Rafael Holdings Reports Revenue Growth to $240,000 Amid Consolidated Net Loss of $9.8 Million

Rafael Holdings, Inc. reported its financial results for the three months ended October 31, 2025, revealing a total revenue of $240,000, a significant increase from $128,000 in the same period last year. The revenue growth was primarily driven by product sales of $154,000, attributed to the consolidation of Cyclo Therapeutics following its merger with Rafael in March 2025. However, the company recorded a consolidated net loss of $9.8 million, compared to a loss of $9.2 million in the prior year, reflecting increased operational costs, particularly in research and development, which surged to $7.5 million from $1.3 million year-over-year.

The company's total assets decreased to $105.4 million as of October 31, 2025, down from $114.1 million at the end of the previous fiscal year. This decline was largely due to a reduction in cash and cash equivalents, which fell to $45.5 million from $52.8 million. The company's working capital also decreased by 20% to $36.2 million, indicating tighter liquidity. The total equity attributable to Rafael Holdings decreased by 10% to $85.2 million, reflecting the net loss incurred during the quarter.

Strategically, Rafael Holdings has focused on enhancing its biotechnology portfolio, particularly through the development of its lead candidate, Trappsol® Cyclo™, aimed at treating Niemann-Pick Disease Type C1. The company has also streamlined its operations by consolidating its interests in various subsidiaries, including LipoMedix and Cornerstone Pharmaceuticals, to concentrate resources on core assets. The merger with Cyclo has positioned Rafael to leverage Cyclo's clinical advancements and market potential.

Operationally, the company has seen a notable increase in its customer base and engagement metrics, particularly in the Healthcare segment, which generated product revenue for the first time. The Infusion Technology segment, however, reported no revenue for the quarter, down from $51,000 in the previous year, due to a strategic shift following the sale of certain assets. The Real Estate segment showed a slight increase in rental income, contributing $86,000 to the overall revenue.

Looking ahead, Rafael Holdings anticipates that its cash reserves will be sufficient to meet operational needs for at least the next 12 months. The company is committed to advancing its clinical trials and exploring strategic partnerships to enhance its product offerings. However, management has acknowledged the need for ongoing improvements in internal controls, particularly following the merger with Cyclo, to ensure accurate financial reporting and compliance.