Heron Therapeutics (HRTX) investor relations material

Executive summary

• Q2 2026 net revenue was $37.7 million, up 9% sequentially but flat year-over-year and slightly below expectations.

• Acute care franchise revenue grew 43.9% year-over-year, driven by ZYNRELEF (up 35%) and APONVIE (up 74%), while oncology franchise revenue declined 15.9% year-over-year due to competition.

• Net loss widened to $5.5 million in Q2 2026 from $2.4 million in Q2 2025.

• SUSTOL continues its planned wind down and will be withdrawn from the market as of September 30, 2026.

• Strategic alternatives are under review, with spending tightened and sales force expansion paused following recent legal developments.

Financial highlights

• Gross margin for Q2 2026 was 69.3%, down from 73.5% in Q2 2025.

• R&D expense was $2.7 million; SG&A expense was $25.4 million; total operating expenses were $28.1 million.

• Adjusted EBITDA was $3.2 million, up from $2.2 million year-over-year.

• Cash and short-term investments at quarter-end were $42.7 million.

• Cost of product sales rose 17.4% in Q2, reflecting higher inventory reserves and increased units sold.

Outlook and guidance

• Full-year 2026 guidance for net product sales and adjusted EBITDA was withdrawn due to uncertainty from a June court decision and potential generic competition.

• Management expects cash resources to cover at least one year of operations, but this is based on assumptions that could change.

• Will report cash position, spending, and covenant compliance quarterly instead of annual guidance.

• Strategic alternatives are being considered, with no assurance of a transaction or favorable terms.