Delcath Systems’ Earnings Call: Mixed Sentiments and Future Plans

Delcath Systems, Inc. ((DCTH)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call of Delcath Systems, Inc. painted a mixed picture, showcasing significant strides in clinical trials and revenue growth, yet also pointing out challenges like reduced revenue per kit and rising operating expenses that are affecting profitability.

Increased Revenue from HEPZATO

Revenue from HEPZATO sales surged to $19.3 million in the third quarter of 2025, a substantial increase from $10 million in the same period of 2024. This growth highlights the company’s successful market penetration and product acceptance.

Positive CHOPIN Trial Results

The CHOPIN trial results were promising, with significant improvements in the primary endpoint. The 1-year progression-free survival (PFS) rate was 54.7% in the combination group compared to 15.8% in the perfusion group, indicating a strong clinical benefit.

Expansion of Treatment Sites

Delcath Systems is on track to expand its network of REMS-certified treatment sites from 25 to 40 by the end of 2026. This expansion is crucial for increasing patient access and supporting the company’s growth strategy.

High Gross Margins

The company reported impressive gross margins of 87% in Q3 2025, up from 85% in the same period last year, reflecting efficient cost management and strong product pricing.

Strong Cash Position

Delcath ended the quarter with a robust cash position of approximately $89 million in cash and investments, alongside a positive operating cash flow of $4.8 million, providing a solid financial foundation for future initiatives.

Reduction in Revenue per Kit

The company experienced a 13% reduction in average revenue per kit sold due to 340B pricing related to NDRA participation, which presents a challenge in maintaining profitability.

Increased Operating Expenses

Operating expenses saw a notable rise, with research and development expenses increasing to $8.0 million from $3.9 million, and SG&A expenses rising to $10.3 million from $7.0 million, impacting the bottom line.

Competition and Seasonality Impact

Delcath faced competition for clinical trials and summer seasonality, which led to a slowdown in new patient starts and site activation, affecting short-term growth.

Decreased Net Income

Net income fell to $0.8 million in Q3 2025 from $1.9 million in the previous year, reflecting the impact of increased expenses and reduced revenue per kit.

Forward-Looking Guidance

Delcath Systems provided optimistic guidance, expecting to increase active treating centers to 26-28 by the end of 2025 and to 40 by the end of 2026. The company adjusted its 2025 revenue guidance to $83-85 million and plans to expand its sales force to support this growth. Additionally, ongoing trials for liver-dominant metastatic cancers are expected to yield interim data by 2027.

In summary, Delcath Systems, Inc.’s earnings call highlighted a mixed sentiment with strong revenue growth and promising clinical trial results, tempered by challenges such as reduced revenue per kit and increased expenses. The company’s forward-looking guidance remains positive, with plans for expansion and continued clinical progress.