Revenue growth remains highly volatile, while the company struggles to achieve operating leverage as evidenced by the 2026Q1 operating margin of -42.8%.
| Sales/Revenue | 43.2M | 41.7M | 37.3M | 34.07M | 28.67M | 24.1M | 18.85M | 26.18M |
| Revenue Growth % | 13.7% | 11.8% | 9.49% | 18.82% | 18.98% | 27.86% | -28.01% | - |
| Cost of Goods Sold | 7.44M | 8.9M | 18.61M | 17.44M | 15.19M | 12.74M | 9.07M | 12.41M |
| COGS % of Revenue | - | 21.35% | 49.88% | 51.2% | 52.96% | 52.87% | 48.1% | 47.39% |
| Gross Profit | 35.77M | 32.8M | 18.7M | 16.63M | 13.49M | 11.36M | 9.78M | 13.77M |
| Gross Margin % | 82.79% | 78.65% | 50.12% | 48.8% | 47.04% | 47.13% | 51.9% | 52.61% |
| Gross Profit Growth % | - | 75.45% | 12.44% | 23.26% | 18.76% | 16.1% | -28.97% | - |
| Operating Expenses | 44.69M | 41.95M | 35.92M | 39.3M | 32.07M | 36.56M | 19.39M | 28.7M |
| OpEx % of Revenue | - | 100.59% | 96.3% | 115.36% | 111.84% | 151.7% | 102.86% | 109.6% |
| Selling, General & Admin | 40.63M | 38.13M | 33.84M | 39.13M | 35.87M | 37.21M | 18.12M | 28.7M |
| SG&A % of Revenue | - | 91.43% | 90.7% | 114.84% | 125.1% | 154.39% | 96.12% | 109.6% |
| Research & Development | 3.37M | 3.72M | 2.09M | 77K | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 8.92% | 5.6% | 0.23% | - | - | - | - |
| Other Operating Expenses | 679K | 100K | 0 | 100K | -3.8M | -650K | 1.27M | 0 |
| Operating Income | -8.92M | -9.15M | -17.21M | -22.68M | -18.58M | -25.2M | -9.61M | -14.92M |
| Operating Margin % | -20.64% | -21.93% | -46.14% | -66.56% | -64.8% | -104.57% | -50.96% | -57% |
| Operating Income Growth % | - | 46.84% | 24.11% | -22.04% | 26.27% | -162.35% | 35.63% | - |
| EBITDA | -8.27M | -8.28M | -16.06M | -21.61M | -17.41M | -24.66M | -9.04M | -14.26M |
| EBITDA Margin % | -19.14% | -19.85% | -43.06% | -63.44% | -60.71% | -102.33% | -47.98% | -54.45% |
| EBITDA Growth % | 45.7% | 48.45% | 25.69% | -24.15% | 29.41% | -172.68% | 36.56% | - |
| D&A (Non-Cash Add-back) | 649K | 868K | 1.15M | 1.06M | 1.17M | 540K | 562K | 667K |
| EBIT | -8.92M | -9.15M | -15.63M | -19.52M | -238K | -37.3M | -8.03M | -8.79M |
| Net Interest Income | -221K | -452K | -2.08M | -468K | -195K | -344K | -2.87M | -2.13M |
| Interest Income | 0 | 0 | 30K | 132K | 175K | 16K | 28K | 25K |
| Interest Expense | 221K | 452K | 2.11M | 600K | 370K | 360K | 2.9M | 2.16M |
| Other Income/Expense | -2.14M | -1.36M | -527K | 2.56M | 17.97M | -12.46M | -1.32M | 3.97M |
| Pretax Income | -11.06M | -10.51M | -17.74M | -20.12M | -608K | -37.66M | -10.92M | -10.95M |
| Pretax Margin % | -25.6% | -25.2% | -47.55% | -59.04% | -2.12% | -156.25% | -57.95% | -41.82% |
| Income Tax | 27K | 25K | 22K | 14K | 32K | 56K | 64K | 33K |
| Effective Tax Rate % | -0.24% | -0.24% | -0.12% | -0.07% | -5.26% | -0.15% | -0.59% | -0.3% |
| Net Income | -11.09M | -10.54M | -17.76M | -20.13M | -640K | -37.71M | -10.99M | -10.98M |
| Net Margin % | -25.66% | -25.26% | -47.61% | -59.09% | -2.23% | -156.49% | -58.29% | -41.95% |
| Net Income Growth % | 3.82% | 40.67% | 11.78% | -3045.47% | 98.3% | -243.25% | -0.05% | - |
| Net Income (Continuing) | -11.09M | -10.54M | -17.76M | -20.13M | -640K | -37.71M | -10.99M | -10.98M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.95 | -0.90 | -3.22 | -13.02 | -0.61 | -44.10 | -18.94 | -18.09 |
| EPS Growth % | 43.45% | 72.05% | 75.27% | -2034.43% | 98.62% | -132.84% | -4.7% | - |
| EPS (Basic) | - | -1.04 | -3.22 | -13.02 | -0.61 | -44.10 | -18.94 | -18.09 |
| Diluted Shares Outstanding | 11.68M | 11.65M | 5.52M | 1.55M | 1.06M | 855.24K | 580K | 607K |
| Basic Shares Outstanding | 11.68M | 10.17M | 5.52M | 1.55M | 1.06M | 855.24K | 580K | 607K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Insufficient liquidity and burn
As indicated by the quarterly financial data, Biofrontera's revenue trajectory remains highly inconsistent, fluctuating between a 22.5% contraction in 2025Q3 and a 36.2% expansion in 2025Q4, suggesting that the company has yet to establish a predictable or sustainable top-line growth cadence in the U.S. market.
The erratic revenue performance implies that the company's commercial model is highly sensitive to timing-related factors, such as wholesaler inventory stocking or the specific cadence of RhodoLED lamp placements. Investors should monitor whether this volatility reflects underlying demand instability or merely the inherent lumpiness of a small-cap specialty pharmaceutical sales cycle.
According to the provided income statement history, gross margins have demonstrated significant improvement, climbing from 44.6% in 2024Q2 to a peak of 94.9% in 2025Q4, which suggests that the company is successfully optimizing its product mix or reducing manufacturing costs associated with its drug-device combination.
While the structural expansion in gross margin is a positive indicator of potential pricing power, the inconsistency in these figures across quarters warrants caution. It appears that the company's ability to maintain these elevated levels will be the primary determinant of whether it can eventually offset its heavy fixed-cost burden.
Based on reported financial figures, Biofrontera continues to struggle with operating leverage, as SG&A expenses frequently exceed gross profit, resulting in persistent operating losses that demonstrate the company has not yet achieved the necessary scale to cover its specialized commercialization and sales force infrastructure costs.
The persistent gap between gross profit and operating expenses suggests that the current commercial strategy is capital-intensive and lacks the efficiency required for near-term profitability. Without a significant increase in utilization per installed lamp, the company may continue to face difficulty in scaling its operating income relative to its top-line growth.
As highlighted by the recent financial statements, the company's reliance on consistent revenue growth to fund operations is precarious, given that the net loss of $4.8M in 2026Q1 underscores a burn rate that may quickly exhaust the reported $6.39M in cash and equivalents.
Short-sellers would likely focus on the narrow liquidity runway and the potential for dilutive financing if the company fails to reach self-sustainability. The lack of consistent profitability suggests that the current business model may be fundamentally challenged by the high costs of maintaining a specialized dermatology sales force in a competitive U.S. landscape.
Quick answers to the most common questions about buying BFRI stock.
For fiscal year 2025, Biofrontera Inc. (BFRI) reported total revenue of $41.7M. This represents a 59.3% increase compared to $26.2M in 2019.
Biofrontera Inc. (BFRI) reported a net loss of $10.5M for the fiscal year ending 2025.
Biofrontera Inc. (BFRI) reported an operating income of $-9.1M, resulting in an operating profit margin of -21.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Biofrontera Inc. (BFRI) generated $32.8M in gross profit for the year, representing a gross profit margin of 78.7%. This demonstrates the company's core pricing power and production efficiency.