Delcath Systems (NASDAQ:DCTH) Issues Earnings Results, Beats Estimates By $0.16 EPS

Key Points

• Delcath beat quarterly expectations: The company reported EPS of $0.07 versus the analyst consensus estimate of a $0.09 loss, while revenue reached $29.13 million compared with expectations of $26.25 million.
• HEPZATO growth led to higher guidance: Second-quarter HEPZATO KIT revenue rose 21% year over year to $27.1 million, prompting Delcath to raise full-year 2026 revenue guidance to $104 million-$108 million and project positive adjusted EBITDA.
• Commercial expansion is continuing, but costs and clinical execution remain risks: The treatment-center network grew to 31 locations, while gross margins improved to 90%; however, adjusted EBITDA declined year over year and enrollment in studies targeting additional cancers has been slower than expected.

Delcath Systems (NASDAQ:DCTH - Get Free Report) released its earnings results on Thursday. The company reported $0.07 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.09) by $0.16, FiscalAI reports. Delcath Systems had a return on equity of 0.47% and a net margin of 0.56%.The firm had revenue of $29.13 million during the quarter, compared to analysts' expectations of $26.25 million.

Here are the key takeaways from Delcath Systems' conference call:

• HEPZATO revenue and guidance increased: Second-quarter HEPZATO KIT revenue reached $27.1 million, up 21% year over year, while volume rose 30% despite the impact of 340B pricing. Delcath raised full-year 2026 revenue guidance to $104 million-$108 million and expects positive adjusted EBITDA.
• Commercial footprint continued to expand: The company activated two treatment centers in the quarter, reaching 31, and remains confident it can reach approximately 37 centers by year-end. New patient starts averaged about 0.5 per site per month, with leading NCI- and NCCN-affiliated institutions making up a substantial portion of the network.
• Expansion into additional cancers is progressing but remains early: Phase II studies in third-line liver-dominant colorectal cancer and HER2-negative metastatic breast cancer are adding sites and improving enrollment, while an interim colorectal readout is expected in late 2027. Management acknowledged that enrollment has been slower than initially expected because of the complexity of coordinating oncology and interventional radiology teams.
• Profitability was supported by strong gross margins, but investment and pricing pressures remain: Second-quarter gross margin improved to 90%, although full-year guidance is 86%-89% due partly to anticipated manufacturing costs. Research and development and selling, general and administrative expenses increased year over year, while adjusted EBITDA declined to $7.6 million from $9.8 million.

Delcath Systems Price Performance

DCTH stock traded down $0.36 during midday trading on Friday, hitting $15.11. The company's stock had a trading volume of 1,212,338 shares, compared to its average volume of 498,787. The company's fifty day moving average price is $12.35 and its 200 day moving average price is $10.87. Delcath Systems has a twelve month low of $8.12 and a twelve month high of $16.38. The stock has a market capitalization of $521.60 million, a P/E ratio of 1,512.51 and a beta of 0.52.

Hedge Funds Weigh In On Delcath Systems

Hedge funds have recently modified their holdings of the stock. Deutsche Bank AG increased its position in Delcath Systems by 5.4% during the fourth quarter. Deutsche Bank AG now owns 24,162 shares of the company's stock worth $244,000 after buying an additional 1,248 shares during the last quarter. California State Teachers Retirement System bought a new stake in Delcath Systems in the second quarter valued at approximately $26,000. Intech Investment Management LLC lifted its position in shares of Delcath Systems by 13.1% in the fourth quarter. Intech Investment Management LLC now owns 17,595 shares of the company's stock valued at $178,000 after buying an additional 2,035 shares during the last quarter. AWM Investment Company Inc. lifted its position in shares of Delcath Systems by 3.9% in the fourth quarter. AWM Investment Company Inc. now owns 60,000 shares of the company's stock valued at $606,000 after buying an additional 2,279 shares during the last quarter. Finally, Russell Investments Group Ltd. bought a new position in shares of Delcath Systems during the 3rd quarter worth approximately $29,000. Institutional investors own 61.12% of the company's stock.

Analyst Ratings Changes

DCTH has been the topic of a number of research reports. Zacks Research upgraded Delcath Systems from a "strong sell" rating to a "hold" rating in a report on Tuesday, July 7th. BTIG Research increased their price objective on Delcath Systems from $17.00 to $21.00 and gave the stock a "buy" rating in a report on Thursday. Weiss Ratings raised Delcath Systems from a "sell (d)" rating to a "sell (d+)" rating in a research report on Monday, May 11th. Finally, HC Wainwright restated a "buy" rating and issued a $32.00 target price (up from $30.00) on shares of Delcath Systems in a research note on Friday. Five equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $23.17.

Delcath Systems Company Profile

Delcath Systems, Inc is a specialty pharmaceutical and medical technology company focused on the development and commercialization of its proprietary Hepatic CHEMOSAT® Delivery System, designed to deliver high-dose chemotherapeutic agents directly to the liver while minimizing systemic exposure. The company's core technology performs isolated hepatic perfusion, enabling oncologists to administer concentrated melphalan to patients with primary and metastatic liver tumors, including those arising from ocular melanoma.

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