Knight Therapeutics Inc.

Knight reported first-quarter 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% year over year. Adjusted gross margin was $70.6 million, or 48% of revenue, compared with $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 operating cash inflows were $41 million. The company ended Q1 with $127 million in cash and marketable securities and about $58 million of debt, with net cash improving to $69 million and leverage under 0.7x. For fiscal 2026, Knight raised guidance to revenue of $510 million to $525 million and adjusted EBITDA of approximately 15% of revenue; management said the increase is mainly from stronger promoted-product performance and a better FX outlook, with FX contributing about $5 million to $10 million of the increase.

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 continued product launches across multiple countries. She emphasized that the company is building a profitable business by in-licensing, acquiring, obtaining approvals, and launching products across Canada and Latin America. On Qelbree, she said withdrawal of the filing was a deliberate step to bundle manufacturing changes and previously requested Health Canada information into one stronger resubmission, even if that delays launch by roughly a year or two.

Arvind Utchanah highlighted that Q1 revenue was $148 million and adjusted gross margin was $70.6 million, or 48% of revenue, with operating expenses of $43 million mainly driven by the broader portfolio. He said adjusted EBITDA was a record $28 million, up 130% year over year, and operating cash inflows reached $41 million. He also noted $127 million in cash and marketable securities, about $58 million of debt, net cash of $69 million, and debt-to-adjusted-EBITDA leverage under 0.7x; the company has already repaid $40 million of the $60 million drawn on the revolver for the Paladin transaction. He added that financial assets were valued at $95 million and that the quarter had a net loss of $2.8 million from mark-to-market revaluations.

Analysts focused on the Qelbree withdrawal, Ambisome durability, launch pipeline timing, capital deployment, and the sustainability of growth after the Paladin-Sumitomo acquisition. Management said Qelbree was pulled so manufacturing changes and Health Canada’s prior information requests can be addressed together in a later resubmission. On Ambisome, management said the MOH contract exists because a branded competitor has not returned after back orders, but future generics could eventually pressure the business once approved in Brazil; they also said liposomal amphotericin B is very difficult to manufacture. On capital allocation and deal flow, management said the BD pipeline remains healthy, there is no target number of transactions per year, and they are focused on quality assets at good valuations.