Second quarter 2026
Filed Aug 5, 2026United Therapeutics Corporation Reports Second Quarter 2026 Financial Results
Total revenues decreased by two percent year-over-year, with declines in Nebulized Tyvaso, total Tyvaso, and Remodulin, while net income increased eight percent and diluted net income per share increased 13 percent.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $783.3 million | – | (2) % |
| Net incomeGAAP | $333.0 million | – | 8 % |
| Net income, per basic shareGAAP | $7.82 | – | 14 % |
| Net income, per diluted shareGAAP | $7.27 | – | 13 % |
| Cost of salesGAAP | $98.5 million | – | 14 % |
| Share-based compensation expense in cost of salesGAAP | $1.0 million | – | — % |
| Total cost of salesGAAP | $99.5 million | – | 14 % |
| External research and developmentGAAP | $71.2 million | – | 14 % |
| Internal research and developmentGAAP | $54.0 million | – | (3) % |
| Share-based compensation expense in research and developmentGAAP | $10.9 million | – | 35 % |
| Other research and development expenseGAAP | $10.2 million | – | 34 % |
| Total research and development expenseGAAP | $146.3 million | – | 9 % |
| General and administrativeGAAP | $137.9 million | – | 5 % |
| Impairment of property, plant, and equipmentGAAP | — | – | (100) % |
| Sales and marketingGAAP | $37.3 million | – | 20 % |
| Share-based compensation expense in selling, general, and administrative expenseGAAP | $31.5 million | – | 10 % |
| Total selling, general, and administrative expenseGAAP | $206.7 million | – | (3) % |
| Stock options share-based compensation expenseGAAP | $12.8 million | – | 15 % |
| Restricted stock units share-based compensation expenseGAAP | $29.7 million | – | 14 % |
| Employee stock purchase plan share-based compensation expenseGAAP | $0.9 million | – | 29 % |
| Total share-based compensation expenseGAAP | $43.4 million | – | 15 % |
| Interest incomeGAAP | $31.5 million | – | – |
| Other income (expense), netGAAP | $13.3 million in income | – | – |
| Income tax expenseGAAP | $39.7 million | – | – |
| Effective income tax rateGAAP | 11 percent | – | – |
| U.S. total revenuesGAAP | $733.6 million | – | – |
| ROW total revenuesGAAP | $49.7 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Tyvaso DPIGrowth resulted primarily from an increase in quantities sold of $6.9 million and a price increase of $9.4 million, partially offset by higher gross-to-net deductions. | $326.6 million | – | 4 % |
| Nebulized TyvasoThe decrease resulted primarily from a decrease in U.S. quantities sold of $37.6 million, partially offset by a price increase. | $126.0 million | – | (18) % |
| Total TyvasoThe decrease was driven by a decrease in Nebulized Tyvaso revenues, partially offset by growth in Tyvaso DPI revenues. | $452.6 million | – | (4) % |
| RemodulinThe decrease resulted primarily from a decrease in U.S. quantities sold of $12.3 million, partially offset by an increase in international revenues. | $126.3 million | – | (6) % |
| OrenitramNo specific driver reported. | $125.7 million | – | 1 % |
| UnituxinNo specific driver reported. | $65.2 million | – | 12 % |
| AdcircaNo specific driver reported. | $6.7 million | – | 3 % |
| OtherNo specific driver reported. | $6.8 million | – | 24 % |
Capital returns
- In March 2026, the Board of Directors approved a share repurchase program authorizing up to $2.0 billion in aggregate repurchases of common stock, which expires on March 9, 2027.
- In March 2026, United Therapeutics entered into the 2026 ASR agreements with Citibank, N.A. to repurchase approximately $1.5 billion of common stock.
- During the three months ended June 30, 2026, United Therapeutics received an additional 378,936 shares upon the first to settle of the 2026 ASR agreements.
- The other 2026 ASR agreement settled in August 2026, and United Therapeutics received an additional 215,948 shares upon final settlement.
- In total, United Therapeutics repurchased 2,759,343 shares under the 2026 ASR agreements, of which 2,543,395 were held as treasury stock as of June 30, 2026.
- As of June 30, 2026, $500 million remained available under the share repurchase program for purchases through March 9, 2027.
What drove it
- Tyvaso DPI exited the second quarter at record levels of starts, referrals, commercial patients, and total patients, reflecting strong underlying demand.
- United Therapeutics stated that availability of competitive therapies negatively impacted sales of Nebulized Tyvaso, Tyvaso DPI, and Remodulin for the three and six months ended June 30, 2026.
- The increase in cost of sales was primarily due to increased inventory reserve expense, including $7.5 million related to estimated losses under a commercial supply agreement intended to provide sufficient Tyvaso DPI inventory.
- Research and development expense increased primarily due to increased expenditures related to cardiopulmonary treatment projects and an increase in the fair value of contingent consideration obligations for manufactured organ and organ alternative projects obtained through acquisition.
- Selling, general, and administrative expense declined because a 2025 impairment charge for certain property, plant, and equipment did not recur in 2026.
- The lower effective income tax rate was primarily due to increased excess tax benefits from share-based compensation.
Concerns
- Total revenues decreased by two percent year-over-year.
- Nebulized Tyvaso revenues decreased 18 percent year-over-year and Remodulin revenues decreased six percent year-over-year.
- United Therapeutics stated that competitive therapies negatively impacted sales of Nebulized Tyvaso, Tyvaso DPI, and Remodulin.
- Total cost of sales increased 14 percent year-over-year, primarily due to inventory reserve expense.
- Total research and development expense increased nine percent year-over-year.
- Interest income decreased to $31.5 million from $51.3 million, primarily due to lower marketable investments following sales of securities to fund the 2026 ASR agreements.
What to watch
- Potential approvals next year for Nebulized Tyvaso in IPF and ralinepag tablets in PAH, as described by the Chief Executive Officer.
- Planned filings later in 2026: an IND application for ralinepag DPI and an NDA for treprostinil SMI.
- Whether Tyvaso DPI demand, including starts, referrals, commercial patients, and total patients, converts into sustained revenue growth.
- The impact of competitive therapies on Nebulized Tyvaso, Tyvaso DPI, and Remodulin sales.
- Launch later in 2026 of two xeno-organ production facilities in Minnesota and Texas.
Balance sheet and cash flow
- Interest income was $31.5 million, compared to $51.3 million for the three months ended June 30, 2025.
- The decrease in interest income was primarily due to a decrease in marketable investments due to the sale of securities to fund the 2026 ASR agreements.
Analysis
United Therapeutics reported a mixed second quarter. Total revenues decreased by two percent year-over-year to $783.3 million, as growth in Tyvaso DPI, Orenitram, Unituxin, Adcirca, and Other did not offset lower Nebulized Tyvaso and Remodulin revenues. Net income increased eight percent to $333.0 million, while diluted net income per share increased 13 percent to $7.27.
Tyvaso DPI increased four percent to $326.6 million, supported primarily by higher quantities sold and a price increase, partially offset by higher gross-to-net deductions. Nebulized Tyvaso declined 18 percent to $126.0 million, primarily reflecting lower U.S. quantities sold. Total Tyvaso revenues declined four percent to $452.6 million. Remodulin declined six percent, while Unituxin increased 12 percent. The company stated that competitive therapies negatively affected sales of Nebulized Tyvaso, Tyvaso DPI, and Remodulin.
Expense trends were mixed. Total cost of sales increased 14 percent, primarily due to inventory reserve expense, including $7.5 million related to estimated losses under a commercial supply agreement for Tyvaso DPI inventory. Research and development expense increased nine percent on cardiopulmonary treatment spending and higher fair value of contingent consideration obligations. Total selling, general, and administrative expense declined three percent because a prior-year impairment charge for certain property, plant, and equipment did not recur, despite higher personnel, consulting, and sales and marketing expenses.
Profitability also benefited from lower income tax expense, with the effective income tax rate declining to 11 percent from 24 percent, primarily due to increased excess tax benefits from share-based compensation. Interest income declined as marketable investments decreased after securities were sold to fund accelerated share repurchase agreements. Capital allocation was substantial, with the company repurchasing shares under the 2026 ASR agreements and retaining $500 million under its authorized repurchase program.
No forward financial guidance was reported in the provided filing text. Management emphasized regulatory submissions for ralinepag tablets in PAH and Nebulized Tyvaso in IPF, planned later-year filings for ralinepag DPI and treprostinil SMI, and the potential launch of two xeno-organ production facilities later in 2026. The central operating issue is whether record Tyvaso DPI demand can outweigh competitive pressure and continued declines in Nebulized Tyvaso and Remodulin.
Management, verbatim
We just submitted what we believe are two of the most important NDAs in rare pulmonary disease history: ralinepag tablets in PAH and Nebulized Tyvaso in IPF.
Martine Rothblatt, Ph.D., Chairperson and Chief Executive Officer
Tyvaso DPI exited the second quarter at record levels of starts, referrals, commercial patients, and total patients, reflecting strong underlying demand.
Michael Benkowitz, President and Chief Operating Officer
Not in the filing
stated, not guessed- Forward financial guidance
- Previous-release outlook and comparison with prior guidance
- Gross profit
- Gross margin
- Operating income
- Operating margin
- Non-GAAP revenue, earnings, EPS, or margin measures
- Cash balance
- Debt balance
- Operating cash flow
- Free cash flow
- Dividend information
- Quarter-over-quarter comparisons
- Revenue by U.S. and ROW for each product as separate structured segment fields
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.