Eton Pharmaceuticals Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Eton Pharmaceuticals (Nasdaq: ETON) reported record Q2 2026 net revenue of $37.6 million, up 99% year-over-year, driven by HEMANGEOL and broad portfolio growth. GAAP diluted EPS was $0.35, non-GAAP diluted EPS $0.43, EBITDA $14.1 million, and Adjusted EBITDA $16.2 million, or 43% of revenue.
The company raised 2026 guidance, now expecting revenue to exceed $145 million and Adjusted EBITDA margin of at least 35%. Eton relaunched HEMANGEOL with about 95% patient conversion, licensed late-stage infantile hemangioma candidate ASN-001, submitted a KHINDIVI label-expansion PAS, obtained FDA Fast Track for AMGLIDIA, and acquired U.S. rights to orphan drug IMPAVIDO. Cash and equivalents were $26.8 million as of June 30, 2026.
Positive
- Q2 2026 revenue $37.6M, up 99% year-over-year from $18.9M
- Q2 2026 net income $11.6M vs. $2.6M loss prior year; diluted EPS $0.35
- Adjusted EBITDA $16.2M, 43% of revenue, up from $3.1M (16%)
- 2026 revenue guidance raised to exceed $145M from more than $120M
- Adjusted EBITDA margin guidance increased to at least 35% from at least 30%
- HEMANGEOL relaunch with ~95% of existing patients transitioned by end of June
- KHINDIVI label expansion PAS submitted to FDA after successful bioequivalence study
- AMGLIDIA granted FDA Fast Track, with NDA submission targeted by end of 2026
- Acquisition of U.S. rights to IMPAVIDO, with commercialization expected September 2026
Negative
- Adjusted gross margin declined to 73% from 75% year-over-year, pressured by negative-margin ex-U.S. INCRELEX sales
- Q2 2026 G&A expenses $11.6M, up 20% from $9.7M, reflecting higher headcount and FDA program fees
- Planned 2026 R&D spending to rise to $10–14M, including a $3M ASN-001 licensing expense and added study costs
- Interest and other expense remained elevated at $1.1M in Q2 2026, similar to prior year level
News Explained
The revised 2026 outlook incorporates a
Market reaction after 2Q26 earnings report: ETON +19.80%
Following this news, ETON has gained 19.80%, reflecting a significant positive market reaction. Argus tracked a peak move of +5.6% during the session. Our momentum scanner has triggered 5 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $48.88.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 14 | Q1 earnings report | Positive | +1.0% | Revenue growth, raised guidance, DESMODA launch, and HEMANGEOL acquisition |
| Mar 19 | Q4 earnings report | Positive | +7.5% | Record quarterly sales, DESMODA launch, HEMANGEOL rights, and higher 2026 outlook |
| Nov 06 | Q3 earnings report | Negative | -11.7% | Strong sales growth but negative GAAP EPS and pipeline execution updates |
| Aug 07 | Q2 earnings report | Positive | +12.3% | Sales growth, KHINDIVI approval, patient additions, and higher revenue run-rate |
| May 13 | Q1 earnings report | Positive | +0.3% | Revenue growth, product launches, licensing proceeds, and pipeline advancement |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-tagged announcements were aligned with positive price reactions in four of five prior events, while one strong operating update diverged.
Key Terms
ebitda financial
non-gaap financial
prior approval supplement regulatory
bioequivalence medical
fast track designation regulatory
new drug application regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Record revenue, with Q2 2026 product sales of
$37.6 million , representing99% growth over Q2 2025 - Q2 2026 fully diluted GAAP EPS of
$0.35 , non-GAAP fully diluted EPS of$0.43 ; EBITDA of$14.1 million , Adjusted EBITDA of$16.2 million - Raising full year revenue guidance, with 2026 revenue now expected to exceed
$145 million , up from previous guidance of more than$120 million - Relaunched HEMANGEOL® May 1st, patient conversion completed ahead of schedule
- Acquired late-stage product candidate ASN-001, expanding the Company’s infantile hemangioma franchise, and providing a potential high-value 2027 NDA submission
- Submitted Prior Approval Supplement to the FDA to expand indication of KHINDIVI®, allowing for potential H1 2027 approval of expanded indication
- Received FDA Fast Track designation for endocrinology development product AMGLIDIA®
- Acquired U.S. commercialization rights to orphan drug IMPAVIDO®
- Management to hold conference call today at 4:30pm ET
DEER PARK, Ill., Aug. 13, 2026 (GLOBE NEWSWIRE) -- Eton Pharmaceuticals, Inc (“Eton” or “the Company”) (Nasdaq: ETON), an innovative pharmaceutical company focused on developing and commercializing treatments for rare diseases, today reported financial results for the quarter ended June 30, 2026.
“Eton reported another outstanding quarter, delivering
“Given our first half performance and strong outlook for the remainder of the year, we’re pleased to again raise our annual revenue guidance and now expect at least
Second Quarter and Recent Business Highlights
Record revenues with
HEMANGEOL relaunched successfully, ensuring continuity of care for patients and families. The Company relaunched HEMANGEOL in May, offering full Eton Cares patient support, which provides comprehensive access and affordability services including
Expanded presence in infantile hemangioma with licensing of product candidate ASN-001. Last week, Eton announced the licensing of product candidate ASN-001, which is under development for the treatment of moderate infantile hemangiomas. ASN-001 would complement Eton’s HEMANGEOL franchise and leverage the same commercial infrastructure. The Company plans to initiate a bioavailability study and anticipates a New Drug Application (“NDA”) submission upon the study’s completion in the second half of 2027. If approved, Eton believes ASN-001 offers the largest revenue opportunity in its pipeline.
Strong year-over-year growth in pediatric endocrinology portfolio. DESMODA, which launched in March, continues to see strong adoption and patient growth while the three other products in the Company’s pediatric endocrinology portfolio all posted strong year-over-year revenue growth in the second quarter. The Company's adrenal franchise, consisting of ALKINDI SPRINKLE and KHINDIVI, surpassed 600 active patients on therapy, reflecting continued confidence from pediatric endocrinologists. INCRELEX continued to deliver strong growth, driven by appropriate dose optimization and sustained treatment, reflecting the Company's commitment to helping patients achieve the best possible outcomes.
Completed KHINDIVI label expansion study and submitted Prior Approval Supplement (PAS) to the U.S. Food and Drug Administration (FDA) requesting expansion of indication. The new formulation of KHINDIVI successfully demonstrated bioequivalence to ALKINDI SPRINKLE, paving the way for a potential first half of 2027 approval. The Company believes the largest unmet need for an FDA-approved oral liquid hydrocortisone remains with children under age five, and that an expanded label would dramatically increase adoption.
Acquired exclusive U.S. commercialization rights to Orphan Drug IMPAVIDO. In June, Eton announced the acquisition of IMPAVIDO, a critical, life-saving medication, adding an additional 2026 product launch. The product is FDA-approved, and Eton expects to begin commercializing the product in September 2026.
Pediatric endocrinology development product candidate AMGLIDIA was granted Fast Track designation by FDA. The Fast Track designation is designed to facilitate the development and expedite the review of drugs to treat serious conditions and fill an unmet medical need. The Company plans to initiate a bioavailability study for the product later this month and remains on track to submit an NDA by the end of 2026, allowing for potential approval and launch in 2027.
Continued to advance Wilson disease franchise. In addition to a strong quarter of patient additions for GALZIN, the Company’s pilot study for product candidate ET-700, its proprietary, patent-pending, extended-release formulation of zinc acetate, is underway. The study is comparing ET-700 to GALZIN and placebo. If pilot study results are successful, Eton anticipates initiating a pivotal clinical study in early 2027.
Executed INCRELEX label harmonization study agreement with Clinical Research Organization; site preparation is underway. Earlier this year, Eton received clearance from the FDA to proceed with its proposed label harmonization study, designed to support an application to broaden the approved definition of severe primary IGF-1 deficiency (SPIGFD) to match the E.U. definition. If successful, this could increase the addressable population in the U.S. from an estimated 200 to 1,000 patients. The Company has initiated study preparation activities with a goal of having the first patients dosed by the end of 2026.
Guidance
The Company now expects 2026 revenues to exceed
Second quarter Financial Results
Net Revenue: Total net revenue for the second quarter of 2026 was
Gross Profit: Gross profit for the second quarter of 2026 was
Adjusted gross profit, which adjusts for the impact of acquired inventory step-up adjustments and intangible amortization, was
Research and Development (R&D) Expenses: R&D expenses for the second quarter of 2026 were
General and Administrative (G&A) Expenses: G&A expenses for the second quarter of 2026 were
Adjusted G&A expense, which removes share-based compensation, depreciation, transaction-related costs, and other one-time expenses, was
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA): EBITDA for the second quarter of 2026 was
Adjusted EBITDA for the second quarter of 2026 was
Net Income/Loss: Net income for the second quarter of 2026 was
On a non-GAAP basis, the Company reported net income of
For a reconciliation of GAAP net income/(loss) to Earnings Before Interest, Taxes, Depreciation and Amortization EBITDA (“EBITDA”), Adjusted EBITDA and adjusted Non-GAAP basic and fully diluted earnings per share to the most directly comparable GAAP financial measure, please see the tables below.
Cash Position: As of June 30, 2026, the Company had cash and cash equivalents of
Conference Call and Webcast Information
As previously announced, Eton Pharmaceuticals will host its Second quarter 2026 conference call as follows:
| Date: | August 13, 2026 |
| Time: | 4:30 p.m. ET (3:30 p.m. CT) |
| Participant Call Link*: | Click Here |
| Webcast: | Click Here |
In addition to taking live questions from participants on the conference call, management will be answering emailed questions from investors. Investors can email questions to: investorrelations@etonpharma.com.
The live webcast can be accessed on the Investors section of Eton’s website at https://ir.etonpharma.com/. An archived webcast will be available on Eton’s website approximately two hours after the completion of the event and for 30 days thereafter.
* Conference call participants should register to obtain their dial-in and passcode details. Please be sure to register using a valid email address.
About Eton Pharmaceuticals
Eton is an innovative pharmaceutical company focused on developing and commercializing treatments for rare diseases. The Company currently has eleven commercial rare disease products: KHINDIVI ®, INCRELEX®, ALKINDI SPRINKLE®, DESMODA™, GALZIN®, HEMANGEOL®, PKU GOLIKE®, IMPAVIDO® (September 2026 launch), Carglumic Acid, Betaine Anhydrous, and Nitisinone. The Company has five additional product candidates in late-stage development: ASN-001, AMGLIDIA®, ET-700, ET-800, and ZENEO® hydrocortisone autoinjector. For more information, please visit our website at www.etonpharma.com.
Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements associated with the expected ability of Eton to undertake certain activities and accomplish certain goals and objectives. These statements include but are not limited to statements regarding Eton’s business strategy, Eton’s plans to develop and commercialize its product candidates, the safety and efficacy of Eton’s product candidates, Eton’s plans and expected timing with respect to regulatory filings and approvals, and the size and growth potential of the markets for Eton’s product candidates. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “believes,” “anticipates,” “plans,” “expects,” “intends,” “will,” “goal,” “potential” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Eton’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, risks associated with the process of discovering, developing and commercializing drugs that are safe and effective for use as human therapeutics, and in the endeavor of building a business around such drugs. These and other risks concerning Eton’s development programs and financial position are described in additional detail in Eton’s filings with the Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made. Eton undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
Non-GAAP Financial Measures
In addition to the Company’s results of operations determined in accordance with U.S. generally accepted accounting principles (GAAP), which are presented and discussed above, management also utilizes Adjusted EBITDA, an unaudited financial measure that is not calculated in accordance with GAAP, to evaluate the Company’s financial results and performance and to plan and forecast future periods. Adjusted EBITDA is considered a “non-GAAP” financial measure within the meaning of Regulation G promulgated by the SEC. Management believes that this non-GAAP financial measure reflects an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results, provides a more complete understanding of the Company’s results of operations and the factors and trends affecting its business. Management believes Adjusted EBITDA provides meaningful supplemental information regarding the Company’s performance because (i) it allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making; (ii) it excludes the impact of non-cash or, when specified, non-recurring items that are not directly attributable to the Company’s core operating performance and that may obscure trends in the Company’s core operating performance; and (iii) it is used by institutional investors and the analyst community to help analyze the Company’s results. However, Adjusted EBITDA and any other non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Further, non-GAAP financial measures used by the Company and the way they are calculated may differ from the non-GAAP financial measures or the calculations of the same non-GAAP financial measures used by other companies, including the Company’s competitors.
Adjusted EBITDA
The Company defines Adjusted EBITDA as net income/(loss), excluding the effects of stock-based compensation and expenses, interest, taxes, depreciation, amortization, and, if any and when specified, other non-recurring income or expense items. Management believes that the most directly comparable GAAP financial measure to Adjusted EBITDA is net income/(loss). Adjusted EBITDA has limitations and should not be considered as an alternative to gross profit or net income/(loss) as a measure of operating performance or to net cash provided by (used in) operating, investing, or financing activities as a measure of ability to meet cash needs.
Investor Relations:
Lisa M. Wilson, In-Site Communications, Inc.
T: 212-452-2793
E: lwilson@insitecony.com
| Eton Pharmaceuticals, Inc. Condensed Statements of Operations (In thousands, except per share amounts) (Unaudited) | |||||||||||||||
| For the three months ended | For the six months ended | ||||||||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenues: | |||||||||||||||
| Product sales, net | $ | 37,589 | $ | 18,928 | $ | 61,855 | $ | 32,924 | |||||||
| Licensing revenue | — | — | — | 3,286 | |||||||||||
| Total net revenues | 37,589 | 18,928 | 61,855 | 36,210 | |||||||||||
| Cost of sales: | |||||||||||||||
| Product sales and royalties, net | 12,176 | 7,004 | 21,707 | 13,600 | |||||||||||
| Licensing revenue | — | — | — | 825 | |||||||||||
| Total cost of sales | 12,176 | 7,004 | 21,707 | 14,425 | |||||||||||
| Gross profit | 25,413 | 11,924 | 40,148 | 21,785 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 993 | 3,712 | 2,868 | 4,873 | |||||||||||
| General and administrative | 11,626 | 9,687 | 22,072 | 18,857 | |||||||||||
| Total operating expenses | 12,619 | 13,399 | 24,940 | 23,730 | |||||||||||
| Income (loss) from operations | 12,794 | (1,475 | ) | 15,208 | (1,945 | ) | |||||||||
| Other expense: | |||||||||||||||
| Interest and other expense, net | (1,076 | ) | (1,044 | ) | (1,916 | ) | (2,072 | ) | |||||||
| Income (loss) before income tax expense | 11,718 | (2,519 | ) | 13,292 | (4,017 | ) | |||||||||
| Income tax expense | 140 | 66 | 160 | 140 | |||||||||||
| Net income (loss) | $ | 11,578 | $ | (2,585 | ) | $ | 13,132 | $ | (4,157 | ) | |||||
| Net income (loss) per share, basic | $ | 0.42 | $ | (0.10 | ) | $ | 0.48 | $ | (0.15 | ) | |||||
| Weighted average number of common shares outstanding, basic | 27,642 | 26,893 | 27,444 | 26,889 | |||||||||||
| Net income (loss) per share, diluted | $ | 0.35 | $ | (0.10 | ) | $ | 0.41 | $ | (0.15 | ) | |||||
| Weighted average number of common shares outstanding, diluted | 32,787 | 26,893 | 32,298 | 26,889 | |||||||||||
| Eton Pharmaceuticals, Inc. Condensed Balance Sheets (In thousands, except share and per share amounts) | |||||||
| June 30, 2026 | December 31, 2025 | ||||||
| (Unaudited) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 26,845 | $ | 25,942 | |||
| Accounts receivable, net | 24,886 | 11,757 | |||||
| Inventories, net | 10,143 | 15,419 | |||||
| Prepaid expenses and other current assets | 6,725 | 7,463 | |||||
| Total current assets | 68,599 | 60,581 | |||||
| Property and equipment, net | 352 | 326 | |||||
| Intangible assets, net | 45,678 | 30,878 | |||||
| Operating lease right-of-use assets, net | 1,114 | 310 | |||||
| Other long-term assets, net | 64 | 19 | |||||
| Total assets | $ | 115,807 | $ | 92,114 | |||
| Liabilities and stockholders’ equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 14,405 | $ | 10,976 | |||
| Short-term debt, net of discount | 8,825 | 8,789 | |||||
| Accrued Medicaid rebates | 10,969 | 9,317 | |||||
| Accrued liabilities | 10,925 | 9,408 | |||||
| Total current liabilities | 45,124 | 38,490 | |||||
| Long-term debt, net of current portion and debt discount and accrued exit fees | 19,078 | 21,769 | |||||
| Operating lease liabilities, net of current portion | 1,083 | 460 | |||||
| Other long-term liabilities | 3,937 | 5,241 | |||||
| Total liabilities | 69,222 | 65,960 | |||||
| Stockholders’ equity | |||||||
| Common stock, | 28 | 27 | |||||
| Additional paid-in capital | 145,919 | 138,621 | |||||
| Accumulated deficit | (99,362 | ) | (112,494 | ) | |||
| Total stockholders’ equity | 46,585 | 26,154 | |||||
| Total liabilities and stockholders’ equity | $ | 115,807 | $ | 92,114 | |||
| Eton Pharmaceuticals, Inc. Condensed Statements of Cash Flows (In thousands) (Unaudited) | |||||||
| For the six months ended | |||||||
| June 30, 2026 | June 30, 2025 | ||||||
| Cash flows from operating activities | |||||||
| Net income (loss) | $ | 13,132 | $ | (4,157 | ) | ||
| Adjustments to reconcile net income (loss) to net cash from operating activities: | |||||||
| Stock-based compensation | 2,986 | 3,296 | |||||
| Depreciation and amortization | 2,517 | 2,018 | |||||
| Inventory step-up | 1,000 | 2,349 | |||||
| Excess and obsolete inventory reserve | 581 | 110 | |||||
| Debt discount amortization and non-cash interest expense | 278 | 342 | |||||
| Non-cash lease expense | 45 | 30 | |||||
| Changes in operating assets and liabilitie: | |||||||
| Accounts receivable | (13,129 | ) | (9,092 | ) | |||
| Inventories | 4,725 | (11,019 | ) | ||||
| Prepaid expenses and other assets | 739 | 672 | |||||
| Accounts payable | 3,429 | 7,970 | |||||
| Accrued Medicaid rebates | 1,652 | 9,359 | |||||
| Accrued liabilities | 704 | (1,201 | ) | ||||
| Other non-current assets and liabilities | (3,999 | ) | 9,372 | ||||
| Net cash from operating activities | 14,660 | 10,049 | |||||
| Cash flows used in investing activities | |||||||
| Purchase of product licensing rights | (15,000 | ) | — | ||||
| Purchase of property and equipment | (70 | ) | — | ||||
| Net cash used in investing activities | (15,070 | ) | — | ||||
| Cash flows from financing activities | |||||||
| Proceeds from stock option exercises | 4,043 | 394 | |||||
| Proceeds from shares issued under the ESPP | 270 | — | |||||
| Repayment of long-term debt | (3,000 | ) | — | ||||
| Net cash from financing activities | 1,313 | 394 | |||||
| Change in cash and cash equivalents | 903 | 10,443 | |||||
| Cash and cash equivalents at beginning of period | 25,942 | 14,936 | |||||
| Cash and cash equivalents at end of period | $ | 26,845 | $ | 25,379 | |||
| Supplemental disclosures of cash flow information | |||||||
| Cash paid for interest | $ | 1,697 | $ | 852 | |||
| Cash paid for income taxes | $ | 85 | $ | 89 | |||
| Eton Pharmaceuticals, Inc. Adjusted non-GAAP EBITDA Calculation and US GAAP to Non-GAAP Reconciliation (in thousands, except per share amounts) (Unaudited) | |||||||||||||
| For the three months ended | For the six months ended | ||||||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| GAAP Net income (loss) | $ | 11,578 | $ | (2,585 | ) | $ | 13,132 | $ | (4,157 | ) | |||
| Depreciation(1) | 22 | 4 | 44 | 16 | |||||||||
| Intangible amortization expense(2) | 1,364 | 1,001 | 2,473 | 2,002 | |||||||||
| Interest expense (including debt discount amortization and non-cash interest expenses) | 1,013 | 1,198 | 2,149 | 2,361 | |||||||||
| Income tax expense | 140 | 66 | 160 | 140 | |||||||||
| EBITDA | $ | 14,117 | $ | (316 | ) | $ | 17,958 | $ | 362 | ||||
| Other non-GAAP adjustments: | |||||||||||||
| Inventory step-up expense(3) | 650 | 1,207 | 1,000 | 2,349 | |||||||||
| Stock-based compensation(4) | 1,468 | 2,096 | 2,986 | 3,296 | |||||||||
| Severance expense(5) | — | — | — | 335 | |||||||||
| Acquisition/divestiture-related costs(6) | — | 64 | — | 384 | |||||||||
| Total of Other non-GAAP adjustments | 2,118 | 3,367 | 3,986 | 6,364 | |||||||||
| Adjusted EBITDA | $ | 16,235 | $ | 3,051 | $ | 21,944 | $ | 6,726 | |||||
| GAAP Net income (loss) | $ | 11,578 | $ | (2,585 | ) | $ | 13,132 | $ | (4,157 | ) | |||
| Non-GAAP adjustments: | |||||||||||||
| Depreciation(1) | 22 | 4 | 44 | 16 | |||||||||
| Intangible amortization expense(2) | 1,364 | 1,001 | 2,473 | 2,002 | |||||||||
| Inventory step-up expense(3) | 650 | 1,207 | 1,000 | 2,349 | |||||||||
| Share-based compensation(4) | 1,468 | 2,096 | 2,986 | 3,296 | |||||||||
| Severance expense(5) | — | — | — | 335 | |||||||||
| Acquisition/divestiture-related costs(6) | — | 64 | — | 384 | |||||||||
| Total pre-tax non-GAAP adjustments | 3,504 | 4,372 | 6,503 | 8,382 | |||||||||
| Income tax effect of pre-tax non-GAAP adjustments(7) | 735 | 247 | 806 | 290 | |||||||||
| Total non-GAAP adjustments | 2,769 | 4,125 | 5,697 | 8,092 | |||||||||
| Non-GAAP Net income | $ | 14,347 | $ | 1,540 | $ | 18,829 | $ | 3,935 | |||||
| Weighted average number of common shares outstanding, basic | 27,642 | 26,893 | 27,444 | 26,889 | |||||||||
| Weighted average number of common shares outstanding, diluted | 32,787 | 31,141 | 32,298 | 31,066 | |||||||||
| GAAP income (loss) per share - Basic | $ | 0.42 | $ | (0.10 | ) | $ | 0.48 | $ | (0.15 | ) | |||
| Non-GAAP adjustments | 0.10 | 0.15 | 0.21 | 0.30 | |||||||||
| Non-GAAP earnings per share - Basic | $ | 0.52 | $ | 0.05 | $ | 0.69 | $ | 0.15 | |||||
| GAAP income (loss) per share - Diluted | $ | 0.35 | $ | (0.10 | ) | $ | 0.41 | $ | (0.15 | ) | |||
| Non-GAAP adjustments | 0.08 | 0.13 | 0.18 | 0.26 | |||||||||
| Non-GAAP earnings per share - Diluted | $ | 0.43 | $ | 0.03 | $ | 0.59 | $ | 0.11 | |||||
| (1) Represents depreciation expense related to our property and equipment. | |||||||||||||
| (2) Intangible amortization expenses are associated with the Company's intellectual property rights related to INCRELEX®, HEMANGEOL®, GALZIN®, PKU GOLIKE®, IMPAVIDO®, Carglumic Acid, Betaine Anhydrous and Nitisinone. | |||||||||||||
| (3) During the three and six months ended June 30, 2026 and 2025, the Company recognized in cost of sales | |||||||||||||
| (4) Represents share-based compensation expense associated with the Company's stock option and restricted stock unit grants to employees and non-employee directors and the Company's employee share purchase plan. | |||||||||||||
| (5) Represents severance and benefit expenses associated with role redundancy within commercial operations during the first quarter of 2025. | |||||||||||||
| (6) Represents legal expense and other divestiture-related costs associated with the out-licensing of the INCRELEX® commercial rights in territories outside of the U.S. | |||||||||||||
| (7) Income tax adjustments on pre-tax non-GAAP adjustments represent the estimated income tax impact of each pre-tax non-GAAP adjustment based on the effective income tax rate for the period. The Company is in a full income tax valuation allowance position and the income tax effect on pre-tax non-GAAP adjustments is commensurate with the performance measure. | |||||||||||||
| Eton Pharmaceuticals, Inc. Second Quarter and YTD 2026 GAAP to Non-GAAP Net Income (Loss) Reconciliation (in thousands) (Unaudited) | ||||||||||||||||||||||
| Second Quarter 2026 | GAAP | Depreciation and Intangible Amortization | Inventory Step-Up Expense | Stock Based Compensation | Severance Expense | Acquisition/ Divestiture Related Costs | Non- GAAP | |||||||||||||||
| Cost of sales | $ | 12,176 | (1,364 | ) | (650 | ) | - | - | - | $ | 10,162 | |||||||||||
| Research and development | 993 | - | - | (50 | ) | - | - | 943 | ||||||||||||||
| General and administrative | 11,626 | (22 | ) | - | (1,418 | ) | - | - | 10,186 | |||||||||||||
| Interest and other expense, net | 1,076 | - | - | - | - | - | 1,076 | |||||||||||||||
| Second Quarter 2025 | ||||||||||||||||||||||
| Cost of sales | $ | 7,004 | (1,001 | ) | (1,207 | ) | - | - | - | $ | 4,796 | |||||||||||
| Research and development | 3,712 | - | - | (39 | ) | - | - | 3,673 | ||||||||||||||
| General and administrative | 9,687 | (4 | ) | - | (2,057 | ) | - | (64 | ) | 7,562 | ||||||||||||
| Interest and other expense, net | 1,044 | - | - | - | - | - | 1,044 | |||||||||||||||
| Second Quarter YTD 2026 | GAAP | Depreciation and Intangible Amortization | Inventory Step-Up Expense | Stock Based Compensation | Severance Expense | Acquisition/ Divestiture Related Costs | Non- GAAP | |||||||||||||||
| Cost of sales | $ | 21,707 | (2,473 | ) | (1,000 | ) | - | - | - | $ | 18,234 | |||||||||||
| Research and development | 2,868 | - | - | (99 | ) | - | - | 2,769 | ||||||||||||||
| General and administrative | 22,072 | (44 | ) | - | (2,887 | ) | - | - | 19,141 | |||||||||||||
| Interest and other expense, net | 1,916 | - | - | - | - | - | 1,916 | |||||||||||||||
| Second Quarter YTD 2025 | ||||||||||||||||||||||
| Cost of sales | $ | 14,425 | (2,002 | ) | (2,349 | ) | - | - | - | $ | 10,074 | |||||||||||
| Research and development | 4,873 | - | - | (82 | ) | - | - | 4,791 | ||||||||||||||
| General and administrative | 18,857 | (16 | ) | - | (3,214 | ) | (335 | ) | (384 | ) | 14,908 | |||||||||||
| Interest and other expense, net | 2,072 | - | - | - | - | - | 2,072 | |||||||||||||||
