Breaking Down scPharmaceuticals Inc. (SCPH) Financial Health: Key Insights for Investors

You're looking at scPharmaceuticals Inc. (SCPH) and seeing a classic commercial-stage biotech story: explosive top-line growth but a cash burn that keeps you up at night. Honestly, the Q2 2025 numbers are a defintely mixed bag, which is why we need to dig deeper. FUROSCIX revenue nearly doubled, hitting $16.0 million-a massive 99% jump year-over-year-driven by 20,200 doses shipped and the new chronic kidney disease (CKD) indication, but still, the net loss widened to $18.0 million as the company spent heavily on commercial expansion. Here's the quick math: with cash and equivalents down to $40.8 million as of June 30, 2025, the runway is getting shorter, but the potential is huge, especially with Wall Street analysts projecting full-year 2025 revenue to land near $74.23 million. The real opportunity, and the near-term risk reducer, is the Autoinjector (SCP-111) submission, which is on track for Q3 2025 and could slash product Cost of Goods Sold (COGS) by 70% to 75%, fundamentally changing the margin structure. The company is growing, but its financial health hinges on execution and that autoinjector approval.

Revenue Analysis

You need to know where scPharmaceuticals Inc. (SCPH) is making its money, and the answer is simple: it's a one-product story right now, but that product is accelerating fast. The entire revenue stream is currently derived from FUROSCIX, a subcutaneous (under-the-skin) formulation of furosemide that treats fluid overload (edema) in adults with chronic heart failure and, as of Q2 2025, chronic kidney disease (CKD). This singular focus means the company's financial health is defintely tied to this one drug's commercial success.

The near-term growth story is compelling, driven by strong market adoption and a critical label expansion. For the first half of the 2025 fiscal year, scPharmaceuticals Inc. (SCPH) generated $27.8 million in total net revenue from FUROSCIX sales, which is a massive year-over-year increase. That's nearly a doubling of revenue from the first half of 2024.

The contribution of different business segments is clear, showing where the growth momentum is coming from, especially after the April 2025 launch into the new CKD indication. The expansion into CKD is a major tailwind. Here's the quick look at the key drivers:

• Q2 2025 Net Revenue: $16.0 million, representing approximately 99% annual growth over Q2 2024.
• H1 2025 YOY Growth: Net revenue for the first six months of 2025 grew approximately 95.8% compared to the first half of 2024.
• Integrated Delivery Networks (IDN): Sales through IDNs, which are crucial for hospital-to-home transitions, increased 70% in Q2 2025 over Q1 2025.

Looking at the full picture, Wall Street analysts are forecasting that scPharmaceuticals Inc. (SCPH) will post full-year 2025 revenues in the range of $74 million to $75 million. This implies a significant acceleration in the second half of the year, which is a trend we need to monitor closely. The sequential growth from Q1 to Q2 2025 was already strong, climbing from $11.8 million to $16.0 million.

Here is the quarterly revenue breakdown for the first half of the 2025 fiscal year, which maps the recent adoption curve:

What this estimate hides, however, is the rising cost of commercialization. A significant change in the revenue stream's quality is the Gross-to-Net (GTN) discount, which represents rebates and fees. This discount widened to 27% in Q2 2025, up from 23% in Q1 2025, and is expected to blend to approximately 30% for the remainder of 2025. This is a key metric to watch because while gross sales are rising, the net revenue realized is being eroded by these discounts. You can learn more about the institutional interest in this dynamic by Exploring scPharmaceuticals Inc. (SCPH) Investor Profile: Who's Buying and Why?

The next clear action for you is to track the Q3 2025 revenue release, focusing specifically on the impact of the CKD launch and whether the sequential growth rate from Q2 to Q3 supports the full-year $74.5 million consensus estimate. If the growth rate slows, the forecast is at risk.

Profitability Metrics

You're looking at scPharmaceuticals Inc. (SCPH) and seeing a lot of growth, but the bottom line is still in the red. The direct takeaway here is that while the gross margin is healthy and in line with the specialty pharma sector, the company is still deep in the commercial-stage investment phase, driving significant negative operating and net profit margins.

Let's break down the latest Q2 2025 numbers. The company is generating solid revenue from its lead product, FUROSCIX, but the heavy investment in market expansion and R&D (Research and Development) is eating up all the profit and then some. This is typical for a biotech firm with a newly launched product, but it means profitability is a long-term play, not a near-term reality.

Here's the quick math on the second quarter of 2025, based on the $16.0 million in net revenue reported in August 2025:

• Gross Profit: $11.0 million ($16.0M Revenue minus $5.0 million Cost of Product Revenues)
• Operating Loss: -$14.3 million (Gross Profit minus $25.3 million in Operating Expenses)
• Net Loss: $18.0 million

The $18.0 million net loss for Q2 2025 was a modest widening compared to the same quarter in 2024, showing that revenue gains are currently being offset by rising costs.

Margin Trends and Industry Comparison

When you look at the profitability ratios, you see the classic profile of a growth-focused specialty pharmaceutical company. The gross profit margin is actually quite strong. But still, the operating and net margins are deeply negative, which is where the risk lies.

scPharmaceuticals Inc. (SCPH)'s Gross Profit Margin of 68.75% is right in the sweet spot for specialty drugs, which is defintely a good sign for the core product economics. It means the cost to produce FUROSCIX is manageable. However, the negative margins are far below the profitable 'Big Pharma' average net income margin of nearly 23%. To be fair, most commercial-stage biotechs have negative margins; the industry average net loss for specialty drug manufacturers is around -32.0%, so SCPH's -112.5% margin shows just how much they are spending on growth.

Operational Efficiency and Cost Management

The main pressure points are operating expenses. Selling, General and Administrative (SG&A) expenses hit $21.2 million in Q2 2025, up 21.2% year-over-year. This increase is necessary for commercial expansion, like the new launch into the chronic kidney disease market. Plus, Research and Development (R&D) expenses rose 53.1% to $4.1 million.

• R&D Spending: The jump in R&D is largely tied to the development of the FUROSCIX autoinjector.
• Future COGS Reduction: This R&D spend is a clear action for future efficiency: the autoinjector is expected to reduce the Cost of Goods Sold (COGS) by approximately 75% upon approval. That's a huge potential boost to the gross margin.
• Gross-to-Net Risk: A near-term risk is the rising gross-to-net (GTN) discount-the difference between the list price and what the company actually collects. It rose to 27% in Q2 2025 and is expected to approach 30% in Q3 2025, primarily due to mandatory manufacturer rebates under the Inflation Reduction Act. This rising discount is a headwind against revenue growth.

The company is trading current losses for future market share and cost savings. If you want to dive deeper into the strategic rationale behind these investments, you can check out the Mission Statement, Vision, & Core Values of scPharmaceuticals Inc. (SCPH).

Your next step is to monitor the Q3 2025 earnings report for any change in the cash burn rate against the revenue ramp. Finance: Track the R&D to COGS reduction timeline closely.

Debt vs. Equity Structure

You want to know how scPharmaceuticals Inc. (SCPH) funds its growth, and the quick answer is: heavily through debt relative to its equity base, but with a recent, significant injection of equity capital. This combination points to a high-risk, high-reward financing strategy typical of a commercial-stage biotech company that is not yet profitable.

As of June 30, 2025, scPharmaceuticals Inc. carried a total debt load of approximately $52.44 million. The bulk of this is a long-term obligation, specifically a term loan of $51.35 million. We don't see a massive short-term debt line item, but the total current liabilities, which include accounts payable and accrued expenses, stood at $14.88 million. The company is clearly relying on long-term financing to push its commercialization efforts for FUROSCIX.

The company's Debt-to-Equity (D/E) ratio is what really jumps out. Here's the quick math: with total debt around $52.44 million and total stockholders' equity at $13.32 million as of Q2 2025, the D/E ratio is approximately 3.94:1. That's a high number. For context, the average D/E ratio for specialty and generic drug manufacturers is typically much lower, around 0.49. This means scPharmaceuticals Inc. is significantly more leveraged than its industry peers, which amplifies both potential returns and financial risk. High leverage means every dollar of profit has a larger impact on equity holders, but it also means a greater risk of default if commercial sales disappoint.

The financing strategy has been a balancing act between debt and equity. In late 2024, the company executed a transformative financing round designed to fund operations through to expected profitability. This involved a simultaneous dual-pronged approach:

• Debt Funding: Securing a $50 million term loan via a Credit Agreement.
• Alternative Debt: Entering a Revenue Purchase and Sale Agreement, also providing $50 million, which creates a 'Revenue purchase and sale liability' of $26.87 million on the balance sheet as of June 30, 2025.
• Equity Funding: Completing a public offering of common stock, which raised net proceeds of $53.5 million.

The equity raise led to a substantial increase in shares outstanding, which grew by 33.47% year-over-year. This indicates that management is willing to dilute existing shareholders to secure the necessary capital for commercial growth, especially for key initiatives like the expanded indication of FUROSCIX for chronic kidney disease. To be fair, this is a common trade-off for companies in this stage: you need cash to grow, so you choose between diluting ownership or taking on debt. scPharmaceuticals Inc. chose both. You can read more about the company's strategic goals behind this funding in their Mission Statement, Vision, & Core Values of scPharmaceuticals Inc. (SCPH).

The high D/E ratio is a near-term risk you must monitor. The company is betting heavily on the accelerating sales of FUROSCIX, which saw Q1 2025 revenue rise 93% to $11.8 million. If sales growth stalls, the debt service will become a serious, defintely immediate problem. Your action item is clear: track the quarterly revenue growth and gross-to-net discount rate (expected to increase to 35% by the end of 2025 due to Medicare Part D redesign) to ensure the cash flow is strong enough to service that $51.35 million term loan.

Liquidity and Solvency

You're looking at scPharmaceuticals Inc. (SCPH) and need a clear picture of their near-term financial stability, and honestly, the numbers show a typical biotech story: strong liquidity ratios built on recent financing, but a persistent cash burn from operations. The key takeaway is that their current liquidity is excellent, but it relies heavily on non-operational funding to cover their substantial operating losses.

The company's liquidity positions, as of the latest twelve months (LTM) ending mid-2025, look very healthy on paper. The Current Ratio sits at 3.85, which means scPharmaceuticals Inc. has $3.85 in current assets for every $1.00 in current liabilities. Even the more stringent Quick Ratio (Acid-Test Ratio), which excludes inventory, is a strong 3.14. A ratio above 1.0 is generally considered safe, so these numbers defintely signal a strong ability to cover short-term obligations.

Here's the quick math on their short-term health:

• Current Ratio: 3.85 (Strong ability to pay short-term debt).
• Quick Ratio: 3.14 (Very liquid, even without selling inventory).
• Working Capital: -$22.84 million (Negative, indicating current liabilities slightly exceed current assets, but this figure can fluctuate heavily in a growing biotech).

What this estimate hides is the underlying working capital trend. While the ratios are high, the company's TTM Net Current Asset Value (a proxy for working capital) is actually -$22.84 million, suggesting that when you look at the absolute dollar figures, current liabilities are just slightly outpacing current assets, though the high ratios suggest a large portion of those current assets are highly liquid cash and equivalents, which is the most important factor for a commercial-stage biotech.

Cash Flow Statements Overview: Funding the Burn

The cash flow statement is where the real story of a growth company like scPharmaceuticals Inc. is told. The company is in a commercialization phase for its product, FUROSCIX, which means significant investment is needed to drive sales. This leads to a predictable, but still substantial, cash outflow from operations.

For the last twelve months (LTM) ending in mid-2025, scPharmaceuticals Inc. reported a net cash outflow from Operating Activities of -$65.86 million. This is the cash burn you need to watch. It reflects the high cost of selling, general, and administrative expenses (SG&A) and ongoing research and development (R&D) to expand their product's indications, like the launch into chronic kidney disease in April 2025.

The other two cash flow sections provide the context for how this burn is managed:

The minimal Investing Cash Flow (ICF) of -$21,000 (LTM Capital Expenditures) shows the company is not spending heavily on property, plant, and equipment, which is normal for a commercial-stage pharmaceutical firm. They are focused on commercial execution, not building factories.

The critical factor is the Financing Cash Flow (FCF). In Q1 2025, scPharmaceuticals Inc. raised significant capital, including $53.5 million from a public stock offering and $100 million from a term loan and revenue purchase agreement. This influx of capital is what keeps the balance sheet strong despite the operational cash drain, providing a runway for the company to reach profitability. This is the lifeblood of a commercial-stage biotech: raise capital to fund the launch until sales cover costs. You can read more about this in Breaking Down scPharmaceuticals Inc. (SCPH) Financial Health: Key Insights for Investors.

Liquidity Concerns and Strengths

The primary strength is the cash buffer. As of June 30, 2025, cash and cash equivalents totaled $40.8 million. Plus, the recent financing activities mean they have a capital runway. The high current and quick ratios also provide a strong technical defense against short-term payment risk.

The main potential liquidity concern is the rate of the cash burn. With an LTM operating cash outflow of -$65.86 million, the company must continue to grow revenue at a rapid pace-as seen with the 99% revenue increase in Q2 2025-or secure additional financing to sustain operations before achieving cash flow break-even. The current liquidity is a strength, but it's a finite resource being consumed by high operating costs.

Valuation Analysis

You're looking at scPharmaceuticals Inc. (SCPH) to see if the recent stock run-up makes it overvalued, and the short answer is that traditional metrics are nearly useless here. The company's valuation ratios are heavily skewed by negative earnings, which is typical for a growth-focused biotech firm commercializing a new product like FUROSCIX (furosemide for subcutaneous delivery).

The biggest factor, however, is the acquisition by MannKind, which completed in October 2025 [cite: 13 in step 1]. This event fundamentally changes the investment thesis, as the stock is now delisted or trading under new terms, making the ultimate valuation tied to the acquisition price and MannKind's future performance.

Is scPharmaceuticals Inc. (SCPH) Overvalued or Undervalued?

Based on the latest available fiscal year data, scPharmaceuticals Inc. is difficult to classify with standard tools. The consensus among analysts is mixed, but the stock is generally seen as having significant upside potential from its November 2025 price of $5.67 per share. The stock has performed well over the last year, increasing by 34.84%, with a 52-week range between $1.94 and $6.28. That's a strong run, but the underlying profitability metrics still show a company in a high-burn, high-growth phase.

• Price-to-Earnings (P/E) Ratio: The P/E ratio is -3.32 (Trailing Twelve Months, TTM). This negative number simply tells you the company is losing money, which is expected with a TTM Earnings Per Share (EPS) of -$1.77. You can't use P/E to compare it to profitable peers.
• Price-to-Book (P/B) Ratio: The P/B ratio is reported as near 0.00 or not applicable (n/a). This suggests a very low or negative shareholder equity (Book Value), which is common in a pre-profit, R&D-heavy business.
• Enterprise Value-to-EBITDA (EV/EBITDA): The EV/EBITDA is also negative, at approximately -4.8x (Last Twelve Months, LTM). This is another sign of negative operating profitability before accounting for depreciation and amortization. Here's the quick math: Enterprise Value is around $316.19 million, but the EBITDA is still negative.

The company does not pay a dividend, so the dividend yield and payout ratios are not applicable (N/A).

Analyst Consensus and Price Targets

The Wall Street view on scPharmaceuticals Inc. is split, which is defintely a risk signal. Some analysts see a significant runway for the FUROSCIX product, while others are more cautious about the path to profitability, especially given the costs associated with the product's launch and the complexities of the drug/device combination. If you want to dive deeper into the company's long-term strategy, you can check out the Mission Statement, Vision, & Core Values of scPharmaceuticals Inc. (SCPH).

The consensus rating is officially 'Reduce' from a group of analysts, with an average 12-month price target of $7.78 [cite: 4 in step 1]. Still, other analysts maintain a 'Buy' consensus with a much higher price target of $12.00. This range shows a wide disagreement on the commercial success of their lead product. To be fair, a $7.78 target still represents a 37.27% upside from the current price [cite: 4 in step 1].

Risk Factors

You're looking at scPharmaceuticals Inc. (SCPH) and seeing impressive revenue growth, but as a seasoned analyst, I want you to focus on the cash burn and regulatory hurdles. The core risk here is a classic biotech challenge: managing a widening net loss while racing toward profitability before the cash runs out.

The company's financial health, despite the strong sales of FUROSCIX, is still defined by its high operating expenses. For the first two quarters of 2025, the net loss widened. Specifically, the net loss for Q1 2025 was $19.7 million, which expanded to a loss of $18.0 million in Q2 2025. Here's the quick math: Cash and cash equivalents dropped from $75.5 million at the end of 2024 to $40.8 million as of June 30, 2025. That's a significant drawdown, and management currently projects the operational runway only through the end of 2025. This means near-term shareholder dilution-a secondary offering-is a defintely possibility to extend that runway into 2026.

Operational and Strategic Risks

The company's success is heavily tied to two key operational factors: the autoinjector and market access. The autoinjector is a critical component of their long-term cost-reduction strategy, but any regulatory setback here would be a major blow. The device is designed to cut the treatment time for FUROSCIX from five hours to under ten seconds, and more importantly, is projected to reduce the Cost of Goods Sold (COGS) by 70% to 75%. They were on track to submit the supplemental New Drug Application (sNDA) in Q3 2025, but the market will be watching for that approval.

Also, competition is a constant threat. FUROSCIX is a proprietary formulation of a generic drug (furosemide), so they face heavy competition from multiple generic alternatives, especially in the broader market for diuretic therapy. Plus, the price of admission to the Medicare market is rising.

• Regulatory Delay: Autoinjector sNDA approval is critical for margin expansion.
• Cash Liquidity: Cash burn rate necessitates potential capital raise in the near term.
• Competition: Generic alternatives limit pricing power and market share.

External and Financial Headwinds (The GTN Squeeze)

The reimbursement landscape is creating a headwind that directly impacts net revenue. The Gross-to-Net (GTN) discount-the difference between the list price and the net realized price after rebates-is increasing. In Q2 2025, the GTN discount was approximately 27%, and management anticipates it will approach 30% in Q3 2025. This increase is largely attributable to the implementation of the Medicare Part D redesign, which includes mandatory manufacturer rebates under the Inflation Reduction Act.

To be fair, this is a double-edged sword. The same Medicare Part D redesign that increases rebates is also a tailwind because it caps patient out-of-pocket costs at $2,000, which is expected to increase fill rates and prescription volumes in the second half of 2025. Still, you have to track the net revenue, not just the gross. Wall Street estimates 2025 total revenue around $74 million to $75 million, so every percentage point of GTN matters.

The company is taking clear actions to counter these risks. They implemented a 3.5% price increase on July 1, 2025, and the expansion into the Chronic Kidney Disease (CKD) market in April 2025 provides a new, meaningful revenue stream. But the bottom line remains: the cash position is tight, and the autoinjector is the most important near-term catalyst to flip the margin structure. For a deeper dive into the institutional money backing the company, you should be Exploring scPharmaceuticals Inc. (SCPH) Investor Profile: Who's Buying and Why?

Your next step is to monitor the Q3 2025 earnings release for the status of that autoinjector sNDA filing and the actual cash balance. That's the key variable right now.

Growth Opportunities

You're looking at scPharmaceuticals Inc. (SCPH) for future growth, but the first thing you need to know is the company is no longer an independent entity. MannKind Corporation (MNKD) successfully completed the acquisition of scPharmaceuticals Inc. on October 7, 2025, for a consideration of $5.35 per share plus one Contingent Value Right (CVR). This means the growth story is now about how the key asset, FUROSCIX, will accelerate MannKind's revenue.

The core growth driver is FUROSCIX, a subcutaneous formulation of the diuretic furosemide, which allows for IV-like therapy at home. This product is a significant competitive advantage because it offers a patient-centric solution for heart failure and chronic kidney disease patients, potentially reducing costly hospital readmissions. That's a massive value proposition for the entire healthcare system.

The company's final independent financial snapshot for the 2025 fiscal year shows the momentum MannKind is buying. Analysts projected scPharmaceuticals Inc.'s full-year 2025 revenue to reach an average of $74.23 million, representing a stunning 104.3% growth over the prior year. Despite this top-line surge, the company was still in an investment phase, with the average 2025 full-year Earnings Per Share (EPS) forecasted at -$1.11. That's the quick math: high growth, but still burning cash.

Near-term growth is driven by two clear initiatives:

• Market Expansion: The late April 2025 launch of FUROSCIX into the chronic kidney disease market has already shown strong adoption, adding a second major specialty to the cardiology base.
• Product Innovation: scPharmaceuticals Inc. was on track to submit a supplemental new drug application (SNDA) for an auto-injector in Q3 2025. This is a defintely big deal because it's estimated to reduce the Cost of Goods Sold (COGS) by up to 75%, dramatically improving future margin potential.

The strategic partnership with MannKind Corporation should bolster market penetration, especially with the anticipated impact of the Medicare Part D redesign. This redesign is expected to improve market access as more patients reach their out-of-pocket maximums, making the product more affordable for the 75% of patients who are on Medicare. This is a structural tailwind for the asset.

To fully understand the shift in ownership and what it means for the combined entity, you should be Exploring scPharmaceuticals Inc. (SCPH) Investor Profile: Who's Buying and Why?

Here is a summary of the final independent-company projections and recent performance metrics for context:

What this estimate hides is the rising gross-to-net discount, which hit 27% in Q2 2025, up from 23% in Q1 2025, due to new Medicare rules. MannKind will have to manage that margin pressure, even with the high prescription growth. The growth is real, but the path to profitability still requires tight operational control.