Knight Therapeutics (GUD) Q4 2025 earnings summary

Executive summary

• Achieved 12 consecutive years of record revenue, reaching CAD 452 million (or $452.4 million adjusted) in 2025, up 24% year-over-year, driven by key promoted products, new portfolio additions, and Paladin and Sumitomo acquisitions.

• Adjusted EBITDA reached a record CAD 73 million (or $73.1 million), with cash flow from operations at CAD 69 million for 2025, up 90% year-over-year.

• Expanded Canadian infrastructure and product portfolio, positioning Canada as a major contributor to future revenue and profitability.

• Completed 10 product launches in 2025 and expect at least 10 more in 2026 across Canada and Latin America.

• Expanded product portfolio with over 50 new assets, including major launches and regulatory approvals.

Financial highlights

• Q4 2025 revenues were CAD 133.2 million, up 42% year-over-year; adjusted EBITDA was CAD 24.4 million, up 63%.

• Full-year 2025 revenues grew by CAD 87 million (24%) to CAD 452 million; adjusted EBITDA increased by CAD 15 million (26%) to CAD 73 million.

• Adjusted revenues (excluding hyperinflation) were $452.4 million, up 24% year-over-year or 24% at constant currency.

• Adjusted gross margin improved to 51% in Q4 2025 (from 47% in Q4 2024) and to 48% for the year (from 47% in 2024); gross margin declined to 44% due to hyperinflation and inventory adjustments.

• Cash and marketable securities at year-end were CAD 95 million, with net cash position improving to CAD 27 million; cash, cash equivalents, and marketable securities totaled $95.3 million at year-end, down 33% due to acquisition payments and share repurchases.

• Debt to adjusted EBITDA leverage ratio improved from over 1.45x to under 1x by year-end.

Outlook and guidance

• 2026 revenue guidance is CAD 490–510 million (or $490–$510 million), with adjusted EBITDA expected at approximately 15% of revenues.

• Growth expected from recent and upcoming launches and full-year impact of Paladin and Sumitomo transactions.

• At least 10 new product launches planned for 2026, continuing investment in brands and pipeline.

• Guidance assumes no major disruptions in supply, regulatory, or geopolitical environment, and no new generic competition.