$LQDA earnings report

Liquidia reported third quarter 2026 total revenue of $225,300 thousand, against $54,342 thousand a year earlier. Product sales, net were $222.7 million versus $51.7 million, an increase the company attributes to higher YUTREPIA volume, and the release states product sales rose 31% from the second quarter of 2026. Service revenue of $2.6 million came from the Sandoz Promotion Agreement, which the company says was terminated in October 2026 and will no longer generate service revenue. The company also reports $212.2 million in paid patient demand excluding voucher and patient access programs, more than 60% of referrals since launch including a PAH diagnosis, and 1,300 prescribers through October. It states that October 2026 total patient shipments were the highest monthly level since launch.

Costs rose faster than revenue on several lines. Cost of product sales increased to $14.0 million from $2.3 million, which the company links to higher YUTREPIA volume. R&D expenses increased to $25.3 million from $9.3 million, and SG&A increased to $59.0 million from $40.1 million. The company attributes the R&D increase mainly to the L606 program and the SG&A increase mainly to personnel, stock-based compensation and commercial and consulting spend. Operating results were a loss from operations of $(263,519) thousand, against income from operations of $1,767 thousand in the prior-year quarter, because of the $389.7 million litigation settlement, net line.

The settlement dominates the GAAP result. The company states the charge includes $330.4 million payable to United Therapeutics, less $10.0 million receivable, $60.3 million payable to parties with interests in the related antitrust litigation, and non-cash write-offs tied to the Promotion Agreement. Net loss was $236.3 million, or $(2.64) per basic and diluted share, against a net loss of $3.5 million, or $(0.04) per share, a year earlier. A $30.1 million income tax benefit was recognized, and the release reports no such benefit in the prior-year quarter. The company's non-GAAP adjusted EBITDA was $140.5 million, which it describes as the fifth consecutive quarter of increase. The reconciliation adds back the settlement charge and $13,678 thousand of stock-based compensation to a reported EBITDA of $(262,974) thousand.

The balance sheet changed materially. Cash and cash equivalents were $396.1 million at September 30, 2026, before settlement payments, compared with $190.7 million at December 31, 2025. Total liabilities increased to $708,376 thousand from $283,186 thousand, and stockholders' equity moved from $44,748 thousand at December 31, 2025 to a deficit of $(25,434) thousand. The company states it agreed to pay net $380.7 million in installments during 2026 and 2027 and expects to fund those payments from current cash and ongoing YUTREPIA sales. The release does not report operating cash flow, free cash flow or any capital return.

The release gives no quantitative guidance for the coming periods. The most consequential forward items are regulatory and clinical: the Prior Approval Supplement to remove the PH-ILD indication from the YUTREPIA label, the stated cessation of PH-ILD promotion, the Phase 4 PAH studies, the RE-WARM Phase 2 study in SSc-RP with Fast Track designation, and the L606 pivotal programs. The company's own forward-looking statements caveat that the settlement does not extend to indications other than PAH and that United Therapeutics may assert patents against development programs. Readers should weigh the reported October shipment record and referral trends against the settlement cash outflows and the wider operating expense base.

Liquidia reported a sharp expansion in YUTREPIA product sales, net, to $170.4 million for the three months ended June 30, 2026, compared with $6.5 million in the prior-year period. The company attributed the $163.9 million increase to higher YUTREPIA sales volume. The release also stated that YUTREPIA net product sales were up 31% from the first quarter of 2026. Commercial adoption indicators included approximately 5,900 unique patient prescriptions, more than 5,000 patients started on treatment, more than 1,100 prescribers, and prescription-to-start conversion above the 85% level as of July 31, 2026.

The sales increase supported a fourth consecutive quarter of increasing profitability. Liquidia recorded GAAP net income of $74.7 million, or $0.84 per basic share and $0.74 per diluted share, compared with a net loss of $41.6 million in the prior-year quarter. It also reported positive non-GAAP adjusted EBITDA of $96.3 million. Service revenue, net was $1.3 million, down from $2.3 million, with the decline primarily attributed to unfavorable gross-to-net adjustments under the Sandoz promotion arrangement for Treprostinil Injection.

Costs rose alongside the commercial launch and pipeline investment. Cost of product sales increased to $10.8 million due primarily to higher YUTREPIA sales volume. Research and development expense rose to $17.2 million, driven principally by a $7.0 million increase for L606, a $2.0 million increase in YUTREPIA research and development activities, higher personnel costs, and a $1.0 million L606 development milestone. Selling, general and administrative expense increased to $57.4 million, reflecting personnel, stock-based compensation, and commercial and consulting expenses, partly offset by lower YUTREPIA-related litigation fees.

Liquidity improved during the period. Cash and cash equivalents totaled $284.2 million as of June 30, 2026, compared with $190.7 million as of December 31, 2025, and the company cited a $61.4 million increase in cash and cash equivalents compared to the first quarter of 2026. Total other expenses, net were $3.8 million, while income tax expense was $7.0 million. The company attributed the lower other expense versus the prior-year quarter primarily to higher money market balances, offset by higher borrowings under its revenue interest financing agreement.

The release did not provide quantitative forward financial guidance. Operationally, management emphasized further YUTREPIA evidence generation and the advancement of L606, including site activation and enrollment in Re-Spire. The principal disclosed risk remains ongoing litigation involving United Therapeutics, which Liquidia states could affect its ability to maintain YUTREPIA approval and continue commercialization if injunctive relief is obtained.