ACAD · ACADIA Pharmaceuticals Inc.

Gross profit grew 8.6% to $243.3 million, yielding a robust 90.8% gross margin versus 91.6% last year. Cost of product sales remained controlled as a percentage of revenue, though it may incorporate period costs like inventory services, excess or obsolete adjustments, unabsorbed overhead, and manufacturing variances. The slight margin contraction did not materially hinder overall profitability at the gross level.

Operating income flipped to a -$4.6M loss from $19.3M profit, with operating margin at -1.7%. This shift resulted from elevated selling, general, and administrative expenses, driven by increased investments to support ongoing growth of NUPLAZID and DAYBUE. Our primary operating expenses cover employee and consultant payments, clinical trials, product marketing, and technology/facility infrastructure, all essential to sustaining operations and expansion.

Net income declined -80.8% to $3.6 million, with diluted EPS at $0.02 versus $0.11, as higher expenses offset revenue gains and other income effects. Despite the profitability pressure, net cash provided by operating activities strengthened significantly to $34.0 million from $20.3 million, delivering $28.8 million in free cash flow after $5.2 million in capital expenditures. This cash generation stems from higher net sales and supports broader investing activities, including maturities of investment securities.