Fortress Biotech Reports 21% Revenue Growth and Net Income Turnaround in Q3 2025

Fortress Biotech, Inc. reported a significant improvement in its financial performance for the third quarter of 2025, with net revenue reaching $17.6 million, a 21% increase from $14.6 million in the same period last year. This growth was primarily driven by product sales from its partner company, Journey Medical Corporation, particularly the newly launched Emrosi, which contributed $4.9 million in revenue. For the nine months ending September 30, 2025, net revenue totaled $47.2 million, up from $42.6 million in the prior year. The company also recognized $0.6 million in other revenue related to the supply of Amzeeq to Cutia Therapeutics.

Operating expenses for the quarter decreased by 33% to $24.4 million, down from $36.7 million in the previous year, largely due to a significant reduction in research and development costs, which fell by 98% to $208,000. This decline was attributed to the deconsolidation of Checkpoint Therapeutics following its acquisition by Sun Pharma in May 2025, which eliminated substantial R&D expenses previously incurred by Checkpoint. Selling, general, and administrative expenses also decreased by 21% to $17.4 million, reflecting cost management efforts and reduced stock compensation expenses.

The company reported a net income of $5.9 million for the quarter, a notable turnaround from a net loss of $12.9 million in the same quarter of 2024. This improvement was bolstered by other income, which included a $27.1 million gain from the deconsolidation of Checkpoint and a $15.1 million increase in the fair value of Urica’s equity interest in Crystalys. The total other income for the quarter was $15.7 million, compared to an expense of $4.5 million in the prior year.

In terms of strategic developments, Fortress Biotech has been actively pursuing partnerships and acquisitions to enhance its product pipeline. The company’s focus on expanding its dermatology product offerings through Journey has been a key component of its growth strategy. Additionally, the recent acquisition of Checkpoint by Sun Pharma has positioned Fortress to benefit from potential future royalties and milestone payments related to Checkpoint's product candidates.

Looking ahead, Fortress Biotech anticipates continued revenue growth driven by the commercialization of its products, particularly Emrosi, and ongoing clinical trials for its product candidates. However, the company also acknowledges the need for additional financing to support its research and development activities and to navigate the complexities of the biopharmaceutical landscape. As of September 30, 2025, Fortress had cash and cash equivalents of $86.2 million, which it believes will be sufficient to fund operations for at least the next twelve months.