Heron Therapeutics (HRTX) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales reached $34.7 million, with Acute Care products up 32% year-over-year and Oncology products at $21.1 million, reflecting a 26.3% decline due to SUSTOL wind-down and lower CINVANTI units.

• Severe winter weather and seasonal headwinds led to a high single-digit decline in surgical volumes versus Q4, impacting elective procedures and revenue, but March net sales rebounded to over $15 million.

• Net loss for Q1 2026 was $8.1 million, compared to net income of $2.6 million in Q1 2025; gross margin declined to 69–69.4%.

• Commercial expansion and sales force growth are planned for Q3 2026 to drive further adoption.

• Settlements reached in CINVANTI and APONVIE patent litigation, with ongoing litigation for CINVANTI patents.

Financial highlights

• Q1 2026 net product sales: $34.7 million, down from $38.9 million in Q1 2025.

• Gross margin was 69–69.4%, below the typical range due to higher costs from a secondary CINVANTI supplier.

• Adjusted EBITDA was -$727,000, reflecting weather-related softness and temporary margin pressure.

• Net loss per share: $(0.04) vs. EPS of $0.02 in Q1 2025.

• Cash, cash equivalents, and short-term investments totaled $44.8 million as of March 31, 2026.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: net product sales of $173–$183 million and adjusted EBITDA of $10–$20 million.

• Deferred elective procedures are expected to be rescheduled, creating a tailwind for the remainder of 2026.

• Temporary gross margin pressure expected to normalize as higher-cost CINVANTI inventory is worked through over the next two quarters.