Surmodics Reports $29.6M Revenue in Q3 2025, Faces Merger Scrutiny

Surmodics, Inc. reported a total revenue of $29.6 million for the third quarter of fiscal 2025, reflecting a decrease of 3% compared to $30.3 million in the same period last year. For the nine months ending June 30, 2025, revenue was $87.6 million, down 6% from $92.9 million in the prior year. The decline in revenue was primarily attributed to a significant drop in product sales from the SurVeil drug-coated balloon (DCB) product line, which saw a decrease of $1.7 million in the third quarter and $6.4 million over the nine-month period. This decline was partially offset by growth in the Pounce thrombectomy device platform and an increase in performance coating royalties and license fees.

The company reported a net loss of $5.3 million for the third quarter, compared to a loss of $7.6 million in the same quarter of the previous year. For the nine months ended June 30, 2025, the net loss was $14.2 million, up from $8.1 million in the prior year. The increase in losses was attributed to higher selling, general, and administrative expenses, which rose by 14% year-over-year, largely due to merger-related charges totaling $10.1 million incurred during the nine-month period. Operating expenses also included a decrease in research and development costs, which fell by 22% in the third quarter.

Strategically, Surmodics is navigating a merger agreement with BCE Parent, LLC, which was announced on May 28, 2024. Under the terms of the agreement, Surmodics will be acquired for $43.00 per share in cash. However, the merger is currently subject to regulatory scrutiny from the U.S. Federal Trade Commission (FTC), which has filed a complaint seeking to block the merger on antitrust grounds. The company has incurred significant costs related to the merger, which have impacted its financial performance.

Operationally, Surmodics has continued to focus on its product development pipeline, particularly in the vascular intervention medical device sector. The company has seen growth in its In Vitro Diagnostics segment, which reported a 6% increase in revenue for the third quarter, driven by product sales across all lines. As of June 30, 2025, Surmodics had a total of 14,298 shares of common stock outstanding and a cash balance of $26.3 million, down from $36.1 million at the end of the previous fiscal year. The company anticipates that its existing cash reserves, along with cash flow from operations and access to a revolving credit facility, will be sufficient to meet its liquidity needs for the remainder of fiscal 2025.

Looking ahead, Surmodics expects continued challenges in revenue generation, particularly from the SurVeil DCB product line, which is projected to decline further in fiscal 2025. The company is also assessing the impact of the ongoing FTC litigation on the merger and its overall business strategy. Despite these challenges, Surmodics remains committed to advancing its product offerings and enhancing its market position in the medical device industry.