Good afternoon, and welcome to the ADMA Biologics, Inc. Full Year 2025 Financial Results and Business Update Conference Call on Wednesday, 02/25/2026. At this time, all participants are in a listen-only mode. There will be a question-and-answer session to follow. Please be advised that this call is being recorded at the company's request and will be available on the company's website approximately two hours following the end of the call. At this time, I would like to introduce the company. Please go ahead. Welcome, everyone, and thank you for joining us this afternoon to discuss ADMA Biologics, Inc.'s financial results for the fourth quarter and full year 2025 and recent corporate updates. I'm joined today by Adam Grossman, our President and Chief Executive Officer, Brad Tade, our retiring CFO and Treasurer, and Terry Kohler, our incoming CFO and Treasurer. During today's call, Adam will provide some introductory comments and provide an update on corporate progress. Brad will then provide an overview of the company's fourth quarter and full year 2025 financial results, and Terry will make some introductory comments. Finally, Adam will then provide some brief summary remarks before opening up the call for questions. Earlier today, we issued a press release detailing the full year 2025 financial results and summarized certain achievements and recent corporate updates. The release is available on our website at www.admabiologics.com. Before we begin our formal comments, I'll remind you that we will be making forward-looking assertions during today's call that represent the company's intentions, expectations, or beliefs concerning future events and constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to factors, risks, and uncertainties, such as those detailed in today's press release announcing this call and our filings with the SEC, which may cause actual results to differ materially from the results expressed or implied by such statements. In addition, any forward-looking statements represent our views only as of the date of this call and should not be relied upon as representing our views as of any subsequent date. We specifically disclaim any obligations to update any such statements except as required by the federal securities laws. We refer you to the disclosure notice section in our earnings release we issued today and the Risk Factors section in our Annual Report on Form 10-K for the year ended 12/31/2025 for a discussion of important factors that could cause actual results to differ materially from these forward-looking statements. Please note that the discussion on today's call includes certain non-GAAP financial measures including adjusted EBITDA and adjusted net income. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP metric is available in our earnings release. And with that, I would now like to turn the call over to Adam Grossman. Adam, go ahead.

Thank you. Good afternoon, everyone. ADMA Biologics, Inc. delivered a strong finish to 2025 reflecting disciplined execution across our commercial, manufacturing, and financial platforms. For the full year, total revenue was $510,000,000, representing 20% year-over-year growth. Adjusted EBITDA was $231,000,000, increasing 40% year-over-year, and adjusted net income was $161,000,000, increasing 35% year-over-year. These results underscore the durability of our growth engine and the expanding operating leverage within our fully integrated U.S.-based business model. Importantly, 2025 was a defining year for ADMA Biologics, Inc. We expanded margins, improved our balance sheet, and several strategic initiatives that enhance the long-term durability and earnings power of our company. As we enter the next phase of growth. Ascendant continues to drive our growth. For full year 2025, Ascentive achieved $363,000,000 in net revenue, representing 51% year-over-year growth. Our differentiated patent-protected specialty immune globulin exited the year at record utilization levels, driven by high demand and strong prescriber adoption. With incentive still forecasted to be early in its penetration curve within its total addressable market, driven by broad payer access and increasing confidence in long-term supply continuity, Ascentive is well positioned for sustained utilization growth throughout 2026 and beyond. Before turning to additional operating highlights, I want to briefly address working capital. We expect accounts receivable and days sales outstanding to improve over the course of 2026, trending toward and potentially improving beyond industry benchmarks over time. The recent increase in working capital primarily reflects the growth in incentive and the acceleration in revenue growth we are guiding to. As we continue to make meaningful inroads into incentives still significantly underpenetrated addressable market, as demand builds, and our McKesson distribution agreement ramps up, alongside further anticipated diversification of our distribution network, we expect improving working capital efficiency and cash conversion throughout 2026. We are also…

Thank you, Adam. Our full year 2025 financial results demonstrate ADMA Biologics, Inc.'s consistent execution, expanding profitability, and earnings power. Total revenue for the year was $510,200,000, representing 20% year-over-year growth. Gross margin expanded to 57.4%, compared to 51.5% in 2024, driven primarily by Ascentive's growing mix contribution and the successful transition of yield enhanced production into routine commercial execution. Adjusted net income totaled $160,800,000, representing 35% growth, and adjusted EBITDA reached $231,000,000, increasing 40% year-over-year. These results reflect continued operating leverage, cost management, and the structural margin improvements anticipated by yield enhancement and embedded in our vertically integrated model. Fourth quarter 2025 total revenue was $139,200,000, reflecting 18% year-over-year growth. Importantly, we exited 2025 with corporate gross margins of 63.8%, representing approximately 10% year-over-year improvement. Fourth quarter 2025 adjusted EBITDA grew by 52% to $73,600,000, and adjusted net income for 2025 grew by 57% to $52,600,000. Ascenta's continued growth through these broader market dynamics is a testament to the product's differentiation and relative insulation from standard IVIG market contours. Asthma ended 2025 with $88,000,000 in cash, largely excluding proceeds from the previously announced plasma center divestiture, which remains on track to close in 2026. We maintain a healthy balance sheet and expect improved cash generation in 2026, driven by higher margins, improving working capital dynamics, and disciplined capital allocation. Turning to our outlook, our 2026 and 2027 financial guidance forecasts continued Ascentive strength, favorable product mix shift, full-year yield enhanced production efficiencies, and sustained operating leverage. For 2026, total revenue is expected to exceed $635,000,000, adjusted net income is expected to exceed $255,000,000, and adjusted EBITDA is expected to exceed $360,000,000. For 2027, total revenue is expected to exceed $775,000,000, adjusted net income is expected to exceed $315,000,000, and adjusted EBITDA is expected to exceed $455,000,000. For 2029, total…

Thanks, Brad. I'm excited to join ADMA Biologics, Inc.'s management team at a time of significant momentum and forward-looking opportunities. The company has built a differentiated platform with high demand, increasing margins, and a clear path to increasing cash generation. My focus will be on supporting disciplined execution, strengthening working capital performance and cash conversion, and enhancing financial strategy as we scale. I look forward to partnering with Adam, Caitlin, our COO, and the entire ADMA Biologics, Inc. team to continue to drive growth, profitability, and long-term shareholder value.

Thanks, Terry. Adam, I'll pass it back to you.

Thank you, Brad and Terry. Stepping back, ADMA Biologics, Inc. is entering 2026 with strong momentum and increasing financial strength. We are scaling a differentiated growth platform with the highest margins in the plasma-derived therapeutics complex. The company is committed to improving its capital efficiency while forging ahead with our focus on generating increasing cash flow, which we believe will unlock meaningful stockholder value. Ascentive remains the core of our growth strategy. In 2026, we expect continued demand and market penetration, expanding prescriber adoption, durable and now expanded payer access, and growing market confidence in our IG supply continuity. With Astanem still forecast to be early in its penetration curve, we believe the runway for sustained utilization and growth remains significant. YieldNHANZE production is now fully integrated commercial operations, making 2026 our first full year of structurally higher margin IG output. Combined with continued mix shift towards Ascentiv, we are well positioned for outside gross margin growth, increasing operating leverage, and continued earnings power. The strategic repositioning of our plasma collection network enhances capital efficiency and secures diversified long-term supply visibility through the late 2030s. These actions are expected to generate accretive cost savings beginning in 2026 and further improve the durability of our platform. Beyond our commercial business, our lead pipeline asset, SG001, represents meaningful long-term optionality. We anticipate submitting a pre-IND package in 2026, potentially enabling direct progression into a cost-efficient registrational trial. We continue to view SG001 as a potential $300,000,000 to $500,000,000 peak annual revenue opportunity. In closing, ADMA Biologics, Inc. has never been better positioned. We are forecasting substantial revenue growth, continued margin growth, and increasing cash generation, driven by disciplined execution across the organization. Thank you for your time today. We appreciate your continued interest and support. And with that, operator, let's open up the call for questions.

Thank you. Today's question-and-answer session will be conducted electronically. As a reminder, to ask a question, please press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. We'll pause just a moment to assemble the roster. Our first question comes from the line of Kristen Kluska from Cantor Fitzgerald.

Hi. This is Rick Miller on for Kristen. Thanks for taking our questions. Hi, Rick. Now that we can hey. Good to talk to you guys. So now that we can kind of clearly see into the proportion of sales that Ascentive accounts for, is there any updated color you can give us on how you're expecting Ascentive to sort of fit into the product mix as it relates to the revenue guidance that you've lined out going forward?

Yes. I was trying to figure out what the first question was going to be, Rick, and was certainly one of the top ones. But very proud of growth year-over-year, 51%, $363,000,000. This is our first time breaking out product-level revenue. We certainly have been very bullish at Ascentives opportunity and for the last period of time, right, Brad, we have been talking about mix shift. I believe the ratio is about a 70/30-ish split between Asenib and Bivigam in 2025. We believe that is going to continue to grow. We have given guidance around revenue, EBITDA, net income for next year. We think that is going to grow, and in the fourth quarter, we were 63.8% gross margins. We expect that to continue to grow quarter-over-quarter, full year certainly, but the 570.2% gross margin that we achieved, very proud of that. But the incentive mix is going to continue to shift. As we have said, Rick, we are buying more high-titer plasma, making more. We continue to forecast that should be flat to down throughout calendar year 2026. So we expect margins to improve. We expect Ascentive to continue to progress with strong utilization and demand, and we are very proud of the results.

And, Rick, just to expand on the gross margin piece that Adam just hit on. In 2025, we had Q4 that had yield enhanced product being sold. So exiting Q4 2025 with a 63.8% gross margin, looking into 2026, we feel strongly about our margin profile. We are going to continue to see the mix shift from BIVIGAM to Ascentiv, and we are going to have a full year of yield enhanced product being sold for both Vivigam and Ascendant. Again, we are feeling pretty confident about our gross margin profile.

Okay. And maybe then to kind of follow up on something you brought up there. It sounded heading into this year, you would really look to expand your third-party supply contracts to really get more of the RSV plasma. So is there any update on these efforts? Could you give us any color on finding additional supply on that front?

With respect to the third-party supply agreements, they are continuing to perform in good standing. We are collecting more plasma each and every month. Testing is ongoing and routine, in connection with the plasma center divestiture that we announced at the J.P. Morgan conference in January. We also signed an additional third-party supply with the acquirer of those three centers. That operator is an independent collector of plasma. They are not connected to any fractionation capacity whatsoever. They just sell plasma to third parties, and we are very pleased to be partnering with them. They have a robust network. What we said is it adds about 30 centers today, and they have plans to grow and expand their network. They have given us projections to about 50 additional centers. All in all, we are collecting high-titer plasma from more than about 280 centers. It is what I think we have put in print, and it is going really well. We are very pleased and proud of our partnership with Grifols. They are a great partner. They are working well with us. Kedrion as well, another great partner, working very well. And to the ADMA Biologics, Inc. team here, we test a lot of samples. We test an enormous amount of samples when you really look at it. As we have said, less than 10% of the donor population has the antibody profile that we are looking for. It is a labor of love, and we are collecting more raw material, and we are going to make more product.

Rick, I would just add that just like the team has operationalized yield enhanced manufacturing into normal course of business and normal course of manufacturing, I would say the same is true with RSV collections. The third-party agreements have exceeded our expectations, and I think it is fair to say that we have normalized the collection of RSV plasma into normal course of operations.

Great. Okay. I'll jump back in the queue. Thank you, guys.

One moment for our next question. Our next question comes from the line of Anthony Petrone from Mizuho Americas.

Thanks, and congrats on the strong end to the year here. Great working with you, Brad, and welcome, Terry. Maybe, Adam, just the incentive number, clearly was an outbreak in April, at least by our math, and we will scrub it a bit with these new disclosures. But when you think about the strategy here, I think in the past, you have shared there is really 900 target immunology sites that you are going after. There is a decent amount of penetration into those sites. There is probably more than one prescriber per site. So on the offensive strategy, how many more new centers do you think you can add in 2026, and by what level do you think the prescriber base specifically can increase this year? And I'll have one follow-up question.

Thank you so much, Anthony. We are very proud of the results, as you know. We actively call in about 300 immunologists. We have a large majority of that number who have prescribed the percentage to at least one or more patients. We feel very good about our ability to continue to grow both from a reach perspective, getting more prescribers writing their first script, getting more institutions using their first doses of incentive on these problematic refractive PI patients. We are seeing the depth in the existing same institutions growing rapidly. With commercial payer access opening up a bid in certain territories, we are very proud of the work that our team has done there. We think that is going to open up more lives for us to treat. And then we have mentioned the recent distribution agreement, which expands and diversifies our distribution network to McKesson and a number of the institutions that buy strictly from McKesson. This is we do not make the rules. People do what they want, and there is a large number of users of immune globulin in the PI space and another secondary immune deficient populations that buy exclusively through McKesson and their related entities. We are very pleased now to be in a position where we have a robust supply of raw material, which gives us visibility into the forward-looking throughput that we will have in our plant and be able to distribute, and we are excited about the opportunity to expand to additional institutions that we have not yet even tapped. I feel that with the guidance that we have given this year, 510 for calendar year 2025 was achieved. Next year, we are guiding to 635 on the top line. Substantially all that growth, we believe, is going to come from a set of utilization, and it will come from a mix of new institutions getting experience, new prescribers, as well as expanding the reach into the existing same institution. The drug continues to work well. The data that we are seeing from the investigator-initiated studies and publications, we are very pleased with how the company performed, and we are really excited about 2026. A lot of this feels like we announced it already, save for my colleagues Brad and Terry here. We are very excited about the future. I would say that we have really unlocked the value creation driver, which is yield enhancement. With the third-party plasma supply, you are going to continue to see quarter-over-quarter growth.

Very helpful. And the quick follow-up will be, you mentioned, Adam, and Brad as well on receivables on track to get to a normalized level. A quick two-parter: when does McKesson show up in receivables, and if you can define what that normalized level looks like once we get there, that would be helpful. Thanks again. Congrats.

Thanks, Anthony. Maybe I'll start off about when we are going to see McKesson. We are actively working. We got the agreement set up. We are working with their partners and the customers that we know they are in. I think we will start to see it in the first half of the year, but I really think you are going to see it materialize in the back part of the year. My team has been working very closely since there are a number of steps that you have to go through to get access with a number of these customers. I can say that my team has been working very closely with McKesson and a number of the constituents that procure from there with respect to receiving formulary approval, P and T committee approval at certain buying groups and certain infusion consortiums. I know that we are making substantial progress. I know that the team is working very hard. I am optimistic that we are going to see this only with McKesson, but we are also going to see the rightsizing of inventory, AR, etc., normalized towards the middle/back part of the year. That is what we have been messaging. When I look at the numbers and for the first time looking at the 10-K with product-level revenue broken out, seeing 51% year-over-year growth makes me understand a little bit more about what my distribution partners, what the specialty pharmacies who buy from us, what the end users have been experiencing. Ascentive is an extremely important product in the lives of these patients. It has a higher cost per infusion than standard IG. As we have said, incentive sells for about five and a half to six times other standard IG products. I think that our customers believe us when we say we see all this growth and need you to prepare for this level of demand, and I think that they would leave us to a point. With that substantial growth, the working capital requirements on our distributors, on some of our end-user customers, has been robust. Give us some time to work through this. It is going to normalize this year. Very excited about the new relationship with the guest and all the opportunities that brings. We are just going to keep growing. They are growing revenues and reducing AR, I should say. Thanks, Anthony.

Thank you. Ladies and gentlemen, this will conclude our question-and-answer portion of the call. I'd like to turn it back over to Adam Grossman now for additional closing remarks.

Thank you very much. With that, I'd like to thank everyone for dialing in to today's call. Again, donate plasma helps save lives, and we appreciate all the support from the investor community and the team at ADMA Biologics, Inc. Have a great evening.

Ladies and gentlemen, this does conclude the conference call for today. We appreciate your participation, and you may now disconnect.