Emmaus Life Sciences (OTCQB: EMMA) posts 2025 revenue drop and wider net loss
Rhea-AI Filing Summary
Emmaus Life Sciences reported full-year 2025 results showing sharply lower sales but improved operating performance. Net revenue was $12.5 million, down 25% from $16.7 million in 2024, mainly due to U.S. competition from generic L-glutamine, partly offset by higher sales in the MENA region.
Total operating expenses fell 34% to $11.4 million from $17.3 million, turning a $0.2 million income from operations versus a $1.9 million operating loss a year earlier. However, other expense rose to $7.5 million from $4.5 million, driven by higher loss on debt extinguishment and interest expense and lower gains on restructured debt.
Emmaus recorded a 2025 net loss of $7.2 million (or $0.12 per share) compared with a $6.5 million net loss (or $0.10 per share) in 2024. At December 31, 2025, cash and equivalents were $2.1 million versus $1.4 million a year earlier, while total liabilities were $85.0 million and stockholders’ deficit was $63.6 million. Management is shifting U.S. strategy through a license and exclusive distribution arrangement with NeoImmuneTech and emphasizes international growth for Endari.
Positive
- None.
Negative
- Net revenues declined 25% in 2025 to $12.5 million from $16.7 million in 2024, driven mainly by U.S. generic competition for L-glutamine.
- Net loss increased to $7.2 million (or $0.12 per share) from $6.5 million (or $0.10 per share), despite positive income from operations.
- Highly leveraged balance sheet with total liabilities of $85.0 million and stockholders’ deficit of $63.6 million as of December 31, 2025, signaling substantial financial risk.
- Going concern risk cited in forward-looking statements, referencing doubt about the company’s ability to continue as a going concern.
Insights
Revenue fell 25% and losses widened as debt costs weighed on results.
Emmaus Life Sciences saw 2025 net revenue decline to $12.5 million from $16.7 million due to U.S. generic L-glutamine competition, partly offset by growth in the MENA region. Management cut operating expenses by 34%, improving operating performance to a modest income of $0.2 million from a prior-year operating loss.
Despite better operations, higher loss on debt extinguishment, increased interest expense and reduced gains on restructured debt pushed other expense to $7.5 million from $4.5 million, resulting in a larger net loss of $7.2 million. The balance sheet shows total liabilities of $85.0 million and a stockholders’ deficit of $63.6 million, highlighting leverage and financial risk.
Management is pivoting U.S. commercialization for Endari via a license and exclusive distribution deal with NeoImmuneTech and emphasizing international markets, including the MENA region. Forward-looking statements reference doubt about the company’s ability to continue as a going concern, so future filings and execution of this strategic shift will be important for assessing progress.
8-K Event Classification
Key Figures
Key Terms
loss on debt extinguishment financial
stockholders’ deficit financial
going concern financial
license and exclusive distribution arrangement financial
other expense financial
sickle cell disease medical
Earnings Snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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CURRENT REPORT
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Item 2.02 Results of Operation and Financial Condition.
On March 30, 2026, Emmaus Life Sciences, Inc. (“we,” “us,” “our,” “Emmaus” or the “company”) issued a press release announcing our results of operations and financial condition as of and for the year ended December 31, 2025, a copy of which is included as Exhibit 99.1 to this Current Report and incorporated herein by reference.
The information included in this Item 2.02 and in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
See the accompanying Index to Exhibits, which is incorporated herein by reference.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: March 31, 2026 | Emmaus Life Sciences, Inc. | ||
| By: | /s/ WILLIS LEE | ||
| Name: | Willis Lee | ||
| Title: | Chairman and Chief Executive Officer | ||
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INDEX TO EXHIBITS
| Exhibit Number |
Description | |
| 99.1 | Press release dated March 30, 2026 | |
| 104 | Cover Page Interactive Date File (embedded within Inline XBRL document) |
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Exhibit 99.1
Emmaus Life Sciences Reports Annual Financial Results
Torrance CA, March 30, 2026 - Emmaus Life Sciences, Inc. (OTCQB: EMMA), a commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease, today reported on its financial condition and results of operations as of and for the year ended December 31, 2025.
Highlights
“We experienced a 25% decline in net revenues in 2025 as compared to 2024 due to ongoing competition from generic L-Glutamine in the U.S., partially offset by an increase of sales in the Middle East North Africa, or MENA, region,” commented Willis Lee, Chairman and Chief Executive Officer of Emmaus. “We nonetheless realized income from operations of $0.2 million compared to loss from operations of $1.9 million in the prior year due to a 34% reduction in operating expenses. We believe the international markets offer greater growth potential and have undertaken a change in strategy for our U.S. operations going forward by entering into a license and exclusive distribution arrangement with NeoImmuneTech, Inc. which we expect to be fully implemented in the second quarter of this year,” he added.
Financial and Operating Results
Net Revenues. Net revenues for the year ended December 31, 2025 were $12.5 million, compared to $16.7 million in the same period in 2024. The decrease was due to a decrease in U.S. sales which management attributes primarily to competition from the generic version of L-Glutamine introduced in the market in mid-2024 partially offset by an increase of sales in the MENA region.
Operating Expenses. Total operating expenses for the year ended were $11.4 million compared to $17.3 million in the comparable period in 2024. The decrease was due to a headcount reduction and other cost cutting measures.
Income (Loss) From Operations. Income from operations for the year ended December 31, 2025 was $0.2 million compared to loss from operations of $1.9 million in the same period in 2024. This was due to lower operating expenses, which more than offset the decrease in net revenues.
Other Expense. The company realized other expense of $7.5 million for the year ended December 31, 2025 compared to $4.5 million in the same period in 2024. The increase was primarily due to increases of $1.4 million in loss on debt extinguishment and $1.4 million in interest expense, and a decrease of $1.0 million in gain on restructured debt, partially offset by an increase of $0.9 million in gain on lease modification.
Net Loss. For the year ended December 31, 2025, the company realized net loss of $7.2 million, or $0.11 per share based on approximately 64.0 million weighted-average basic common shares, compared to net loss of $6.5 million, or $0.10 per share based on approximately 63.2 million weighted-average basic common shares in 2024. The increase in net loss was attributable primarily to the increase in other expenses.
Liquidity and Capital Resources. At December 31, 2025, the company had cash and cash equivalents of $2.1 million, compared to $1.4 million at December 31, 2024.
About Emmaus Life Sciences
Emmaus Life Sciences, Inc. is a commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease. Endari® (L-glutamine oral powder), indicated to reduce the acute complications of sickle cell disease in adults and children 5 years and older, is approved for marketing in the United States, Israel, Kuwait, Qatar, the United Arab Emirates, Bahrain and Oman and is available on a named patient or early access basis in France, the Netherlands, and the Kingdom of Saudi Arabia, where Emmaus’ application for marketing authorization is awaiting final action by the Saudi Food & Drug Authority. For more information, please visit www.emmausmedical.com.
About Endari® (prescription grade L-glutamine oral powder)
Endari®, Emmaus’ prescription grade L-glutamine oral powder, was approved by the U.S. Food and Drug Administration (FDA) in July 2017 for treating sickle cell disease in adult and pediatric patients five years of age and older.
Indication
Endari® is indicated to reduce the acute complications of sickle cell disease in adult and pediatric patients five years of age and older.
Important Safety Information
The most common adverse reactions (incidence >10 percent) in clinical studies were constipation, nausea, headache, abdominal pain, cough, pain in extremities, back pain, and chest pain.
Adverse reactions leading to treatment discontinuation included one case each of hypersplenism, abdominal pain, dyspepsia, burning sensation, and hot flash.
The safety and efficacy of Endari® in pediatric patients with sickle cell disease younger than five years of age has not been established.
For more information, please see full Prescribing Information of Endari® at: www.ENDARIrx.com/PI.
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About Sickle Cell Disease
There are approximately 100,000 people living with sickle cell disease (SCD) in the United States and millions more globally. The sickle gene is found in every ethnic group, not just among those of African descent; and in the United States an estimated 1-in-365 African Americans and 1-in-16,300 Hispanic Americans are born with SCD.1 The genetic mutation responsible for SCD causes an individual's red blood cells to distort into a "C" or a sickle shape, reducing their ability to transport oxygen throughout the body. These sickled red blood cells break down rapidly, become very sticky, and develop a propensity to clump together, which causes them to become stuck and cause damage within blood vessels. The result is reduced blood flow to distal organs, which leads to physical symptoms of incapacitating pain, tissue and organ damage, and early death.2
| 1 | Source: Data & Statistics on Sickle Cell Disease – National Center on Birth Defects and Developmental Disabilities, Centers for Disease Control and Prevention, December 2020. |
| 2 | Source: Committee on Addressing Sickle Cell Disease – A Strategic Plan and Blueprint for Action -- National Academy of Sciences Press, 2020. |
Forward-looking Statements
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements are subject to numerous assumptions, risks and uncertainties which change over time, including doubt about the company’s ability to continue as a going concern, uncertainties regarding the implementation of the change in strategy for our U.S., operations and commercialization efforts in the MENA region, and other factors disclosed in the company’s Annual Report on Form 10-K for the year ended December 31, 2025 and actual results may differ materially. Such forward-looking statements speak only as of the date they are made, and Emmaus assumes no duty to update them, except as may be required by law.
Company Contact:
Emmaus Life Sciences, Inc.
Investor Relations
(310) 214-0065
IR@emmauslifesciences.com
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(Financial Tables Follow)
| Emmaus Life Sciences, Inc. |
| Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) |
(In thousands, except share and per share amounts)
| Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenue, Net | $ | 12,453 | $ | 16,653 | ||||
| Cost of Goods Sold | 857 | 1,201 | ||||||
| Gross Profit | 11,596 | 15,452 | ||||||
| Operating Expenses | 11,365 | 17,346 | ||||||
| Income (loss) from Operations | 231 | (1,894 | ) | |||||
| Net Loss | (7,492 | ) | (6,453 | ) | ||||
| Comprehensive Loss | (7,226 | ) | (9,288 | ) | ||||
| Net Loss per Share | $ | (0.12 | ) | $ | (0.10 | ) | ||
| Weighted Average Common Shares Outstanding | 64,038,795 | 63,234,789 | ||||||
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Emmaus Life Sciences, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
| As of December | ||||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 2,127 | $ | 1,389 | ||||
| Accounts receivable, net | 2,804 | 2,623 | ||||||
| Inventories, net | 1,555 | 1,635 | ||||||
| Prepaid expenses and other current assets | 1,260 | 1,120 | ||||||
| Total Current Assets | 7,746 | 6,767 | ||||||
| Property and Equipment, net | 113 | 46 | ||||||
| Right of use assets | 766 | 1,530 | ||||||
| Investment in convertible bond | 12,604 | 15,037 | ||||||
| Other Assets | 207 | 222 | ||||||
| Total Assets | $ | 21,436 | $ | 23,602 | ||||
| Liabilities and Stockholders’ Deficit | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 22,615 | $ | 16,926 | ||||
| Operating lease liabilities, current portion | 348 | 2,423 | ||||||
| Conversion feature derivative, notes payable | — | 162 | ||||||
| Notes payable, current portion | 11,151 | 10,465 | ||||||
| Convertible notes payable, net of discount | 17,380 | 17,014 | ||||||
| Other current liabilities | 17,578 | 16,565 | ||||||
| Total Current Liabilities | 69,072 | 63,555 | ||||||
| Other long-term liabilities | 15,972 | 16,526 | ||||||
| Total Liabilities | 85,044 | 80,081 | ||||||
| Stockholders’ Deficit | (63,608 | ) | (56,479 | ) | ||||
| Total Liabilities & Stockholders’ Deficit | $ | 21,436 | $ | 23,602 | ||||
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