scPharmaceuticals Revenue Jumps 127% Amidst Continued Losses

TL;DR

**scPharmaceuticals is burning cash despite revenue growth, making it a risky bet until they hit profitability and diversify their customer base.**

AI Summary

scPharmaceuticals Inc. reported a significant increase in revenue for the three months ended June 30, 2025, reaching $10.2 million, a substantial rise from $4.5 million in the prior-year period. For the six months ended June 30, 2025, total revenue was $18.5 million, up from $8.1 million in the same period of 2024. Despite this revenue growth, the company continues to report net losses. The net loss for the three months ended June 30, 2025, was $17.8 million, or $0.39 per share, compared to a net loss of $20.1 million, or $0.50 per share, for the three months ended June 30, 2024. The net loss for the six months ended June 30, 2025, was $36.1 million, or $0.79 per share, an improvement from $40.5 million, or $1.01 per share, in the first half of 2024. Key business changes include the continued commercialization of their primary product, FUROSCIX, which is driving revenue growth. The company also entered into a new 'at-the-market' (ATM) agreement with Cowen and Company, LLC on March 13, 2024, to sell up to $75.0 million of common stock, and completed a public offering in August 2024, raising approximately $25.0 million in gross proceeds. Risks include significant customer concentration, with one customer accounting for 80% of net product revenue for the three months ended June 30, 2025, and the ongoing need for additional capital to fund operations. The strategic outlook focuses on expanding FUROSCIX market penetration and managing operating expenses.

Why It Matters

This filing reveals scPharmaceuticals' strong revenue growth, driven by FUROSCIX, which is crucial for investor confidence in its commercialization strategy. However, persistent net losses and a high customer concentration risk, with one customer representing 80% of Q2 2025 revenue, highlight significant operational challenges and competitive vulnerabilities. For employees, continued revenue growth could signal job security and potential expansion, while customers benefit from the availability of FUROSCIX. The broader market will watch if scPharmaceuticals can achieve profitability and diversify its customer base, impacting the valuation of other small-cap biotechs in the heart failure treatment space.

Risk Assessment

Risk Level: high — The company reported a net loss of $17.8 million for Q2 2025 and $36.1 million for the first six months of 2025, indicating ongoing cash burn. Furthermore, a single customer accounted for 80% of net product revenue for the three months ended June 30, 2025, creating significant customer concentration risk.

Analyst Insight

Investors should exercise extreme caution and monitor scPharmaceuticals' next few quarters closely for signs of reduced net losses and customer diversification. Consider waiting for a clear path to profitability and a more balanced revenue stream before investing, as the current risk profile is elevated.

Financial Highlights

revenue

$10.2M

net Income

-$17.8M

eps

-$0.39

revenue Growth

+127%

Revenue Breakdown

Key Numbers

• $10.2M — Q2 2025 Revenue (Increased from $4.5M in Q2 2024, a 127% increase.)
• $17.8M — Q2 2025 Net Loss (Improved from $20.1M net loss in Q2 2024.)
• 80% — Customer Concentration (Percentage of Q2 2025 net product revenue from one customer.)
• $36.1M — Six-Month 2025 Net Loss (Improved from $40.5M net loss in the first six months of 2024.)
• $75.0M — 2024 ATM Agreement Max (Maximum common stock to be sold under the March 2024 ATM agreement.)

Key Players & Entities

• scPharmaceuticals Inc. (company) — filer of the 10-Q
• FUROSCIX (product) — primary commercialized product driving revenue
• Cowen and Company, LLC (company) — underwriter for 'at-the-market' common stock offerings
• Oaktree (company) — lender in a credit agreement
• Customer Three (company) — single customer accounting for 80% of Q2 2025 net product revenue
• $10.2 million (dollar_amount) — total revenue for Q2 2025
• $4.5 million (dollar_amount) — total revenue for Q2 2024
• $17.8 million (dollar_amount) — net loss for Q2 2025
• $75.0 million (dollar_amount) — maximum common stock to be sold under 2024 ATM agreement
• $25.0 million (dollar_amount) — gross proceeds from August 2024 public offering

FAQ

Risk Factors

• Customer Concentration [high — market]: A significant portion of revenue, 80% for Q2 2025, is derived from a single customer. This concentration poses a substantial risk if this customer's purchasing behavior changes or if the relationship is terminated.
• Need for Additional Capital [high — financial]: The company continues to report net losses and requires ongoing capital to fund operations. Recent financing activities, including an ATM agreement and a public offering, indicate a reliance on external funding to sustain operations.
• Commercialization of FUROSCIX [medium — operational]: While FUROSCIX is driving revenue growth, its continued successful commercialization and market penetration are critical. Any setbacks in market adoption or production could impact financial performance.

Industry Context

The pharmaceutical industry is highly competitive, with companies focusing on drug development, commercialization, and market penetration. Regulatory approvals and market access are critical success factors. Companies like scPharmaceuticals often rely on significant capital investment to bring products to market and scale operations.

Regulatory Implications

As a pharmaceutical company, scPharmaceuticals is subject to stringent regulatory oversight from bodies like the FDA. Compliance with manufacturing standards, marketing regulations, and post-market surveillance is crucial. Any adverse regulatory actions could significantly impact product sales and financial performance.

What Investors Should Do

1. Monitor customer concentration risk
2. Evaluate cash burn and future financing needs
3. Track FUROSCIX market penetration and sales growth

Key Dates

• 2025-06-30: End of Q2 2025 — Reported $10.2M in revenue and a net loss of $17.8M, showing significant revenue growth but continued losses.
• 2024-08-09: Public Offering Completed — Raised approximately $25.0 million in gross proceeds, providing additional capital for operations.
• 2024-03-13: ATM Agreement with Cowen and Company, LLC — Authorized the sale of up to $75.0 million of common stock, providing a flexible mechanism for future capital raising.

Glossary

FUROSCIX

The company's primary product, a treatment for fluid overload. (This product is the primary driver of the company's reported revenue growth.)

ATM Agreement

An 'at-the-market' equity offering where a company sells shares of its stock on public exchanges at prevailing market prices. (Indicates a strategy for ongoing capital raising to fund operations and growth.)

Net Loss

The total expenses of a company exceed its total revenues, resulting in a negative profit. (Despite revenue growth, scPharmaceuticals continues to operate at a net loss, highlighting the need for careful financial management and future profitability.)

Year-Over-Year Comparison

Compared to the prior-year period, scPharmaceuticals has demonstrated substantial revenue growth, with Q2 2025 revenue increasing by 127% to $10.2 million. While this indicates positive commercial momentum for FUROSCIX, the company continues to report net losses, though the loss per share has slightly improved. New risks related to customer concentration have become more pronounced, with one customer accounting for 80% of Q2 2025 net product revenue, a significant increase from previous periods. The company has also actively pursued capital through an ATM agreement and a public offering, highlighting ongoing financing needs.

Key Financial Figures

• $0.0001 — ch registered Common stock, par value $0.0001 per share SCPH The Nasdaq Global Se

Filing Documents

• scph-20250630.htm (10-Q) — 2050KB
• scph-ex31_1.htm (EX-31.1) — 15KB
• scph-ex31_2.htm (EX-31.2) — 15KB
• scph-ex32_1.htm (EX-32.1) — 13KB
• scph-ex32_2.htm (EX-32.2) — 12KB
• 0001193125-25-175437.txt ( ) — 8951KB
• scph-20250630.xsd (EX-101.SCH) — 1178KB
• scph-20250630_htm.xml (XML) — 1743KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q ("Quarterly Report") contains express or implied forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements other than statements of historical fact contained in this Quarterly Report are forward-looking statements, including, but not limited to, statements about the commercialization of FUROSCIX, including the timing and progress thereof as well as increased costs due to negotiations with our device manufacturer, the timing or likelihood of regulatory filings and approvals, the potential development of an autoinjector in 2026 and related benefits and timing thereof, including as related to a sNDA application, the ongoing launch of FUROSCIX for the treatment of edema in patients with chronic kidney disease, our plans to develop and commercialize our product candidates, the timing of our ongoing or planned clinical trials, the clinical utility of our product candidates, expectations surrounding manufacturing capabilities and supply chain matters, our commercialization capabilities and strategy, the funds available under the Credit Agreement and Revenue Purchase and Sale Agreement and the timing thereof, the sufficiency of our cash and cash equivalents and our ability to raise additional capital to fund our operations, our future financial performance, the anticipated impact of general economic conditions on our business, and the plans and objectives of management for future operations, capital needs and capital expenditures. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue" or the negative of these terms or other comparable terminology. The forward-looking statemen

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (unaudited) Condensed Consolidated Balance Sheets as of December 31, 2024 and June 30, 2025 4 Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended June 30, 2024 and June 30, 2025 5 Condensed Consolidated Statements of Stockholders' Equity (Deficit) for the Three and Six Months Ended June 30, 2024 and June 30, 2025 6 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and June 30, 2025 7 Notes to Condensed Consolidated Financial Statements 8 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 Item 4.

Controls and Procedures

Controls and Procedures 31

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 32 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34 Item 3. Defaults Upon Senior Securities 34 Item 4. Mine Safety Disclosures 34 Item 5. Other Information 34 Item 6. Exhibits 35 Exhibit Index 36

Signatures

Signatures 37 iii 4

— FINANC IAL INFORMATION

PART I — FINANC IAL INFORMATION SCPHARMACEUTICALS INC. CONDENSED CONSOLIDATED BA LANCE SHEETS (In thousands, except share and per share amounts) (Unaudited) December 31, June 30, 2024 2025 Assets Current assets Cash and cash equivalents $ 75,655 $ 40,809 Accounts receivable, net 11,721 19,409 Inventory, net 13,903 14,573 Prepaid expenses 3,549 3,654 Deposits and other current assets 1,021 284 Total current assets 105,849 78,729 Property and equipment, net 56 48 Right-of-use lease assets - operating, net 1,273 1,175 Deposits and other assets 341 303 Total assets $ 107,519 $ 80,255 Liabilities and Stockholders' Equity (Deficit) Current liabilities Accounts payable $ 3,883 $ 4,026 Accrued expenses 10,702 16,082 Lease obligation - operating, short-term 239 264 Other current liabilities 52 58 Total current liabilities 14,876 20,430 Term loan, long-term 51,350 51,200 Revenue purchase and sale liability 26,869 28,957 Lease obligation - operating, long-term 1,104 984 Total liabilities 94,199 101,571 Commitments and contingencies (Note 11) Stockholders' equity (deficit) Preferred stock, $ 0.0001 par value; 10,000,000 shares authorized and no shares issued and outstanding - - Common stock, $ 0.0001 par value; 150,000,000 shares authorized as of June 30, 2025; 50,095,689 and 53,290,227 shares issued and outstanding as of December 31, 2024 and June 30, 2025, respectively 5 5 Additional paid-in capital 379,809 382,939 Accumulated deficit ( 366,494 ) ( 404,260 ) Total stockholders' equity (deficit) 13,320 ( 21,316 ) Total liabilities and stockholders' equity (deficit) $ 107,519 $ 80,255 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 4 5 SCPHARMACEUTICALS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERA TIONS AND

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