Revenue growth remains under pressure with a 2.6% year-over-year decline in 2025Q3, while high SG&A expenses of $17.8 million continue to drive negative operating margins of -17.7%.
| Metric | TTM | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 |
|---|
| Sales/Revenue | 120.8M | 126.08M | 132.58M | 99.95M | 105.14M | 94.86M | 100.08M | 81.34M | 73.11M | 71.37M | 61.9M | 57.44M | 56.13M | 51.93M | 67.78M | 69.9M | 121.53M | 97.05M | 73.16M | 69.88M | 62.38M | 49.74M | 43.23M | 29.49M | 22.69M | 18.28M | 13.5M | 9.8M |
| Revenue Growth % | -0.02% | -4.91% | 32.65% | -4.93% | 10.83% | -5.21% | 23.04% | 11.25% | 2.45% | 15.3% | 7.76% | 2.33% | 8.1% | -23.39% | -3.03% | -42.49% | 25.23% | 32.65% | 4.69% | 12.03% | 25.42% | 15.05% | 46.61% | 29.94% | 24.15% | 35.4% | 37.76% | - |
| Cost of Goods Sold | 32.51M | 33.03M | 71.56M | 70.95M | 63.91M | 65.5M | 66.52M | 54.97M | 43.24M | 29.41M | 24.78M | 23.57M | 22.98M | 7.42M | 8.31M | 27.57M | 7.51M | 8.48M | 5.58M | 3.4M | 2.85M | 3.04M | 2.65M | 2.68M | 2.44M | 681K | 700K | 500K |
| COGS % of Revenue | - | 26.19% | 53.97% | 70.99% | 60.79% | 69.05% | 66.47% | 67.58% | 59.14% | 41.2% | 40.04% | 41.03% | 40.93% | 14.29% | 12.27% | 39.45% | 6.18% | 8.73% | 7.63% | 4.86% | 4.58% | 6.1% | 6.13% | 9.1% | 10.75% | 3.73% | 5.19% | 5.1% |
| Gross Profit | 88.3M | 93.05M | 61.02M | 29M | 41.23M | 29.36M | 33.55M | 26.37M | 29.87M | 41.96M | 37.11M | 33.87M | 33.16M | 44.51M | 59.47M | 42.33M | 114.03M | 88.58M | 67.58M | 66.48M | 59.53M | 46.7M | 40.58M | 26.8M | 20.25M | 17.6M | 12.8M | 9.3M |
| Gross Margin % | 73.09% | 73.81% | 46.03% | 29.01% | 39.21% | 30.95% | 33.53% | 32.42% | 40.86% | 58.8% | 59.96% | 58.97% | 59.07% | 85.71% | 87.73% | 60.55% | 93.82% | 91.27% | 92.37% | 95.14% | 95.42% | 93.9% | 93.87% | 90.9% | 89.25% | 96.27% | 94.81% | 94.9% |
| Gross Profit Growth % | - | 52.48% | 110.43% | -29.65% | 40.42% | -12.5% | 27.26% | -11.74% | -28.81% | 13.06% | 9.57% | 2.17% | -25.51% | -25.15% | 40.5% | -62.88% | 28.73% | 31.07% | 1.65% | 11.69% | 27.46% | 15.08% | 51.4% | 32.35% | 15.09% | 37.48% | 37.63% | - |
| Operating Expenses | 100.64M | 98.7M | 102.47M | 51.1M | 80.76M | 30.61M | 26.36M | 26.6M | 22.9M | 20.42M | 18.02M | 15.3M | 13.86M | 28.17M | 51.2M | 36.37M | 54.76M | 61.31M | 42.11M | 30.32M | 26.26M | 36.23M | 19.94M | 16.1M | 12.69M | 12.27M | 10.3M | 8.3M |
| OpEx % of Revenue | - | 78.28% | 77.29% | 51.12% | 76.81% | 32.27% | 26.33% | 32.71% | 31.32% | 28.62% | 29.12% | 26.63% | 24.69% | 54.24% | 75.54% | 52.03% | 45.06% | 63.18% | 57.55% | 43.39% | 42.1% | 72.84% | 46.13% | 54.58% | 55.91% | 67.1% | 76.3% | 84.69% |
| Selling, General & Admin | 62.55M | 56.84M | 51.88M | 46.95M | 30.68M | 28.39M | 23.95M | 24.11M | 20.48M | 18M | 18.02M | 15.3M | 13.86M | 14.03M | 20.55M | 18.45M | 30.38M | 20.82M | 13.64M | 9.93M | 7.71M | 7.1M | 8.15M | 6.38M | 4.69M | 4.25M | 4.3M | 3.1M |
| SG&A % of Revenue | - | 45.08% | 39.13% | 46.97% | 29.18% | 29.93% | 23.93% | 29.64% | 28.01% | 25.22% | 29.12% | 26.63% | 24.69% | 27.01% | 30.31% | 26.4% | 25% | 21.45% | 18.65% | 14.21% | 12.35% | 14.27% | 18.86% | 21.64% | 20.67% | 23.23% | 31.85% | 31.63% |
| Research & Development | 11.76M | 10M | 9.57M | 9.08M | 46.73M | 50.19M | 52.88M | 40.97M | 31.82M | 18.5M | 16.16M | 15.55M | 15.08M | 14.14M | 30.66M | 17.92M | 24.38M | 40.5M | 28.46M | 20.39M | 16.07M | 12.63M | 11.79M | 9.71M | 8M | 6.8M | 5.2M | 4.5M |
| R&D % of Revenue | - | 7.93% | 7.22% | 9.09% | 44.45% | 52.91% | 52.84% | 50.38% | 43.52% | 25.92% | 26.12% | 27.07% | 26.86% | 27.24% | 45.23% | 25.63% | 20.06% | 41.73% | 38.91% | 29.18% | 25.76% | 25.4% | 27.27% | 32.94% | 35.24% | 37.18% | 38.52% | 45.92% |
| Other Operating Expenses | 4M | 31.86M | 41.01M | -4.93M | 3.34M | -47.97M | -50.48M | 1.27M | -70K | 89K | 496K | 842K | 1.43M | 228K | 401K | 0 | 0 | 0 | 0 | 0 | 2.49M | 16.5M | 0 | 0 | 0 | 1.22M | 800K | 700K |
| Operating Income | -12.35M | -5.64M | 5.15M | -22.1M | 6.7M | -1.25M | 6.47M | -8.8M | 7.1M | 16.86M | 19.09M | 18.58M | 18.82M | 16.34M | -17.52M | -14.05M | 57.5M | 27.26M | 9.9M | 36.16M | 2.98M | 10.47M | 20.64M | 10.71M | 7.57M | 5.33M | 2.5M | 1M |
| Operating Margin % | -10.22% | -4.48% | 3.88% | -22.11% | 6.38% | -1.32% | 6.46% | -10.82% | 9.72% | 23.62% | 30.84% | 32.34% | 33.53% | 31.47% | -25.85% | -20.11% | 47.31% | 28.09% | 13.53% | 51.75% | 4.79% | 21.06% | 47.74% | 36.32% | 33.34% | 29.18% | 18.52% | 10.2% |
| Operating Income Growth % | - | -209.61% | 123.31% | -429.66% | 635.81% | -119.34% | 173.52% | -223.88% | -57.87% | -11.68% | 2.76% | -1.3% | 15.16% | 193.29% | -24.66% | -124.44% | 110.93% | 175.39% | -72.63% | 1111.49% | -71.5% | -49.25% | 92.74% | 41.54% | 41.87% | 113.32% | 150% | - |
| EBITDA | -4.49M | 3.05M | 14.32M | -12.43M | 14.72M | 6.01M | 13.78M | -2.37M | 12.66M | 21.73M | 21.89M | 21.29M | 21.71M | 19.27M | -10.37M | -6.24M | 63.41M | 33.33M | 12.72M | 38.34M | 6.72M | 13.81M | 23.38M | 12.71M | 9.22M | 6.55M | 3.3M | 1.7M |
| EBITDA Margin % | -3.72% | 2.42% | 10.8% | -12.43% | 14% | 6.34% | 13.77% | -2.91% | 17.31% | 30.45% | 35.37% | 37.07% | 38.67% | 37.11% | -15.3% | -8.92% | 52.18% | 34.34% | 17.39% | 54.86% | 10.77% | 27.77% | 54.08% | 43.1% | 40.65% | 35.86% | 24.44% | 17.35% |
| EBITDA Growth % | -384.43% | -78.71% | 215.27% | -184.42% | 144.84% | -56.37% | 681.97% | -118.71% | -41.75% | -0.74% | 2.83% | -1.91% | 12.64% | 285.78% | -66.37% | -109.83% | 90.25% | 161.94% | -66.81% | 470.69% | -51.36% | -40.93% | 83.94% | 37.79% | 40.72% | 98.64% | 94.12% | - |
| D&A (Non-Cash Add-back) | 7.85M | 8.69M | 9.17M | 9.67M | 8.02M | 7.26M | 7.31M | 6.43M | 5.55M | 4.87M | 2.81M | 2.71M | 2.89M | 2.93M | 7.14M | 7.82M | 5.91M | 6.07M | 2.83M | 2.18M | 3.73M | 3.34M | 2.74M | 2M | 1.66M | 1.22M | 800K | 700K |
| EBIT | -13.8M | -3.97M | 5.98M | -21.89M | 6.66M | -1.32M | 6.86M | -7.53M | 7.38M | 21.54M | 19.09M | 18.58M | 19.3M | 16.34M | -16.49M | 5.96M | 62.46M | 27.26M | 25.47M | 36.16M | 33.26M | 10.47M | 20.64M | 10.71M | 7.57M | 5.33M | 2.5M | 1M |
| Net Interest Income | -2.97M | -3.54M | -3.49M | -598K | -310K | -133K | -152K | 0 | 0 | 0 | 0 | 0 | 0 | 540K | 625K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 518K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 540K | 625K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 3.49M | 3.54M | 3.49M | 598K | 310K | 133K | 152K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -2.35M | -1.86M | -2.66M | -396K | -357K | -203K | 1.09M | 1.27M | -70K | 89K | -848K | -104K | 1.54M | -36K | -32.02M | -6.61M | 2.02M | -369K | 4.77M | -598K | 1.36M | 1.18M | -6.7M | -2.91M | 3.06M | 1.42M | 1.1M | 700K |
| Pretax Income | -14.69M | -7.51M | 2.49M | -22.49M | 6.35M | -1.45M | 7.56M | -7.53M | 7.03M | 16.95M | 19.74M | 18.47M | 20.36M | 16.31M | -16.49M | -20.66M | 59.52M | 26.89M | 14.67M | 35.56M | 4.35M | 11.85M | 22.5M | 12.4M | 10.62M | 6.75M | 3.6M | 1.7M |
| Pretax Margin % | -12.16% | -5.95% | 1.88% | -22.5% | 6.04% | -1.53% | 7.55% | -9.26% | 9.62% | 23.75% | 31.89% | 32.16% | 36.27% | 31.4% | -24.33% | -29.56% | 48.98% | 27.71% | 20.05% | 50.89% | 6.97% | 23.82% | 52.04% | 42.04% | 46.8% | 36.92% | 26.67% | 17.35% |
| Income Tax | 2.94M | 4.04M | 4.02M | 4.78M | 2.11M | -2.58M | -34K | -3.08M | 3.11M | 6.96M | 6.29M | 6.26M | 5.78M | 6.18M | -3.71M | 430K | 21.97M | 12.15M | 11.32M | 15.23M | 12.6M | 4.41M | 8.56M | 4.6M | 3.81M | 2.51M | -800K | -600K |
| Effective Tax Rate % | -19.98% | -53.77% | 161.76% | -21.26% | 33.23% | 177.24% | -0.45% | 40.83% | 44.18% | 41.08% | 31.88% | 33.92% | 28.39% | 37.88% | 22.52% | -2.08% | 36.92% | 45.19% | 77.18% | 42.83% | 289.56% | 37.23% | 38.06% | 37.11% | 35.84% | 37.18% | -22.22% | -35.29% |
| Net Income | -17.63M | -11.54M | -1.54M | -27.27M | 4.24M | 1.12M | 7.59M | -4.46M | 3.93M | 9.98M | 13.45M | 12.03M | 15.17M | 10.23M | -12.78M | -21.09M | 37.55M | 14.74M | 3.35M | 20.33M | -8.25M | 7.44M | 13.94M | 7.8M | 5.11M | 4.24M | 4.4M | 1.6M |
| Net Margin % | -14.59% | -9.15% | -1.16% | -27.29% | 4.03% | 1.18% | 7.59% | -5.48% | 5.37% | 13.99% | 21.72% | 20.95% | 27.02% | 19.7% | -18.85% | -30.17% | 30.9% | 15.19% | 4.57% | 29.1% | -13.22% | 14.95% | 32.24% | 26.44% | 22.51% | 23.2% | 32.59% | 16.33% |
| Net Income Growth % | -1159.97% | -651.43% | 94.37% | -743.71% | 277.29% | -85.21% | 270.34% | -213.53% | -60.68% | -25.75% | 11.77% | -20.68% | 48.25% | 180.07% | 39.41% | -156.16% | 154.77% | 340.5% | -83.54% | 346.59% | -210.89% | -46.64% | 78.76% | 52.59% | 20.5% | -3.64% | 175% | - |
| Net Income (Continuing) | -17.63M | -11.54M | -1.54M | -27.27M | 4.24M | 1.12M | 7.59M | -4.46M | 3.93M | 9.98M | 11.95M | 12.21M | 14.58M | 10.13M | -12.78M | -21.09M | 37.55M | 14.74M | 3.35M | 20.33M | -8.25M | 7.24M | 13.94M | 7.8M | 6.81M | 4.24M | 4.4M | 1.6M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 588K | 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.23 | -0.82 | -0.11 | -1.96 | 0.30 | 0.08 | 0.55 | -0.34 | 0.29 | 0.76 | 1.01 | 0.87 | 1.03 | 0.59 | -0.73 | -1.21 | 2.15 | 0.80 | 0.18 | 1.09 | -0.45 | 0.41 | 0.78 | 0.44 | 0.29 | 0.26 | 0.28 | 0.12 |
| EPS Growth % | -1151.27% | -645.45% | 94.39% | -753.33% | 269% | -85.22% | 261.76% | -217.24% | -61.84% | -24.75% | 16.09% | -15.53% | 74.58% | 180.82% | 39.67% | -156.28% | 168.75% | 344.44% | -83.49% | 342.22% | -209.76% | -47.44% | 77.27% | 51.72% | 11.54% | -7.14% | 133.33% | - |
| EPS (Basic) | - | -0.82 | -0.11 | -1.96 | 0.31 | 0.08 | 0.57 | -0.34 | 0.30 | 0.77 | 1.03 | 0.88 | 1.05 | 0.59 | -0.73 | -1.21 | 2.15 | 0.82 | 0.19 | 1.10 | -0.45 | 0.41 | 0.80 | 0.46 | 0.31 | 0.26 | 0.29 | 0.13 |
| Diluted Shares Outstanding | 14.28M | 14.15M | 14.03M | 13.92M | 13.99M | 13.81M | 13.78M | 13.16M | 13.39M | 13.22M | 13.29M | 13.88M | 14.73M | 17.43M | 17.46M | 17.37M | 17.47M | 18.33M | 18.22M | 18.72M | 18.13M | 17.8M | 17.84M | 17.82M | 17.85M | 16.6M | 15.81M | 13.6M |
| Basic Shares Outstanding | 14.28M | 14.15M | 14.03M | 13.92M | 13.77M | 13.55M | 13.39M | 13.11M | 13.15M | 13M | 13.03M | 13.63M | 14.46M | 17.32M | 17.42M | 17.37M | 17.43M | 18.03M | 18.03M | 18.53M | 18.13M | 17.5M | 17.36M | 17.02M | 16.69M | 16.1M | 15.07M | 12.45M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Commercialization and Scale Execution
As reported in recent financial filings, Surmodics experienced a 2.6% year-over-year revenue decline in 2025Q3, highlighting the difficulty of offsetting legacy licensing volatility with new product sales during the ongoing transition toward a direct-market manufacturing model for its interventional device portfolio.
The contraction in top-line performance suggests that the company is struggling to achieve consistent growth as it pivots away from its historical royalty-heavy business model. Investors should monitor whether the current revenue trajectory reflects a temporary lull in milestone payments or a more permanent inability to capture market share from established incumbents.
Based on the provided income statement data, Surmodics maintained a robust 71.0% gross margin in 2025Q3, demonstrating that the underlying chemical and reagent business continues to provide a high-margin foundation despite the operational complexities of scaling internal drug-coated balloon manufacturing.
While the gross margin remains elevated, the shift toward hardware manufacturing introduces risks of future compression if production inefficiencies persist. The ability to sustain these levels will likely depend on the company's success in optimizing its Eden Prairie manufacturing facility and achieving necessary economies of scale.
According to quarterly income statements, SG&A expenses reached $17.8 million in 2025Q3, significantly outpacing gross profit and resulting in a negative operating margin of 17.7%, which indicates that the company is currently failing to achieve the operating leverage required for sustainable profitability.
The persistent elevation of SG&A relative to revenue suggests that the costs of commercializing the SurVeil DCB are currently outweighing the incremental revenue contribution. This trend warrants further investigation into whether management can effectively control overhead as the product launch matures or if structural cost increases are permanent.
As indicated by recent financial statements, Surmodics continues to record significant stock-based compensation expenses, with $1.3 million reported in 2025Q3, which further exacerbates the net loss and complicates the assessment of the company's true underlying operational performance during this high-investment phase.
The reliance on non-cash compensation in a period of negative net income suggests that shareholders are absorbing dilution while the company attempts to reach a commercial inflection point. Analysts should carefully adjust for these items to determine the true cash burn rate and the efficacy of management's incentive structures.
Based on the reported figures, the company's reliance on a single partner for distribution and the recent negative revenue growth suggest that the market may be overestimating the ease of displacing incumbents like Medtronic in the competitive peripheral vascular device market.
Short-term investors should focus on the potential for margin compression if the SurVeil launch fails to gain sufficient traction to cover the high fixed-cost base. The lack of consistent operating profitability suggests that the company's valuation may be vulnerable if the commercial ramp-up continues to underperform expectations.
Quick answers to the most common questions about buying SRDX stock.
For fiscal year 2024, Surmodics, Inc. (SRDX) reported total revenue of $126.1M. This represents a 1186.5% increase compared to $9.8M in 1998.
Surmodics, Inc. (SRDX) reported a net loss of $11.5M for the fiscal year ending 2024.
Surmodics, Inc. (SRDX) reported an operating income of $-5.6M, resulting in an operating profit margin of -4.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Surmodics, Inc. (SRDX) generated $93.1M in gross profit for the year, representing a gross profit margin of 73.8%. This demonstrates the company's core pricing power and production efficiency.