0001517022-26-000039
SEC filingAkebia reported a $53.5M revenue decline (-6.6% YoY) driven by Auryxia’s post-exclusivity erosion, partially offset by early Vafseo sales; gross margin held at 77.0%, but operating income reversed to a $4.7M loss as commercial investment and inventory write-downs intensified.
Revenue declined 6.6% year-over-year to $53.5M, primarily due to lower Auryxia revenues following loss of exclusivity, partially offset by higher Vafseo revenues. This reflects an ongoing product transition: Auryxia’s decline is structural and expected, while Vafseo’s contribution remains early-stage and subject to volume-based pricing under existing supply agreements.
Gross profit decreased 17.0% to $41.3M, though gross margin remained stable at 77.0%. This stability masks an important operational shift: cost of product and other revenue for Vafseo does not include the full cost of manufacturing until initial pre-launch inventory is depleted and additional inventory is manufactured and sold. As that transition progresses, gross margin may compress further, consistent with management’s expectation that Vafseo’s cost of goods will increase upon full cost absorption.
Operating income swung from $13.5M of profit in Q1 FY2025 to a $4.7M loss in Q1 FY2026. The reversal was driven primarily by an increase in inventory write-downs for excess, obsolescence, scrap or other reasons — a recognized consequence of demand uncertainty during the Auryxia-to-Vafseo transition. This dynamic underscores the challenge of aligning supply chain execution with rapidly shifting commercial realities post-LoE.
Net income declined to -$9.1M from $6.1M in the prior-year quarter, resulting in diluted EPS of -$0.03 versus $0.03. The change reflects the operating loss and absence of non-operating gains or tax benefits that contributed to prior-year profitability. No adjustments to EPS calculation methodology were disclosed, and share count assumptions remain consistent with prior filings.