Cryo-Cell International Reports Revenue Decline and Net Income Drop in Q2 Fiscal 2025

Cryo-Cell International, Inc. reported its financial results for the second quarter of fiscal 2025, revealing a slight decline in revenue and net income compared to the same period last year. For the three months ended May 31, 2025, the company generated total revenue of $7.93 million, down from $8.04 million in the prior year. The decrease was primarily attributed to an 18% drop in new domestic cord blood specimens processed, despite a 3% increase in recurring annual storage fee revenue. For the six-month period, revenue remained relatively stable at $15.90 million, compared to $15.90 million in the same period of 2024.

The company's net income for the second quarter was $355,785, a decrease from $655,790 in the previous year. This decline was influenced by increased selling, general, and administrative expenses, which rose by 6% to $4.26 million, and a significant increase in interest expenses, which reached $551,126 compared to $329,273 in the prior year. The total costs and expenses for the quarter were $6.44 million, down from $6.65 million in the same quarter of 2024, reflecting a reduction in cost of sales.

In terms of operational metrics, Cryo-Cell reported a total of 240,000 cord blood and cord tissue specimens stored as of May 31, 2025. The company continues to focus on its core business of cellular processing and cryogenic storage, which remains its primary revenue driver. The company also noted a 4% increase in recurring annual storage fee revenue, indicating a stable customer base despite the decline in new specimen processing.

Strategically, Cryo-Cell has faced challenges related to its licensing agreement with Duke University, which has impacted its ability to expand into new business units. The company filed a demand for arbitration against Duke, alleging fraudulent inducement and breach of contract, which has led to a pause in investments related to the Duke License Agreement. The company has also received a notice of termination from Duke, further complicating its future plans.

Looking ahead, Cryo-Cell anticipates that its cash and cash equivalents, along with marketable securities, will be sufficient to meet its operational needs for at least the next 12 months. However, the company is cautious about its future funding requirements, particularly in light of the ongoing dispute with Duke and the potential need for additional capital to support its planned initiatives. The company plans to continue leveraging its existing infrastructure and customer base while exploring opportunities for growth in the cord blood banking market.