Specialty pharmaceutical company ANI Pharmaceuticals (NASDAQ:ANIP) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 53.6% year on year to $227.8 million. The company’s full-year revenue guidance of $863.5 million at the midpoint came in 1.8% above analysts’ estimates. Its non-GAAP profit of $2.04 per share was 15.2% above analysts’ consensus estimates.
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ANI Pharmaceuticals (ANIP) Q3 CY2025 Highlights:
- Revenue: $227.8 million vs analyst estimates of $214.1 million (53.6% year-on-year growth, 6.4% beat)
- Adjusted EPS: $2.04 vs analyst estimates of $1.77 (15.2% beat)
- Adjusted EBITDA: $59.6 million vs analyst estimates of $55.24 million (26.2% margin, 7.9% beat)
- The company lifted its revenue guidance for the full year to $863.5 million at the midpoint from $830.5 million, a 4% increase
- Management raised its full-year Adjusted EPS guidance to $7.51 at the midpoint, a 4.7% increase
- EBITDA guidance for the full year is $224.5 million at the midpoint, above analyst estimates of $221.9 million
- Operating Margin: 15.9%, up from -13.8% in the same quarter last year
- Market Capitalization: $1.87 billion
“ANI had another strong quarter in which we delivered record revenue and adjusted EBITDA, underscoring the strength of our Rare Disease and Generics business units,” said Nikhil Lalwani, President and CEO of ANI.
Company Overview
With a diverse portfolio of 116 pharmaceutical products and a growing rare disease platform, ANI Pharmaceuticals (NASDAQ:ANIP) develops, manufactures, and markets branded and generic prescription pharmaceuticals, with a focus on rare disease treatments.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Luckily, ANI Pharmaceuticals’s sales grew at an incredible 32.9% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. ANI Pharmaceuticals’s annualized revenue growth of 35.6% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. 
This quarter, ANI Pharmaceuticals reported magnificent year-on-year revenue growth of 53.6%, and its $227.8 million of revenue beat Wall Street’s estimates by 6.4%.
Looking ahead, sell-side analysts expect revenue to grow 8.9% over the next 12 months, a deceleration versus the last two years. Still, this projection is admirable and indicates the market is forecasting success for its products and services.
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Operating Margin
ANI Pharmaceuticals was profitable over the last five years but held back by its large cost base. Its average operating margin of 2.1% was weak for a healthcare business.
On the plus side, ANI Pharmaceuticals’s operating margin rose by 16.1 percentage points over the last five years, as its sales growth gave it immense operating leverage.
This quarter, ANI Pharmaceuticals generated an operating margin profit margin of 15.9%, up 29.7 percentage points year on year. This increase was a welcome development and shows it was more efficient.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
ANI Pharmaceuticals’s EPS grew at a spectacular 13.7% compounded annual growth rate over the last five years. Despite its operating margin improvement during that time, this performance was lower than its 32.9% annualized revenue growth, telling us that non-fundamental factors such as interest and taxes affected its ultimate earnings.
Diving into ANI Pharmaceuticals’s quality of earnings can give us a better understanding of its performance. A five-year view shows ANI Pharmaceuticals has diluted its shareholders, growing its share count by 75.7%. This dilution overshadowed its increased operational efficiency and has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don’t tell us as much about a company’s fundamentals. 
In Q3, ANI Pharmaceuticals reported adjusted EPS of $2.04, up from $1.34 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects ANI Pharmaceuticals’s full-year EPS of $7.17 to grow 6.7%.
Key Takeaways from ANI Pharmaceuticals’s Q3 Results
This was a beat and raise quarter. We were specifically impressed by how significantly ANI Pharmaceuticals blew past analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Looking ahead, full-year guidance was raised. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 5.7% to $95.53 immediately after reporting.
Sure, ANI Pharmaceuticals had a solid quarter, but if we look at the bigger picture, is this stock a buy? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.