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Aytu BioScience Inc (AYTU)
NASDAQ:AYTU

Aytu BioScience (AYTU) AI Stock Analysis

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Aytu BioScience

(NASDAQ:AYTU)

Rating:60Neutral
Price Target:
$2.00
▼(-12.66%Downside)
Aytu BioScience's strong earnings performance and strategic corporate initiatives are key strengths driving a positive outlook. However, ongoing profitability challenges and a negative P/E ratio weigh on the overall score. Technical indicators suggest bullish momentum, while the absence of a dividend yield limits valuation appeal.
Positive Factors
Earnings
Aytu reported F3Q25 results with total revenue of $18.5M, exceeding the estimate of $13.7M.
Financial Performance
F3Q25 was the 3rd straight quarter of positive net income and the 8th straight of positive Adjusted EBITDA.
Product Launch
The recently launched MDD therapy, Auvelity by Axsome Therapeutics, reached approximately $400M in sales within about 2.5 years, which is a positive indicator for EXXUA’s launch potential.
Negative Factors
Business Divestment
The decline in total revenue was largely due to the divestment of the lower margin Consumer Health business.
Revenue Decline
ADHD revenue, Aytu’s primary source of prescription revenue, experienced a decline and was below the analyst's estimate.

Aytu BioScience (AYTU) vs. SPDR S&P 500 ETF (SPY)

Aytu BioScience Business Overview & Revenue Model

Company DescriptionAytu BioScience, Inc. is a specialty pharmaceutical company focused on commercializing novel products in the fields of urology and men's health. The company's core products include prescription and over-the-counter options designed to address unmet medical needs in these therapeutic areas. Aytu BioScience aims to improve patient outcomes through innovative solutions that enhance standard treatment protocols.
How the Company Makes MoneyAytu BioScience generates revenue primarily through the sale of its pharmaceutical products. The company's key revenue streams include prescription product sales, over-the-counter product sales, and potentially licensing agreements or partnerships with other pharmaceutical companies. Aytu BioScience may also engage in strategic collaborations to expand its product offerings or market reach, contributing to its earnings. This revenue model relies on strong distribution networks and effective marketing strategies to maximize product accessibility and adoption in target markets.

Aytu BioScience Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q3-2025)
|
% Change Since: 69.63%|
Next Earnings Date:Sep 25, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant revenue growth, positive net income, and successful strategic initiatives. Although there was a decline in gross margin due to higher cost inventory, the overall sentiment remains positive due to the company's operational efficiency and the success of the Aytu RxConnect platform.
Q3-2025 Updates
Positive Updates
Significant Revenue Growth
Total revenue grew by 32% year-over-year, led by a 25% increase in the ADHD portfolio and a 77% increase in the pediatric portfolio.
Positive Income from Operations
Achieved income from operations of $2.4 million, marking the second quarter of positive income from operations in the company's history.
Net Income Improvement
Net income was $4 million, compared to a $2.9 million loss in the same quarter last year, translating to basic earnings per share of $0.65.
Adjusted EBITDA Growth
Adjusted EBITDA increased to $3.9 million from $0.9 million a year ago.
Operational Efficiency
Operating expenses decreased by $1.6 million, reflecting effective cost reduction initiatives.
Successful Strategic Initiatives
The company halted clinical development, wound down its Consumer Health business, outsourced manufacturing, and refinanced its long-term note.
Aytu RxConnect Platform Success
Aytu RxConnect was credited with contributing to revenue growth and providing a network of about 1,000 pharmacies that support patient access.
Negative Updates
Gross Margin Decline
Gross margin decreased to 69% from 74% in the same quarter last year due to higher cost inventory remaining from in-house manufacturing.
Cost of Goods Impact
Higher unit cost of goods remained as a result of overhead expenses from the company's previously operated Grand Prairie facility.
Company Guidance
In the Aytu BioPharma fiscal 2025 Q3 earnings call, the company reported a 32% increase in total revenue, driven by a 25% growth in the ADHD portfolio and a 77% growth in the pediatric portfolio. The implementation of cost reduction initiatives led to a $1.6 million decrease in operating expenses, resulting in a $2.4 million income from operations. This quarter marked the second time the company achieved positive income from operations and the third consecutive quarter of positive net income, totaling $4 million. Earnings per share were $0.65, contrasting with a $0.52 loss per share in the previous year. Adjusted EBITDA reached $3.9 million, up from $0.9 million in the prior year. The company highlighted its strategic focus on leveraging the Aytu RxConnect platform and its CNS-focused sales team to drive future growth through potential in-licensed or acquired products.

Aytu BioScience Financial Statement Overview

Summary
Aytu BioScience faces profitability challenges despite strong gross profit margins. Financial stability is hampered by poor cash flow management and weak net profit margins. The balance sheet shows low leverage but lacks asset efficiency.
Income Statement
45
Neutral
The income statement reveals fluctuating revenues and profitability challenges. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 68.58%, indicating strong cost management. However, the net profit margin is weak at 2.37%, reflecting ongoing profitability struggles. Revenue decreased significantly in the latest TTM compared to the previous year, impacting the overall financial health.
Balance Sheet
55
Neutral
The balance sheet shows a modest debt-to-equity ratio of 0.05, indicating low financial leverage. The equity ratio stands at 28.09%, suggesting a balanced capital structure. However, the return on equity (ROE) is low at 4.70%, highlighting limited profitability relative to shareholder equity. While the company maintains a strong cash position, overall asset efficiency needs improvement.
Cash Flow
40
Negative
The cash flow analysis highlights negative free cash flow, reflecting cash burn and operational challenges. The TTM operating cash flow to net income ratio is negative, indicating difficulties in converting income into cash. The free cash flow to net income ratio is also negative, reinforcing concerns about cash generation capabilities. The company needs to improve cash flow management to support future growth.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue69.22M81.00M107.40M96.67M65.63M27.63M
Gross Profit47.48M54.59M66.63M52.28M29.20M20.08M
EBITDA3.16M-1.01M-3.27M-27.96M-29.04M-12.21M
Net Income1.64M-15.84M-17.05M-108.78M-58.29M-13.62M
Balance Sheet
Total Assets124.20M118.09M136.46M137.62M265.67M152.84M
Cash, Cash Equivalents and Short-Term Investments18.17M20.01M22.98M19.36M49.65M48.08M
Total Debt1.86M15.13M16.36M18.19M28.35M2.01M
Total Liabilities89.30M90.38M97.11M93.31M128.10M57.82M
Stockholders Equity34.90M27.72M39.36M44.31M137.57M95.02M
Cash Flow
Free Cash Flow-5.74M-1.39M-5.13M-28.82M-28.30M-28.37M
Operating Cash Flow-5.53M-1.39M-5.13M-28.82M-25.96M-28.37M
Investing Cash Flow423.00K-329.00K-117.00K-3.25M-2.78M-5.66M
Financing Cash Flow3.52M-1.26M8.87M1.53M30.31M71.07M

Aytu BioScience Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.29
Price Trends
50DMA
1.72
Positive
100DMA
1.47
Positive
200DMA
1.67
Positive
Market Momentum
MACD
0.13
Negative
RSI
67.68
Neutral
STOCH
66.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AYTU, the sentiment is Positive. The current price of 2.29 is above the 20-day moving average (MA) of 2.00, above the 50-day MA of 1.72, and above the 200-day MA of 1.67, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 67.68 is Neutral, neither overbought nor oversold. The STOCH value of 66.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AYTU.

Aytu BioScience Risk Analysis

Aytu BioScience disclosed 57 risk factors in its most recent earnings report. Aytu BioScience reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Aytu BioScience Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$13.94M3.29%-26.17%
51
Neutral
$7.55B0.30-61.90%2.27%17.11%1.58%
46
Neutral
$6.50M-384.98%14.27%87.31%
44
Neutral
$12.98M77.20%8.31%9.98%
38
Underperform
$3.05M-245.88%-100.00%68.26%
35
Underperform
$6.74M-12.35%71.57%
28
Underperform
$23.09M-205.04%35.70%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AYTU
Aytu BioScience
2.29
-0.57
-19.93%
TRIB
Trinity Biotech
0.68
-1.36
-66.67%
PPBT
Purple Biotech
2.40
2.06
605.88%
AEMD
Aethlon Medical
1.24
-2.36
-65.56%
NCNA
Nucana
0.06
-2.74
-97.86%
BFRI
Biofrontera
0.69
-0.13
-15.85%

Aytu BioScience Corporate Events

Product-Related AnnouncementsPrivate Placements and Financing
Aytu BioScience Expands Lending Agreement for EXXUA Launch
Positive
Jun 23, 2025

On June 20, 2025, Aytu BioPharma, Inc. expanded and extended its lending agreement with Eclipse Business Capital LLC to provide added working capital flexibility in anticipation of the commercial launch of EXXUA™ in late 2025. This agreement includes extending the term loan maturity to June 2029, increasing the principal balance to $13.0 million, and expanding the revolving credit facility by $1.5 million. EXXUA, a novel antidepressant, is expected to enter the over $22 billion U.S. prescription MDD market, addressing significant unmet needs due to its favorable side effect profile demonstrated in clinical trials.

The most recent analyst rating on (AYTU) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Aytu BioScience stock, see the AYTU Stock Forecast page.

Product-Related AnnouncementsPrivate Placements and FinancingBusiness Operations and Strategy
Aytu BioPharma Closes $16.6M Stock Offering for EXXUA
Positive
Jun 9, 2025

On June 9, 2025, Aytu BioPharma announced the closing of an upsized at-the-market public offering of common stock, raising gross proceeds of $16.6 million. The funds are intended to support the commercialization of EXXUA™, a novel FDA-approved treatment for major depressive disorder, which is expected to launch in the fourth quarter of 2025. This strategic move positions Aytu to enter the $22 billion U.S. prescription MDD market, with EXXUA expected to be a significant growth driver due to its unique mechanism and favorable side effect profile.

The most recent analyst rating on (AYTU) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Aytu BioScience stock, see the AYTU Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Aytu BioScience Signs Exclusive Agreement for EXXUA
Positive
Jun 6, 2025

On June 5, 2025, Aytu BioPharma entered an Exclusive Commercialization Agreement with Fabre-Kramer Holdings to commercialize EXXUA™ (gepirone) extended-release tablets in the United States. EXXUA, an FDA-approved treatment for major depressive disorder (MDD), is expected to launch in the fourth quarter of 2025. The agreement involves a series of financial commitments, including upfront and milestone payments, royalties, and a supply price based on net sales. EXXUA is anticipated to be a significant growth catalyst for Aytu, addressing unmet needs in the $22 billion US prescription MDD market. The product is distinguished by its novel mechanism and lack of sexual dysfunction side effects, positioning it as a transformative option for over 21 million Americans affected by MDD.

The most recent analyst rating on (AYTU) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Aytu BioScience stock, see the AYTU Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Aytu BioPharma Announces $12.9M Public Offering
Neutral
Jun 6, 2025

On June 5, 2025, Aytu BioPharma announced an underwriting agreement with Lake Street Capital Markets for a public offering of common stock and prefunded warrants, aiming to raise approximately $12.9 million. The proceeds will be used for general corporate purposes and to commercialize EXXUA™ (gepirone) extended-release tablets. The offering, expected to close around June 9, 2025, is part of Aytu’s strategy to strengthen its market position in novel therapeutics for major depressive disorder.

The most recent analyst rating on (AYTU) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Aytu BioScience stock, see the AYTU Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Aytu BioScience Holds 2025 Annual Meeting
Neutral
May 21, 2025

On May 21, 2025, Aytu BioScience held its 2025 Annual Meeting, where approximately 70% of the company’s common stockholders participated. During the meeting, all incumbent directors were reelected, an amendment to increase shares under the 2023 Equity Incentive Plan was approved, Grant Thornton LLP was ratified as the independent accounting firm, and executive compensation was endorsed through a non-binding advisory vote.

The most recent analyst rating on (AYTU) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Aytu BioScience stock, see the AYTU Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 02, 2025