Fortress Biotech (FBIO) Q1 2026 earnings summary

Executive summary

• Q1 2026 net revenue reached $16 million, up 21–22% year-over-year, primarily driven by EMROSI/Emrosi sales and new royalty streams.

• A $205 million sale of a Rare Pediatric Disease Priority Review Voucher (PRV) generated a $158.9 million gain, resulting in net income attributable to common stockholders of $108.4 million, a sharp turnaround from a net loss of $12.7 million in Q1 2025.

• Operating expenses decreased 33% year-over-year, mainly due to deconsolidation of Checkpoint and lower R&D and SG&A costs.

• Cash and cash equivalents rose to $255.8 million at quarter-end, up from $79.4 million at December 31, 2025.

• Expanded pipeline through Avenue's acquisition of ATX-04 for Pompe disease and established new royalty streams from partnered assets.

Financial highlights

• Product revenue increased to $15.9–16 million, up from $13.1 million in Q1 2025, mainly from EMROSI/Emrosi sales.

• Gross margin was 61% (69% adjusted for non-cash item); gross margin improved due to higher product revenue and lower operating expenses.

• Net income for Q1 2026 was $108.4 million ($3.44 basic EPS, $2.82 diluted), compared to a net loss of $12.7 million ($0.48 loss per share) in Q1 2025.

• Adjusted EBITDA was $600,000, up from negative $900,000 in Q1 2025.

• Cash and cash equivalents at March 31, 2026 were $255.8 million.

Outlook and guidance

• Anticipates continued positive adjusted EBITDA and further revenue and profitability growth as EMROSI/Emrosi gains market share and payer coverage improves.

• Expects increasing royalty revenue from ZYCUBO and UNLOXCYT™, with potential milestone payments from partnered assets.

• Current cash is expected to fund operations for at least the next 12 months.

• Detailed financial guidance to be provided later in the year.

• Plans to advance strategic initiatives and expand the pipeline, including clinical development of ATX-04 for Pompe disease.