OPKO Health (OPK) Financials

OPKO Health (NASDAQ: OPK) Financial Analysis Summary - Last Four Years

Reviewing OPKO Health's financial statements over the last four years shows mixed performance with certain challenges in profitability and cash management amid ongoing investments and debt activities. Below are the key takeaways based on quarterly data from Q2 2022 through Q2 2025:

• Operating revenues have generally rebounded from declines in 2022 to a more stable range around $150 million to $180 million in 2024 and early 2025, indicating somewhat improved sales consistency after volatile revenue in 2022.
• Gross profit margins have fluctuated but remained positive, with Q4 2024 gross profit at approximately $84.7 million, showing capacity to generate profit from core operations despite overall losses.
• Substantial amortization and depreciation expenses reflect significant capital investments and intangible asset amortization, which suggests ongoing growth efforts and asset utilization.
• The company's balance sheet shows considerable goodwill and intangible assets (ranging approximately $750 million for intangible assets and $480 million to $530 million for goodwill), indicating large investments in acquisitions and potential intellectual property assets.
• Cash and cash equivalents have fluctuated notably, reaching highs over $400 million in some quarters, providing liquidity buffers for operations and financing activities.
• OPKO has continuously high operating expenses, especially in selling, general & administrative and research & development, which exceeds gross profit, leading to negative operating income in most quarters.
• Capital expenditures remain consistent with purchases of property, plant & equipment averaging around $3 million to $8 million quarterly, signaling steady reinvestment into infrastructure.
• The company maintains high long-term debt levels between approximately $210 million and $330 million, alongside fluctuating short-term debt, imposing ongoing financing costs and obligations.
• OPKO Health has reported net losses in nearly every quarter from 2022 through mid-2025, including a consolidated net loss of $148.4 million in Q2 2025 and similar significant losses in earlier quarters, indicating persistent profitability challenges.
• Interest expense remains exceptionally high, such as $70.3 million in Q2 2025, heavily impacting net income and reflecting burdensome debt servicing costs.
• Negative net cash from operating activities has been a regular feature, notably -$83.4 million in Q2 2025 and -$77.1 million in Q3 2024, resulting in cash burn from core business operations.
• Significant repurchases of common equity continue, with $18.3 million in Q2 2025, which may pressure cash reserves amidst operating losses.
• Other financing activities have shown large net outflows, for example, -$62.5 million in Q2 2025, which along with debt repayments, indicates cash used to manage liabilities and shareholder returns rather than reinvestment.

Summary: Over the past four years, OPKO Health has struggled with sustained net losses and heavy interest expenses due to significant debt. While revenues and gross profits have shown some stability and the company continues investing in assets and R&D, profitability remains elusive. Cash flows from operations are negative, reflecting operating challenges. The company’s elevated debt levels and interest costs strain financial performance, compounded by ongoing equity repurchases and financing outflows.

Investors should closely monitor OPKO’s progress in managing its debt, controlling operating expenses, and achieving profitable growth to offset the substantial costs undermining net income. Liquidity appears sufficient for near-term needs, but sustained losses and high financial charges pose risks to longer-term value.