Petros Pharmaceuticals Reports $3.2 Million Net Income Turnaround Amid Restructuring Efforts

Petros Pharmaceuticals, Inc. reported a net income of $3.2 million for the six months ended June 30, 2025, a significant turnaround from a net loss of $2.8 million during the same period in 2024. This improvement was largely attributed to a gain of approximately $7 million from the assignment of subsidiaries and a settlement with Vivus, which offset losses from discontinued operations. The company’s total revenue for the six months was $1.3 million, down from $2.8 million in the prior year, reflecting the discontinuation of its Stendra® product line and other operations.

In terms of operational changes, Petros has undergone significant restructuring. The company ceased sales of Stendra® in December 2024 and, as of March 2025, is no longer involved in its commercialization or the marketing of vacuum erection devices. This strategic pivot aims to focus on developing a proprietary technology platform for over-the-counter pharmaceuticals. The company is currently in the early stages of developing this platform, which includes a software-as-a-service (SaaS) component and a potential software as a medical device (SaMD) interface.

Financially, Petros reported total assets of $7.4 million as of June 30, 2025, a decrease from $10.6 million at the end of 2024. The company’s cash and cash equivalents increased to $7.3 million from $1.7 million, primarily due to proceeds from a public offering that raised approximately $9.6 million. However, total liabilities also decreased significantly from $18.1 million to $2.9 million, largely due to the assignment of liabilities related to discontinued operations. The company’s accumulated deficit stands at $110 million, indicating ongoing challenges in achieving profitability.

Petros has also faced challenges related to its stock market listing. Following a series of compliance issues with Nasdaq, including failing to meet minimum bid price requirements, the company’s stock was delisted from Nasdaq and began trading on the OTC Markets in May 2025. The company is currently appealing this decision. Looking ahead, Petros acknowledges the need for additional financing to support its operations and strategic initiatives, as it does not have sufficient liquidity to fund its operations for the next 12 months. The company is exploring various financing options to address its capital needs.