Surrozen Reports $39.7 Million Net Income Turnaround in Q2 2025

Surrozen, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company achieved a net income of $39.7 million for the quarter, a notable turnaround from a net loss of $25.3 million in the same period last year. This improvement was largely driven by a $31.5 million gain from the change in fair value of tranche liabilities, alongside $16.2 million in other income. For the first half of 2025, Surrozen recorded a net income of $12.8 million, compared to a loss of $34.1 million in the first half of 2024. The company’s total revenue for the quarter was $983,000, attributed to research service revenue from a related party, marking a significant increase from zero revenue in the prior year.

The company’s financial position has also strengthened, with cash and cash equivalents rising to $90.4 million as of June 30, 2025, up from $34.6 million at the end of 2024. Total assets increased to $102.7 million, while total liabilities decreased to $55.6 million, reflecting a reduction in warrant liabilities and other obligations. Surrozen's accumulated deficit stands at approximately $272.5 million, indicating the ongoing challenges of funding its research and development activities.

Strategically, Surrozen has made significant strides in its product pipeline, particularly in ophthalmology. The company is advancing multiple product candidates, including SZN-8141 and SZN-8143, which are designed to treat retinal diseases. The company has also entered into a collaboration with Boehringer Ingelheim for the development of SZN-413, which has recently progressed to the next stage of development, triggering a $10 million milestone payment. Surrozen's workforce has expanded, with an increase in employee headcount to support its growing operations.

Looking ahead, Surrozen anticipates continued investment in its clinical trials and product development, with expectations of incurring significant operating expenses. The company is preparing to file an Investigational New Drug application for SZN-8141 in 2026, which could unlock additional funding through its ongoing private placement agreements. However, management has cautioned that the company may need to raise additional capital to sustain its operations and fund its ambitious development plans, particularly as it navigates the complexities of regulatory approvals and market competition.