Radiopharmaceutical company Lantheus Holdings (NASDAQ: LNTH) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 4% year on year to $406.8 million. On the other hand, the company’s full-year revenue guidance of $1.43 billion at the midpoint came in 4.6% below analysts’ estimates. Its non-GAAP profit of $1.67 per share was 42.9% above analysts’ consensus estimates.

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“In 2025 we accomplished the important goal of maintaining market leadership with PYLARIFY. In addition, we expanded both our commercial portfolio of radiopharmaceuticals with Neuraceq as well as our pipeline through the acquisitions of Life Molecular Imaging and Evergreen Theragnostics,” said Mary Anne Heino, Chief Executive Officer of Lantheus.

Company Overview

Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Lantheus grew its sales at an incredible 35.3% compounded annual growth rate. Its growth beat the average healthcare company and shows its offerings resonate with customers, a helpful starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Lantheus’s annualized revenue growth of 9% over the last two years is below its five-year trend, but we still think the results were respectable.

This quarter, Lantheus reported modest year-on-year revenue growth of 4% but beat Wall Street’s estimates by 11%.

Looking ahead, sell-side analysts expect revenue to decline by 4.3% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and implies its products and services will see some demand headwinds. At least the company is tracking well in other measures of financial health.

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Operating Margin

Lantheus has managed its cost base well over the last five years. It demonstrated solid profitability for a healthcare business, producing an average operating margin of 19.3%.

Looking at the trend in its profitability, Lantheus’s operating margin rose by 34.5 percentage points over the last five years, as its sales growth gave it immense operating leverage. Zooming into its more recent performance, however, we can see the company’s margin has decreased by 8 percentage points on a two-year basis. Given its business quality, we’re optimistic that Lantheus can correct course and return to expansion.

This quarter, Lantheus generated an operating margin profit margin of 19%, down 10.1 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Lantheus’s EPS grew at an astounding 60.3% compounded annual growth rate over the last five years, higher than its 35.3% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Diving into Lantheus’s quality of earnings can give us a better understanding of its performance. As we mentioned earlier, Lantheus’s operating margin declined this quarter but expanded by 34.5 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q4, Lantheus reported adjusted EPS of $1.67, up from $1.59 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Lantheus’s full-year EPS of $6.04 to shrink by 7.7%.

Key Takeaways from Lantheus’s Q4 Results

It was good to see Lantheus beat analysts’ EPS expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. On the other hand, its full-year revenue guidance missed and its full-year EPS guidance fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 2.9% to $73.50 immediately after reporting.

Should you buy the stock or not? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).