LNTH

Lantheus is a radiopharmaceutical and diagnostic-imaging company whose growth was driven by the rapid uptake of its PSMA-PET prostate-cancer imaging franchise. That engine has now matured: FY2025 revenue was essentially flat (+0.5%) at $1.54B after explosive growth from $425M in FY2021 to $1.30B in FY2023. Profitability also stepped down — net income fell 25.2% to $234M, operating income dropped 32.0%, gross profit slipped 4.7% and gross margin, while still excellent at 61.1%, compressed as pricing and competitive pressure weighed on the lead imaging agent. EPS fell 21.8% to $3.41.

The business remains high quality and cash-generative: 20.2% operating margin, 21.4% ROE, and $390M of operating cash flow even in a down year. Management is returning that cash aggressively — $300M of buybacks (+200.0%) cut shares 5.7% — and reinvesting in R&D (+5.5% to $177M) to build the next growth leg in radiotherapeutics and new diagnostics. The balance sheet took on more debt (long-term debt up sharply, liabilities/equity now 1.04x) and cash fell 60.7% to $359M, likely funding acquisitions and buybacks, but leverage remains moderate.