- QQ1 2026 revenue reached $13.89 million, up against a challenging YoY and QoQ backdrop for a small-cap specialty pharma: revenue declined 22.7% year over year and 24.7% quarter over quarter, as highlighted by the reported metrics. Gross profit was $9.19 million with a gross margin of 66.1%, reflecting favorable product mix and pricing on a per-unit basis, but operating expenses compressed operating income to a loss of $1.50 million.
- The quarter delivered a net income of $1.97 million despite an operating loss, driven by a sizable contribution from total other income of $3.469 million. Interest expense was modest at ($0.516) million, contributing to a positive pre-tax result of $1.965 million and a net income figure of $1.965 million. Diluted EPS shows negative reporting (-$0.08) influenced by share count dynamics (9.44M basic vs 19.48M diluted). This divergence underscores a financing or equity structure aspect rather than a pure operating outcome.
- Cash flow remained modestly negative from operations at ($0.618) million, with free cash flow of the same magnitude. The company ended the period with cash and cash equivalents of $32.63 million and net debt of approximately ($30.77) million, indicating substantial liquidity with a net-cash position when factoring in cash on hand versus debt. The balance sheet shows a solid asset base (total assets ~$125.0 million) and a high level of intangible assets (~$41.43 million) along with significant accounts receivable (~$33.23 million).
- Management commentary is not reflected in the provided transcript data; as such, the forward-looking sentiment relies on the reported figures and typical industry dynamics for a small-cap specialty pharma with ADHD-focused products. Investors should monitor operating leverage progress, working capital normalization, and potential strategic initiatives that could monetize the IV/portfolio beyond the current quarter.