Biofrontera AG

Second-quarter revenues were $12 million, up 32.9% year over year from $9 million. Gross profit was $9.6 million, with gross margin of about 80% versus about 71% last year, an expansion of roughly 920 basis points. Net loss was $0.6 million, or $0.05 per share, versus a $5.3 million loss, or $0.57 per share, a year ago; adjusted EBITDA was negative $0.2 million versus negative $5.1 million, and for the first half adjusted EBITDA was negative $3.7 million versus negative $9.5 million. First-half revenue was $22.1 million, up 25.4% from $17.6 million. For liquidity, cash and cash equivalents were $4.7 million at June 30, 2026, and operating cash used in the first half was $1.7 million, down from $7.2 million a year ago. Management reiterated a full-year 2026 revenue goal was not expected to change because the substantial majority of the installed lamp base is unaffected by the ITC order, though it did not restate a numeric full-year target on the call.

Hermann Lubbert framed the quarter as evidence that the company’s transformed U.S. standalone model is working, pointing to stronger reorder behavior, better commercial execution, and durable margin improvement. He stressed that the ITC issue is limited to the XL lamp, that the company has a remediation plan with only minor lamp changes, and that the business does not depend on winning the appeal. He was upbeat about the pipeline, saying sBCC, AK label expansion, and acne could all drive growth through the existing installed base and sales force.

Fred Leffler focused on the financial step-up from the strategic transaction and the durable economics of the new structure. He cited Q2 revenue of $12 million, gross margin of 80%, SG&A of $9.7 million, R&D of $0.4 million, and adjusted EBITDA of negative $0.2 million; for the first half he cited revenue of $22.1 million, gross margin of 80%, SG&A of $20.7 million, R&D of $1.3 million, and adjusted EBITDA of negative $3.7 million. He said the margin improvement was driven mainly by the shift from transfer pricing to direct cost plus a 12% earn-out, and he noted $4.7 million in cash, $18.1 million in total liabilities, and $4.6 million of convertible notes due in November 2027. He also said the company expects to continue toward cash flow breakeven in 2026, supported by revenue growth, a $1 million XEPI divestiture milestone, and possibly a working capital line if needed.

Analysts focused heavily on the sBCC launch readiness and the ITC fallout. Management said the sBCC launch mainly requires final marketing materials, FDA pre-clearance, sales force training, and reimbursement preparation, and that the product fits the current call point and installed lamp base. On the ITC issue, management said the workaround is a minor change to the lamp hinge, that the FDA CBE-30 process has been approved, but that they still need to satisfy the customs/border protection step before selling the modified lamp. In response to questions about installed base exposure, George Jones said customers who bought inventory before the order can use it, but Biofrontera will not encourage future use of the infringing device.