Rafael Holdings Reports 7.7% Revenue Growth and Reduced Net Loss in Latest Quarter

Rafael Holdings, Inc. reported its financial results for the three and nine months ended April 30, 2025, revealing a total revenue of $362,000 for the quarter, a 7.7% increase from $336,000 in the same period last year. For the nine months, revenue reached $567,000, compared to $472,000 in the prior year, marking a 20.1% increase. The company experienced a consolidated net loss of $4.1 million for the quarter, significantly reduced from a loss of $62.3 million in the same period last year. For the nine months, the net loss was $18.6 million, down from $60.1 million in the previous year, indicating a 69% improvement.

The financial performance reflects substantial changes compared to the previous fiscal period, particularly due to the merger with Cyclo Therapeutics, which was completed on March 25, 2025. This merger has positioned Trappsol® Cyclo™ as the company's lead clinical program, with the company focusing its resources on this initiative. The merger resulted in the recognition of $28.3 million in goodwill and a significant increase in the company's operational scale.

Operationally, Rafael Holdings has made strategic advancements, including the acquisition of a controlling interest in Day Three Labs, which has allowed the company to consolidate its results. The company also reported a significant increase in cash and cash equivalents, rising to $37.9 million from $2.7 million as of July 31, 2024. This increase is attributed to the sale of available-for-sale securities and the proceeds from the merger with Cyclo. The company’s total assets increased to $108.1 million, up from $96.8 million, while total liabilities rose to $23.6 million from $10.6 million, primarily due to the consolidation of Cornerstone and RP Finance.

In terms of operational metrics, the company reported a total of 25.2 million weighted average shares outstanding for the quarter, with a basic and diluted loss per share of $0.19, compared to a loss of $1.36 per share in the prior year. The company’s focus on its healthcare segment, particularly through its investments in clinical-stage companies, has been a key driver of its recent performance. The company is currently evaluating its operating entities to ensure alignment with its strategic focus on high unmet medical needs.

Looking ahead, Rafael Holdings anticipates that its cash reserves will be sufficient to meet obligations for at least the next 12 months. The company plans to continue funding the TransportNPC Phase 3 clinical trial for Trappsol® Cyclo™, with results expected soon. The management remains optimistic about the potential for future growth driven by its strategic investments and operational efficiencies.