OPK Q3 Earnings Beat Estimates, Sales Miss, Gross Margin Expands

OPKO Health, Inc. OPK posted earnings per share of 3 cents for the third quarter of 2025, flat year over year. Earnings beat the Zacks Consensus Estimate of a loss of 2 cents per share by 250.00%.

OPK’s Revenues in Detail

OPKO Health registered revenues of $151.7 million in the third quarter, down 12.6% year over year. The figure missed the Zacks Consensus Estimate by 3.4%.

The overall top line was dampened by lower revenues from services, partly offset by strength in revenues from products, especially Rayaldee.

OPKO Health’s Segmental Revenues

OPKO Health manages its operations through two reportable segments — Diagnostics and Pharmaceuticals.

Within the Diagnostics arm, revenues from services amounted to $95.2 million, down 21.5% year over year. This was primarily due to lower clinical test volume, principally as a result of the sale of certain BioReference assets, partially offset by higher clinical test reimbursement rates. This compares to our projection of $105.3 million from services revenues in the third quarter.

Within the Pharmaceuticals arm, revenues from products declined 3.6% year over year to $37.7 million, reflecting lower sales volumes in certain international operations. This was partially offset by an increase in Rayaldee sales. This compares to our projection of $41.5 million from product revenues in the third quarter.

Revenues from sales of Rayaldee in the third quarter of 2025 totaled $7.5 million, up 29.3% from the prior-year period’s level.

Revenues from the transfer of intellectual property and other totaled $18.8 million, up 42.2% from the prior-year figure. This increase was driven by higher revenues from the BARDA contract and higher gross profit share payments for NGENLA, which totaled $8.8 million in the third quarter compared with $7 million in the year-ago period. This compares to our projection of $16.8 million in revenues from the transfer of intellectual property and other in the third quarter.

OPK’s Margin Analysis

In the quarter under review, OPKO Health’s gross profit increased 24.4% year over year to $49.9 million. The gross margin expanded 980 basis points (bps) to 32.9%.

Selling, general and administrative (SG&A) expenses declined 45.2% year over year to $53.8 million. Research and development expenses increased 4.5  % year over year to $30.1 million. Adjusted operating expenses of $83.9 million decreased 33.9% year over year.

Operating income totaled $48.1 million compared with the prior-year quarter’s $14.2 million.

OPKO Health, Inc. Price, Consensus and EPS Surprise

OPKO Health, Inc. price-consensus-eps-surprise-chart | OPKO Health, Inc. Quote

OPKO Health’s Financial Position

OPKO Health exited third-quarter 2025 with cash and cash equivalents of $428.9 million compared with $271.7 million at the end of the second quarter.

Cumulative net cash used in operating activities at the end of third-quarter 2025 was $152.6 million compared with $139.1 million a year ago.

OPK’s Guidance

OPKO Health has provided its financial outlook for fourth-quarter 2025.

It expects total revenues to be between $135 million and $140 million. The Zacks Consensus Estimate is currently pegged at $157.1 million.

Revenues from product sales are expected to be in the range of $40-$45 million.

Revenues from services are expected to be in the range of $70-$75 million.

Other revenues are now expected to be between $25 million and $30 million.

Our Take

OPKO Health’s third quarter reflected meaningful operational progress and strategic realignment across both its Diagnostics and Therapeutics segments. The sale of BioReference Health’s oncology division streamlined the diagnostics business, enabling sharper focus on core clinical testing and the high-growth 4Kscore prostate cancer test, which is benefiting from an expanded FDA label and strong physician adoption. Cost reduction and efficiency initiatives have strengthened margins, positioning BioReference for sustainable profitability heading into 2026.

In therapeutics, OPKO advanced a robust pipeline through its ModeX subsidiary, with multiple first-in-class multispecific antibody programs entering or progressing in clinical trials. Strategic collaborations with Regeneron, Merck, and BARDA underscore the company’s ability to attract high-quality partners while maintaining funding for R&D.

Meanwhile, solid execution in international operations and disciplined capital allocation, including continued share repurchases, reinforce financial stability. Overall, OPKO’s focused execution, innovation momentum, and partnerships lay the foundation for durable growth and long-term shareholder value creation.

OPK’s Zacks Rank & Stocks to Consider

Opko Health has a Zacks Rank #2 (Buy) at present.

Some other top-ranked stocks in the broader medical space are Solventum Corporation SOLV, Boston Scientific Corporation BSX and HealthEquity HQY.

Solventum, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 4.1%. SOLV’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.91%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Solventum’s shares have gained 8.2% compared with the industry’s 6.2% growth so far this year.

Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.1%.

Boston Scientific’s shares have gained 13.2% compared with the industry’s 5.6% growth so far this year.

HealthEquity, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 21.7%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 11.05%.

HealthEquity’s shares have risen 0.6% compared with the industry’s 6.2% growth so far this year.

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This article originally published on Zacks Investment Research (zacks.com).

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