Kamada Delivers Robust Profitability and Margin Expansion: Guidance for Double-Digit Growth Maintained
Profitability Surges on Portfolio Diversification
Kamada Ltd. has announced its third quarter and nine-month 2025 financials, underscoring a 34% year-over-year jump in adjusted EBITDA and a 13% increase in Q3 revenues. The nine-month adjusted EBITDA margin reached 25%, signaling effective execution on both commercial and operational fronts. Revenues for the nine months totaled $135.78 million—up 11% from the same period last year, with adjusted EBITDA at $34.19 million, a 35% increase over 2024.
This performance is rooted in Kamada's diversified specialty plasma product portfolio. Standouts include GLASSIA® and VARIZIG® sales, particularly in ex-U.S. and U.S. markets, and contributions from its growing distribution segment.
Operational Leverage Fuels Margin Expansion
Margin performance remains a highlight: gross margins improved to 44% in the first nine months of 2025 (up from 43% in 2024), driven by a favorable sales mix and broader commercial scale. Notably, operating expenses declined slightly year-over-year, despite sustained investment in R&D, selling and marketing, and administrative functions. The nine-month operating income jumped to $22.68 million (up from $14.97 million).
Net income also surged, with nine-month figures of $16.64 million ($0.29 per diluted share), a 56% year-over-year gain, further affirming the company's disciplined cost structure and top-line execution.
| Key Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 |
|---|---|---|---|---|
| Total Revenue ($M) | 47.01 | 41.74 | 135.78 | 121.95 |
| Gross Margin (%) | 42 | 41 | 44 | 43 |
| Net Income ($M) | 5.30 | 3.86 | 16.64 | 10.65 |
| Adjusted EBITDA ($M) | 11.70 | 8.76 | 34.19 | 25.38 |
Cash Flow and Balance Sheet Remain Strong Despite Higher Working Capital
Operational performance continues to translate into cash flow: $17.92 million was generated from operating activities during the first nine months, supporting a robust cash position of $72 million as of September 30, 2025. While net cash provided by operating activities dipped compared to last year, this reflects higher working capital deployment for future growth. Kamada's balance sheet remains strong, with ample liquidity to pursue expansion and R&D.
| Balance Sheet Item | 9/30/2025 ($M) | 12/31/2024 ($M) |
|---|---|---|
| Cash and Equivalents | 71.99 | 78.44 |
| Inventories | 85.41 | 78.82 |
| Total Assets | 377.21 | 372.26 |
| Shareholder’s Equity | 265.23 | 259.46 |
Growth Pipeline and Outlook Signal Sustained Momentum
Looking forward, Kamada reiterates its full-year 2025 revenue guidance of $178–182 million and adjusted EBITDA guidance of $40–44 million—reinforcing a trend of double-digit annual growth. The company’s Houston plasma collection center recently gained FDA approval and is expected to become one of the largest of its kind in the U.S. New studies, such as the SHIELD trial for CYTOGAM® in transplant recipients and the pivotal Phase 3 InnovAATe clinical trial, highlight a continued investment in high-impact R&D and lifecycle management for core therapies.
Management also cites active business development and potential long-term sales agreements, with the intention to leverage the current financial position to further enrich its specialty product lineup.
Key Takeaway: Profitable Growth, Solid Margins, and Multiple Levers for Expansion
Kamada’s latest results showcase not just top-line expansion but also high operational leverage and prudent capital deployment. With ample cash reserves, margin gains, and a focus on specialty therapies for underserved conditions, Kamada remains well-positioned to deliver double-digit annual growth and margin improvement.
Investors may want to track upcoming clinical data releases and further details from management’s outlook webcast for deeper insights into Kamada’s pipeline and portfolio evolution in 2025 and beyond.
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