0001034842-26-000032
SEC filingRevenue rose 10.3% to $58.8M from robust product demand, lifting gross profit 10.8% to $54.2M at 92.2% margin, though higher cost of sales from royalties and operating expenses drove operating income down 7.0% to $11.9M.
Operating income came in at $11.9 million, down 7.0% from $12.8 million in Q1 FY2025, reflecting the gross profit gains being more than offset by higher operating expenses, including the noted rise in cost of product sales. The operating margin of 20.2% illustrates sustained profitability from the core business model, even as costs associated with revenue expansion tempered leverage. This positions Rigel to balance growth investments with disciplined expense control.
Net income declined to $8.7 million from $11.4 million year-over-year, a 24.4% drop, with diluted EPS at $0.44 versus $0.63. The reduction traces to the softer operating performance, compounded by other factors including a decrease in interest expense from scheduled debt principal payments and lower rates, though this provided only partial mitigation.
Cash flow from operations improved markedly to $2.7 million positive, versus a $0.9 million outflow last year. This shift supports ongoing operations and facilitated debt management, aligning with the company's focus on liquidity and capital preservation for excess cash.