Elutia Inc. Reports $3.9 Million Net Loss in Q1 2025, Revenue Declines 9.9%

Elutia Inc. reported a net loss of $3.9 million for the first quarter of 2025, a significant improvement compared to a net loss of $18.0 million in the same period of 2024. The company's revenue for the quarter was $6.0 million, down 9.9% from $6.7 million year-over-year. The decline in revenue was attributed to decreased sales in the Women’s Health and Cardiovascular segments, which offset growth in the Device Protection segment driven by the recent launch of EluPro, a drug-eluting biomatrix product cleared by the FDA in June 2024.

Total operating expenses decreased to $10.4 million from $11.3 million in the prior year, primarily due to reductions in general and administrative costs, which fell by 23.4% to $3.9 million. This decrease was largely driven by lower non-cash equity compensation and legal fees. Research and development expenses also declined by 22.8% to $0.9 million, reflecting reduced spending following the FDA clearance of EluPro. However, litigation costs increased to $2.6 million, up from $1.8 million, as the company continued to address ongoing legal challenges related to its FiberCel and viable bone matrix products.

Elutia's balance sheet showed total assets of $39.3 million as of March 31, 2025, an increase from $36.1 million at the end of 2024. Cash and cash equivalents rose to $17.4 million, bolstered by a registered direct offering in February 2025 that generated approximately $15 million in gross proceeds. The company’s liabilities decreased to $75.8 million from $82.4 million, primarily due to repayments related to its long-term debt obligations. The accumulated deficit increased to $233.5 million, reflecting ongoing operational losses.

Strategically, Elutia completed the sale of its Orthobiologics business in November 2023, receiving $14.6 million upfront and the potential for up to $20 million in earn-out payments based on future sales. This divestiture allows the company to focus on its core products in the Device Protection and Women’s Health markets. Elutia is also expanding its manufacturing capabilities with a new facility in Gaithersburg, Maryland, expected to commence operations in the second quarter of 2025.

Looking ahead, Elutia anticipates continued challenges in achieving profitability, with substantial investments required for the commercialization of EluPro and other product developments. The company has expressed uncertainty regarding its ability to meet future cash flow needs, indicating potential reliance on additional capital raises or asset sales to sustain operations.