Cerus raises 2025 product revenue guidance to $202M-$204M while accelerating IFC kit transition

Earnings Call Insights: Cerus Corporation (CERS) Q3 2025

MANAGEMENT VIEW

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William Greenman, President, CEO & Chairman, stated Cerus "continues to build on its strong momentum, delivering another quarter of solid commercial, operational and financial execution as well as continued progress across our development priorities that we spelled out at the beginning of the year." He highlighted that INTERCEPT adoption in the U.S. has reached the "mid-60% vicinity, up from the low 60s a year ago" and projected further penetration with the goal of surpassing 80%. Greenman also noted the ongoing enrollment of the last patient in the U.S. Phase III RedeS trial, with results expected in the second half of 2026. The company now expects a delay of at least six months for the CE Mark decision on INTERCEPT RBCs in Europe due to a regulatory agency transition.

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Vivek Jayaraman, Chief Operating Officer, described Q3 as "another strong quarter of commercial execution," with global INTERCEPT adoption and double-digit product revenue growth. He emphasized the shift in the IFC business model from direct hospital sales to blood center kit sales, stating "approximately 70% of the dose equivalent unit sales were tied to kits compared to less than 25% the year prior" and forecasted that "by the end of 2026, we expect nearly all IFC sales to be in the kit format."

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Kevin Green, VP of Finance & CFO, reported "record levels of product revenue totaling $52.7 million, which translates to a 15% year-over-year increase," and noted a 21% increase in EMEA product revenues. He said "we are raising our full year 2025 product revenue guidance range to $202 million to $204 million compared to our previous guidance range of $200 million to $203 million." Green also highlighted a sixth consecutive quarter of positive non-GAAP adjusted EBITDA.

OUTLOOK

* Management raised full year 2025 product revenue guidance to a range of $202 million to $204 million, up from the previous range of $200 million to $203 million. Full year 2025 IFC sales are now expected to be in the range of $16 million to $17 million, compared to the prior range of $16 million to $18 million. The company expects "continued adoption across our portfolio and expanding global reach," and anticipates a record quarter in Q4 2025.

FINANCIAL RESULTS

* Cerus reported Q3 2025 product revenue of $52.7 million, a 15% increase year-over-year. EMEA product revenues increased 21% due to Middle Eastern platelet sales and initial shipments to Germany. North American product revenues were up 11%. IFC product revenue reached $3.9 million for the quarter, compared to $2.3 million a year prior. Product gross profit was $28.1 million, with a product gross margin of 53.4%, down from 56.9% the previous year, impacted by "import tariffs, inflationary pressure and higher IFC therapeutic production costs." Operating expenses totaled $34.4 million. The company ended the quarter with $78.5 million in cash, cash equivalents, and short-term investments.

Q&A

* Junwoo Park, Cantor Fitzgerald & Co., asked about margin headwinds and levers for stabilization. Kevin Green responded, "What we can control is growing the business, economies of scale and product mix...our continued push for the IFC business to move from...selling the finished therapeutics to hospitals to one of a kit sale...will help drive margin expansion from here."
* Park asked about meeting growing IFC demand and supply chain constraints. Vivek Jayaraman answered, "We've seen really strong improvement in terms of our production and supply capability...we feel as though we're in a very solid position with respect to supply both today and for the foreseeable future."
* John Wilkin, Craig-Hallum, inquired about the decision to shift to the kit-based IFC model. Jayaraman explained, "the primary reason to shift to the kit model is really twofold, and they're both market access related...we can leverage the existing sales channels of the blood center...Secondarily...we can leverage existing blood center and hospital contracts."
* Wilkin asked about sustainability of operating expense reductions. Kevin Green clarified, "in Q2...we had some compensation costs that were a cumulative catch-up...As we think about OpEx going forward...we're able to get a lot of leverage out of that."

SENTIMENT ANALYSIS

* Analysts focused on margin headwinds, IFC supply, and the rationale for the kit-focused strategy, displaying a neutral to slightly positive tone, with questions aimed at understanding business sustainability and growth levers.
* Management maintained a confident tone in both prepared remarks and responses, emphasizing strategic execution and future growth. Jayaraman used phrases such as "very solid position" and Greenman highlighted "confidence in our trajectory as we close out 2025."
* Compared to the previous quarter, management's confidence remained strong, but the discussion shifted more toward operational discipline and mitigating margin pressures. Analysts’ tone was consistent, focused on practical concerns rather than skepticism.

QUARTER-OVER-QUARTER COMPARISON

* The company again raised full year revenue guidance, signaling ongoing momentum. The IFC kit transition accelerated, with 70% of dose equivalents sold as kits in Q3, up from less than 25% in the prior year, reflecting a more aggressive shift than previously described.
* Margin headwinds became more pronounced this quarter, as management cited tariffs and inflationary pressures impacting gross margins, whereas the previous quarter saw more stable margins.
* Operating expenses decreased from the prior quarter, attributed to the absence of one-time compensation costs present in Q2.
* Analysts' focus shifted from revenue cadence and red blood cell TAM in Q2 to gross margin sustainability and IFC distribution strategy in Q3.

RISKS AND CONCERNS

* Management noted gross margin pressures from "import tariffs, inflationary pressure and higher IFC therapeutic production costs."
* Currency fluctuations, supply chain scalability, and regulatory delays in Europe (notably the six-month delay for INTERCEPT RBCs) were highlighted as areas of uncertainty.
* Analysts questioned the sustainability of expense reductions and the ability to meet growing demand for IFC products.

FINAL TAKEAWAY

Cerus delivered another strong quarter, driven by robust product revenue growth, continued U.S. INTERCEPT adoption, and rapid expansion of its IFC kit business model. Management raised its full year 2025 product revenue guidance and expressed confidence in achieving record results in Q4. While the company faces gross margin headwinds and a delay in European regulatory review, its operational discipline and strategic focus on kit-based distribution and global market expansion position it for continued growth into 2026.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/cers/earnings/transcripts]

MORE ON CERUS

* Cerus Corporation (CERS) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4839855-cerus-corporation-cers-q3-2025-earnings-call-transcript]
* Seeking Alpha’s Quant Rating on Cerus [https://seekingalpha.com/symbol/CERS/ratings/quant-ratings]
* Historical earnings data for Cerus [https://seekingalpha.com/symbol/CERS/earnings]
* Financial information for Cerus [https://seekingalpha.com/symbol/CERS/income-statement]