Celularity Inc. Reports 43.2% Revenue Decline in Q3 2025, Faces Going Concern Issues

Celularity Inc. reported a significant decline in its financial performance for the third quarter of 2025, with total net revenues of $5.3 million, a decrease of 43.2% compared to $9.3 million in the same period last year. The decline was primarily driven by a 73.7% drop in product sales, which fell to $894,000 from $3.4 million, largely due to reduced sales of its Biovance 3L and Rebound products. In contrast, service revenues increased by 12.1% to $1.4 million, while license and royalty revenues decreased by 36.2% to $2.9 million. For the nine months ending September 30, 2025, total revenues were $22.4 million, down 37.8% from $36.1 million in the prior year.

Operating expenses for the third quarter were $18.2 million, a decrease of 12.7% from $20.8 million in the previous year. This reduction was attributed to lower selling, general, and administrative expenses, which fell by 26.4% to $9.3 million, offset by a 17.4% increase in research and development expenses to $4.6 million. The company reported a loss from operations of $12.9 million, compared to a loss of $11.5 million in the same quarter of 2024. For the nine-month period, the loss from operations increased to $39.3 million from $29.1 million in the prior year.

In terms of strategic developments, Celularity completed an asset acquisition of Sequence LifeScience's Rebound product in October 2024, which is expected to enhance its portfolio of placental-derived biomaterials. The company also entered into a multi-year research collaboration with Regeneron Pharmaceuticals, which was terminated in August 2025, leading to the recognition of remaining revenue from that agreement. Additionally, Celularity has been actively seeking to secure additional capital to fund its operations, as it continues to face significant operating losses and an accumulated deficit of $967.1 million as of September 30, 2025.

Operationally, Celularity's total assets decreased to $114.2 million from $132.7 million at the end of 2024, primarily due to a reduction in cash and cash equivalents, which fell to $120,000 from $738,000. The company reported a total of 28,216,485 shares of Class A common stock outstanding as of September 30, 2025. The company is currently classified as a non-accelerated filer and smaller reporting company, and it has indicated that it is actively exploring opportunities to expand its biomaterials business and leverage its expertise in cellular therapeutic development.

Looking ahead, Celularity's management has expressed concerns about its ability to continue as a going concern, citing the need for substantial additional funding to support ongoing operations and development efforts. The company is focused on advancing its product pipeline, including plans to submit a 510(k) application for its Celularity Tendon Wrap in late 2025 and to further develop its FUSE Bone Void Filler and Celularity Placental Matrix products. However, the company acknowledges that it may need to curtail operations or seek strategic alternatives if it cannot secure the necessary capital in the near term.