Biofrontera AG: BIOFRONTERA REPORTS RESULTS FOR THE FINANCIAL YEAR 2025

Leverkusen (pta046/17.04.2026/23:20 UTC+2)

Leverkusen, April, 17th Biofrontera AG (ISIN: DE000A4BGGM7), an international biopharmaceutical company, today published its consolidated results for the financial year ending December 31, 2025. At the same time, the Company reports on current operational developments.

Official consolidated P&L 2025

Proforma P&L

Operating developments in 2025

• For a third consecutive year, Ameluz® grew more than 25% in the German market, reaching 73% of market share
• Ameluz® leads Germany, UK and Spain PDT markets
• Biofrontera receives OVIXAN market authorization in UK
• Biofrontera AG and Biofrontera Inc. signed and successfully implemented a restructuring agreement, transferring all U.S.-related assets and liabilities—including legal expenses and associated risks—to Biofrontera Inc.
• Biofrontera AG signs a new distribution agreement with ProPharma for Croatia
• Adjusted sales (including sales of discontinued operations) fulfills reviewed guidance published in August 2025
• Adjusted EBITDA (including discontinued operations) higher than the published guidance
• We confirm the guidance provided for 2026, Sales in the range of EUR 14 Mio to EUR 16 Mio, and adjusted EBITDA in the range of EUR 3.5 Mio to 5.1 Mio

"2025 has been a pivotal year for Biofrontera AG, highlighted by sustained double-digit growth of Ameluz® in Germany—reaching a 73% market share—alongside strengthened leadership across Europe and a strategic U.S. restructuring that significantly reduces the Company's structural risk profile." commented Pilar de la Huerta, Biofrontera AG CFO and Managing Director on the business performance of the last financial year. "Due to IFRS presentation rules, Biofrontera AG's reported accounts are inherently difficult to interpret, as discontinued U.S.-related operations are largely excluded from the detailed P&L and instead reflected as a single line item immediately before the final net result. Therefore, we present pro-forma figures (second table above) to provide a clearer and more comprehensive view of total sales and EBITDA, including both continuing and discontinued activities. The "Total" column includes all activities, the column labeled "U.S. business" reflects the discontinued operations, and the column labeled "EU business" represents the continuing operations, which are those detailed in the standard IFRS P&L. This presentation also highlights that, while the U.S. restructuring leads to lower reported revenues, it is more than offset by a significant reduction in the Company's cost base, a simplification of its organizational structure, and a material decrease in its overall risk profile. As a result, Biofrontera AG has successfully completed a profound transformation, emerging as a more focused, resilient, and de-risked company, well positioned to drive future growth and execute its expansion strategy despite the challenges anticipated in 2026."

Financial forecast 2026

For 2026, we expect the trend of increasing revenues in Europe observed in recent years to continue. With Germany as the most important growth driver, we expect an average growth in Europe from 6% to 21%. In 2026 Biofrontera expects sales revenues between EUR 14 and 16 million, which includes all sales in the EU markets. Sales revenues don't include the earn-out from Biofrontera Inc, as earn-out is a consideration from the business unit sale, not operational sales revenues. The earn-out is based on the U.S.-sales of Ameluz® and is expected between EUR 3.5 million and 4.5 million in 2026 (2025: EUR 1.8 million).

Adjusted EBITDA, meaning EBITDA considering the earn out and any transaction related to the US market, for 2026 is expected to range between EUR 3.5 million and EUR 5.1 million (2025 adjusted EBITDA: EUR 4.6 million), while unadjusted, meaning without all related to U.S. market excluding also the earn out projected, EBITDA is projected to be between EUR -0.5 million and EUR 0.5 million (2025 unadjusted EBITDA: EUR -0.8 million), demonstrating that the Company is already operating at or around breakeven excluding the U.S. business.

As of December 31, 2025, the Biofrontera Group held cash and cash equivalents of EUR 3,6 million compared with EUR 3.1 million in the previous year. Based on the current corporate planning for 2026, the Group will have sufficient liquidity to meet all obligations for a further 12 months from the date of preparation. Assuming expenses and income developing as planned, the Group expects to have cash and cash equivalents between EUR 4.0 million and EUR 8.0 million as of December 31, 2026.

Marketing Europe

Sales development in Germany was very strong compared to the previous year. German product sales totaled EUR 9,863 thousand compared to EUR 7,831 thousand in 2024, an increase of around 25.9%. The share of Ameluz® PDT in the PDT segment grew from 67% in the previous year to 73% in 2025.

In the rest of Europe, covered by our own sales force, sales development was more moderate over the past year, although we still recorded growth. The Spanish market grew by 1.7% in revenue terms, while unit growth was higher. The increase in mandatory rebates, due to the product's presence in the market for more than ten years, offset the underlying sales growth in this market. In the UK, the Company achieved growth of 16% compared with the previous year, demonstrating a very positive trend in the expansion of Ameluz®.

Revenue from partners was lower this year than in the previous year, reflecting the seasonal ordering patterns of our partners. A year with high order volumes is typically followed by a year with lower volumes. As 2024 was a peak year, distributors placed fewer batch orders in 2025, resulting in a decrease of ‑64.2%. A significant increase in orders is expected in 2026.

Consolidated with the German revenues, the overall European business totaled EUR 13,175 thousand (previous year: EUR 12,069 thousand), which corresponds to growth 9.2%.

Marketing US

Biofrontera generated revenue of EUR 6,038 thousand (until June 2025) with our licensee in the USA from discontinued operations compared to EUR 9,482 thousand in the previous year, a decrease of 36.3%. This decrease is due to the restructuring agreement in place effective date June 1, 2025. Since that date, all assets and liabilities related to the U.S. market were transferred to Biofrontera Inc. As a consideration for the sale, the Company received a stake in Biofrontera Inc of 10% post-money (after the capital increase agreed) and an earn out of 12% to 15% during the life of their patents transferred (2043). During 2025 the earn-out generated was EUR 1,838 thousand.

Further key figures

Biofrontera AG initially guided for fiscal year 2025 adjusted EBITDA in the range of EUR 0 thousand to EUR 3,000 thousand. This guidance was withdrawn in May 2025 amid uncertainties surrounding payments related to Biofrontera Inc. and subsequently revised in August 2025 to a range of EUR 1,500 thousand to EUR 3,500 thousand. At that stage, the Company anticipated that the restructuring agreement with Biofrontera Inc. would support EBITDA growth. While revenues were expected to decline compared to the initial outlook, the transfer of all U.S.-related infrastructure and liabilities, together with the consideration received in the form of shares and an earn-out, was expected to have a positive impact on a adjusted EBITDA basis.

In February 2026, Biofrontera AG issued an ad hoc announcement further upgrading its adjusted EBITDA guidance to between EUR 3,500 thousand and EUR 5,000 thousand. This was driven by strict cost control measures and a higher-than-expected earn-out contribution in 2025. As a result, adjusted EBITDA reached EUR 4,694 thousand, including both continuing and discontinued operations, placing performance close to the upper end of the revised guidance range.

Liquidity also outperformed expectations. As of December 31, 2025, liquidity stood at EUR 3,603 thousand, compared to EUR 3,124 thousand in the prior year, significantly exceeding the EUR 500 thousand to EUR 1,500 thousand range initially projected in the 2024 Annual Report.

The Company's cost base was substantially reduced following the restructuring. Global G&A expenses declined sharply from EUR 9,996 thousand to EUR 2,098 thousand in 2025. Research and development expenses decreased by 31.0% to EUR 3,695 thousand, down from EUR 5,352 thousand in the previous year. These reductions primarily reflect the transfer of all U.S.-related activities and risks to Biofrontera Inc., effective June 1, 2025.

At the same time, global other income increased significantly from EUR 704 thousand in the prior year to EUR 4,781 thousand, largely driven by the effects of the restructuring agreement with Biofrontera Inc.

Sales and marketing expenses were also reduced, totaling EUR 6,339 thousand in 2025 compared to EUR 6,933 thousand in the previous year, reflecting the Company's continued focus on disciplined cost management.

Adjusted profit before tax increased from EUR -6,719 in 2024 to EUR 2,049 during 2025 moving the Company to the positive numbers.

Global taxes expenditure (including discontinued operations) changed from EUR 2,369 in 2024 to EUR -6,719 in 2025, due to a reduction in our deferred tax assets, reflecting a decline in expected profitability. This is mainly driven by revised projections for U.S. revenues: lower income from Biofrontera Inc. following the sale of U.S.-related assets, and a reduction in earn-out assumptions to a shorter-term horizon due to limited visibility on Biofrontera Inc's ability to sustain operations over the medium to long term.

Net result improves from EUR -4,350 to EUR – 3,965 in 2025.

Regulatory and development update

As of October 20, 2025, Biofrontera AG entered into an asset purchase agreement with Biofrontera Inc. Under the terms of the transaction, Biofrontera AG transferred to Biofrontera Inc. all U.S. assets, liabilities, and rights related to Ameluz® and RhodoLED®, including the regulatory approvals and the sponsorship of clinical trials in USA. The transfer was communicated to the FDA on December 17, 2025. In connection with the transfer of the regulatory approvals and the clinical trial sponsorship, employees involved in these activities were also transferred to Biofrontera Inc. or its affiliates, continuing the trend observed in the prior year of reducing the headcount at Biofrontera group.

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Emitter:	Biofrontera AG Hemmelrather Weg 201 51377 Leverkusen Germany
Contact Person:	Investor Relations
Phone:	+49 (0) 214 87 63 20
E-Mail:	ir@biofrontera.com
Website:	www.biofrontera.com
ISIN(s):	DE000A4BGGM7 (Share)
Stock Exchange(s):	Regulated Market in Dusseldorf, Frankfurt; Free Market in Munich, Stuttgart, Tradegate BSX