Knight Therapeutics Inc.

Knight reported Q1 2026 revenue of $148 million, up $59.6 million or 68% year over year, and adjusted EBITDA of $28 million, up $15.8 million or 130%. Adjusted gross margin was $70.6 million, or 48% of revenue, versus $40.9 million, or 47% in the prior-year quarter; adjusted EBITDA per share was $0.28, up 133%. Operating expenses were $43 million, up $13 million or 44%, and the company ended Q1 with $127 million in cash and marketable securities, about $58 million in debt, and a net cash position of $69 million. Full-year 2026 guidance was raised to revenue of $510 million-$525 million and adjusted EBITDA at approximately 15% of revenue, with the increase driven mainly by better promoted-product performance and improved LatAm currency assumptions; management also said Ambisome MOH orders are now expected to total $46 million, with more coming through in Q2.

Samira Sakhia framed the quarter as evidence that Knight’s Pan-American ex-U.S. strategy is working, pointing to record revenue, record adjusted EBITDA, and a growing launch engine across Canada and Latin America. She emphasized that the company has already executed four launches in 2026, expects about 10 launches this year, and sees the business as increasingly profitable and cash-generative. On Qelbree, she said withdrawing the filing was a better path than launching with unresolved manufacturing issues, even though it delays timing by roughly a year or two.

Arvind Utchanah highlighted the financial step-up from the enlarged portfolio, noting that mature products from the Paladin and Sumitomo transaction contributed $17 million of incremental revenue, launch pipeline products $13 million, and strategic products $28 million, including a $14 million incremental contribution from Ambisome. He said adjusted gross margin increased to $70.6 million, or 48% of revenue, while operating expenses rose to $43 million as the company built out infrastructure to support the larger business. He also pointed to $41 million of operating cash inflows, $127 million of cash and marketable securities, roughly $58 million of debt, a net cash position of $69 million, and debt-to-adjusted-EBITDA leverage under 0.7x.

Analysts focused on the Qelbree withdrawal, with management explaining that manufacturing changes at the partner made it preferable to withdraw and later resubmit a stronger dossier rather than risk a delayed launch. Questions also centered on Ambisome’s durability; management said the MOH contract persists because there is no approved alternative in Brazil yet, but acknowledged that approved generics would likely end the contract over time. On capital allocation, management said cash and borrowing capacity will support acquisitions and in-licensing, and Amal Khouri said BD deal flow remains healthy even though there is no fixed target number of transactions.