NovaBay Pharmaceuticals Reports Q3 2025 Financial Results with Revenue Increase and Restructuring Updates

NovaBay Pharmaceuticals, Inc. reported its financial results for the third quarter of 2025, revealing a significant shift in its business operations following the divestiture of its primary eyecare and skincare assets. For the three months ended September 30, 2025, the company generated product revenue of $521,000, a notable increase from zero revenue in the same period last year. The cost of goods sold was $479,000, resulting in a gross profit of $42,000. However, the company reported a net loss of $1.293 million, a slight improvement compared to a net loss of $1.212 million in the third quarter of 2024.

In terms of operational changes, NovaBay has undergone substantial restructuring, including the divestiture of its Avenova and PhaseOne brands, which were completed in January 2025. The Avenova divestiture alone generated $11.5 million in cash proceeds, although the company recorded a gain of $10.7 million on this transaction in the first quarter of 2025. The divestitures have allowed NovaBay to focus on its remaining wound care business, which is now primarily sold through a distributor in China. The company’s total current assets increased to $2.898 million as of September 30, 2025, up from $1.935 million at the end of 2024.

The company’s operating expenses for the third quarter decreased by 24% to $1.298 million, down from $1.703 million in the prior year, primarily due to reduced general and administrative costs. The impairment of long-lived assets also contributed to the financial results, with $87,000 recorded in the latest quarter. NovaBay's total liabilities decreased significantly to $1.853 million from $3.552 million at the end of 2024, reflecting the impact of the divestitures and improved cash management.

Looking ahead, NovaBay's management believes that its existing cash and cash equivalents, totaling $2.309 million as of September 30, 2025, along with proceeds from recent financing activities, will be sufficient to cover operating expenses through at least November 2026. The company is also exploring new strategic directions, including potential investments in decentralized financial infrastructure and blockchain-based assets, which may require additional resources and operational adjustments. The board has opted not to pursue a previously approved plan for dissolution, indicating a commitment to continue operations and explore new opportunities for growth.