional affiliate program, an electrolyte beverage line, and an AI-enabled CDMO discovery service.
"The second quarter of 2025 was another strong quarter of operational execution, as we achieved our revenue guidance and advanced toward our goal of adjusted EBITDA breakeven in Q4 of this year,” CEO Ilan Sobel said in a statement.
Sobel pointed to continued VINIA growth and milestone achievements in the CDMO business. “Our CDMO pipeline remains robust with multiple potential customers that we expect could convert in the next six to nine months.”