Breaking Down Cryo-Cell International, Inc. (CCEL) Financial Health: Key Insights for Investors

You're looking at Cryo-Cell International, Inc. (CCEL) and wondering if the cord blood banking leader is maintaining momentum amid its biopharma expansion, and honestly, the recent numbers show a mixed bag you need to see clearly. The latest fiscal third quarter 2025 results, reported in October 2025, show consolidated revenues dipping slightly to $7.83 million, a 3% year-over-year decrease that signals a slowdown in the core business. More importantly, net income took a hit, falling from $1.05 million last year to just $749,000 for the quarter, which translates to a drop in earnings per share (EPS) to $0.09. Still, the trailing twelve months (TTM) operating income remains relatively strong at $4.33 million, and the company generated a solid $4,197,793 in net cash from operating activities in the first nine months of 2025, suggesting the underlying business is defintely cash-generative. We need to break down where the revenue is softening and what that cash flow means for their costly pivot into cellular therapies and ExtraVault biostorage services.

Revenue Analysis

You need to know if Cryo-Cell International, Inc. (CCEL) is still growing its top line, and the short answer is: it's flatlining, but the core business is holding steady. For the trailing twelve months (TTM) ending in the second quarter of 2025, total revenue stood at approximately $31.98 million, showing a marginal year-over-year change of only 0.01%. That's defintely not the growth rate we look for in a biotech play, but it points to a remarkably stable, recurring revenue base.

The company's revenue streams are straightforward, dominated by its private cord blood and tissue cryopreservation services. This means most of the income comes from two main sources: an initial processing fee and, more importantly, recurring annual storage fees. Honestly, the storage fees are the reliable engine here. Here's the quick math on the segment contributions for the second quarter of fiscal year 2025:

The core business, the Processing and Storage Fee revenue, brought in the lion's share, nearly $7.87 million in Q2 2025 alone. This segment is the bedrock, but it saw a slight dip from the prior year's quarter. The total consolidated revenue for Q2 2025 was $7.9 million, which was a 1% decrease from Q2 2024. The trend continued in Q3 2025, where revenue was $7.83 million, a 3% decrease year-over-year. The good news is that the public banking revenue, which supports their partnership with Duke University, is seeing a small uptick, hitting $82,000 in Q1 2025, which is a positive sign for their broader mission. You can read more about their goals here: Mission Statement, Vision, & Core Values of Cryo-Cell International, Inc. (CCEL).

What this slight revenue decline hides is a strategic shift. Cryo-Cell International, Inc. is actively trying to diversify beyond just storage. They are working on global expansion and product diversification, including their ExtraVault services, which are essentially biostorage solutions for other biological materials. Also, they have a stated initiative to expand into biopharmaceutical manufacturing and operating clinics, which is a major move up the value chain. These new ventures, while promising for future growth, haven't yet offset the minor slowdown in their mature private banking business, hence the flat to slightly negative near-term growth rates. The core business is stable, but the growth story is now tied to these new, higher-risk, higher-reward cellular therapy initiatives.

Profitability Metrics

You're looking at Cryo-Cell International, Inc. (CCEL) because the cord blood banking space is complex, and you need to know if their revenue actually translates to profit. The direct takeaway is that CCEL demonstrates superior gross margin performance, driven by its high-margin storage business, but this efficiency gets eroded significantly by operating expenses, leading to a more modest net profit.

For the trailing twelve months (TTM) ended August 31, 2025, Cryo-Cell International, Inc. reported total revenue of $31.75 million. Here's the quick math on their core profitability for the most recent fiscal quarter (Q3 2025, ended August 31, 2025), which gives us the sharpest view of current performance:

• Gross Profit Margin: 74.61%
• Operating Profit Margin: 24.29%
• Net Profit Margin: 9.58%

That 74.61% Gross Profit Margin is defintely a standout number. It shows a powerful operational efficiency in their core service-the collection and long-term cryogenic storage (cryopreservation) of cord blood and tissue. The cost of revenue (Cost of Goods Sold or COGS) is low relative to the high fees charged for initial processing and subsequent annual storage, which is a great sign for the business model's inherent strength. For more on their long-term strategy, you can review the Mission Statement, Vision, & Core Values of Cryo-Cell International, Inc. (CCEL).

Operational Efficiency and Margin Trends

The trend in profitability shows a solid recovery and stabilization. Looking at the TTM data ended August 31, 2025, the Gross Profit was $24.47 million, up from $19.22 million in fiscal year 2023. This improvement signals better cost management or a more favorable revenue mix, likely from the high-margin storage fees. Still, the drop from a 74.61% Gross Margin to a 24.29% Operating Margin in Q3 2025 highlights where the money goes: selling, general, and administrative (SG&A) expenses, plus research and development (R&D).

Here's the problem: the high R&D and SG&A spending, which totaled $19.38 million (TTM Aug '25) for a company with $31.75 million in revenue, is what shrinks the Operating Income to $4.33 million (TTM Aug '25). The business is clearly profitable, but it's spending heavily to acquire new customers and advance its regenerative medicine initiatives. This is a trade-off: high investment for future growth versus immediate bottom-line performance.

Comparison with Industry Peers

When you compare Cryo-Cell International, Inc.'s margins to the broader regenerative medicine and life sciences sector, their Gross Margin is often higher than many peers who deal with complex manufacturing or clinical services. For instance, a small, publicly traded regenerative medicine peer reported an operational profit margin around 9.93% in Q1 2025. Cryo-Cell International, Inc.'s Q3 2025 Operating Margin of 24.29% is significantly stronger, suggesting that its subscription-like cord blood storage model provides a more stable, higher-margin revenue base than many pure-play biotech or clinical service companies. The challenge is maintaining that operating margin as competition increases and R&D costs rise to keep pace with the market, which is expected to grow at a Compound Annual Growth Rate (CAGR) of 7.6% from 2025 to 2030.

Debt vs. Equity Structure

Cryo-Cell International, Inc. (CCEL) is using a capital structure that leans heavily on debt, a reality confirmed by its negative shareholders' equity, or Stockholders' Deficit, as of the third quarter of fiscal year 2025. This isn't a typical picture for a healthy company, but it's not uncommon in the biotech space where long-term investment in research and infrastructure (like cryogenic storage) can lead to accumulated deficits.

The company's Debt-to-Equity (D/E) ratio stood at approximately -1.01 in September 2025, reflecting a balance sheet where total liabilities exceed total assets, leaving a negative equity value. To be fair, the average D/E ratio for the broader Biotechnology sector is around 0.17, and for Health Care Services, it's about 0.86. A ratio below 1.0 is generally preferred in the hospital/healthcare space, so CCEL's negative ratio is a clear sign of financial stress and high leverage.

Here's the quick math on the debt side, based on the unaudited Consolidated Balance Sheet as of August 31, 2025:

• Long-Term Debt: The non-current portion of the Note Payable was $8,206,768.
• Short-Term Debt: The current portion of the Note Payable was $179,187, plus the Line of Credit balance of $3,200,000.

This debt is primarily a term loan and a revolving line of credit. The company's reliance on debt is a double-edged sword: it provides capital for operations without diluting ownership, but it creates fixed interest obligations that pressure cash flow, especially when profitability is inconsistent.

In a smart move to manage this leverage, Cryo-Cell International, Inc. amended its credit agreement with Susser Bank in October 2025. This refinancing activity extended the maturity date of its revolving credit facility to October 18, 2027, and the term loan maturity to July 29, 2032. This buys the company crucial time and stability, pushing repayment risk further out. Still, the revolving credit commitment was reduced from $10 million to $8 million, which slightly tightens their immediate borrowing capacity.

The company's strategy is currently focused on using debt to fund its long-term assets-like its state-of-the-art cryogenic storage facility-and to cover operating costs, which is typical for a company with a Mission Statement, Vision, & Core Values of Cryo-Cell International, Inc. (CCEL). that requires significant infrastructure investment. The recent decision in November 2025 to halt the quarterly cash dividend for the fourth quarter of fiscal 2025 further underscores this capital management focus, prioritizing cash preservation over shareholder payouts to address capital requirements and strategic priorities.

Finance: Monitor the current ratio, which was 0.60 in September 2025, to ensure short-term liquidity doesn't become a defintely urgent issue despite the long-term debt extensions.

Liquidity and Solvency

You need to know if Cryo-Cell International, Inc. (CCEL) has enough cash on hand to cover its near-term bills. The short answer is that while the company generates solid operational cash flow, its current liquidity ratios signal a reliance on that cash flow, as the balance sheet ratios are below the 1.0 benchmark.

For the third quarter of fiscal year 2025 (Q3 2025), Cryo-Cell International, Inc.'s liquidity position, measured by its current and quick ratios, is tight. The current ratio, which compares all current assets to current liabilities, stood at approximately 0.63. The quick ratio (or acid-test ratio), which excludes less-liquid inventory, was a similar 0.60. Neither ratio is above 1.0, which means the company's most liquid assets alone are not defintely enough to cover all its short-term debt obligations due within the year.

Working Capital and Near-Term Strength

The company's working capital-the difference between current assets and current liabilities-is in a net deficit position, as indicated by the sub-1.0 liquidity ratios. Still, the trend in managing capital has been positive. The change in other working capital for the trailing twelve months (TTM) ended August 2025 showed an increase of $4.24 Million. This suggests management is actively improving the efficiency of its non-core current assets and liabilities, which helps offset the structural deficit.

Here's the quick math: A ratio below 1.0 isn't a death sentence, but it means the business must rely on converting non-current assets or, more importantly, generating cash from operations to pay its immediate debts. This is why looking at cash flow is crucial for Cryo-Cell International, Inc. Mission Statement, Vision, & Core Values of Cryo-Cell International, Inc. (CCEL).

• Current Ratio (Q3 2025): 0.63
• Quick Ratio (Q3 2025): 0.60
• TTM Working Capital Change (Aug 2025): +$4.24 Million

Cash Flow: The True Liquidity Engine

The real strength of Cryo-Cell International, Inc.'s liquidity lies in its operations. For the nine months ended August 31, 2025, the company reported net cash provided by operating activities (CFO) of approximately $4,197,793. This is a strong, positive cash inflow, which is the primary source of funds to service debt, invest in the business, and maintain its cryogenic storage facilities.

When we look at the other cash flow sections, we see a focus on internal investment and capital management. Cash flow from investing activities (CFI) includes purchases of property and equipment, which is typical for a company maintaining and upgrading specialized infrastructure. On the financing side, a key action was the announcement on November 12, 2025, that the company would not declare a quarterly cash dividend for the fourth quarter of fiscal 2025. This decision preserves cash, signaling a prudent, albeit conservative, approach to capital requirements and liquidity management.

The key takeaway is that while the balance sheet ratios show a structural liquidity weakness, the consistent, positive operating cash flow acts as a powerful buffer, essentially covering the short-term gap. The dividend pause is a clear, near-term action to bolster the cash position, which is a realistic move from a company focused on long-term growth and capital-intensive operations.

Valuation Analysis

You're looking at Cryo-Cell International, Inc. (CCEL) and wondering if the market has it right. My take is that Cryo-Cell International, Inc. appears undervalued based on the consensus price target, but its current valuation multiples show real complexity and risk. The stock is a classic case of a high-risk, high-reward bet, trading far below analyst expectations despite some concerning financial ratios.

Is Cryo-Cell International, Inc. Overvalued or Undervalued?

To figure this out, we have to look past the sticker price. The traditional Price-to-Earnings (P/E) ratio is a mess here, sitting at a negative -72.29 on a trailing twelve-month (TTM) basis, which just tells you the company has negative earnings per share (EPS). That's a red flag, plain and simple. However, some static P/E models still float an extremely high multiple of around 81.60, suggesting investors are betting heavily on future earnings growth that hasn't materialized yet.

The Price-to-Book (P/B) ratio is also essentially non-existent or negative, which means the company's liabilities are outweighing its assets-a common issue for smaller, growth-focused biotech firms. But, the Enterprise Value-to-EBITDA (EV/EBITDA) ratio, which strips out capital structure noise, is a more reasonable 10.12 as of September 2025. This ratio is defintely the most useful metric for a company in this stage.

• P/E (TTM): -72.29 (Negative EPS)
• P/B (TTM): Not Applicable/Negative (Negative Equity)
• EV/EBITDA (TTM): 10.12 (As of Sep '25)

Stock Price Trends and Analyst Consensus

The stock price tells a story of recent pain. The share price for Cryo-Cell International, Inc. has been hovering around $4.08 as of mid-November 2025, near its 52-week low of approximately $4.05. This is a sharp drop, considering the 52-week high was close to $9.43. Over the last year, the stock is down over 54%. That kind of volatility is tough to stomach.

Still, the single analyst covering the stock has a consensus rating of Hold with an average price target of $8.50. Here's the quick math: that target implies a potential upside of over 100% from the current price. The market is clearly ignoring the analyst's target right now, which creates a huge divergence between expectation and reality.

Mission Statement, Vision, & Core Values of Cryo-Cell International, Inc. (CCEL) are worth reviewing to understand the long-term vision analysts are buying into.

Dividend Yield and Payout Reality

Cryo-Cell International, Inc. does pay a dividend, and the yield is eye-popping, with a forward dividend yield of around 14.49% as of November 2025, based on an annualized payout of $0.60 per share. The last quarterly dividend was $0.15 per share, paid in May 2025.

But don't be fooled by the high yield; this is a classic yield trap signal. The payout ratio is a highly negative -1108.98%. A negative payout ratio means the company is paying out dividends from its balance sheet, not from current earnings. This is not sustainable, especially with the forecasted EPS for the 2025 fiscal year at only $0.11. You have to ask how long they can keep this up.

• Forward Dividend Yield: 14.49%
• Annualized Payout: $0.60
• Payout Ratio: -1108.98% (Unsustainable)

The dividend is a major risk factor.

Risk Factors

You are looking at Cryo-Cell International, Inc. (CCEL) at a critical juncture. The company is navigating a transition from a pure-play cord blood bank to a more diversified cellular therapy business, but this shift introduces real, near-term financial and operational risks. The direct takeaway is this: while the core storage revenue is stable, the expansion into biopharmaceutical manufacturing is a major drag on profitability right now, forcing a cut to shareholder returns.

Financial Strain and Rising Costs

The most immediate risk is the erosion of net income, driven by higher operating and financing costs. For the six months ended May 31, 2025, Cryo-Cell International, Inc.'s net income dropped to just $638,640, down sharply from $1,212,031 in the comparable period last year. Here's the quick math: that's nearly a 47% drop in profit, even though total revenue was relatively flat at $15,897,723.

This decline is tied directly to rising fixed expenditures. Interest Expense, for instance, soared to $1,046,088 for the six-month period, up from $585,732, due to higher debt levels and costs on the revolving credit facility. Plus, Selling, General and Administrative Expenses increased by 7% to $8,896,142, reflecting higher marketing and personnel costs. That's a lot of overhead to cover with slightly decreasing revenue-Q3 2025 consolidated revenues were $7.83 million, a 3% decrease year-over-year.

Operational and Strategic Headwinds

The company's strategic push into new ventures, like biopharmaceutical manufacturing and operating clinics, is a major source of uncertainty. Honestly, the profitability of these new units is uncertian right now. The other big operational risk is the decline in new specimen processing, which was down 15% for the six months ended May 31, 2025, even as recurring annual storage fees saw a 4% increase. You need new customers to grow, plain and simple.

A recent, clear signal of financial caution was the dividend policy. The Board first reduced the quarterly cash dividend to $0.15 per share in May 2025, and then announced in November 2025 that it would not declare a dividend for the fourth quarter of fiscal 2025, citing lower-than-expected profitability.

• Competition: Public cord blood banking is a constant competitive threat.
• R&D and IP: Success of the intellectual property (IP) portfolio and the enforceability of license agreements, like the one with Duke University, are crucial.
• Regulatory Compliance: Maintaining FDA registration and compliance with current Good Manufacturing Practices (cGMP) and current Good Tissue Practices (cGTP) is an ever-present, high-stakes requirement.

Mitigation and Actionable Insights

Cryo-Cell International, Inc. is taking action to manage these risks, but it's a tightrope walk. They have managed to reduce the Cost of Sales by 8% to $3,841,127 (six months ended May 31, 2025) through process enhancements, which is a good sign of internal cost control. They also recently amended their credit agreement in October 2025, which extended the maturity date of the revolving credit facility to October 18, 2027, and the term loan to July 29, 2032, buying them valuable time to execute their strategy. What this estimate hides, though, is the cost of that extension-the revolving credit commitment was also reduced from $10 million to $8 million.

For a deeper dive into the valuation and strategic frameworks, you should read the full analysis at Breaking Down Cryo-Cell International, Inc. (CCEL) Financial Health: Key Insights for Investors. Your next step should be to model the impact of the reduced R&D spending-down to $229,854 for the six months ended May 31, 2025-on the long-term viability of their new cellular therapy pipeline.

Growth Opportunities

You're looking at Cryo-Cell International, Inc. (CCEL) and seeing a legacy cord blood bank, but the real play is in their pivot to a vertically integrated cellular therapy model. They are actively shifting from a pure storage business to one focused on next-generation clinical applications, and that's where the future revenue will come from, even as their core business shows near-term softness.

The core cord blood banking revenue is facing pressure, evidenced by the fiscal third quarter of 2025 (Q3 2025) consolidated revenues of $7.83 million, a 3% decrease from the prior year's Q3. However, the analyst consensus for the full fiscal year 2025 revenue is still projected at approximately $32.08 million, with an Earnings Per Share (EPS) forecast of $0.11. That said, the Q4 2025 consensus estimate is a loss of -$0.110 per share on $7.700 million in revenue, so the path isn't perfectly smooth. They recently halted the Q4 2025 dividend, which tells you they are conserving capital for these strategic shifts.

Strategic Initiatives and Partnerships Driving Future Growth

The company's growth hinges on moving beyond simple cryopreservation (long-term freezing and storage) and into clinical therapies. This is a defintely a higher-margin, higher-risk game. The biggest catalyst is the strategic plan to spin off Celle Corp., a newly formed subsidiary that holds key assets like the license agreement with Duke University.

• Celle Corp. Spin-off: This move, authorized in March 2024, separates the high-growth, intellectual property (IP)-heavy cellular therapy business from the stable, but slower-growth, core cord blood banking business. It's designed to maximize shareholder value by giving the new entity a cleaner focus on regenerative medicine.
• Duke University License: This agreement, in place since February 2021, is the engine for their transformation, allowing them to develop, manufacture, and administer cellular therapies. They anticipate opening infusion clinics to treat conditions like autism, cerebral palsy, and traumatic brain injuries under the FDA's Expanded Access Program.
• ExtraVault Biostorage: Launched in March 2022, this initiative diversifies their revenue by using their cryopreservation expertise to offer biostorage and distribution services to biopharmaceutical companies and healthcare institutions. It's a smart way to monetize their infrastructure.

Competitive Advantages and Product Innovation

In the core cord blood banking market, Cryo-Cell International, Inc. maintains a strong competitive moat based on quality and technology. This is critical because parents are making a once-in-a-lifetime decision and prioritize quality over cost.

Here's the quick math on their quality edge:

The exclusive rights to PrepaCyte-CB is a huge differentiator; it's a premium processing method that transplant physicians prefer because it yields a better quality sample. Plus, their FACT accreditation (Foundation for the Accreditation of Cellular Therapy) puts them in the same quality league as top cancer centers, which builds trust with both doctors and families. This quality focus underpins the stability of the core business as they chase the higher upside of cellular therapies. For a deeper dive into the market dynamics, you should be Exploring Cryo-Cell International, Inc. (CCEL) Investor Profile: Who's Buying and Why?