Shares of Retractable Technologies, Inc. (RVP Quick QuoteRVP - Free Report) have risen 1.5% since the company released its quarterly results for the period ended Sept. 30, 2025, outperforming the S&P 500 Index, which declined 1.7% over the same time frame. Over the past month, RVP has lost 22.4%, a significantly steeper drop than the S&P 500’s 1.3% decline.

RVP’s Earnings Snapshot

In the third quarter of 2025, net sales were $10.1 million, down 2.5% from $10.3 million a year earlier. Gross profit improved markedly to $1.7 million from a loss of $14,810 in the prior-year quarter, driven partly by lower manufacturing costs and a more favorable product mix. Net income came in at $0.4 million against a net loss of $1.9 million in the year-ago period, aided largely by $2.4 million in unrealized gains on investment securities. Earnings improved to $0.01 per share from a loss of $0.07 per share a year earlier. Operating loss narrowed to $3.7 million from $5.1 million last year.

Domestic revenues declined 4.6% in the quarter to $9.2 million from $9.6 million, with unit sales down 20.4%. Yet, average selling prices rose due to a heavier mix of higher-priced VanishPoint syringes and fewer EasyPoint needle sales. International revenue rose 25% year over year in the quarter to $0.9 million from $0.7 million, though average international selling prices fell, reflecting discounted EasyPoint sales to certain customers. Overall unit sales fell 12.4% during the quarter.

For the first nine months of 2025, revenue grew 20.2% to $28.8 million from $23.9 million, although Retractable Technologies posted a net loss of $10.2 million compared with $15.7 million, reflecting $3.2 million in unrealized investment losses and ongoing cost pressures. For the first nine months of 2025, the company posted a loss of $0.35 per share compared with $0.53 per share in the prior-year period. In the nine-month period, domestic sales increased 17.9% while international sales grew 38.1%. Domestic unit sales increased 11.8%, while overall unit sales rose 25.5% over the same period.

Retractable Technologies’ Other Key Business Metrics

Tariffs remained a central factor affecting profitability. RVP spent approximately $172 thousand on tariff expenses during the third quarter of 2025 and $2.3 million over the first nine months of the year. Tariff rates on syringes and needles imported from China were 130% as of Sept. 30, 2025, while other imported products carried a 30% rate. This environment continued to influence sourcing decisions — 61.7% of products sold in the first nine months were sourced from China, down from 90% in the same period in 2024, reflecting a strategic shift toward domestic production. Management disclosed that 38.3% of products sold during the nine-month period were manufactured domestically, up significantly from 10% last year, reflecting efforts to reduce exposure to tariffs.

Retractable Technologies’ investment portfolio also played a material role in quarterly earnings. Unrealized gains of $2.4 million in the quarter helped offset operating losses, while unrealized losses of $3.2 million over the nine-month period weighed on overall results.

RVP’s Management Commentary

Management emphasized the ongoing challenges presented by fluctuating U.S.–China trade policy. Tariffs have materially pressured margins, particularly for products sourced exclusively from China. RVP noted that although domestic production reduces tariff exposure, it raises labor and overhead costs. Reductions in the non-manufacturing workforce were implemented during the second and third quarters of 2025, each expected to save approximately $1.6 million and help offset rising expenses. At the same time, staffing levels in domestic production increased, which management estimates will add roughly $825 thousand in annual payroll costs.

The shift in product mix — toward higher-margin VanishPoint syringe sales and away from EasyPoint needles — supported improved gross margin in the quarter. However, management cautioned that uncertainty remains around the timing of future international orders, partly because some EasyPoint products were discounted in overseas markets.

Factors Influencing Retractable Technologies’ Headline Numbers

Multiple operational factors influenced the quarter’s results. A 20.4% decline in domestic unit sales was offset by higher average selling prices, producing a smaller-than-expected drop in domestic revenue. Inventory write-downs of $163 thousand in the quarter and $1.2 million year to date reflected aging product lots nearing expiration. Lower manufacturing costs, improved mix, and reduced tariff impact relative to last year contributed to the narrower operating loss.

For the nine-month period, a 25.5% increase in total units sold supported revenue growth but did not fully offset rising production costs, higher tariff expenses and inventory write-offs. Legal and litigation fees were lower year to date, helping to slightly reduce operating losses compared with 2024.

RVP’s Guidance

Retractable Technologies did not issue formal financial guidance. However, management indicated it expects liquidity to decline materially over the next one to three years due to higher costs tied to tariffs and expanded domestic manufacturing. Management also noted that production of 0.5 mL syringes will transition domestically, with commercial quantities potentially available in the first half of 2026.

Retractable Technologies’ Other Developments

Retractable Technologies received $1.9 million in litigation settlement proceeds in May 2025 related to a dispute with former legal counsel. The company also continued its long-term obligations under the Technology Investment Agreement with the U.S. government, which requires maintenance of equipment and production capacity through June 2030. No acquisitions, divestitures, or major restructuring actions beyond cost-related workforce reductions were disclosed.