Retractable Technologies Reports $10.6M Net Loss, 37.5% Revenue Increase in First Half of 2025

Retractable Technologies, Inc. reported a net loss of $10.6 million for the six months ending June 30, 2025, a decrease from a loss of $13.7 million during the same period in 2024. The company's revenue for the first half of 2025 reached $18.7 million, reflecting a 37.5% increase from $13.6 million in the prior year. The growth in revenue was primarily driven by a significant rise in sales of EasyPoint® products, which accounted for 27.6% of total sales, while syringes represented 68.8%. Despite the increase in sales, the company faced challenges with profitability, as gross profit was negative due to rising costs associated with tariffs and inventory write-downs.

In comparison to the previous fiscal period, Retractable Technologies experienced a notable increase in sales, with net sales for the second quarter of 2025 reaching $10.4 million, up from $6.0 million in the same quarter of 2024. The increase in sales volume was accompanied by a decline in average selling prices, attributed to a shift in product mix and higher transaction fees. The company reported a loss from operations of $5.1 million for the second quarter, an improvement from a loss of $5.8 million in the prior year, largely due to reduced bad debt expenses.

Strategically, the company has been adapting its operations in response to increased tariffs on imported goods, particularly from China, where 62% of its products were sourced in the first half of 2025. The tariffs, which have fluctuated significantly, are expected to continue impacting the company's cost structure. In an effort to mitigate these costs, Retractable Technologies is shifting a larger portion of its manufacturing to domestic facilities, which is anticipated to increase workforce costs by approximately $3.8 million annually. The company has already reduced its workforce by about 7% to save on costs while ramping up domestic production capabilities.

Operationally, the company reported a decrease in cash and cash equivalents, which fell to $3.0 million as of June 30, 2025, down from $4.2 million at the end of 2024. The total assets also decreased to $147.1 million from $160.7 million, primarily due to a decline in investments in debt and equity securities. The company’s employee headcount has been adjusted in line with its strategic shift towards domestic production, and it continues to evaluate its operational efficiency in light of changing market conditions.

Looking ahead, Retractable Technologies anticipates that the ongoing tariff situation will continue to affect its financial performance. The company is focused on enhancing its domestic manufacturing capabilities and expects to see commercial quantities of domestically produced products available in the latter half of 2025. However, the uncertainty surrounding future tariffs and market demand for its products remains a concern, as the company navigates the complexities of its supply chain and production costs.