ETON · Eton Pharmaceuticals, Inc.

Eton Pharmaceuticals delivered robust Q1 2026 results with product sales reaching $24.3 million, a 73% increase from $14.0 million in the prior year, fueled by strong contributions from INCRELEX, ALKINDI SPRINKLE, GALZIN, Carglumic Acid, and new sales from KHINDIVI launched in June 2025. Total net revenue rose 40% to $24.3 million, despite a prior-year licensing revenue component reducing the comparable base. Gross profit grew 49% to $14.7 million, with adjusted gross profit at $16.2 million (67% margin), slightly down from 69% due to lower-margin INCRELEX ex-U.S. sales and absence of high-margin licensing revenue. Management anticipates full-year adjusted gross margins exceeding 70%. R&D expenses increased to $1.9 million from clinical studies for KHINDIVI label expansion and ET-700 development, while G&A rose 13% to $10.4 million, driven by higher FDA fees post-orphan exemption loss and headcount growth; adjusted G&A was $9.0 million. Adjusted EBITDA improved to $5.7 million (24% margin) from $3.7 million, reflecting operational leverage. GAAP net income flipped to $1.6 million ($0.05 diluted EPS) from a $1.6 million loss. CEO Sean Brynjelsen highlighted the strong start, prompting raised full-year revenue guidance to over $120 million from $110 million and at least 30% Adjusted EBITDA margin, underpinned by DESMODA launch in March and HEMANGEOL relaunch on May 1 with $0 co-pay support. Pipeline advances include FDA clearance for INCRELEX label harmonization to expand the U.S. market to ~1,000 patients, ET-700 pilot study initiation, and ongoing KHINDIVI expansion, positioning Eton for sustained rare disease growth. Cash stood at $19.7 million after $7.4 million operations generation offset by $14.0 million HEMANGEOL acquisition.