[Management View]
Emergent BioSolutions reported Q3 2025 revenue of $231 million, exceeding guidance by $21 million. Net income for the quarter was $51 million, with year-to-date net income of $107 million. Adjusted EBITDA reached $194 million year to date, with a margin of 38%. The company raised its full-year 2025 adjusted EBITDA guidance to $195 million to $210 million. Key drivers included a favorable product mix, expanded global partnerships, and cost reductions.

[Outlook]
Emergent raised its total revenue outlook to $775 million to $835 million for full-year 2025 and increased adjusted gross margin guidance to 52%-54%. The company secured four new U.S. government contracts totaling $155 million and $29 million in international MCM product orders. Management expects international MCM opportunities to be a recurring growth area.

[Financial Performance]
Q3 2025 revenue of $231 million exceeded the high end of the guidance range. Adjusted EBITDA margin improved by 200 basis points year-over-year to 38%. Adjusted gross margin was 61%, driven by a favorable product mix and cost reductions. Operating expenses were down $133 million year to date, primarily due to SG&A cost-cutting.

[Q&A Highlights]
Question 1: What drove the strong year-over-year growth in other products specifically? (Line breaks here)
Answer: The growth was driven by agreements with the Evanga program, which had significant activity this year.

Question 2: With international driving 34% of MCM orders year to date, can we think of these orders as recurring? Are they part of multiyear contracts? (Line breaks here)
Answer: International orders are part of a concentrated program and activity. While each contract is for a specific amount of product and time, the international opportunity is seen as a growth area. The European Union and other regions are ramping up biodefense capabilities, which Emergent is supporting.

Question 3: How does the gross margin on international MCM orders compare to U.S. MCM sales? (Line breaks here)
Answer: International gross margins are higher. The U.S. Government receives most favored pricing due to its funding support, resulting in slightly better pricing for other countries.

Question 4: What are you seeing in OTC and Canadian NARCAN sales? Any impact from the government shutdown? (Line breaks here)
Answer: Progress is being made in Canada with various project agreements. Sales can vary quarter to quarter. The U.S. government shutdown has not disrupted operations, with continuous engagement from federal agencies.

Question 5: Update on the Rocketvaxx collaboration and meaningful catalysts over the next twelve months? (Line breaks here)
Answer: Rocketvaxx is making progress with funding secured for Phase 1 clinical trials, expected to start in early 2026. The technology is seen as important for future pandemic preparedness under Project Next Gen.

Question 6: Which NCM products will drive U.S. government contract-based revenue going forward? (Line breaks here)
Answer: Emergent's diversified product portfolio in biodefense is crucial. The company works closely with BARDA and other agencies to ensure preparedness for various threats. Products for smallpox, anthrax, and botulism are all important.

[Sentiment Analysis]
Analysts and management maintained a positive tone, focusing on strong financial performance, strategic growth opportunities, and robust government partnerships.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|-------------------------|---------|---------|
| Revenue | $231M | $210M |
| Net Income | $51M | $45M |
| Adjusted EBITDA Margin | 38% | 36% |
| Adjusted Gross Margin | 61% | 59% |
| Operating Expenses | $52M | $90M |

[Risks and Concerns]
Potential risks include variability in international sales, dependency on government contracts, and the impact of macroeconomic factors on operations.

[Final Takeaway]
Emergent BioSolutions delivered strong Q3 2025 results, exceeding revenue and profitability guidance. The company raised its full-year outlook, driven by strategic global partnerships and operational efficiencies. Management highlighted the importance of international MCM opportunities and ongoing government collaborations. The diversified product portfolio positions Emergent well for future growth, despite potential risks related to sales variability and macroeconomic factors.