BFRI · Biofrontera Inc.

Biofrontera Inc. delivered improved Q1 2026 results reflecting the benefits of the Strategic Transaction with Biofrontera AG closed in October 2025, which shifted from a transfer pricing model to a lower earnout structure. This drove a 40% year-over-year reduction in related-party cost of revenues to $1.8 million, enabling gross margins to expand dramatically to 80% from 62%, despite recognizing $1.2 million in earnout expense. Revenue growth of 17% to $10.1 million stemmed primarily from 16% higher Ameluz unit sales and a Q4 2025 price increase, signaling sustained commercial momentum in the dermatology photodynamic therapy platform. Operating expenses rose 10% to $14.4 million, with SG&A up to $11.0 million due to stabilized sales team deployment, elevated legal costs from patent claims, and $0.6 million in manufacturing costs assumed post-transaction; R&D declined to $0.9 million as certain trials completed. The net loss widened slightly to $4.8 million or $(0.41) per share from $4.2 million or $(0.47), influenced by a $0.8 million unfavorable swing in warrant liability fair value. Adjusted EBITDA loss narrowed $0.8 million to $(3.6) million, with margin improving to -35.3% from -51.0%. Cash efficiency shone through with only $70 thousand used in operations versus $4.1 million prior year, preserving the $6.3 million year-end cash balance. CEO Hermann Luebbert highlighted near-zero cash burn, pipeline catalysts including sBCC PDUFA on September 28, 2026, positive Phase 3 AK data on extremities/neck/trunk, Phase 2b acne results (58% lesion reduction), and regained Nasdaq bid price compliance as positioning the company for profitability and Ameluz expansion.