On November 13, 2026 Biofrontera Inc. (NASDAQ: BFRI) ("Biofrontera" or the "Company"), a biopharmaceutical company specializing in the development and commercialization of photodynamic therapy (PDT) in dermatology, reported financial results for the quarter ended September 30, 2026.

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Third Quarter 2026 Highlights

Net product revenue of $9.1 million, an increase of 29.8% compared to $7.0 million in the prior-year period.
Gross margin of 74.4%, compared to 70.7% in the prior-year period, an improvement of approximately 370 basis points, reflecting the lower Ameluz cost structure established following the closing of the strategic transaction with Biofrontera AG in October 2025 (the "Strategic Transaction"), partially offset by ITC Matter-related inventory write-downs and higher lamp and device costs.
Net loss of $6.4 million, or $(0.42) per share, compared to a net loss of $6.6 million, or $(0.62) per share, in the prior-year period.
Adjusted EBITDA of $(5.5) million, compared to $(6.0) million in the prior-year period.
On September 9, 2026 FDA Approval of Ameluz on September for the treatment of Superficial Basal Cell Carcinoma (sBCC), making Ameluz plus Red-Light the first and only PDT approved for the treatment of cancerous skin tumors.
US Customs and Border Protection ruled that the re-designed XL-C lamp did not violate the ITC order and could be imported for use in the US market.

Nine Months Ended September 30, 2026 Highlights

Net product revenue of $31.2 million, an increase of 26.6% from $24.6 million in the prior-year period.
Gross margin of 78.0%, compared to 67.7% in the prior-year period.
Net loss of $11.8 million, or $(0.89) per share, compared to a net loss of $16.2 million, or $(1.67) per share, in the prior-year period.
Adjusted EBITDA of $(9.3) million, compared to $(15.5) million in the prior-year period.

Hermann Luebbert, Chief Executive Officer and Chairman of Biofrontera, stated: "The third quarter was a pivotal one for Biofrontera. On September 9, the FDA approved Ameluz PDT for the treatment of superficial basal cell carcinoma (sBCC), making it the first PDT approved in the United States for a cancerous skin tumor. Five days later, U.S. Customs and Border Protection ruled that our redesigned RhodoLED XL-C is not subject to the ITC exclusion order, which allows us to again serve the customers who rely on our large-field lamp. Revenue grew 30% in the quarter and 27% for the first nine months, and our gross margin continues to reflect the lower cost structure we put in place with the Strategic Transaction. The quarter also carried the legal and remediation costs of the ITC Matter, and with the XL-C now cleared our attention is on execution. We are preparing to begin commercializing Ameluz for sBCC later in the fourth quarter and into the first quarter of 2027, and in October we submitted a supplemental New Drug Application to expand the Ameluz label for actinic keratosis to the extremities, neck and trunk. Each of these indications is served by the lamps and the sales force we already have in place."

Third Quarter 2026 Financial Results

Net product revenue for the third quarter of 2026 was $9.1 million, an increase of $2.1 million, or 29.8%, from $7.0 million in the third quarter of 2025. The increase was primarily attributable to a 23.3% increase in Ameluz unit volume resulting in an increase of $1.6 million and $0.3 million due to price and mix increase, with the balance reflecting higher device sales. The increase in unit volume was partially driven by accelerated order timing from certain customers in early July 2026 in anticipation of potential supply restrictions resulting from the limited exclusion order and cease and desist order issued by the U.S. International Trade Commission ("ITC") related to our RhodoLED XL lamp, which took effect on July 6, 2026 (the "ITC Matter") and importantly, commercial execution where we have focused on increasing utilization with key accounts and bringing Ameluz to new dermatology customers. We believe that the accelerated ordering impacted the timing of orders rather than total demand. On September 14, 2026, U.S. Customs and Border Protection ("CBP") issued a ruling finding that our redesigned RhodoLED XL-C is not subject to the exclusion order, and we began placing XL-C lamps during the 3rd quarter, enabling these customers to again purchase Ameluz.

Cost of revenues was $2.3 million, compared to $2.0 million in the prior-year period, producing gross profit of $6.7 million and a gross margin of 74.4%, compared to gross profit of $4.9 million and a gross margin of 70.7% in the third quarter of 2025. The improvement was driven principally by the transition from the prior transfer pricing arrangement to a cost structure comprising Ameluz direct cost plus a 12% earnout on net revenue, which reduced cost of Ameluz despite a 23.3% increase in unit volume. This was partially offset by a $0.4 million increase in lamp and device costs, including $0.3 million of ITC Matter-related inventory write-downs.

Selling, general and administrative ("SG&A") expenses, including SG&A, related party, were $12.5 million, compared to $10.4 million in the prior-year quarter, an increase of $2.1 million, driven primarily by a $0.9 million increase in legal fees related to the ITC Matter, $0.7 million of combined costs from lamp manufacturing and regulatory and product affairs, and a $0.5 million increase in direct sales expenses, mainly commissions on higher Ameluz sales volume.

Research and development expenses were $0.5 million, compared to $0.9 million in the prior-year quarter, reflecting the substantial completion of clinical trials.

Patent remediation expense related to the ITC Matter was $0.3 million, compared to none in the prior-year quarter, reflecting a $0.2 million increase in the estimated remediation cost following the September 14, 2026 CBP ruling and a $0.1 million write-down of loaner and RhodoLED XL lamps used in the remediation program.

Net loss for the third quarter was $6.4 million, or $(0.42) per share, compared to a net loss of $6.6 million, or $(0.62) per share, for the prior-year quarter. Adjusted EBITDA, a non-GAAP measure reconciled below, was $(5.5) million, compared to $(6.0) million in the prior-year period.

Nine Months Ended September 30, 2026 Financial Results

Net product revenue for the nine months ended September 30, 2026 was $31.2 million, an increase of $6.6 million, or 26.6%, from $24.6 million in the first nine months of 2025. The increase reflects Ameluz unit volume growth of $5.5 million and a price impact of approximately $0.7 million and the remainder generally attributable to increases in device sales.

Cost of revenues was $6.8 million, compared to $8.0 million in the prior-year period, producing gross profit of $24.3 million and gross margin of 78.0%, compared to gross profit of $16.7 million and gross margin of 67.7% in the prior-year period. The improvement was driven principally by the same transition in Ameluz cost structure described above.

SG&A expenses, including SG&A related party, were $33.2 million, compared to $29.6 million in the prior-year period, an increase of $3.5 million. The increase was primarily driven by $1.8 million of combined costs from manufacturing and regulatory and product affairs; $1.2 million of higher direct sales expenses, mainly sales commissions reflecting Ameluz sales volume growth; and $0.8 million of higher sales support expenses, reflecting increased commercial activity. Other SG&A expenses, including stock-based compensation, depreciation and amortization, and bad debt, increased $0.3 million. These increases were partially offset by a $0.3 million decrease in selling, general and administrative expenses, related party, and a $0.2 million decrease in general and administrative costs.

Research and development expenses were $1.8 million, compared to $2.9 million, reflecting the substantial completion of clinical trials.

Patent remediation expense related to the ITC Matter was $0.7 million, compared to none in the prior-year period. Including inventory write-downs recorded in cost of revenues, the Company has recognized total charges of $1.1 million related to the ITC Matter through September 30, 2026, consisting of $0.6 million of accrued remediation costs and $0.5 million of inventory write-downs to net realizable value. Of the accrued remediation costs, $0.2 million was settled with inventory used in the remediation program and the remaining $0.4 million is paid or payable in cash.

Net loss was $11.8 million, or $(0.89) per share, compared to a net loss of $16.2 million, or $(1.67) per share, in the prior-year period. Adjusted EBITDA was $(9.3) million, compared to $(15.5) million in the prior-year period.

Please refer to the table below which presents a GAAP to non-GAAP reconciliation of Adjusted EBITDA for the third quarters and first nine months of 2026 and 2025.

Balance Sheet and Cash Flow

Cash and cash equivalents were $3.2 million as of September 30, 2026, compared to $6.4 million as of December 31, 2025. Cash used in operating activities for the nine months ended September 30, 2026 was $3.2 million, compared to $11.0 million in the prior-year period.

Total liabilities were $21.7 million as of September 30, 2026, compared to $18.1 million at December 31, 2025. The Company’s outstanding indebtedness as of September 30, 2026 consisted of $4.7 million of convertible notes, net, maturing in November 2027. The Company has no bank or other term debt.

Conference Call

Biofrontera will host a conference call and webcast on Friday, November 13, 2026 at 10:00 a.m., Eastern Time. Participants may dial 1-877-877-1275 (U.S./Canada toll-free), 1-866-605-3852 (Canada toll-free), or 1-412-858-5202 (international).

(Press release, Biofrontera, NOV 13, 2026, View Source [SID1234674772])