COLL Q2 Deep Dive: Jornay Expansion Drives Revenue Guidance Increase, Margins Face Investment Pressure

August 12, 2025 at 03:25 AM EDT

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Pharmaceutical company Collegium Pharmaceutical (NASDAQ: COLL) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 29.4% year on year to $188 million. The company’s full-year revenue guidance of $752.5 million at the midpoint came in 0.9% above analysts’ estimates. Its non-GAAP profit of $1.68 per share was 9.2% below analysts’ consensus estimates.

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Collegium Pharmaceutical (COLL) Q2 CY2025 Highlights:

Revenue: $188 million vs analyst estimates of $180.4 million (29.4% year-on-year growth, 4.2% beat)
Adjusted EPS: $1.68 vs analyst expectations of $1.85 (9.2% miss)
Adjusted EBITDA: $105.1 million vs analyst estimates of $103.7 million (55.9% margin, 1.4% beat)
The company lifted its revenue guidance for the full year to $752.5 million at the midpoint from $742.5 million, a 1.3% increase
EBITDA guidance for the full year is $447.5 million at the midpoint, above analyst estimates of $437.6 million
Operating Margin: 18.7%, down from 32.7% in the same quarter last year
Market Capitalization: $1.14 billion

StockStory’s Take

Collegium Pharmaceutical’s second quarter results drew a positive market response, as management credited the performance to record revenues from its ADHD therapy Jornay and steady growth across its pain portfolio. CEO Vikram Karnani highlighted that Jornay prescriptions grew 23% year over year, fueled by expanded sales force efforts and targeted marketing initiatives. The company also noted that all three of its core pain medications delivered year-over-year revenue growth, underpinning the robust financial outcome. Management attributed the quarter’s success to continued execution on commercial expansion and the integration of new assets, as well as initial benefits from investments in awareness and prescriber outreach.

Looking to the remainder of the year, management’s guidance reflects expectations for continued momentum from Jornay, particularly as its expanded sales force and new marketing campaigns target the critical back-to-school season. CFO Colleen Tupper discussed ongoing investments to drive further growth and indicated that operating expenses will remain elevated as the company supports Jornay’s commercial trajectory. Karnani added, “We expect to benefit from the impact of our targeted investments in Jornay as well as durable performance from our pain portfolio.” The company plans to evaluate additional business development opportunities and remains focused on balancing capital deployment between growth and shareholder returns.

Key Insights from Management’s Remarks

Management attributed revenue growth to the rapid adoption of Jornay in ADHD, supported by expanded sales efforts, while ongoing investments to commercialize the brand increased operating expenses and pressured margins.

Jornay sales force expansion: Management completed the expansion of its ADHD-focused sales team in April, adding 55 new representatives and increasing coverage to approximately 21,000 prescribers. Early indicators show more prescribers reached and higher frequency of engagements, supporting Jornay’s 23% prescription growth in the quarter.
Targeted marketing campaigns: The company launched digital and non-personal marketing initiatives to raise awareness of Jornay’s differentiated profile among healthcare providers, patients, and caregivers, especially ahead of the back-to-school season—an important period for ADHD diagnosis and treatment adjustments.
Broader prescriber and patient base: Market research revealed that over 60% of healthcare professionals expressed intent to increase Jornay prescribing, with the brand gaining traction across both pediatric and adult ADHD populations. Adult use now comprises 20% of Jornay prescriptions, and management sees continued potential for growth in this segment.
Pain portfolio durability: Collegium’s three core pain medications—Belbuca, Xtampza ER, and Nucynta ER—all posted year-over-year revenue growth. Management highlighted the portfolio’s exclusivity through at least 2027 and emphasized its role as a financial foundation for ongoing investments.
Elevated operating expenses: CFO Colleen Tupper cited significant increases in operating expenses, primarily due to commercialization costs for Jornay, expanded sales force, and new marketing initiatives. Management expects these investments to drive longer-term growth but acknowledged near-term margin compression.

Drivers of Future Performance

Management expects revenue momentum to continue, led by Jornay’s growth, but notes that investments in commercialization and potential generic risks in the pain portfolio remain key factors shaping future profitability.

Jornay momentum and awareness: Management believes Jornay’s growth will be sustained by expanded prescriber outreach and targeted campaigns, especially during the back-to-school season. The company aims to further penetrate both pediatric and adult ADHD segments, with heightened focus on raising awareness among healthcare providers and caregivers.
Pain portfolio exclusivity: While the pain franchise is expected to deliver stable revenues, management acknowledged the importance of ongoing exclusivity. They cited regulatory and manufacturing barriers that currently limit generic competition, but emphasized ongoing vigilance as possible generic entrants could emerge after 2027.
Continued investment impact: The company will maintain elevated operating expenses to support commercial expansion, particularly for Jornay. Management anticipates margin pressure in the near term but expects these investments to position the company for sustainable growth and future operating leverage as marketing spend stabilizes.

Catalysts in Upcoming Quarters

In future quarters, our analysts will watch (1) the effectiveness of new sales and marketing initiatives in driving sustained prescription growth for Jornay, particularly as the back-to-school season unfolds, (2) how operating expense trends evolve as commercialization investments mature, and (3) any developments in potential generic entry timelines for the pain portfolio. Management’s execution on business development and capital deployment will also be key indicators of progress toward diversification goals.

Collegium Pharmaceutical currently trades at $36.69, up from $29.72 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).

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