Cryo-Cell's Q3 Net Income Plunges 28.7% Amid Rising Interest Costs

TL;DR

**Cryo-Cell's financials are bleeding red, with net income and cash plummeting – time to sell before the stem cells dry up.**

AI Summary

CRYO-CELL INTERNATIONAL INC. reported a decrease in net income for both the three and nine months ended August 31, 2025. For the three months, net income fell to $749,408 from $1,051,679 in the prior year, a 28.7% decline. Total revenue also decreased by 2.9% to $7,825,432 from $8,066,715. For the nine months, net income dropped significantly by 38.7% to $1,388,048 from $2,263,710, while total revenue saw a slight decrease of 1.0% to $23,723,155 from $23,961,761. The company experienced a substantial increase in interest expense, rising to $1,584,307 for the nine months ended August 31, 2025, from $1,119,196 in the same period last year, a 41.5% increase. Additionally, losses on marketable securities amounted to $604,619 for the nine months, contrasting with gains of $1,056,052 in the prior year. Cash and cash equivalents decreased by 52.8% from $560,960 at November 30, 2024, to $265,207 at August 31, 2025. The company also paid $3,231,227 in dividends during the nine months ended August 31, 2025, which was not present in the prior year.

Why It Matters

Cryo-Cell's declining net income and revenue, coupled with increased interest expenses and losses on marketable securities, signal potential headwinds for investors. The significant dividend payment of $3,231,227, while potentially attractive to some, occurred during a period of decreasing cash and net income, raising questions about capital allocation and long-term financial health. In a competitive market for cellular processing and storage, these financial pressures could limit Cryo-Cell's ability to invest in research and development or expand its services, potentially impacting its market position against larger biotech firms. Employees might face pressure if cost-cutting measures become necessary, and customers could see impacts on service quality or pricing if financial strains persist.

Risk Assessment

Risk Level: high — The company's net income for the nine months ended August 31, 2025, decreased by 38.7% to $1,388,048 from $2,263,710 in the prior year. Cash and cash equivalents significantly declined by 52.8% from $560,960 at November 30, 2024, to $265,207 at August 31, 2025, indicating a weakening liquidity position. Furthermore, the company incurred $604,619 in losses on marketable securities for the nine months, a stark reversal from the $1,056,052 gains in the previous year, highlighting increased investment risk.

Analyst Insight

Investors should consider reducing their exposure to CCEL given the significant decline in net income, cash reserves, and negative returns on marketable securities. A deeper dive into the sustainability of their dividend payments, especially with decreasing cash flow, is warranted before making any new investments.

Financial Highlights

revenue

$7.83M

net Income

$1.39M

cash Position

$265,207

revenue Growth

-2.9%

Key Numbers

• $7.83M — Total Revenue (Decreased by 2.9% for the three months ended August 31, 2025, compared to $8.07M in the prior year.)
• $1.39M — Net Income (Decreased by 38.7% for the nine months ended August 31, 2025, compared to $2.26M in the prior year.)
• $265,207 — Cash and Cash Equivalents (Decreased by 52.8% from $560,960 at November 30, 2024, to August 31, 2025.)
• $1.58M — Interest Expense (Increased by 41.5% for the nine months ended August 31, 2025, compared to $1.12M in the prior year.)
• $604,619 — Losses on Marketable Securities (A significant reversal from $1.06M in gains for the nine months ended August 31, 2024.)
• $3.23M — Dividends Paid (A new cash outflow for the nine months ended August 31, 2025, with no dividends paid in the prior year.)
• $14.83M — Total Stockholders' Deficit (Increased from $13.22M at November 30, 2024, to August 31, 2025.)
• $4.20M — Net Cash from Operating Activities (Increased from $3.85M for the nine months ended August 31, 2024, to August 31, 2025.)

Key Players & Entities

• CRYO-CELL INTERNATIONAL INC. (company) — Registrant
• NYSE American LLC (regulator) — Exchange where Common Stock is registered
• U.S. SECURITIES AND EXCHANGE COMMISSION (regulator) — Regulatory body for filing
• Duke University (company) — Location for public cord blood banking
• National Marrow Donor Program (company) — Distributor of cord blood units
• $749,408 (dollar_amount) — Net income for the three months ended August 31, 2025
• $1,051,679 (dollar_amount) — Net income for the three months ended August 31, 2024
• $1,388,048 (dollar_amount) — Net income for the nine months ended August 31, 2025
• $2,263,710 (dollar_amount) — Net income for the nine months ended August 31, 2024
• $3,231,227 (dollar_amount) — Dividends paid for the nine months ended August 31, 2025

FAQ

Risk Factors

• Increased Interest Expense [high — financial]: Interest expense rose by 41.5% to $1,584,307 for the nine months ended August 31, 2025, from $1,119,196 in the prior year. This significant increase places additional pressure on the company's profitability.
• Marketable Securities Losses [high — financial]: The company incurred losses on marketable securities totaling $604,619 for the nine months ended August 31, 2025. This is a substantial reversal from the gains of $1,056,052 reported in the same period last year, negatively impacting overall financial performance.
• Declining Cash Position [high — financial]: Cash and cash equivalents decreased by 52.8% from $560,960 at November 30, 2024, to $265,207 at August 31, 2025. This sharp decline raises concerns about the company's short-term liquidity.
• Increased Stockholders' Deficit [medium — financial]: The total stockholders' deficit widened from $13.22 million at November 30, 2024, to $14.83 million at August 31, 2025. This indicates a deteriorating equity position.
• Dividend Payouts [medium — financial]: The company paid $3,231,227 in dividends during the nine months ended August 31, 2025, a new cash outflow not present in the prior year. While potentially rewarding shareholders, this further reduces available cash.
• Revenue Decline [medium — operational]: Total revenue decreased by 2.9% for the three months ended August 31, 2025, to $7,825,432 from $8,066,715 in the prior year. A 1.0% decrease was also observed for the nine-month period, indicating potential challenges in sales generation.
• Decreased Net Income [high — operational]: Net income for the three months ended August 31, 2025, fell by 28.7% to $749,408. The nine-month net income saw a more significant drop of 38.7% to $1,388,048. This trend suggests declining profitability.

Industry Context

The stem cell banking industry, while offering long-term health benefits, is capital-intensive and subject to evolving regulatory landscapes. Companies in this sector often face challenges related to customer acquisition costs, technological advancements, and the long-term storage and management of biological materials. Competition can arise from both established players and new entrants.

Regulatory Implications

CRYO CELL INTERNATIONAL INC. operates within a highly regulated sector. Compliance with health and safety regulations, data privacy laws (like HIPAA), and specific laboratory accreditations (e.g., AABB) are crucial. Any failure to adhere to these regulations could result in fines, operational disruptions, and reputational damage.

What Investors Should Do

1. Monitor cash flow and liquidity closely.
2. Analyze the drivers of increased interest expense.
3. Evaluate the impact of marketable securities losses.
4. Assess the sustainability of dividend payments.

Key Dates

• 2025-08-31: End of Nine Months Reporting Period — Key financial results for the period, including revenue, net income, interest expense, and cash flow, are reported. Significant changes compared to the prior year are evident.
• 2025-08-31: Consolidated Balance Sheets Date — Reflects the company's financial position, showing a decreased cash balance and an increased stockholders' deficit.
• 2024-11-30: Prior Year Balance Sheet Date — Provides a comparative baseline for the decrease in cash and cash equivalents.

Glossary

Stockholders' Deficit

A situation where a company's total liabilities exceed its total assets, resulting in a negative equity position. (Indicates the company has more debt and obligations than assets, as seen by the increase from $13.22M to $14.83M.)

Marketable Securities

Investments that are readily bought or sold on public exchanges, such as stocks and bonds. (Losses on these investments ($604,619) significantly impacted the company's net income, contrasting with prior gains.)

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. (The sharp decline in cash and cash equivalents (52.8%) is a critical indicator of the company's liquidity.)

Year-Over-Year Comparison

CRYO CELL INTERNATIONAL INC. has experienced a challenging period compared to the prior year. Total revenue saw a slight decline of 2.9% for the three months and 1.0% for the nine months. Net income has fallen significantly, down 28.7% for the quarter and 38.7% for the nine months. Key concerns include a substantial 41.5% increase in interest expense and a reversal of fortune in marketable securities, moving from gains to losses. Furthermore, the company's cash position has been nearly halved, while it has initiated dividend payments, adding further cash outflow.

Key Financial Figures

• $0.01 — e on which registered Common Stock, $0.01 par value CCEL NYSE American LLC

Filing Documents

• ccel-20250831.htm (10-Q) — 2676KB
• ccel-ex10_7.htm (EX-10.7) — 19KB
• ccel-ex31_1.htm (EX-31.1) — 15KB
• ccel-ex31_2.htm (EX-31.2) — 15KB
• ccel-ex31_3.htm (EX-31.3) — 15KB
• ccel-ex32_1.htm (EX-32.1) — 18KB
• 0001193125-25-240385.txt ( ) — 11463KB
• ccel-20250831.xsd (EX-101.SCH) — 1339KB
• ccel-20250831_htm.xml (XML) — 2510KB

- FINANCIAL INFORMATION (UNAUDITED)

PART I - FINANCIAL INFORMATION (UNAUDITED)

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets 3 Consolidated Statements of Income 4 Consolidated Statements of Cash Flows 5 Consolidated Statements of Stockholders' Deficit 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7

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 27

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 36

Controls and Procedures

Item 4. Controls and Procedures 36

- OTHER INFORMATION

PART II - OTHER INFORMATION 38

Legal Proceedings

Item 1. Legal Proceedings 38

Risk Factors

Item 1A. Risk Factors 38

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 52

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 52

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 52

Other Information

Item 5. Other Information 52

Exhibits

Item 6. Exhibits 53

SIGNATURES

SIGNATURES 54 2 CRYO-CELL INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED B ALANCE SHEETS (Unaudited) August 31, November 30, 2025 2024 ASSETS Current Assets Cash and cash equivalents $ 265,207 $ 560,960 Marketable securities 2,956,238 2,935,183 Accounts receivable (net of allowance for doubtful accounts of $ 4,416,201 and $ 4,266,406 , respectively) 6,833,380 7,309,094 Prepaid expenses 617,930 637,055 Inventory, current portion 655,254 657,703 Other current assets 344,994 454,598 Total current assets 11,673,003 12,554,593 Property and Equipment-net 21,199,002 21,894,263 Other Assets Intangible assets, net 874,229 921,254 Inventory, net of current portion 4,864,834 4,942,115 Goodwill 1,941,411 1,941,411 Deferred tax assets 20,802,023 20,802,023 Operating lease right-of-use asset 906,848 806,339 Deposits and other assets, net 907,779 815,635 Total other assets 30,297,124 30,228,777 Total assets $ 63,169,129 $ 64,677,633 LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities Accounts payable $ 2,611,921 $ 1,882,274 Accrued expenses 2,284,575 5,809,872 Note payable 179,187 170,488 Line of credit 3,200,000 3,520,000 Current portion of operating lease liability 434,604 428,334 Deferred revenue 9,741,319 9,788,574 Total current liabilities 18,451,606 21,599,542 Other Liabilities Deferred revenue, net of current portion 49,842,932 46,556,990 Note payable, net of current portion and debt issuance costs 8,206,768 8,310,045 Operating lease long-term liability 577,202 505,053 Long-term liability - revenue sharing agreements 875,000 875,000 Other liabilities 47,020 47,020 Total other liabilities 59,548,922 56,294,108 Total liabilities 78,000,528 77,893,650 Commitments and contingencies (Note 9) — — Stockholders' Deficit Preferred stock ($ .01

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