Heron Therapeutics (HRTX) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales reached $34.7 million, with Acute Care franchise growing 32% year-over-year and Oncology Supportive Care at $21.1 million, impacted by SUSTOL wind-down and competitive pressures.

• Severe winter weather and seasonality led to a high single-digit decline in surgical volumes versus Q4, but March net sales rebounded above $15 million.

• Net loss for Q1 2026 was $8.1 million, compared to net income of $2.6 million in Q1 2025.

• Commercial expansion and sales force growth are planned for Q3 2026 to drive further adoption.

• Settlements reached in CINVANTI patent litigation with Baxter, Mylan, and Qilu.

Financial highlights

• Q1 2026 net product sales were $34.7 million, with gross margin at 69% (down from 78.3% in Q1 2025) due to higher costs from a secondary CINVANTI supplier.

• Acute Care net revenue was $13.6 million, up 32.3% year-over-year; Oncology net revenue was $21.1 million, down 26.3% year-over-year.

• Adjusted EBITDA for Q1 2026 was -$727,000, reflecting weather-related softness and temporary margin pressure.

• Net loss per share for Q1 2026 was $(0.04).

• Cash, cash equivalents, and short-term investments totaled $44.8 million as of March 31, 2026.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: net product sales of $173–$183 million and adjusted EBITDA of $10–$20 million.

• Deferred elective procedures are expected to be rescheduled, creating a tailwind for the remainder of 2026.

• Temporary gross margin pressure expected to normalize as higher-cost CINVANTI inventory is worked through over the next two quarters.

• Management expects current liquidity to cover anticipated cash requirements for at least one year.

• Q3 and Q4 are anticipated to be the highest volume quarters, consistent with historical patterns.