The company struggles with structural profitability, evidenced by a deeply negative operating margin of -107.3% despite achieving a 60.6% gross margin in 2025Q2.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Sales/Revenue | 9.55M | 8.04M | 6.53M | 61.8M | 85.76M | 64.36M | 6.29M | 8.36M | 4.01M | 101K | 3K | 7.01M | 12K | 16K | 23K |
| Revenue Growth % | 157.62% | 23.17% | -89.43% | -27.94% | 33.25% | 923.03% | -24.75% | 108.63% | 3867.33% | 3266.67% | -99.96% | 58350% | -25% | -30.43% | - |
| Cost of Goods Sold | 3.4M | 3.19M | 3.46M | 33.34M | 49.41M | 36.89M | 2.26M | 2.84M | 2.13M | 30.54M | 22M | 1.05M | 0 | 0 | 0 |
| COGS % of Revenue | - | 39.69% | 52.97% | 53.94% | 57.61% | 57.32% | 35.91% | 33.94% | 53.06% | 30240.59% | 733400% | 14.97% | - | - | - |
| Gross Profit | 6.16M | 4.85M | 3.07M | 28.46M | 36.35M | 27.47M | 4.03M | 5.52M | 1.88M | -30.44M | -22M | 5.96M | 12K | 16K | 23K |
| Gross Margin % | 64.45% | 60.31% | 47.03% | 46.06% | 42.39% | 42.68% | 64.09% | 66.06% | 46.94% | -30140.59% | -733300% | 85.03% | 100% | 100% | 100% |
| Gross Profit Growth % | - | 57.96% | -89.21% | -21.7% | 32.34% | 581.23% | -27% | 193.62% | 106.18% | -38.38% | -468.86% | 49600% | -25% | -30.43% | - |
| Operating Expenses | 16.7M | 19.46M | -9.56M | 71.31M | 117.49M | 91.15M | 47.23M | 44.85M | 53.85M | 30.64M | 22M | 16.61M | 10.78M | 9.06M | 7.9M |
| OpEx % of Revenue | - | 242% | -146.42% | 115.38% | 137% | 141.63% | 750.8% | 536.53% | 1343.97% | 30340.59% | 733500% | 236.83% | 89866.67% | 56600% | 34330.43% |
| Selling, General & Admin | 12.45M | 15.52M | 30.98M | 64.03M | 87.99M | 74.66M | 29.81M | 19.99M | 20.04M | 5.4M | 4.13M | 4.01M | 2.68M | 2.6M | 2.48M |
| SG&A % of Revenue | - | 192.93% | 474.35% | 103.61% | 102.6% | 116.01% | 473.92% | 239.14% | 500.1% | 5349.51% | 137800% | 57.19% | 22366.67% | 16256.25% | 10791.3% |
| Research & Development | 1.89M | 1.59M | 3.53M | 7.28M | 29.5M | 16.49M | 17.42M | 24.86M | 32.97M | 25.24M | 17.77M | 12.7M | 8.1M | 6.46M | 5.41M |
| R&D % of Revenue | - | 19.74% | 54.03% | 11.78% | 34.4% | 25.62% | 276.89% | 297.39% | 822.79% | 24991.09% | 592366.67% | 181.07% | 67500% | 40343.75% | 23539.13% |
| Other Operating Expenses | 2M | 2.36M | -44.06M | 0 | 0 | 0 | 0 | 0 | 845K | 0 | 100K | -100K | 0 | 0 | 0 |
| Operating Income | -10.54M | -14.61M | 12.63M | -42.84M | -81.14M | -63.68M | -43.2M | -39.33M | -51.97M | -30.54M | -22M | -10.65M | -10.77M | -9.04M | -7.87M |
| Operating Margin % | -110.4% | -181.69% | 193.45% | -69.33% | -94.61% | -98.95% | -686.71% | -470.47% | -1297.03% | -30240.59% | -733400% | -151.8% | -89766.67% | -56500% | -34230.43% |
| Operating Income Growth % | - | -215.68% | 129.48% | 47.19% | -27.4% | -47.41% | -9.84% | 24.32% | -70.16% | -38.82% | -106.65% | 1.16% | -19.16% | -14.82% | - |
| EBITDA | -10.26M | -13.99M | 14.62M | -34.69M | -62.99M | -54.94M | -41.99M | -39.24M | -51.89M | -30.5M | -21.97M | -10.62M | -10.75M | -9.02M | -7.86M |
| EBITDA Margin % | -107.48% | -173.99% | 223.92% | -56.13% | -73.45% | -85.36% | -667.43% | -469.39% | -1295.01% | -30197.03% | -732200% | -151.41% | -89566.67% | -56350% | -34165.22% |
| EBITDA Growth % | 47.38% | -195.71% | 142.15% | 44.92% | -14.65% | -30.84% | -7% | 24.38% | -70.14% | -38.85% | -106.84% | 1.19% | -19.21% | -14.74% | - |
| D&A (Non-Cash Add-back) | 278.5K | 619K | 1.99M | 8.15M | 18.15M | 8.74M | 1.21M | 90K | 81K | 44K | 36K | 27K | 24K | 24K | 15K |
| EBIT | -8.18M | -8.21M | 24.28M | -30.34M | -81.18M | -63.72M | -41.91M | -38.82M | -45.54M | -30.54M | -22M | -10.65M | -10.77M | -9.04M | -7.87M |
| Net Interest Income | 802K | 78K | -273K | -41.19M | -16.58M | -12.27M | 5.02K | 237K | 220K | 275K | 224K | 97K | 16K | -1.36M | -8.16M |
| Interest Income | 1.83M | 133K | 94K | 140K | 51K | 176K | 444.43K | 678K | 6.5M | 282K | 236K | 119K | 158K | 119K | 14K |
| Interest Expense | 1.02M | 55K | 367K | 41.33M | 16.57M | 12.45M | 439.42K | 167K | 77K | 7K | 12K | 22K | 14K | 1.48M | 65K |
| Other Income/Expense | 1.23M | 6.34M | 11.28M | -28.82M | -16.61M | -12.49M | 897K | 511K | 6.43M | 1.17M | 812K | -64K | 144K | -1.29M | -7.63M |
| Pretax Income | -9.31M | -8.27M | 23.92M | -71.67M | -97.74M | -76.17M | -42.3M | -38.82M | -45.54M | -29.37M | -21.09M | -10.71M | -10.63M | -10.33M | -15.5M |
| Pretax Margin % | -97.52% | -102.8% | 366.25% | -115.97% | -113.98% | -118.36% | -672.45% | -464.35% | -1136.61% | -29079.21% | -703000% | -152.71% | -88566.67% | -64537.5% | -67404.35% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -9.31M | -8.27M | 23.92M | -71.67M | -97.74M | -76.17M | -42.3M | -38.82M | -45.54M | -29.37M | -21.09M | -10.71M | -10.63M | -10.33M | -15.5M |
| Net Margin % | -97.52% | -102.8% | 366.25% | -115.97% | -113.98% | -118.36% | -672.45% | -464.35% | -1136.61% | -29079.21% | -703000% | -152.71% | -88566.67% | -64537.5% | -67404.35% |
| Net Income Growth % | 69.14% | -134.57% | 133.37% | 26.68% | -28.32% | -80.06% | -8.97% | 14.76% | -55.07% | -39.26% | -96.9% | -0.78% | -2.92% | 33.39% | - |
| Net Income (Continuing) | -9.31M | -8.27M | 23.92M | -71.67M | -97.74M | -76.17M | -42.3M | -38.82M | -45.54M | -29.37M | -21.09M | -10.71M | -10.63M | -10.33M | -15.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -5.17 | -7.00 | 46.00 | -600.00 | -1000.00 | -1000.00 | -700.00 | -850.00 | -1300.00 | -1100.00 | -950.00 | -600.00 | -850.00 | -1000.00 | -1600.00 |
| EPS Growth % | 90.7% | -115.22% | 107.67% | 40% | 0% | -42.86% | 17.65% | 34.62% | -18.18% | -15.79% | -58.33% | 29.41% | 15% | 37.5% | - |
| EPS (Basic) | - | -7.00 | 46.00 | -600.00 | -1000.00 | -1000.00 | -700.00 | -850.00 | -1300.00 | -1100.00 | -950.00 | -600.00 | -850.00 | -1000.00 | -1600.00 |
| Diluted Shares Outstanding | 1.8M | 2.46M | 518.24K | 123.86K | 93.05K | 72.85K | 59.38K | 46.24K | 35.31K | 25.76K | 22.34K | 17.44K | 12.47K | 10.52K | 9.62K |
| Basic Shares Outstanding | 1.8M | 2.46M | 518.24K | 123.86K | 93.05K | 72.85K | 59.38K | 46.24K | 35.31K | 25.7K | 22.16K | 17.32K | 12.47K | 10.52K | 9.62K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and solvency crisis
According to the latest quarterly filings, RedHill's revenue trajectory remains highly inconsistent, with recent figures showing a 58.6% year-over-year growth rate that follows periods of severe contraction, highlighting the company's struggle to establish a predictable, durable commercial footprint in the competitive gastrointestinal specialty market.
The revenue volatility suggests that the company's reliance on transactional prescription pull-through for Talicia and Movantik is highly sensitive to inventory cycles and wholesaler ordering patterns. Investors should monitor whether this growth is organic or merely a recovery from previous inventory destocking, as the current revenue base remains insufficient to support the firm's operational overhead.
As reported in financial statements, RedHill's gross margin has fluctuated significantly, reaching 60.6% in recent periods, which reflects the heavy burden of royalty obligations and third-party manufacturing costs inherent in its current specialty pharmaceutical business model compared to more established industry peers.
The inability to consistently maintain higher gross margins suggests that the company lacks significant pricing power, likely due to the intense rebate environment dictated by Pharmacy Benefit Managers. This margin profile appears to leave little room for error, as any further pressure on net realized pricing could rapidly erode the company's already thin contribution to covering fixed operating expenses.
Based on RedHill's reported figures, the company exhibits a deeply negative operating margin of -107.3%, indicating that the current commercial infrastructure is far too costly relative to the revenue generated, preventing any meaningful scaling of operating income despite recent efforts to manage SG&A expenses.
The persistent gap between revenue and operating expenses suggests that the company has not yet achieved the necessary scale to leverage its national sales force effectively. Without a substantial increase in prescription volume or a radical reduction in fixed overhead, the current operating structure appears to be a significant drain on shareholder value.
Data from recent income statements reveals that SG&A expenses continue to dwarf gross profit, with the company spending approximately $2.9 million per quarter on overhead, a figure that remains disproportionately high given the limited revenue scale and the ongoing need for capital-intensive commercialization efforts.
The cost structure appears heavily weighted toward maintaining a specialized sales force, which may be an unsustainable burden given the current revenue trajectory. Management's expense discipline warrants further investigation, as the current burn rate suggests that the company is prioritizing market presence over the immediate necessity of achieving operational break-even.
Quick answers to the most common questions about buying RDHL stock.
For fiscal year 2024, RedHill Biopharma Ltd. (RDHL) reported total revenue of $8.0M. This represents a 34869.6% increase compared to $0.0M in 2011.
RedHill Biopharma Ltd. (RDHL) reported a net loss of $8.3M for the fiscal year ending 2024.
RedHill Biopharma Ltd. (RDHL) reported an operating income of $-14.6M, resulting in an operating profit margin of -181.7%. This margin reflects the operational efficiency of the business before interest and taxes.
RedHill Biopharma Ltd. (RDHL) generated $4.9M in gross profit for the year, representing a gross profit margin of 60.3%. This demonstrates the company's core pricing power and production efficiency.