SXTP · 60 Degrees Pharmaceuticals, Inc.

Revenue of $162.1K in Q1 2026 represented an 89.3% YoY decline from $163.6K, primarily because other operating revenues from the USAMMDA contract—awarded in July 2024 for Arakoda's new bottle and blister packaging validation—were fully utilized by end-2025. Product revenues associated with Arakoda held relatively steady in absolute dollars, as cost of revenues comprises direct materials, shipping, manufacturing, serialization, and expiration-related inventory write-downs reported at lower of cost or net realizable value. This stability underscores reliance on the single marketed product amid the research revenue cliff.

Gross profit compressed 15.4% to $76.4K from $90.3K, yielding a 47.1% gross margin. The increase in total cost of revenues stemmed from higher quarterly storage costs with the U.S.-based packager, though on a per-unit basis costs declined due to the bottle format's packaging efficiencies. This dynamic reflects supply chain optimization efforts countering fixed cost inflation, maintaining decent margins despite scale limitations.

Operating income deteriorated 9.6% to -$2.1M and net income to -$2.1M (-11.3% YoY), with operating margin at -1292.5%. Absent the prior-period USAMMDA research revenues, core operating expenses outpaced the modest product revenue base, amplifying losses. Diluted EPS improved 17.9% to -$1.28 from -$1.56, likely reflecting share dilution from financing. These results highlight the transition to pure commercial operations for Arakoda, where achieving gross profitability remains critical for going concern status.