Alkermes plc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 5 May 2026: press release. Guidance figures: 3 raised, 4 lowered, 5 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose to $392.9 million: Total revenues were $392.9 million for the three months ended March 31, 2026, compared with $306.5 million a year earlier. Product sales, net were $338.1 million against $244.5 million. Source
• GAAP net loss tied to Avadel costs: GAAP net loss was $66.5 million, or $(0.40) diluted EPS, against GAAP net income of $22.5 million a year earlier. Adjusted EBITDA was $80.3 million, against $45.6 million. Source
• GAAP loss and EBITDA improved: Management said the update resulted in improved expectations for GAAP net loss and EBITDA, both changed through the purchase price accounting adjustments. Source
• Lower cost of goods on LUMRYZ step-up: Cost of goods sold expectation was cut to $320 - $340 million. About $105 million of the LUMRYZ inventory step-up is expected to be expensed in 2026 as inventory is sold. Source
• Cash fell after Avadel financing: Cash, equivalents, restricted cash and investments were $538.2 million, down from $1.32 billion at December 31, 2025, after about $775 million of balance sheet cash was used. Source
• Alixorexton Phase 3 program started: Phase 3 Brilliance studies began in Q1 2026 to characterize alixorexton in narcolepsy type 1 and type 2, as the February release had expected. Source

“During the quarter, we successfully closed the acquisition of Avadel, strengthening our financial profile and accelerating our entry into the commercial sleep medicine market at scale.”

Richard Pops, Chairman and Chief Executive Officer of Alkermes

Guidance

What changed from last quarter

• Guidance raised: GAAP net loss expectation for 2026 moved to ($70) - ($90) million from ($115) - ($135) million. Source
• Guidance raised: EBITDA expectation for 2026 moved to $105 - $135 million from $60 - $90 million. Source
• Guidance lowered: Cost of goods sold expectation for 2026 moved to $320 - $340 million from $365 - $385 million. Source
• Guidance lowered: Amortization of intangible assets expectation for 2026 moved to $75 - $85 million from $95 - $105 million. Source
• Guidance lowered: Net tax benefit expectation for 2026 moved to about $0 from about $20 million. Source
• Guidance lowered: Expected LUMRYZ inventory step-up fell to about $125 million, with about $105 million expensed in 2026, from about $180 million and $150 million. Source
• Guidance raised: Expected LUMRYZ intellectual property rose to about $1.8 billion, amortized over 14 years, from about $1.5 billion over 13 years. Source
• New: The alixorexton Phase 3 Brilliance program in narcolepsy was initiated in Q1 2026, a step the February release had described as expected. Source

Results and growth drivers

• Revenue rose to $392.9 million: Total revenues were $392.9 million for the three months ended March 31, 2026, compared with $306.5 million a year earlier. Product sales, net were $338.1 million against $244.5 million. Source
• GAAP net loss tied to Avadel costs: GAAP net loss was $66.5 million, or $(0.40) diluted EPS, against GAAP net income of $22.5 million a year earlier. Adjusted EBITDA was $80.3 million, against $45.6 million. Source
• Gross-to-net favorability added revenue: The company recorded VIVITROL revenue of about $9 million, ARISTADA about $3.5 million and LYBALVI about $2 million from gross-to-net favorability, mainly patient mix. Source

2026 financial expectations update

• Revenue and operating ranges held: The update covers only certain non-cash elements of the 2026 expectations, while the revenue, Adjusted EBITDA, R&D and SG&A ranges stayed at the February levels. Source
• GAAP loss and EBITDA improved: Management said the update resulted in improved expectations for GAAP net loss and EBITDA, both changed through the purchase price accounting adjustments. Source
• Lower cost of goods on LUMRYZ step-up: Cost of goods sold expectation was cut to $320 - $340 million. About $105 million of the LUMRYZ inventory step-up is expected to be expensed in 2026 as inventory is sold. Source
• Amortization and tax benefit lower: Intangible amortization guidance moved to $75 - $85 million and the net tax benefit to about zero. Intellectual property of about $1.8 billion is to be amortized over 14 years. Source

“We are also rapidly advancing the alixorexton development program and recently initiated the phase 3 Brilliance studies to further characterize alixorexton’s differentiated profile and potential utility in both narcolepsy type 1 and type 2.”

Richard Pops, Chairman and Chief Executive Officer of Alkermes

Product sales by brand

• LYBALVI sales grew 32%: LYBALVI revenue was $92.4 million, with revenue and total prescriptions up 32% and 21% against the first quarter of 2025. Source
• LUMRYZ included from February 12: LUMRYZ revenue of $39.5 million covers February 12 to March 31, 2026. Avadel recorded about $33 million of LUMRYZ net sales from January 1 to February 11. Source
• VIVITROL and ARISTADA i sales rose: ARISTADA i revenue was $93.8 million, up from $73.5 million. VIVITROL revenue was $112.4 million, up from $101.0 million in the first quarter of 2025. Source
• Manufacturing and royalty revenue lower: Manufacturing and royalty revenues were $54.8 million against $62.0 million. VUMERITY contributed $27.3 million and partnered long-acting antipsychotic royalties $18.0 million. Source

Costs and expenses

• Avadel costs sit in each expense line: Acquisition costs were included in cost of goods ($12.7 million), R&D ($8.1 million) and SG&A ($55.2 million). Excluding these, SG&A was $209.4 million. Source
• Share-based compensation accelerated for Avadel staff: Share-based compensation of $20.2 million was recognized from accelerated vesting of equity awards for former Avadel employees, who vested in full at closing. Source
• Amortization and interest expense began: Amortization of acquired intangible assets was $11.7 million and interest expense was $20.9 million, against none in the prior-year quarter. Source
• R&D expense increased: R&D expense was $103.3 million, up from $71.8 million, and included $8.1 million of acquisition-related costs. Source

“Alkermes is at the forefront of generating new clinical data and expanding our understanding of this neurocircuitry.”

Richard Pops, Chairman and Chief Executive Officer of Alkermes

Cash, debt and balance sheet

• Cash fell after Avadel financing: Cash, equivalents, restricted cash and investments were $538.2 million, down from $1.32 billion at December 31, 2025, after about $775 million of balance sheet cash was used. Source
• Debt, intangibles and goodwill rose: Long-term debt was $1.48 billion with a $26.5 million current portion. Intangible assets rose to $1.78 billion and goodwill to $596.0 million. Source
• Shareholders' equity declined: Total shareholders' equity was $1.75 billion at March 31, 2026, against $1.82 billion at December 31, 2025. Source

Share repurchases

• Buyback spend in first quarter: The company repurchased about 1 million ordinary shares for about $28 million in the first quarter under the February 2024 program. About $172 million remained at March 31, 2026. Source

Strategy and pipeline

• Alixorexton Phase 3 program started: Phase 3 Brilliance studies began in Q1 2026 to characterize alixorexton in narcolepsy type 1 and type 2, as the February release had expected. Source
• Avadel closing expands sleep medicine: Management said the Avadel closing strengthened the financial profile and accelerated entry into commercial sleep medicine at scale. Source
• Orexin 2 agonist clinical data: Management said Alkermes is generating new clinical data on orexin 2 receptor agonists and expanding understanding of this neurocircuitry, across other neuropsychiatric disorders as well. Source

Coming up, as management said on 5 May 2026

• Form 10-Q filing in May: The Form 10-Q for the quarter ended March 31, 2026 is to be filed in May 2026, according to the release. Source

Figures management reported

Earlier plans management reported on

• Met: The February 25, 2026 release expected the Phase 3 program to start in Q1 2026; this release reports that it was initiated in Q1 2026. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.