0001628280-26-031667
SEC filingRevenue grew modestly year-over-year, but operating and net losses widened significantly as the company advanced commercialization of Fanapt® and PONVORY®, prepared for the May 2026 NEREUS™ launch, and continued development of late-stage assets.
Revenue for Q1 FY2026 totaled $51.7 million, an increase of 3.4% compared to $50.0 million in Q1 FY2025. This growth was primarily attributable to higher product volume, partially offset by lower pricing, net of contractual deductions — a dynamic consistent with the company’s observed commercial trajectory across its portfolio. The increase reflects continued uptake of Fanapt® in bipolar I disorder and PONVORY® in relapsing multiple sclerosis, both supported by expanded commercial infrastructure.
Operating income declined to -$50.2 million from -$41.0 million in the prior-year quarter. This deepening loss reflects deliberate, sustained investment in commercial capabilities — specifically, increased spending on the continued commercialization of Fanapt® and PONVORY®, including the expansion of the sales force during 2025. These efforts are aligned with the company’s stated objective to strengthen market presence ahead of the May 2026 U.S. launch of NEREUS™ for motion-induced vomiting prevention.
Net income decreased to -$48.6 million from -$29.5 million in Q1 FY2025, and diluted EPS declined to $-0.82 from $-0.50. The magnitude of change in net income exceeds that of operating income, indicating that non-operating items or tax-related adjustments contributed to the variance — though no specific non-operating drivers are quantified in the authoritative financial packet. The EPS change is fully attributable to the decline in net income under the same weighted-average diluted share count framework used in prior periods.
Net cash used in operating activities totaled -$50.2 million, compared to -$33.1 million in Q1 FY2025, mirroring the increase in operating expenses. Capital expenditures were $221,000, down from $436,000 in the prior-year quarter, suggesting disciplined deployment of capital toward core infrastructure rather than broad asset expansion. Free cash flow — defined as net cash provided by (used in) operating activities less capital expenditures — was -$50.4 million. This reflects the company’s current phase: prioritizing commercial readiness and late-stage development over near-term cash flow neutrality.