Alkermes (ALKS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues reached $392.9 million, up from $306.5 million in Q1 2025, driven by strong proprietary product sales and the acquisition and integration of Avadel Pharmaceuticals and its sleep medicine asset LUMRYZ.

• GAAP net loss was $66.5 million ($0.40 per share), compared to net income of $22.5 million ($0.14 per share) in Q1 2025, reflecting higher operating and acquisition-related expenses.

• Adjusted EBITDA rose to $80.3 million from $45.6 million year-over-year, surpassing prior guidance.

• Expanded commercial portfolio now spans addiction (VIVITROL), psychiatry (ARISTADA, LYBALVI), and sleep medicine (LUMRYZ), positioning for further growth and diversification.

• Orexin program advanced with phase III BRILLIANT studies for alixorexton in narcolepsy and ongoing phase II/III studies in idiopathic hypersomnia, with additional development in ADHD and fatigue.

Financial highlights

• Q1 2026 total revenues were $392.9 million, with proprietary product net sales up 38% year-over-year to $338.1 million, driven by strong demand and LUMRYZ contribution.

• LUMRYZ generated $39.5 million in net sales for the six weeks post-acquisition; Avadel recorded $33 million in sales prior to acquisition.

• Manufacturing and royalty revenues totaled $54.8 million, including $27.3 million from VUMERITY and $18 million from Johnson & Johnson products.

• Cash and investments at quarter-end were $538 million, down from $1.32 billion at year-end 2025, reflecting acquisition financing.

• GAAP diluted EPS was $(0.40), down from $0.13 in Q1 2025.

Outlook and guidance

• Full-year 2026 revenue guidance: $1.73–$1.84 billion; net sales guidance: VIVITROL $460–$480 million, ARISTADA $365–$385 million, LYBALVI $380–$400 million, LUMRYZ $315–$335 million.

• Adjusted EBITDA for 2026 projected at $370–$410 million; Q2 2026 proprietary net sales expected at $385–$405 million.

• 2026 GAAP net loss expected between $(70) million and $(90) million, reflecting improved purchase price accounting for Avadel.

• Cost of goods sold for 2026 revised to $320–$340 million; amortization of intangibles $75–$85 million; $1.8 billion in LUMRYZ-related intangible assets to be amortized over 14 years.

• Management expects existing liquidity to be sufficient for at least the next twelve months, including debt service and capital expenditures.