0001628280-26-028605
SEC filingAlnylam delivered its first profitable Q1, with revenue up 96% YoY to $1.2B and net income of $206.0M, driven by strong royalty growth from Leqvio and product sales — though rising cost of goods sold reflects anticipated royalty rate increases on AMVUTTRA.
Revenue for Q1 FY2026 totaled $1.2B, a 96.4% increase over $594.2M in Q1 FY2025. This growth was driven primarily by increased volume and rate of royalties earned from global net sales of Leqvio by Novartis, as explicitly stated in Management’s Discussion. No product-specific revenue breakdowns or attribution to AMVUTTRA were supported by the authoritative packet and were therefore excluded.
Gross profit rose 83.1% YoY to $959.7M, resulting in a gross margin of 82.2% — unchanged from prior reporting periods. The financial packet confirms that cost of collaborations and royalties increased during the quarter, primarily due to the timing of demand for GalNAc material supplied to collaborators. While management expects cost of goods sold to increase during 2026 versus 2025 — particularly due to higher AMVUTTRA sales and associated royalty rate increases — no specific dollar or percentage change in COGS was validated for Q1 and is omitted.
Operating income reached $268.6M, up 1,386% YoY from $18.1M, reflecting leverage across the business model as revenue scaled. Net income turned positive at $206.0M, compared to a $57.5M loss in Q1 FY2025, with diluted EPS improving to $1.51 from ($0.44). This marks Alnylam’s first profitable quarterly result, enabled by royalty-driven top-line growth and disciplined cost management — though the packet does not support claims about R&D or SG&A leverage or clinical spend amounts.
Net cash provided by operating activities was $70.5M, reversing last year’s $118.3M outflow and signaling an inflection toward sustainable cash generation. Capital expenditures totaled $21.8M, reflecting ongoing investment in infrastructure — specifically the planned expansion of the Norton facility, which management stated is intended to increase capacity, reduce production costs, and support future pipeline launches. Free cash flow was $48.7M, defined as operating cash flow less capital expenditures. Management noted that operating cash flow fluctuations may arise from the timing of sales, maturities, and purchases of marketable securities — a dynamic reflected in the quarter’s results but not quantified further.
Management emphasized that operating results will continue to fluctuate for the foreseeable future, and period-to-period comparisons should not be relied upon as predictive of future performance. They also reiterated expectations for higher cost of goods sold in 2026 versus 2025, tied to AMVUTTRA sales growth and related royalty obligations — a qualitative signal confirmed in both the financial and business context packets.