0001819790-26-000038
SEC filingRevenue surged 106.9% to $162.1M from higher volume and improved gross-to-net discounts, driving gross profit up 108.8% to $152.7M at 94.2% margin while narrowing operating and net losses 77% and 72% respectively despite capex ramp.
Revenue increased to $162.1 million in Q1 FY2026 from $78.3 million in the prior year quarter, a 106.9% rise driven by higher XDEMVY volume and improvement in gross-to-net discounts as noted in management's discussion. This acceleration reflects successful commercialization since the August 2023 launch, though the business and market revenue potential remain unproven per liquidity disclosures.
Gross profit expanded to $152.7 million, up 108.8% YoY from $73.1 million, maintaining an exceptional 94.2% margin. This high profitability underscores the favorable economics of product sales, enabling significant operating leverage even as the company scales.
Operating income improved markedly to a loss of $6.1 million from $26.3 million last year, narrowing 76.7% as revenue growth outpaced operating expense increases. The -3.8% operating margin reflects ongoing investments in commercialization and clinical programs, consistent with management's expectation of potential future operating losses while expanding development for other candidates and continuing XDEMVY sales.
Net income followed suit, reducing to a $7.0 million loss from $25.1 million, a 72.3% improvement, with diluted EPS at -$0.16 versus -$0.64. This progress was aided by a modest increase in other income (expense), net, primarily from higher interest income on cash, cash equivalents, and marketable securities, which the company reviews for trading activity and pricing each measurement date.