Frontage Holdings: profit rebound in H1 2025 despite revenue dip

Frontage Holdings Corporation reported a net profit of $2.9 million for the six months ended June 30, 2025, a substantial improvement from a net loss of $0.3 million in the same period of 2024. The adjusted net profit also saw a notable increase of 26.2% to $7.7 million, with the adjusted net profit margin rising to 6.1% from 4.8%. Despite a slight revenue decrease of 1.5% to $126.6 million, the gross profit margin improved to 27.9% from 27.1%, largely due to cost reductions and improved capacity utilization.

The company experienced a first-quarter net loss of $0.9 million but rebounded strongly in the second quarter, posting a net profit of $3.8 million on revenue of $69.5 million. This recovery was driven by increased market demand, outsourcing trends, and enhanced operational efficiency. Total assets stood at $544.3 million, with cash and cash equivalents at $33.7 million.

Frontage expanded its global footprint by opening a new 46,300-square-foot CRDMO facility in Exton, Pennsylvania. The company maintains 25 sites worldwide, strengthening its presence in North America, Europe, and China. Total bank borrowings decreased to $78.6 million as of June 30, 2025, down from $95.7 million at the end of 2024.