Pelthos Therapeutics Announces Third Quarter 2026 Financial Results and Provides Business Update
Pelthos Therapeutics Inc. (PTHS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Pelthos Therapeutics Announces Third Quarter 2026 Financial Results and Provides Business Update Zelsuvmi ® net product revenue grew 114% to $15.2 million during the third quarter of 2026 from $7.1 million in the third quarter of 2025 12,384 Zelsuvmi units were dispe
How this was made
The 30-second read
Why it matters
The Q3 earnings beat and merger announcement provide fresh material for price action.
Market read
First‑report 8‑K earnings and merger news for a small‑cap biotech, likely to move the stock today.
What to watch
The $10M additional loan increases leverage; cash runway remains limited.
Pelthos reports Q3 2026 Zelsuvmi net product revenue of $15.2 million, up 114% year over year and 1% lower sequentially, with a net loss of $(7,895) thousand
Zelsuvmi revenue is up 114% year over year but was flat to slightly down sequentially at $15.2 million. The net loss narrowed from the prior-year quarter and from Q2 2026, and Adjusted EBITDA improved year over year. Stockholders' equity moved to a deficit of $(6,186) thousand, total liabilities rose to $135,003 thousand, and cash was $17.7 million, with an additional $10.0 million drawn on October 30, 2026.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net product revenues (Zelsuvmi), Q3 2026GAAP | $15.21M | 1% decrease | 114% increase |
| License and collaboration revenues, Q3 2026GAAP | $182K | – | – |
| Total revenue, Q3 2026GAAP | $15.39M | – | – |
| Zelsuvmi units dispensed, Q3 2026other | 12,384 units | 4% increase | 365% increase |
| Cost of goods sold, Q3 2026GAAP | $1.66M | 54% reduction | 28% reduction |
| Selling, general and administrative expenses, Q3 2026GAAP | $18.84M | 25% reduction | 3% increase |
| Research and development, Q3 2026GAAP | $1.02M | – | – |
| Royalty expense, Q3 2026GAAP | $2.51M | – | – |
| Amortization of intangible assets, Q3 2026GAAP | $1.05M | – | – |
| Total operating expenses, Q3 2026GAAP | $25.09M | – | – |
| Operating loss, Q3 2026GAAP | −$9.69M | – | – |
| Interest expense, Q3 2026GAAP | −$2.27M | – | – |
| Change in fair value of convertible debt, Q3 2026GAAP | $4.07M | – | – |
| Interest income and other income, Q3 2026GAAP | — | – | – |
| Total other (expense) income, Q3 2026GAAP | $1.80M | – | – |
| Net loss before provision for income taxes, Q3 2026GAAP | −$7.89M | – | – |
| Provision (benefit) for income taxes, Q3 2026GAAP | — | – | – |
| Net loss, Q3 2026GAAP | −$7.89M | – | – |
| Net loss per common share, basic and diluted, Q3 2026GAAP | $(2.04) | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | −$5.59M | – | – |
| Net product revenues (Zelsuvmi), nine months 2026GAAP | $41.30M | – | – |
| License and collaboration revenues, nine months 2026GAAP | $606K | – | – |
| Total revenue, nine months 2026GAAP | $41.90M | – | – |
| Cost of goods sold, nine months 2026GAAP | $6.94M | – | – |
| Selling, general and administrative expenses, nine months 2026GAAP | $63.12M | – | – |
| Research and development, nine months 2026GAAP | $1.80M | – | – |
| Royalty expense, nine months 2026GAAP | $7.01M | – | – |
| Amortization of intangible assets, nine months 2026GAAP | $3.13M | – | – |
| Total operating expenses, nine months 2026GAAP | $82.01M | – | – |
| Operating loss, nine months 2026GAAP | −$40.10M | – | – |
| Interest expense, nine months 2026GAAP | −$7.01M | – | – |
| Change in fair value of convertible debt, nine months 2026GAAP | −$9.27M | – | – |
| Total other (expense) income, nine months 2026GAAP | −$16.28M | – | – |
| Net loss before provision for income taxes, nine months 2026GAAP | −$56.38M | – | – |
| Net loss, nine months 2026GAAP | −$56.38M | – | – |
| Net loss per common share, basic and diluted, nine months 2026GAAP | $(15.78) | – | – |
| Adjusted EBITDA, nine months 2026non-GAAP | −$19.33M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Zelsuvmi net product revenuesThe company attributes the increase to strong utilization of Zelsuvmi by health care providers, increased formulary position, and optimized gross-to-net deductions. The company also states that net revenue per unit reflected increased utilization associated with expanding access, and expects a slight increase in gross-to-net deductions as new coverage is implemented. | $15,213 thousand (Q3 2026); $15.2 million as stated in the text | 1% decrease | 114% increase |
| License and collaboration revenuesThe release prints the figure in the statement of operations but gives no explanation for its change. | $182 thousand (Q3 2026) | – | – |
What drove it
- Company explanation: Zelsuvmi growth was driven by strong utilization of Zelsuvmi by health care providers, increased formulary position, and optimized gross-to-net deductions.
- Company explanation: Net revenue per unit reflected increased utilization associated with expanding access, consistent with expectations for this stage of launch.
- Company explanation: Formulary coverage for Zelsuvmi reached 127 million commercially covered lives, or 69% of commercially covered lives, with Medicaid coverage of more than 70 million, or 100% of covered lives, after a new PBM formulary win adding 24 million covered lives and a regional commercial health plan representing approximately 3 million covered lives.
- Company explanation: Cost of goods sold includes fair value adjustments related to finished goods and active pharmaceutical ingredient inventory on hand at the time of the July 2025 merger. The Q2 2026 cost of goods sold also included a $0.9 million write-off of work-in-process inventory related to specification tolerances.
- Company explanation: Q2 2026 SG&A included $5.3 million of one-time milestone expense, which the release gives as the reason for the sequential decline in SG&A.
- Company explanation: The change in fair value of convertible debt, related to the convertible notes issued in November 2025, was a $4.1 million gain in Q3 2026 compared with a $3.7 million loss in Q2 2026.
- Company explanation: Interest expense is attributable to the existing convertible notes, the Horizon facility, and the accounting treatment of certain royalty and purchase agreement obligations.
Concerns
- Zelsuvmi net product revenue of $15,213 thousand was 1% lower than the $15,420 thousand reported in Q2 2026, after a period of sequential growth in units.
- The company expects a slight increase in gross-to-net deductions as new coverage is implemented, which the release presents as a factor for net revenue per unit.
- Stockholders' equity moved to a deficit of $(6,186) thousand from $38,881 thousand at December 31, 2025, while total liabilities rose to $135,003 thousand from $91,516 thousand.
- Net loss for nine months 2026 was $(56,385) thousand, and the change in fair value of convertible debt was a $(9,270) thousand charge for the nine months.
- Interest expense for nine months 2026 was $(7,011) thousand, compared with $(1,698) thousand in the prior-year period.
- Adjusted EBITDA remained negative at $(5,591) thousand for Q3 2026 and $(19,329) thousand for nine months 2026.
- Cash of $17.7 million at September 30, 2026 is modest relative to the operating loss. The company states the additional $10.0 million borrowed on October 30, 2026 and cash on hand, combined with current commercial projections, is expected to support the current business plan.
- The release contains no operating cash flow or free cash flow figures.
What to watch
- Zelsuvmi unit growth and net revenue per unit, as the company expects gross-to-net deductions to increase slightly as new coverage is implemented.
- Planned launch of Xepi, targeted in the first quarter of 2027, and Xeglyze, targeted in the third quarter of 2027.
- Completion of the Castle Creek merger, which the company says remains on track to close by the end of the first quarter of 2027, subject to customary closing conditions including approval by Castle Creek's stockholders.
- Availability of the additional $10.0 million under the Horizon facility before December 31, 2027, which is primarily subject to trailing twelve-month net revenue of at least $70.0 million.
- Movements in the fair value of the convertible notes, which created a $4,067 thousand gain in Q3 2026 and a $(3,705) thousand loss in Q2 2026.
- Stockholders' equity deficit and rising liabilities against cash of $17.7 million.
Balance sheet and cash flow
- Cash and cash equivalents: $17,690 thousand at September 30, 2026, compared with $17,973 thousand at December 31, 2025. The company states cash was $17.7 million at September 30, 2026, not including an additional $10.0 million borrowed from Horizon Technology Finance on October 30, 2026.
- Total assets: $128,817 thousand at September 30, 2026, compared with $130,397 thousand at December 31, 2025.
- Total liabilities: $135,003 thousand at September 30, 2026, compared with $91,516 thousand at December 31, 2025.
- Total stockholders' (deficit) equity: $(6,186) thousand at September 30, 2026, compared with $38,881 thousand at December 31, 2025.
- Horizon Technology Finance: On October 30, 2026, Pelthos entered into an Amended and Restated Venture Loan and Security Agreement providing a senior secured term loan facility of up to $50.0 million. The company drew an additional $10.0 million, bringing current outstanding borrowings to $40.0 million. An additional $10.0 million may be available before December 31, 2027, primarily subject to trailing twelve-month net revenue of at least $70.0 million.
- Shares: approximately 9.1 million shares outstanding on an as-converted basis at September 30, 2026, including conversion of approximately 51,479 shares of Series A and 2,600 shares of Series C Convertible Preferred Stock, and approximately 3.9 million shares of common stock outstanding.
Analysis
Pelthos reported Q3 2026 Zelsuvmi net product revenue of $15,213 thousand, up 114% from $7,112 thousand in Q3 2025 and 1% below the $15,420 thousand reported in Q2 2026. Units dispensed rose 4% sequentially to 12,384 units, while the release does not print the prior-year unit count, so the comparison is limited to the stated 365% year-over-year increase. The company says net revenue per unit reflected increased utilization associated with expanding access, and it expects a slight increase in gross-to-net deductions as new coverage is implemented. Taken together, the figures show volume growth alongside a sequentially flat revenue line.
Cost of goods sold fell to $1,661 thousand from $3,610 thousand in Q2 2026. The company states that cost of goods sold includes fair value adjustments from the July 2025 merger and that Q2 2026 included a $0.9 million inventory write-off. SG&A was $18,845 thousand, down 25% sequentially from $25,034 thousand, which the company links to $5.3 million of one-time milestone expense in Q2 2026, and up 3% from $18,383 thousand a year earlier. Total operating expenses were $25,088 thousand, and the operating loss narrowed to $(9,693) thousand from $(15,362) thousand in Q3 2025 and $(17,323) thousand in Q2 2026. The release reports royalty expense of $2,510 thousand and amortization of $1,053 thousand, but gives no margin figure, so gross margin is not calculated here.
Below the operating line, interest expense was $(2,269) thousand, and the change in fair value of convertible debt was a $4,067 thousand gain, against a $(3,705) thousand loss in Q2 2026. This item moved the total other line to income of $1,798 thousand, so the net loss of $(7,895) thousand is well below the $(16,238) thousand loss of Q3 2025 and the $(23,417) thousand loss of Q2 2026. Net loss per share was $(2.04) against $(5.30) a year earlier. Adjusted EBITDA, a non-GAAP measure defined in the release, was $(5,591) thousand, against $(10,371) thousand in Q3 2025 and $(5,697) thousand in Q2 2026. Adjusted EBITDA is still negative, and the nine-month figure of $(19,329) thousand is well below the prior-year nine-month figure of $(14,586) thousand.
The balance sheet shows stockholders' equity of $(6,186) thousand at September 30, 2026, down from $38,881 thousand at December 31, 2025. Total liabilities rose to $135,003 thousand from $91,516 thousand, while total assets were $128,817 thousand. Cash was $17,690 thousand, and the company states an additional $10.0 million was drawn from Horizon on October 30, 2026, bringing outstanding borrowings to $40.0 million under a facility of up to $50.0 million. The release gives no operating cash flow, free cash flow or capital return figures for the quarter.
Management presents the pending Castle Creek combination as the main strategic development, with a target close by the end of the first quarter of 2027 and launches of Xepi and Xeglyze planned for the first and third quarters of 2027. The release provides no numerical financial guidance for 2026 or 2027, so no guidance comparison is possible. Based on the printed figures, Q3 2026 shows revenue growth year over year, a narrower loss and a lower operating cost base than Q2 2026, but sequentially flat revenue, a deficit in stockholders' equity, rising liabilities and continued negative Adjusted EBITDA.
Management, verbatim
Zelsuvmi delivered another solid quarter, generating net product revenue of $15.2 million,
Scott Plesha, Chief Executive Officer, Pelthos Therapeutics
We look forward to completing the transaction and delivering significant value to our shareholders.
Scott Plesha, Chief Executive Officer, Pelthos Therapeutics
Not in the filing
stated, not guessed- Prior-year and prior-quarter Zelsuvmi unit counts: units dispensed are given with percentage changes but the underlying prior-year and prior-quarter unit figures are not printed.
- Year-over-year and quarter-over-quarter percentage changes for total revenue, license and collaboration revenues, cost of goods sold line changes beyond those stated in text, R&D, royalty expense, amortization, total operating expenses, operating loss, interest expense, total other income, pre-tax loss, net loss, EPS and Adjusted EBITDA.
- Gross margin percentage: not printed in the release.
- Operating cash flow, investing cash flow, free cash flow and cash used in operations: not printed.
- Share repurchases and dividends: none reported in the release.
- Total debt on a single line: the release prints Horizon borrowings of $40.0 million after the October 30, 2026 draw, and convertible notes are not given as a separate outstanding balance.
- Financial guidance for 2026 or 2027 (revenue, gross margin, operating expenses, tax rate): not provided in this release; no previous outlook was supplied.
- Prior-year and prior-quarter figures for the change in fair value of convertible debt: the prior-year column prints nil and no prior-quarter percentage is given.
- Interest income and other income: prior-year amount printed in thousands without a percentage change; no current-period amount beyond a nil figure.
- Prior-year nine-month comparison for Zelsuvmi net product revenues and for SG&A is printed only as the statement-of-operations columns; no percentage change is stated.
- Segment reporting: the release does not break out segment operating income or segment costs.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Pelthos Therapeutics (PTHS) is a NYSE American listed biotech with three FDA‑approved dermatology products.
Ticker impact
Pelthos Therapeutics reported Q3 2026 net product revenue of $15.2M, a 114% YoY increase, and announced a definitive merger agreement with Castle Creek.
likely upward pressure as investors price in revenue growth and merger synergies
Revenue more than doubled YoY and the merger creates a diversified biotech platform, both positive catalysts.
Market effects
Boosts sentiment for small‑cap biotech and dermatology segments.
U.S. biotech market may see modest gains from the merger news.
Limited to investors focused on niche biotech opportunities.
Counterpoint
Merger integration risk could dilute focus on existing products.
Key entities
- CompanyPelthos Therapeutics Inc.
Biopharma reporting Q3 results and merger with Castle Creek.
- CompanyCastle Creek Biosciences, Inc.
Target of merger, brings cell‑gene therapy platform.
