0001437749-26-016720
SEC filingQ1 2026 delivered $56.1M net income and $0.62 EPS, reversing prior-year loss through non-cash derivative gains, while YARTEMLEA launch generated $9.9M revenue amid ongoing operating losses of $17.4M.
Gross profit stood at $9.3M, yielding a 94.1% margin, as the cost basis of pre-commercialization inventory remained minimal. Management explains that following approval, direct manufacturing costs are now capitalized as inventory and expensed upon sale, so early gross margins may not reflect ongoing performance once post-approval production ramps up.
Net income swung to a $56.1M profit from a -$33.5M loss, with diluted EPS at $0.62 versus -$0.58, driven by non-cash derivative gains that overshadowed the operating loss. This volatility underscores how remeasurement swings can define bottom-line results in biotech, separate from core operations.
Cash from operating activities used -$14.5M, an improvement from -$35.8M last year, aligning with free cash flow at the same level given zero capital expenditures. Management views fluctuations in investing cash flows as less relevant to liquidity understanding, focusing instead on total cash, equivalents, and short-term investments. Trade receivables carry no material expected credit loss allowance due to their concentration with limited customers.