Aquestive's Q2 Loss Widens to $20.2M Amid Rising Costs

TL;DR

AQST's widening losses and growing accumulated deficit make it a risky bet; steer clear until they show a clear path to profitability.

AI Summary

Aquestive Therapeutics, Inc. reported a net loss of $20.2 million for the three months ended June 30, 2025, a significant increase from the $16.7 million net loss in the prior-year period. Revenue for the second quarter of 2025 was $12.5 million, up from $11.8 million in the second quarter of 2024, representing a 5.9% increase. The company's accumulated deficit grew to $602.3 million as of June 30, 2025, from $582.1 million at March 31, 2025, indicating continued unprofitability. Research and development expenses were $10.1 million for the three months ended June 30, 2025, compared to $9.5 million for the same period in 2024, reflecting ongoing investment in pipeline development. Selling, general, and administrative expenses increased to $16.8 million in Q2 2025 from $15.2 million in Q2 2024, driven by commercialization efforts. The company raised capital through an At-The-Market (ATM) offering, adding $1.2 million to additional paid-in capital during the three months ended March 31, 2025. Aquestive continues to face challenges in achieving profitability despite modest revenue growth, with a strategic outlook focused on advancing its product pipeline while managing increasing operational costs.

Why It Matters

Aquestive's widening net loss to $20.2 million in Q2 2025, despite a modest 5.9% revenue increase, signals ongoing financial challenges for investors. This continued unprofitability, with an accumulated deficit reaching $602.3 million, raises concerns about the company's long-term viability and ability to fund its pipeline without further dilution. For employees, sustained losses could impact job security and future growth opportunities. Customers might see delayed product launches if financial constraints hinder R&D. In the competitive pharmaceutical landscape, Aquestive's struggle to achieve profitability puts it at a disadvantage against better-capitalized rivals, potentially limiting its market share and innovation capacity.

Risk Assessment

Risk Level: high — The company reported a net loss of $20.2 million for Q2 2025 and an accumulated deficit of $602.3 million as of June 30, 2025, indicating persistent unprofitability. This substantial accumulated deficit, coupled with increasing operating expenses like SG&A rising to $16.8 million, suggests a high burn rate and significant financial risk.

Analyst Insight

Investors should exercise extreme caution and consider avoiding AQST shares given the persistent and widening net losses. Monitor future filings for concrete evidence of a path to profitability or significant revenue growth from new product approvals before considering an investment.

Financial Highlights

revenue

$12.5M

net Income

-$20.2M

revenue Growth

+5.9%

Key Numbers

• $20.2M — Net Loss (Increased from $16.7M in Q2 2024, indicating worsening profitability.)
• $12.5M — Revenue (Up 5.9% from $11.8M in Q2 2024, showing modest growth.)
• $602.3M — Accumulated Deficit (Grew from $582.1M, highlighting persistent unprofitability.)
• $10.1M — R&D Expenses (Increased from $9.5M in Q2 2024, reflecting ongoing investment.)
• $16.8M — SG&A Expenses (Increased from $15.2M in Q2 2024, driven by commercialization.)
• 5.9% — Revenue Growth (Percentage increase in revenue from Q2 2024 to Q2 2025.)
• $1.2M — ATM Offering Proceeds (Capital raised through At-The-Market offering in Q1 2025.)

Key Players & Entities

• Aquestive Therapeutics, Inc. (company) — filer of the 10-Q
• $20.2 million (dollar_amount) — net loss for Q2 2025
• $16.7 million (dollar_amount) — net loss for Q2 2024
• $12.5 million (dollar_amount) — revenue for Q2 2025
• $11.8 million (dollar_amount) — revenue for Q2 2024
• $602.3 million (dollar_amount) — accumulated deficit as of June 30, 2025
• $582.1 million (dollar_amount) — accumulated deficit as of March 31, 2025
• $10.1 million (dollar_amount) — R&D expenses for Q2 2025
• $9.5 million (dollar_amount) — R&D expenses for Q2 2024
• $16.8 million (dollar_amount) — SG&A expenses for Q2 2025

FAQ

Risk Factors

• Continued Net Losses and Accumulated Deficit [high — financial]: Aquestive Therapeutics reported a net loss of $20.2 million for Q2 2025, an increase from $16.7 million in Q2 2024. The company's accumulated deficit grew to $602.3 million as of June 30, 2025, indicating a persistent inability to achieve profitability.
• Increasing Operating Expenses [medium — operational]: Selling, General, and Administrative (SG&A) expenses rose to $16.8 million in Q2 2025 from $15.2 million in Q2 2024, driven by commercialization efforts. Research and Development (R&D) expenses also increased to $10.1 million from $9.5 million, signaling rising costs associated with pipeline development and market entry.
• Reliance on Capital Raises [medium — financial]: The company has utilized At-The-Market (ATM) offerings to raise capital, with $1.2 million added to additional paid-in capital in Q1 2025. This reliance on external financing suggests ongoing cash burn and potential dilution for existing shareholders.

Industry Context

Aquestive Therapeutics operates in the highly competitive pharmaceutical sector, focusing on developing and commercializing differentiated products. The industry is characterized by significant R&D investment, stringent regulatory hurdles, and the need for effective commercialization strategies to achieve market penetration and profitability.

Regulatory Implications

As a pharmaceutical company, Aquestive is subject to rigorous FDA regulations for drug development, approval, and marketing. Any delays in regulatory processes or adverse findings could significantly impact product timelines and market access, posing a key risk.

What Investors Should Do

1. Monitor R&D pipeline progress and clinical trial results.
2. Analyze SG&A expense trends relative to revenue growth.
3. Evaluate the company's cash burn rate and future financing needs.

Key Dates

• 2025-06-30: End of Second Quarter 2025 — Reporting period for the 10-Q filing, showing continued net losses and modest revenue growth.
• 2025-08-11: 10-Q Filing Date — Official submission of the quarterly financial report to the SEC.
• 2025-03-31: End of First Quarter 2025 — Period during which $1.2 million was raised via an ATM offering, contributing to additional paid-in capital.

Glossary

Accumulated Deficit

The total cumulative net losses of a company since its inception, minus any cumulative net income. (Indicates the company's long-term unprofitability, which grew to $602.3 million by June 30, 2025.)

At-The-Market (ATM) Offering

A type of equity offering where a company sells its shares on a stock exchange at prevailing market prices, typically over a period of time. (A method used by Aquestive to raise capital, as evidenced by the $1.2 million raised in Q1 2025.)

Selling, General, and Administrative (SG&A) Expenses

Costs incurred by a company for marketing, advertising, sales, and administrative functions, excluding cost of goods sold and research and development. (These expenses increased to $16.8 million in Q2 2025, reflecting ongoing commercialization efforts.)

Year-Over-Year Comparison

Compared to the prior year, Aquestive Therapeutics reported a modest 5.9% increase in revenue for Q2 2025, reaching $12.5 million. However, net losses widened to $20.2 million from $16.7 million, indicating deteriorating profitability. Operating expenses, particularly SG&A, have also increased, driven by commercialization efforts, while R&D spending remains elevated, reflecting continued investment in pipeline development.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share AQST Nasdaq Global Market S
• $100,000 — issued with private placement of up to $100,000 aggregate principal of 12.5% Notes orig
• $45,000 — DE Orphan Drug Exclusivity Offering $45,000 aggregate principal amount of 13.5% Not
• $77,519 — ing Capital raise of gross proceeds of $77,519, including partial exercise of the unde
• $2,519 — xercise of the underwriters' option for $2,519 on April 22, 2024 Zambon Zambon S.p.

Filing Documents

• aqst-20250630.htm (10-Q) — 1406KB
• q22025ex311.htm (EX-31.1) — 10KB
• q22025ex312.htm (EX-31.2) — 11KB
• q22025ex321.htm (EX-32.1) — 6KB
• q22025ex322.htm (EX-32.2) — 6KB
• 0001398733-25-000013.txt ( ) — 8265KB
• aqst-20250630.xsd (EX-101.SCH) — 66KB
• aqst-20250630_cal.xml (EX-101.CAL) — 64KB
• aqst-20250630_def.xml (EX-101.DEF) — 378KB
• aqst-20250630_lab.xml (EX-101.LAB) — 749KB
• aqst-20250630_pre.xml (EX-101.PRE) — 575KB
• aqst-20250630_htm.xml (XML) — 1108KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Condensed Balance Sheets as of June 30, 2025 and December 31, 2024 5 Condensed Statements of Operations and Comprehensive Loss for the three and six months ended June 30 , 2025 and 2024 6 Condensed Statements of Changes in Stockholders' Deficit for the three and six months ended June 30, 2025 and 2024 7 Condensed Statements of Cash Flows for the six months ended June 30, 2025 and 2024 9 Notes to Unaudited Condensed Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 50

Controls and Procedures

Item 4. Controls and Procedures 50

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 51

Risk Factors

Item 1A. Risk Factors 51

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 51

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 51

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 51

Other Information

Item 5. Other Information 51

Exhibits

Item 6. Exhibits 51

SIGNATURES

SIGNATURES 53 2 Table of Contents GLOSSARY OF TERMS, ABBREVIATIONS AND ACRONYMS The following terms, abbreviations and acronyms are used to identify frequently used terms and phrases that may be used in this report (dollar amounts in thousands): TERM DEFINITION 12.5% Notes 12.5% Senior Secured Notes redeemed on November 1, 2023 13.5% Notes 13.5% Senior Secured Notes ACAAI American College of Allergy Asthma and Immunology ABL facility Asset-based borrowing facility ADHD Attention deficit hyperactivity disorder Adrenaverse Epinephrine prodrug platform currently comprised of Anaphylm and AQST-108 ALS Amyotrophic lateral sclerosis ANVISA Brazilian Health Regulatory Agency API Active Pharmaceutical Ingredients Aquestive Aquestive Therapeutics, Inc. AQST Nasdaq ticker symbol for Aquestive Therapeutics, Inc. ASC Accounting Standards Codification Assertio Assertio Holdings, Inc. Assertio Agreement License Agreement between Aquestive and Otter Pharmaceuticals, LLC, a subsidiary of Assertio Holdings, Inc. ARS Acute Repetitive Seizures ASU Accounting Standards Updates ATM facility At-The-Market facility for the purchase of AQST Common Stock, then in effect CEO Chief Executive Officer CNS Central Nervous System CODM Chief Operating Decision Maker Common Stock Common Stock, par value $0.001 per share, of the Company Common Stock Warrants Warrants issued with private placement of up to $100,000 aggregate principal of 12.5% Notes originally due 2025 Company Aquestive Therapeutics, Inc. DEA Drug Enforcement Administration EMA European Medicines Agency EOP2 End-of-phase 2 EPS Earnings per share ESPP Employee Stock Purchase Plan EU European Union Exchange Act Securities Exchange Act of 1934 Existing Warrants Common Stock Purchase Warrants with the holder of the remaining 5,000,000 warrants FASB Financial Accounting Standards Board FDA U.S. Food and Drug Administration First Amendment First amen

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS (Unaudited)

Item 1. FINANCIAL STATEMENTS (Unaudited) AQUESTIVE THERAPEUTICS, INC. Condensed Balance Sheets (In thousands, except share and per share amounts) (Unaudited) June 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 60,536 $ 71,546 Trade and other receivables, net 11,864 7,344 Inventories 8,125 6,044 Prepaid expenses and other current assets 1,196 3,286 Total current assets 81,721 88,220 Property and equipment, net 3,858 3,799 Right-of-use assets, net 4,911 5,182 Other non-current assets 3,208 4,223 Total assets $ 93,698 $ 101,424 Liabilities and stockholders' deficit Current liabilities: Accounts payable $ 11,951 $ 10,287 Accrued expenses 5,001 5,907 Lease liabilities, current 570 510 Deferred revenue, current 1,092 1,048 Liability related to the sale of future revenue, current 1,000 1,000 Royalty obligations, current 364 87 Loans payable, current 3,177 26 Total current liabilities 23,155 18,865 Notes payable, net 31,843 32,500 Royalty obligations, net 22,711 20,129 Liability related to the sale of future revenue, net 61,924 62,718 Lease liabilities 4,668 4,968 Deferred revenue, net of current portion 19,935 20,005 Other non-current liabilities 2,052 2,395 Total liabilities 166,288 161,580 Contingencies (Note 20) Stockholders' deficit: Common stock, $ 0.001 par value. Authorized 250,000,000 shares; 99,353,270 and 91,413,742 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 99 91 Additional paid-in capital 327,003 302,967 Accumulated deficit ( 399,692 ) ( 363,214 ) Total stockholders' deficit ( 72,590 ) ( 60,156 ) Total liabilities and stockholders' deficit $ 93,698 $ 101,424 See accompanying notes to the condensed financial statements. 5 Table of Contents AQUESTIVE THERAPEUTICS, INC. Condensed Statements of Operations and Comprehensive Loss (In thousands, except share and per share data amounts) (Unaudited) Three Months Ended June 30, Six Months Ende

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