0001193125-26-208916
SEC filingRevenue grew 15.1% to $90.2M with gross margins expanding to 91.7%, but operating and net losses emerged due to increased operating expenses and debt service costs following recent term loan borrowings.
Revenue increased 15.1% year-over-year to $90.2 million in Q1 FY2026 from $78.4 million in the prior year period. This growth reflects continued demand for our inhaled insulin and partnered products, supported by our manufacturing capabilities. Gross profit expanded more significantly by 27.9% to $82.7 million from $64.6 million, resulting in a robust gross margin of 91.7%. The margin expansion arises from our high-margin product mix and efficient production scale, which allows us to deliver strong profitability at the gross level despite volume fluctuations.
Operating income shifted to a $1.7 million loss from a $22.3 million profit in Q1 FY2025, producing an operating margin of -1.8%. This change stems from higher operating expenses outpacing revenue and gross profit gains, as we invest in commercial infrastructure and supply chain capacity. Net income deteriorated further to a $16.6 million loss from $13.2 million profit, with diluted EPS at -$0.05 compared to $0.04. The net loss reflects not only the operating shortfall but also other expenses, including interest on recent debt financings.