Pelthos Therapeutics Earnings Call Highlights Growth and Challenges

Pelthos Therapeutics Inc. ((PTHS)) has held its Q3 earnings call. Read on for the main highlights of the call.

Pelthos Therapeutics Inc. recently held its earnings call, revealing a generally positive sentiment despite some financial challenges. The company celebrated the successful launch of ZELSUVMI and outlined strategic growth plans, including expanding its sales force and acquiring Xepi. While high operating losses and uncertain long-term GTN levels pose challenges, the overall outlook remains optimistic due to strong revenue growth and strategic positioning.

Successful Launch of ZELSUVMI

Pelthos Therapeutics marked a significant milestone with the launch of ZELSUVMI, the first FDA-approved at-home treatment for molluscum contagiosum. The product achieved strong initial demand, generating $7.1 million in net product revenue in Q3 2025. This success underscores Pelthos’ ability to innovate and meet market needs effectively.

Expansion of Sales Force

In response to the robust performance metrics of ZELSUVMI, Pelthos plans to expand its sales force by adding 14 new representatives. This strategic move aims to cover more metropolitan areas, thereby enhancing the company’s reach and accelerating growth.

Positive Revenue and Growth Metrics

Pelthos reported a remarkable 41% increase in prescribed units from September to October, achieving a $52 million annual gross revenue run rate by the last week of October. These metrics highlight the company’s strong market presence and potential for continued growth.

Strong Cash Position

The company concluded Q3 2025 with a solid cash position of $14.2 million and no debt, bolstered by an $18 million convertible notes financing. This financial stability provides a foundation for future investments and strategic initiatives.

Strategic Acquisition of Xepi

Pelthos’ acquisition of Xepi, an FDA-approved treatment for impetigo, complements its existing product portfolio. This strategic acquisition leverages Pelthos’ commercial infrastructure, enhancing its market offering and competitive edge.

Operating and Net Losses

Despite the positive developments, Pelthos reported an operating loss of $15.4 million and a GAAP net loss of $16.2 million for Q3 2025. These figures reflect the financial challenges the company faces as it invests in growth and expansion.

High Cost of Goods Sold

The cost of goods sold amounted to $2.3 million, influenced by the fair value step-up of inventory following the merger. This factor contributes to the company’s financial challenges in the short term.

Uncertain Long-term GTN Levels

While GTN rates were favorable at 25.3% in Q3, they are expected to rise to the mid- to high 30% range by Q1 2026. This uncertainty poses a challenge for Pelthos as it navigates future pricing strategies.

Forward-Looking Guidance

Pelthos provided forward-looking guidance during the earnings call, highlighting a strong initial demand for ZELSUVMI and expectations to reach cash flow breakeven by the end of 2026. The company plans to continue leveraging its $18 million convertible notes financing to support operations and strategic expansions, including the acquisition of Xepi. With a projected $52 million annual gross revenue run rate, Pelthos anticipates significant revenue growth in the coming quarters.

In summary, Pelthos Therapeutics Inc.’s earnings call reflected a positive sentiment, driven by the successful launch of ZELSUVMI and strategic growth initiatives. While financial challenges such as high operating losses and uncertain GTN levels persist, the company’s strong revenue growth and strategic positioning offer a promising outlook for the future.