Breaking Down Theratechnologies Inc. (THTX) Financial Health: Key Insights for Investors

You're looking at Theratechnologies Inc. (THTX) because you want to understand the true financial health of a specialty biopharma, but the biggest headline is the definitive one: the company was acquired by an affiliate of Future Pak, with the transaction completing in September 2025, leading to a delisting of the stock. Still, understanding the financials leading up to the acquisition is defintely crucial, because the company was on a tightrope; for the first six months of fiscal year 2025, total revenue was $36.8 million, but Q2 2025 alone saw a net loss of $4.5 million, a sharp reversal from the prior year, mostly due to a 31.3% drop in EGRIFTA SV sales from supply chain issues. The good news was the consistent profitability on an adjusted basis-Q2 marked the fifth consecutive quarter of positive Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), clocking in at $906,000-showing the core business had strong margins, but the cash position was thin at just $4.6 million as of February 28, 2025. Here's the quick math: the company was growing its core product (Trogarzo sales were up 13.4% to $6.6 million in Q2) but faced near-term liquidity and supply risks, which ultimately set the stage for the acquisition.

Revenue Analysis

You need to know where the money is coming from, especially with a biopharmaceutical company like Theratechnologies Inc. (THTX) that is navigating a major acquisition. The core takeaway is this: Theratechnologies Inc.'s revenue engine is its HIV portfolio, but a Q1 supply disruption and product mix shift have created volatility, with total revenue for the first half of fiscal 2025 landing at $36.8 million, a 3.9% dip year-over-year.

The company's revenue streams are straightforward, coming almost entirely from two commercial-stage drugs focused on HIV-related conditions in the U.S. market. The primary revenue drivers are EGRIFTA SV® (tesamorelin), which treats excess visceral abdominal fat (lipodystrophy) in HIV patients, and Trogarzo® (ibalizumab), an intravenous treatment for multidrug-resistant HIV.

For the full fiscal year 2025, Theratechnologies Inc. had initially projected revenue to be in the range of $80 million to $83 million, but they withdrew this guidance in July 2025 following the definitive agreement to be acquired by an affiliate of Future Pak.

Product Contribution and Near-Term Volatility

The contribution of each product to the top line has been highly dynamic in the first half of 2025. This is a crucial point for investors, as it shows a shifting risk profile. In the first quarter (Q1) of 2025, total revenue was strong at $19.047 million, a 17.2% increase from the prior year, driven by a post-disruption inventory rebuild for their lead product. Then, Q2 2025 saw a sharp reversal, with total revenue dropping to $17.7 million, a 19.5% year-over-year decrease. That's a big swing.

Here's the quick math on how the two products contributed to the first half of 2025 revenue:

To be fair, the Q1 2025 surge in EGRIFTA SV® sales was largely due to specialty pharmacies restocking inventory after a temporary supply disruption. The subsequent Q2 decline was a hangover from that disruption and higher government rebates under the Inflation Reduction Act. Trogarzo®, meanwhile, is showing signs of stabilization, with Q2 sales increasing by 13.4% year-over-year, mostly from higher unit sales.

The Impact of Strategic Shifts and New Products

The most significant change to the revenue outlook isn't just a supply chain hiccup; it's the strategic shift. Management estimated the EGRIFTA SV® supply disruption alone cost them between $10 million and $12 million in lost revenue for the full year 2025. Still, the FDA approval of the new, more convenient formulation, EGRIFTA WR™ (a weekly reconstitution version), is a major opportunity. This new product is expected to hit the market in the third quarter of 2025 and could drive future adoption and adherence, potentially offsetting the recent volatility.

The revenue streams are entirely product-based, so there are no separate service or regional segments to analyze beyond the U.S. market, which is the focus. The key action for you is to monitor the launch and uptake of EGRIFTA WR™; that's the defintely the next growth catalyst. For a deeper dive into the company's long-term strategy, you can review the Mission Statement, Vision, & Core Values of Theratechnologies Inc. (THTX).

• Monitor EGRIFTA WR™ launch in Q3 2025.
• Track Trogarzo® sales for continued stabilization.
• Factor in the acquisition closing, expected in Q4 2025.

Profitability Metrics

You're looking for a clear picture of Theratechnologies Inc. (THTX)'s financial engine, and the profitability margins tell the real story of its operational health. The headline is this: Theratechnologies Inc. boasts a very strong gross margin, but high operating expenses-typical for a commercial-stage biotech-still push the net profit into negative territory as of the latest trailing twelve months (TTM) data in November 2025.

Here's the quick math on the key margins for the TTM period ending in November 2025, which gives us the most current view:

• Gross Profit Margin: 73.5%
• Operating Profit Margin: -7.33%
• Net Profit Margin: -10.9%

A 73.5% gross profit margin is defintely a major strength. This figure, which is Gross Profit divided by Revenue, shows that the core cost of goods sold (COGS) for their main products, like EGRIFTA SV® and Trogarzo®, is extremely well-managed. For the specialty pharmaceutical industry, a gross margin typically runs between 60% and 80%, so Theratechnologies Inc. is right in the sweet spot for a branded drug company. That's strong product economics.

Profitability Trends and Operational Efficiency

The trend in 2025 shows a volatile but improving trajectory at the top line, which then gets eroded by operating costs. In the first quarter of fiscal 2025, the company reported a net profit of $117,000 on $19 million in revenue, a significant turnaround from the $4.48 million loss in Q1 2024. But the second quarter brought a net loss of $4,462,000, leading to a net loss of $4,345,000 for the first half of 2025.

The operational efficiency analysis points to where the money is going. That sharp drop from a 73.5% Gross Margin to a -7.33% Operating Margin is the gap you need to watch. It signals substantial spending on selling, general, and administrative (SG&A) expenses, plus research and development (R&D). This is not always a bad sign; it's the cost of growth and pipeline development in biotech, but it means the company is not yet consistently profitable from operations. The TTM revenue is $84.38 million.

Here is a comparison of Theratechnologies Inc.'s TTM margins against the broader pharmaceutical industry averages:

The table shows the clear challenge: Theratechnologies Inc.'s Gross Margin is competitive, but its Operating and Net Margins are significantly below the industry average, which is typically around 20% to 40% for operating profit. The company is spending heavily to commercialize its existing assets and advance its pipeline. Also, external factors, like the higher government chargebacks and rebates related to the Inflation Reduction Act (IRA), directly impacted net sales of EGRIFTA SV® in Q2 2025, which is a near-term risk to watch.

The opportunity here is the new EGRIFTA WR™ formulation, which could boost patient compliance and sales, helping to close the gap between the strong gross margin and the current negative operating margin. You can read more about their strategic direction here: Mission Statement, Vision, & Core Values of Theratechnologies Inc. (THTX).

Debt vs. Equity Structure

You need to understand how Theratechnologies Inc. (THTX) managed its capital structure, especially since the company was recently acquired. The short answer is that Theratechnologies Inc. relied on a mix of debt and equity, but its equity base was significantly impaired, which is common for growth-stage biotech firms with a long history of R&D spending.

Looking at the trailing twelve months (TTM) data leading up to the acquisition, Theratechnologies Inc. carried a total debt load of approximately $43.62 million. This debt was primarily long-term in nature, though the company did utilize a revolving credit facility. For example, in the first quarter of fiscal 2025, they temporarily drew and subsequently repaid $5 million on their TD revolving credit facility, showing active debt management for working capital needs. Later, in the second quarter, they used $6.885 million in cash for capital reimbursement on the TD Bank Credit Facility, actively reducing their overall debt balance.

The company's Debt-to-Equity (D/E) ratio was the most striking metric, sitting at approximately -1.6x (negative 1.6 times). Here's the quick math: a negative D/E ratio means the company has negative shareholder equity, or an accumulated deficit. For Theratechnologies Inc., this deficit stood at a substantial $421,196,000 as of May 31, 2025. For context, the average D/E ratio for the specialty pharmaceutical industry is often around 0.5x to 1.5x, so a negative ratio signals a capital structure heavily reliant on debt relative to its book equity, even if the total debt amount itself is not massive. This is defintely a red flag for a standalone company.

The company balanced its funding needs through debt and equity, but the negative equity position meant new equity funding was essential for non-dilutive growth. The ultimate resolution to this capital structure came in September 2025, when the company was acquired by CB Biotechnology, LLC, an affiliate of Future Pak, LLC. The acquisition, valued up to US$254 million with full contingent value right (CVR) payout, effectively provided a massive injection of capital and an exit for shareholders.

The acquisition itself was a major financing event, removing the immediate concern about Theratechnologies Inc.'s standalone debt load. Future Pak secured a US$220 million credit facility to help fund the deal, shifting the debt burden and financing structure to the new parent company. The acquisition consideration was a combination of cash and CVRs, which are a form of equity-like payout tied to future performance milestones.

The key takeaways on their financing strategy are clear:

• Total debt was manageable at $43.62 million (TTM).
• The -1.6x D/E ratio signaled a deeply negative book equity position.
• Recent activity showed the company was actively paying down debt, including a $6.885 million repayment in Q2 2025.
• The acquisition by Future Pak, completed in September 2025, was the definitive capital event, providing a total consideration of up to US$254 million.

If you want to dive deeper into what the new owners are focused on, you should review the Mission Statement, Vision, & Core Values of Theratechnologies Inc. (THTX).

Liquidity and Solvency

You need to know if Theratechnologies Inc. (THTX) has enough cash on hand to cover its immediate bills, especially with the pending acquisition. The short answer is the company's liquidity is tight, with a current ratio below 1.0, but its recent shift to positive operating cash flow provides a necessary cushion.

The company's liquidity position, as measured by the trailing twelve months (TTM) data closest to November 2025, shows a clear constraint. The Current Ratio stands at 0.84, meaning for every dollar of current liabilities (bills due within a year), Theratechnologies Inc. has only $0.84 in current assets to cover it. That's a red flag for short-term operational health. The Quick Ratio (or acid-test ratio), which strips out less-liquid inventory, is even lower at 0.65. This tells you the company is defintely relying on selling its inventory quickly or securing new financing to meet its obligations.

This weak position is reflected in the company's Working Capital, which is the difference between current assets and current liabilities. The TTM figure shows a negative working capital of -$6.15 million. Here's the quick math: negative working capital means the company's short-term debt exceeds its short-term assets. Historically, this trend has been a concern, but the recent cash flow performance offers a counter-narrative.

• Current Ratio: 0.84 (Low, signals short-term strain)
• Quick Ratio: 0.65 (Very low, reliance on inventory or financing)
• Working Capital: -$6.15 million (Negative, a structural liquidity issue)

Looking at the cash flow statements, the trends show a positive turn. For the last twelve months, Theratechnologies Inc. generated $7.04 million in positive Operating Cash Flow (OCF). This is a critical strength, as it shows the core business-selling its HIV-related treatments, Trogarzo and EGRIFTA-is generating more cash than it consumes. For the first six months of fiscal 2025 (ended May 31, 2025), OCF was also positive at $2.659 million.

The Investing Cash Flow has been minimal, with capital expenditures (CapEx) at only -$11,000 over the last 12 months, indicating minimal investment in long-term assets. The Financing Cash Flow is dominated by debt management, with the company holding $43.62 million in total debt. What this estimate hides is the massive near-term liquidity event: the proposed acquisition by Future Pak, expected to close in the fourth fiscal quarter ending November 30, 2025. This event, if completed, fundamentally changes the liquidity picture, moving from a tight, debt-heavy position to a cash-out for shareholders.

The primary liquidity strength is the operational momentum, but the weakness is the balance sheet structure. The company's cash and cash equivalents stood at $9.46 million as of May 31, 2025. The acquisition, which offers up to $254 million with full contingent value rights (CVRs), is the main factor mitigating any long-term liquidity concern for investors. The risk of the deal falling through is the only major near-term liquidity concern that would force a hard look at the sub-1.0 current ratio again.

For a deeper dive into the valuation and strategy behind the acquisition, you can read our full analysis: Breaking Down Theratechnologies Inc. (THTX) Financial Health: Key Insights for Investors.

Valuation Analysis

The core takeaway for Theratechnologies Inc. (THTX) is that its near-term valuation is effectively capped by a pending acquisition, which means traditional metrics are secondary to the agreed-upon buyout price. The stock's significant run-up over the last 12 months reflects this M&A activity, not just organic growth.

You're looking at a biopharma company whose stock price has been on a tear, but for a very specific reason. The stock price of Theratechnologies Inc. closed at $3.39 on November 21, 2025, which is right near its 52-week high of $3.40. Over the last 52 weeks, the stock price increased by an impressive 192.31% from its 52-week low of $1.12. This massive surge was largely driven by the announcement on July 2, 2025, that the company entered a definitive agreement to be acquired by an affiliate of Future Pak. Honestly, when a deal like this is on the table, the acquisition price becomes the new ceiling for the stock, so the market is pricing in the certainty of the deal closing.

Is Theratechnologies Inc. Overvalued or Undervalued?

Based on standard trailing-twelve-month (TTM) metrics for a growth-stage biopharma, Theratechnologies Inc. is difficult to assess as the company is not consistently profitable. The negative Price-to-Earnings (P/E) ratio, which stood at -17.18x as of early November 2025, reflects the TTM net loss of $9.16 million. You can't use a negative P/E to judge if a stock is cheap or expensive; it just tells you the company is losing money. What you need to look at is the Enterprise Value-to-EBITDA (EV/EBITDA).

Here's the quick math on the enterprise valuation ratios based on the most recent available data, which is a better indicator for a company focused on commercialization and growth:

• P/E Ratio (TTM, Nov 2025): -17.18x. This is negative because Theratechnologies Inc. reported a net loss of $4.345 million for the first six months of fiscal 2025.
• EV/EBITDA (TTM, Sep 2025): 20.66x. This is high, suggesting a premium valuation, but the market is pricing in future growth from products like EGRIFTA WRTM and the certainty of the acquisition.
• Price-to-Book (P/B) Ratio: Not applicable (N/A) or negative. The company's balance sheet structure often results in a negative book value, a common trait for biopharma companies that capitalize significant research and development costs.

The company's total revenue for the first half of fiscal 2025 was $36.776 million, a slight dip of 3.9% year-over-year, partly due to a temporary drug shortage in Q1 2025. Still, the strong demand for EGRIFTA SV® and the launch of the new EGRIFTA WRTM formulation in Q3 2025 were expected to return the company to a growth trajectory, which is defintely a factor in the acquisition price.

Analyst Consensus and Dividend Policy

The analyst community has shifted its view in light of the acquisition. The most recent consensus rating is a 'Hold'. This is typical when a buyout is announced; analysts move their ratings to 'Hold' to reflect the limited upside from the current price to the acquisition price.

What this estimate hides is the pre-acquisition valuation potential. The average one-year price target from analysts was around $4.09, with a high estimate of $5.52 and a low of $2.79. Since the stock is trading near the high end of this range, the acquisition is likely viewed as favorable by the market.

As for dividends, Theratechnologies Inc. does not pay one. The Dividend Yield is 0%, and the company has no history of paying dividends, which is standard for a commercial-stage biopharma focused on reinvesting cash flow back into R&D and commercial operations. They are focused on Mission Statement, Vision, & Core Values of Theratechnologies Inc. (THTX)., not shareholder payouts.

For a quick comparison of the key metrics:

Your action here is clear: if you own the stock, you are essentially holding a claim on the acquisition price. If you are looking to buy, the upside is highly limited to any slight premium over the current price that the deal may offer.

Risk Factors

You're looking at Theratechnologies Inc. (THTX) right now, and the biggest risk isn't just a product miss or a quarterly dip-it's the fundamental change of ownership. The entire investment thesis for the near term is now mapped directly to the pending acquisition. Honestly, that's the single most critical factor to analyze before you do anything else with this stock.

The company entered into a definitive agreement to be acquired by an affiliate of Future Pak, a deal expected to close in the fourth fiscal quarter ending in November 2025. This transaction, valued at up to $254 million with the full Contingent Value Rights (CVRs) payout, means shareholders must weigh the certainty of the cash offer against the potential for a higher standalone value. The risk here is that the CVRs, which are tied to the future gross profit of the EGRIFTA and Trogarzo franchises, may not pay out fully, capping your potential returns. It's a binary event now: the deal closes, or it doesn't.

Operational and Financial Headwinds

Beyond the acquisition, the company's core operational risks center on product supply and competition, two issues that hit the financials hard in the first half of 2025. The most immediate pain point was a temporary supply disruption for their lead product, EGRIFTA SV (tesamorelin for injection), in Q1 2025. This shortage cost the company an estimated $10 million to $12 million in lost sales.

This kind of supply chain volatility is a massive operational risk in specialty pharma. It doesn't just hit revenue; it can permanently damage patient and physician confidence. Plus, while total Q2 2025 revenue was $17.7 million, the company still posted a net loss of $4,462,000 for the quarter and a net loss of $4,345,000 for the first six months of fiscal 2025. Sustaining profitability remains a challenge, even with five consecutive quarters of positive Adjusted EBITDA, which reached $906,000 in Q2 2025.

Here's the quick math on the product lines:

• EGRIFTA SV sales declined 31.3% in Q2 2025, largely due to that supply disruption.
• Trogarzo (ibalizumab-uiyk) net sales decreased 5.7% for the first six months of 2025 compared to 2024, a direct sign of rising competition in the multi-drug resistant HIV market.

Mitigation and Forward Strategy

Theratechnologies Inc. is not just sitting still. The primary mitigation strategy for the EGRIFTA SV supply issue is the launch of the new formulation, EGRIFTA WR. This is a once-weekly dosing version, which should defintely boost patient adherence and sustain growth, assuming the launch goes smoothly in Q3 2025. This new product is a critical lever to regain the momentum lost from the Q1 supply shock.

On the competitive front, the company's strategic plan before the acquisition announcement included targeting accretive, late-stage or already approved assets in infectious and rare diseases. This is a classic move to diversify the product portfolio and dilute the risk tied to any single drug like Trogarzo. For a deeper dive into the company's long-term vision, you can check out their Mission Statement, Vision, & Core Values of Theratechnologies Inc. (THTX).

What this estimate hides is the execution risk of a new product launch concurrent with a major corporate acquisition. That's a lot of change management for a specialty pharma company.

The next step is simple: Review the final acquisition terms and the CVR thresholds, and then model your expected return based on the probability of the deal closing by November 2025. Owner: You, the investor.

Growth Opportunities

You need to understand that for Theratechnologies Inc. (THTX) shareholders, the future growth story has been redefined by the definitive agreement to be acquired by an affiliate of Future Pak. This transaction, expected to close in the fourth quarter ending November 30, 2025, means the primary financial opportunity is now tied to a contingent value right (CVR) structure, not a standalone company's earnings per share.

The deal offers shareholders US$3.01 per share in upfront cash, plus one CVR that could pay up to an additional US$1.19 per share if certain performance milestones are met over the next three years. That's a total potential payout of US$4.20 per share, a significant premium over the pre-offer trading price. The CVR payments are explicitly linked to the future gross profit of the EGRIFTA and Trogarzo franchises. It's a clear-cut, near-term exit strategy.

The Acquired Growth Drivers

Before the acquisition, the company's growth was defintely centered on its two commercial products, which are also the foundation for the CVR value. The biggest near-term driver is the product innovation of EGRIFTA WR™ (tesamorelin for injection, a new weekly formulation). This once-weekly reconstitution is a major patient compliance improvement over the older, daily EGRIFTA SV®.

For the first six months of fiscal 2025, Theratechnologies Inc. reported total revenue of $36.8 million. This was despite a temporary supply disruption for EGRIFTA SV® in Q1 that management estimated would cost $10 million to $12 million in lost 2025 revenue. The original, now-withdrawn, full-year 2025 guidance had projected revenue between $80 million and $83 million and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) between $10 million to $12 million.

Here's the quick math on the core franchise performance in the first half of 2025:

EGRIFTA SV® sales were strong in Q1, up 44.8% year-over-year, but the Q2 supply disruption clearly hit revenue. Trogarzo® (ibalizumab), for multidrug-resistant HIV, is a specialized niche product that saw a 13.4% sales increase in Q2 2025, stabilizing its revenue contribution.

Competitive Advantages and Pipeline

The company's competitive advantage lies in its focus on niche, high-barrier-to-entry therapeutic areas within HIV and rare diseases. They market the only FDA-approved therapy for HIV-associated lipodystrophy (EGRIFTA franchise) and a unique treatment for multidrug-resistant HIV-1 (Trogarzo®).

What this estimate hides is the potential of their pipeline, which Future Pak is essentially betting on for the CVR payout. The pipeline includes:

• TH1902: A peptide-drug conjugate for oncology, currently being re-tested in trials after an FDA partial hold was lifted.
• Olezarsen: An in-licensed drug for familial chylomicronemia syndrome (FCS), a rare disease.
• Donidalorsen: An in-licensed drug for hereditary angioedema (HAE), another rare disease.

If onboarding of these pipeline assets into the new structure goes well, the CVRs could pay out fully. For a deeper dive into the company's core strategy, you can check out the Mission Statement, Vision, & Core Values of Theratechnologies Inc. (THTX).