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OPK Stock Slips Following Q2 Earnings Miss, Gross Margin Expands
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Key Takeaways
OPK posted a Q2 loss of 19 cents per share, missing estimates and widening from a loss of a penny a year ago.
OPKO Health's Q2 revenue fell 13.9% year over year to $156.8 million due to lower diagnostics service sales.
OPKO Health's gross margin rose 315 bps to 31.5% as product sales held steady and SG&A costs declined.
OPKO Health, Inc. (OPK - Free Report) delivered a loss per share of 19 cents in the second quarter of 2025, wider than the year-ago period’s loss of a penny per share and the Zacks Consensus Estimate of a loss of 12 cents per share.
OPK’s Revenues in Detail
OPKO Health registered revenues of $156.8 million in the second quarter, down 13.9% year over year. The figure missed the Zacks Consensus Estimate by 5.1%.
The overall top line was dampened by lower revenues from services, which were partly offset by strength in revenues from products, and the transfer of intellectual property and other.
Shares of this company lost nearly 3.1% during after-hours trading.
OPKO Health’s Segmental Revenues
OPKO Health manages its operations through two reportable segments – Diagnostics and Pharmaceuticals.
Within the Diagnostics arm, revenues from services amounted to $101.1 million in the reported quarter, down 21.9% year over year. This was primarily due to lower clinical test volume, principally as a result of the sale of certain BioReference assets, partially offset by higher clinical test reimbursement rates. This compares to our projection of $104.9 million from services revenues in the second quarter.
Within the Pharmaceuticals arm, revenues from products inched up 0.6% year over year to $40.7 million, reflecting higher sales volumes in certain international operations. This was partially offset by reduced sales in the Chilean subsidiary due to the impact of foreign currency and a mild winter cold and flu season. This compares to our projection of $41.8 million from product revenues in the second quarter.
Revenues from sales of Rayaldee in the second quarter of 2025 were $7.2 million, flat from the prior-year period.
Revenues from the transfer of intellectual property and other totaled $14.9 million, up 21.6% from the prior-year period. This increase was driven by higher revenue from the BARDA contract and contract manufacturers’ commercial milestones. This was partially offset by lower gross profit share payments for NGENLA, which totaled $6.1 million in the 2025 period compared with $6.3 million in the 2024 period. This compares to our projection of $17.9 million in revenues from the transfer of intellectual property and other in the second quarter.
OPKO Health, Inc. Price, Consensus and EPS Surprise
In the quarter under review, OPKO Health’s gross profit decreased 4.4% year over year to $49.4 million. However, the gross margin expanded 315 basis points (bps) to 31.5%.
Selling, general and administrative (SG&A) expenses declined 13.4% year over year to $59.6 million. Research and development expenses increased 25.9% year over year to $30.3 million. Adjusted operating expenses of $89.9 million decreased 3.2% year over year.
Adjusted operating loss totaled $40.5 million compared with the prior-year quarter’s adjusted operating loss of $41.3 million.
OPKO Health’s Financial Position
OPKO Health exited second-quarter 2025 with cash and cash equivalents of $271.7 million compared with $435.9 million at the first-quarter end.
Cumulative net cash used in operating activities at the end of second-quarter 2025 was $117.9 million compared with $62 million a year ago.
OPK’s Guidance
OPKO Health has revised its financial outlook for 2025.
For the full year, it now expects total revenues between $640 million and $660 million, down from the prior outlook of $675 million and $685 million. The Zacks Consensus Estimate currently stands at $651.8 million.
Revenues from product sales are now expected to be in the range of $160 million-$170 million, down from the prior outlook of $165 million-$175 million.
Revenues from services are expected to be in the range of $405 million-$425 million.
Other revenues are now expected to be between $65 million and $75 million, lowered from the prior outlook of $75 million and $85 million. This includes the Pfizer gross profit share estimates between $28 million and $35 million (lowered from $30 million and $40 million) and support from BARDA of $30 million to $35 million (lowered from $38 million to $44 million).
Our Take on OPKO Health
OPKO Health exited the second quarter of 2025 with a wider-than-expected loss per share and lower-than-expected revenues. Its dismal top-and-bottom-line performances and lower revenues from services were disappointing. The persistent operating loss also does not bode well for the company.
On a positive note, robust revenues from products, and transfer of intellectual property and other were registered during the quarter. The expansion of the gross margin bodes well for the company.
During the quarter, OPKO Health’s ModeX continued to advance its immuno-oncology and immunology portfolio with four potential clinical candidates progressing, while Merck advanced a Phase 1 Epstein-Barr virus vaccine trial, which is being developed in collaboration with OPK. During the quarter, the FDA approved the supplemental application for the 4KScore Test regarding the availability of digital rectal examination information. These developments look promising for the stock.
OPK’s Zacks Rank and Stocks to Consider
OPK currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are GE HealthCare Technologies Inc. (GEHC - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
GE HealthCare, carrying a Zacks Rank #2 (Buy), reported second-quarter 2025 adjusted EPS of $1.06, beating the Zacks Consensus Estimate by 16.5%. Revenues of $5.01 billion outpaced the consensus mark by 0.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GE HealthCare has a long-term estimated growth rate of 7.4%. GEHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 12.5%.
West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 8.4%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.
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OPK Stock Slips Following Q2 Earnings Miss, Gross Margin Expands
Key Takeaways
OPKO Health, Inc. (OPK - Free Report) delivered a loss per share of 19 cents in the second quarter of 2025, wider than the year-ago period’s loss of a penny per share and the Zacks Consensus Estimate of a loss of 12 cents per share.
OPK’s Revenues in Detail
OPKO Health registered revenues of $156.8 million in the second quarter, down 13.9% year over year. The figure missed the Zacks Consensus Estimate by 5.1%.
The overall top line was dampened by lower revenues from services, which were partly offset by strength in revenues from products, and the transfer of intellectual property and other.
Shares of this company lost nearly 3.1% during after-hours trading.
OPKO Health’s Segmental Revenues
OPKO Health manages its operations through two reportable segments – Diagnostics and Pharmaceuticals.
Within the Diagnostics arm, revenues from services amounted to $101.1 million in the reported quarter, down 21.9% year over year. This was primarily due to lower clinical test volume, principally as a result of the sale of certain BioReference assets, partially offset by higher clinical test reimbursement rates. This compares to our projection of $104.9 million from services revenues in the second quarter.
Within the Pharmaceuticals arm, revenues from products inched up 0.6% year over year to $40.7 million, reflecting higher sales volumes in certain international operations. This was partially offset by reduced sales in the Chilean subsidiary due to the impact of foreign currency and a mild winter cold and flu season. This compares to our projection of $41.8 million from product revenues in the second quarter.
Revenues from sales of Rayaldee in the second quarter of 2025 were $7.2 million, flat from the prior-year period.
Revenues from the transfer of intellectual property and other totaled $14.9 million, up 21.6% from the prior-year period. This increase was driven by higher revenue from the BARDA contract and contract manufacturers’ commercial milestones. This was partially offset by lower gross profit share payments for NGENLA, which totaled $6.1 million in the 2025 period compared with $6.3 million in the 2024 period. This compares to our projection of $17.9 million in revenues from the transfer of intellectual property and other in the second quarter.
OPKO Health, Inc. Price, Consensus and EPS Surprise
OPKO Health, Inc. price-consensus-eps-surprise-chart | OPKO Health, Inc. Quote
OPK’s Margin Analysis
In the quarter under review, OPKO Health’s gross profit decreased 4.4% year over year to $49.4 million. However, the gross margin expanded 315 basis points (bps) to 31.5%.
Selling, general and administrative (SG&A) expenses declined 13.4% year over year to $59.6 million. Research and development expenses increased 25.9% year over year to $30.3 million. Adjusted operating expenses of $89.9 million decreased 3.2% year over year.
Adjusted operating loss totaled $40.5 million compared with the prior-year quarter’s adjusted operating loss of $41.3 million.
OPKO Health’s Financial Position
OPKO Health exited second-quarter 2025 with cash and cash equivalents of $271.7 million compared with $435.9 million at the first-quarter end.
Cumulative net cash used in operating activities at the end of second-quarter 2025 was $117.9 million compared with $62 million a year ago.
OPK’s Guidance
OPKO Health has revised its financial outlook for 2025.
For the full year, it now expects total revenues between $640 million and $660 million, down from the prior outlook of $675 million and $685 million. The Zacks Consensus Estimate currently stands at $651.8 million.
Revenues from product sales are now expected to be in the range of $160 million-$170 million, down from the prior outlook of $165 million-$175 million.
Revenues from services are expected to be in the range of $405 million-$425 million.
Other revenues are now expected to be between $65 million and $75 million, lowered from the prior outlook of $75 million and $85 million. This includes the Pfizer gross profit share estimates between $28 million and $35 million (lowered from $30 million and $40 million) and support from BARDA of $30 million to $35 million (lowered from $38 million to $44 million).
Our Take on OPKO Health
OPKO Health exited the second quarter of 2025 with a wider-than-expected loss per share and lower-than-expected revenues. Its dismal top-and-bottom-line performances and lower revenues from services were disappointing. The persistent operating loss also does not bode well for the company.
On a positive note, robust revenues from products, and transfer of intellectual property and other were registered during the quarter. The expansion of the gross margin bodes well for the company.
During the quarter, OPKO Health’s ModeX continued to advance its immuno-oncology and immunology portfolio with four potential clinical candidates progressing, while Merck advanced a Phase 1 Epstein-Barr virus vaccine trial, which is being developed in collaboration with OPK. During the quarter, the FDA approved the supplemental application for the 4KScore Test regarding the availability of digital rectal examination information. These developments look promising for the stock.
OPK’s Zacks Rank and Stocks to Consider
OPK currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are GE HealthCare Technologies Inc. (GEHC - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
GE HealthCare, carrying a Zacks Rank #2 (Buy), reported second-quarter 2025 adjusted EPS of $1.06, beating the Zacks Consensus Estimate by 16.5%. Revenues of $5.01 billion outpaced the consensus mark by 0.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GE HealthCare has a long-term estimated growth rate of 7.4%. GEHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 12.5%.
West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 8.4%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.