TherapeuticsMD Swings to Profit in Q2
(NASDAQ:TXMD), a specialty pharmaceutical company focused on women’s health products, released its second quarter results on August 12, 2025, reporting a swing to profitability, with GAAP net income from continuing operations of $545 thousand and higher license revenue from royalties ($1.0 million) for Q2 2025. Net income from continuing operations (GAAP) was $545 thousand ($0.05 per share), compared to a net loss of $(1.05) million ($(0.09) per share) in the prior-year period, with license revenue increasing to $1.0 million from $234 thousand. Results exceeded those of the previous year as the company benefited from increased license income and a sharp reduction in operating expenses. The results show a continuation of TherapeuticsMD’s transformation into a lean, royalty-focused company, following its exit from research, development, and direct commercial activities.
TherapeuticsMD was previously a women’s healthcare company focused on products for menopause relief and contraception. In December 2022, it transitioned to a pharmaceutical royalty company. Its main source of income is now royalties from licensed products under the Mayne License Agreement. Each product addresses specific needs related to hormone therapy and contraception, with revenue coming from licensing agreements executed with partners.
TherapeuticsMD ended its own research and development and direct sales efforts in December 2022. Instead, it has pivoted fully to a royalty-receiving business model. In this setup, it relies on commercial partners, such as Mayne Pharma, to market and distribute its products. The company’s performance now depends on licensing revenue, the commercial execution of its partners, and finding ways to boost returns without developing new products itself.
Source Fool.com
