CollPlant Biotechnologies Ltd.

Performance Summary

CollPlant Biotechnologies Ltd. reported total revenues of $2.4 million for fiscal year 2025, a sharp increase from $0.5 million in fiscal year 2024 — representing a 368% year-over-year growth. This surge was explicitly attributed to a $2.0 million development milestone payment received from AbbVie related to its dermal and soft tissue filler product candidate. The company recorded a net loss of $11.5 million in FY 2025, consistent with the XBRL-reported figure and nearly identical to the $11.49 million net loss stated in the document text for FY 2024. Gross profit stood at $1.5 million, yielding a gross margin of 62.5%. Total operating loss was $11.5 million, reflecting continued heavy investment in R&D ($8.2 million) and general, administrative, and marketing expenses ($4.8 million). The company ended FY 2025 with $5.6 million in cash and cash equivalents, down from $11.9 million at year-end 2024. Net cash used in operating activities totaled $9.4 million, while financing activities provided $3.1 million — primarily from a registered direct offering.

Revenue Analysis

The filing discloses no formal revenue segmentation by product line or geography in the XBRL data; however, the MD&A section provides qualitative breakdowns. Revenues were derived from three primary streams: (i) licensing and milestone payments, (ii) sales of rhCollagen and bioink products, and (iii) sales of VergenixSTR. Specifically, $2.0 million of the $2.4 million total revenue came from the AbbVie milestone, while the remaining $0.4 million comprised sales of bioink, rhCollagen, and VergenixSTR. Geographically, $2.2 million (91%) originated from the United States ($2.176M), $0.1 million (4%) from Canada, $0.1 million (4%) from Europe and other regions, and $1,000 (<1%) from Israel. No revenue was generated from licensing agreements in FY 2024, compared to $2.0 million in FY 2025 — confirming the milestone as the dominant driver. Customer concentration is high: one customer (Customer A) accounted for $2.159 million (91%) of FY 2025 revenue, versus $10.743 million (98%) in FY 2023.

Margins & Profitability

Gross margin improved markedly to 62.5% in FY 2025, up from -215.4% in FY 2024 (calculated from $0.5M revenue and $1.6M cost of revenues). This improvement reflects both higher-margin milestone revenue (which carries zero cost of revenue) and lower cost of revenues ($0.8 million vs. $1.6 million), driven by reduced inventory impairments and royalty expenses. Operating margin remained deeply negative at -479.2%, as operating expenses ($11.5 million) vastly exceeded revenue. R&D expenses decreased 22% YoY to $8.2 million, largely due to workforce reductions and lower subcontractor spend on breast implant programs. G&A expenses fell 14% to $4.8 million, aided by lower salaries, share-based compensation, and insurance reimbursements. Despite these cost-cutting efforts, the company remains unprofitable and has accumulated a deficit of $124.8 million.

Cash Flow & Balance Sheet

Operating cash flow was heavily negative at $9.4 million, aligning with the $11.5 million net loss adjusted for non-cash items like $0.9 million depreciation and $1.0 million share-based compensation. Investing activities consumed only $27,000, reflecting minimal capex. Financing activities generated $3.1 million — all from equity issuance. Total liabilities stood at $4.7 million, with $2.7 million current liabilities and $2.0 million non-current lease obligations. Shareholders’ equity totaled $6.1 million, supported by $126.4 million in additional paid-in capital offset by the accumulated deficit. Liquidity remains critically constrained: cash ($5.6M) covers only ~2.1x current liabilities ($2.7M), and management explicitly states resources are insufficient to fund operations for the next 12 months.

Outlook

Management emphasized substantial doubt about the company’s ability to continue as a going concern, citing projected negative cash flows and insufficient cash to sustain operations beyond 12 months. Strategic priorities include advancing the AbbVie dermal filler program (currently in clinical review), progressing the photocurable dermal filler into clinical trials, and optimizing the 3D-bioprinted breast implant design ahead of pivotal large-animal studies. Funding will rely on future milestone payments (e.g., remaining $34 million potential under the AbbVie agreement), new strategic partnerships, and additional equity financings — including a February 2026 registered direct offering that raised $2.0 million. Key risks cited include inability to raise capital, delays in clinical development, regulatory uncertainty, and operational disruptions stemming from geopolitical instability in Israel.