Third Quarter 2026
Filed Oct 27, 2026ARCALYST Q3 2026 net product revenue of $286.0 million, representing ~58% year-over-year growth; 2026 ARCALYST net product revenue guidance increased to $1.045 - $1.050 billion.
Third-quarter total revenue, operating income, net income and diluted EPS increased versus the third quarter of 2025, while ARCALYST full-year net product revenue guidance was raised.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $286M | – | – |
| Product revenue, net, three months ended September 30, 2026GAAP | $286.0M | – | – |
| License and collaboration revenue, three months ended September 30, 2026GAAP | — | – | – |
| Cost of goods sold, three months ended September 30, 2026GAAP | $27.8M | – | – |
| Collaboration expenses, three months ended September 30, 2026GAAP | $105.8M | – | – |
| Research and development expenses, three months ended September 30, 2026GAAP | $32.8M | – | – |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | $65.4M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $231.7M | – | – |
| Share-based compensation expense included in total operating expenses, three months ended September 30, 2026GAAP | $13.1M | – | – |
| Income from operations, three months ended September 30, 2026GAAP | $54.24M | – | – |
| Other income, net, three months ended September 30, 2026GAAP | $4.82M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $59.06M | – | – |
| Provision for income taxes, three months ended September 30, 2026GAAP | −$11.71M | – | – |
| Net income, three months ended September 30, 2026GAAP | $47.3M | – | – |
| Net income per share attributable to ordinary shareholders, basic, three months ended September 30, 2026GAAP | $0.61 | – | – |
| Net income per share attributable to ordinary shareholders, diluted, three months ended September 30, 2026GAAP | $0.56 | – | – |
| Weighted average ordinary shares outstanding, basic, three months ended September 30, 2026GAAP | 78,192,603 | – | – |
| Weighted average ordinary shares outstanding, diluted, three months ended September 30, 2026GAAP | 84,920,060 | – | – |
| Total revenue, nine months ended September 30, 2026GAAP | $743.8M | – | – |
| Product revenue, net, nine months ended September 30, 2026GAAP | $743.8M | – | – |
| Cost of goods sold, nine months ended September 30, 2026GAAP | $72.13M | – | – |
| Collaboration expenses, nine months ended September 30, 2026GAAP | $269.5M | – | – |
| Research and development expenses, nine months ended September 30, 2026GAAP | $101.2M | – | – |
| Selling, general and administrative expenses, nine months ended September 30, 2026GAAP | $190.4M | – | – |
| Total operating expenses, nine months ended September 30, 2026GAAP | $633.1M | – | – |
| Income from operations, nine months ended September 30, 2026GAAP | $110.7M | – | – |
| Other income, net, nine months ended September 30, 2026GAAP | $12.19M | – | – |
| Income before income taxes, nine months ended September 30, 2026GAAP | $122.9M | – | – |
| Provision for income taxes, nine months ended September 30, 2026GAAP | −$27.51M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $95.37M | – | – |
| Net income per share attributable to ordinary shareholders, basic, nine months ended September 30, 2026GAAP | $1.23 | – | – |
| Net income per share attributable to ordinary shareholders, diluted, nine months ended September 30, 2026GAAP | $1.14 | – | – |
| Weighted average ordinary shares outstanding, basic, nine months ended September 30, 2026GAAP | 77,435,077 | – | – |
| Weighted average ordinary shares outstanding, diluted, nine months ended September 30, 2026GAAP | 83,713,015 | – | – |
| Cash, cash equivalents, and short-term investments, as of September 30, 2026GAAP | $568.8M | – | – |
| Working capital, as of June 30, 2026GAAP | 558,244 | – | – |
| Total assets, as of June 30, 2026GAAP | 983,243 | – | – |
| Accumulated deficit, as of June 30, 2026GAAP | (366,769) | – | – |
| Total shareholders' equity, as of June 30, 2026GAAP | 710,193 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ARCALYSTStrong commercial execution led to gains in patient and physician adoption. | $286M | – | ~58% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
2026 outlook
- RevenueARCALYST net product revenue of between $1.045 billion and $1.050 billion
- NoteR&D expenses of between $160 million and $170 million
- NoteSG&A expenses of between $270 million and $280 million
- NoteCurrent operating plan to remain cash flow positive on an annual basis
- NoteKPL-387 pivotal Phase 3 data expected in the second half of 2027
- NoteInitiate a Phase 1 first-in-human clinical trial of KPL-1161 by the end of 2026
What drove it
- ARCALYST net product revenue was $286.0 million for the third quarter of 2026.
- As of the end of the third quarter of 2026, approximately 23% of the 14,000 annual multiple-recurrence patients were actively on ARCALYST treatment.
- Since launch, more than 5,450 prescribers have written ARCALYST prescriptions for recurrent pericarditis.
- Average total duration of ARCALYST therapy in recurrent pericarditis was approximately 3 years, in line with the median duration of disease.
- COGS increased primarily due to costs associated with increased sales of ARCALYST.
- Collaboration expenses were driven primarily by ARCALYST collaboration profitability.
- R&D expense increased primarily due to increased KPL-387 clinical activity.
- SG&A expense increased primarily due to investment associated with the commercialization of ARCALYST.
Concerns
- KPL-387 remains in its pivotal Phase 3 trial, with data expected in the second half of 2027.
- Kiniksa continues to invest in KPL-387 clinical activity and ARCALYST commercialization.
- No operating cash flow, free cash flow, gross margin, or capital-return amount was reported.
What to watch
- Execution against 2026 ARCALYST net product revenue guidance of between $1.045 billion and $1.050 billion.
- KPL-387 PASTORALE pivotal Phase 3 data expected in the second half of 2027.
- Initiation of the KPL-1161 Phase 1 first-in-human clinical trial by the end of 2026.
- Progress in ARCALYST patient and physician adoption.
Balance sheet and cash flow
- As of September 30, 2026, Kiniksa had $568.8 million of cash, cash equivalents, and short-term investments and no debt.
- Kiniksa expects its current operating plan to remain cash flow positive on an annual basis.
Analysis
Kiniksa reported third-quarter total revenue of $286.0 million, compared to $180.9 million in the third quarter of 2025. ARCALYST net product revenue was $286.0 million, representing ~58% year-over-year growth. Management attributed the commercial result to gains in patient and physician adoption. Approximately 23% of the 14,000 annual multiple-recurrence patients were actively on treatment at quarter end, and more than 5,450 prescribers had written prescriptions since launch.
Profitability expanded alongside revenue. Total operating expenses were $231.7 million compared to $156.8 million, producing income from operations of $54,236 compared to $24,021. Net income was $47.3 million compared to $18.4 million, and diluted EPS was $0.56 compared to $0.23. Expense growth reflected higher ARCALYST sales-related COGS and collaboration expenses, increased KPL-387 clinical activity in R&D, and commercialization investment in SG&A.
For the nine months ended September 30, 2026, total revenue was $743,836 compared to $475,437, while income from operations was $110,697 compared to $57,453. Net income was $95,369 compared to $44,806. The company reported $568.8 million of cash, cash equivalents, and short-term investments as of September 30, 2026, with no debt, and expects its current operating plan to remain cash flow positive on an annual basis.
Management increased 2026 ARCALYST net product revenue guidance to between $1.045 billion and $1.050 billion from between $980 million and $995 million. It maintained expense outlook of between $160 million and $170 million for R&D and between $270 million and $280 million for SG&A. Pipeline execution remains centered on PASTORALE, the pivotal Phase 3 trial of KPL-387, with data expected in the second half of 2027, and a planned Phase 1 initiation for KPL-1161 by the end of 2026.
Management, verbatim
Kiniksa continues to build a leading IL-1α and IL-1β inhibition franchise, driven by the commercialization of ARCALYST in recurrent pericarditis. In the third quarter, strong commercial execution led to gains in patient and physician adoption, resulting in revenue of $286.0 million and positioning ARCALYST to achieve blockbuster status this year.
Sanj K. Patel, Chairman & Chief Executive Officer of Kiniksa
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported operating metrics
- GAAP gross margin
- Non-GAAP revenue, income, margin, EPS, and cash flow measures
- Operating cash flow
- Free cash flow
- Capital returns, including share repurchases and dividends
- Detailed debt amount
- Guidance for gross margin, total operating expenses, and tax rate
- Previous-release outlook required for formal actual-versus-prior-guidance comparisons
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.