Alkermes plc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 28 July 2026: press release. Guidance figures: 1 raised, 2 lowered, 1 new, 16 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose to $496.0 million: Total revenues were $496.0 million against $390.7 million a year earlier. Six-month revenues were $888.9 million against $697.2 million. Product sales were $411.7 million of the total. Source
• Proprietary sales rose with LUMRYZ: Total proprietary net sales were $411.7 million against $307.2 million. LUMRYZ, acquired with Avadel and contributing from February 12, 2026, added $96.6 million in the quarter. Source
• GAAP net income near break-even in quarter: GAAP net income was $0.5 million against $87.1 million a year earlier. Six-month GAAP net loss was $66.0 million, compared with net income of $109.6 million a year earlier. Source
• Adjusted EBITDA reached $139.2 million: Adjusted EBITDA was $139.2 million against $126.5 million, and $219.5 million for six months against $172.1 million. Reported EBITDA was $49.0 million against $101.6 million. Source
• Full-year GAAP loss expectations lowered: Management lowered its 2026 GAAP net loss and EBITDA expectations, while revenue, product sales and Adjusted EBITDA expectations were kept unchanged. Figures are in the guidance list. Source
• Contingent consideration charge of $26.4 million: A $26.4 million increase in the fair value of the Avadel CVR liability was recorded, because the milestone became more likely to be achieved after LUMRYZ phase 3 idiopathic hypersomnia topline results. Source
• Blair Jackson to become CEO: Blair Jackson, currently Chief Operating Officer, assumes the CEO role on August 1, 2026. Richard Pops continues as Chairman of the Board. Source

“The second quarter was marked by strong commercial performance and meaningful progress across our pipeline as we continued to execute on our strategic priorities.”

Richard Pops, Chairman and Chief Executive Officer of Alkermes

Guidance

What changed from last quarter

• Guidance lowered: Full-year GAAP net loss expectation moved to ($95) - ($115) million from ($70) - ($90) million, and EBITDA to $75 - $95 million from $105 - $135 million. Source
• New guidance: A change in fair value of contingent consideration of about $25 million is now included in the 2026 expectations; the prior expectation showed none. Source
• Guidance raised: Projected share-based compensation expense midpoint rose to $125.0 million from $115.0 million. Source
• New: Blair Jackson will assume the CEO role on August 1, 2026; Richard Pops continues as Chairman of the Board of Directors. Source
• New: Topline results from the LUMRYZ phase 3 idiopathic hypersomnia study were recently announced, as the release states. Source

Results and growth drivers

• Revenue rose to $496.0 million: Total revenues were $496.0 million against $390.7 million a year earlier. Six-month revenues were $888.9 million against $697.2 million. Product sales were $411.7 million of the total. Source
• Proprietary sales rose with LUMRYZ: Total proprietary net sales were $411.7 million against $307.2 million. LUMRYZ, acquired with Avadel and contributing from February 12, 2026, added $96.6 million in the quarter. Source
• GAAP net income near break-even in quarter: GAAP net income was $0.5 million against $87.1 million a year earlier. Six-month GAAP net loss was $66.0 million, compared with net income of $109.6 million a year earlier. Source
• Adjusted EBITDA reached $139.2 million: Adjusted EBITDA was $139.2 million against $126.5 million, and $219.5 million for six months against $172.1 million. Reported EBITDA was $49.0 million against $101.6 million. Source
• Full-year GAAP loss expectations lowered: Management lowered its 2026 GAAP net loss and EBITDA expectations, while revenue, product sales and Adjusted EBITDA expectations were kept unchanged. Figures are in the guidance list. Source

Products and revenue lines

• LYBALVI grew on prescription gains: LYBALVI revenue was $94.0 million, up 12% year over year, with total prescriptions up 18% against the second quarter of 2025. Source
• ARISTADA i fell despite favorable gross-to-net: ARISTADA i revenue was $96.7 million against $101.3 million a year earlier. The quarter included about $4 million of gross-to-net favorability, mainly from patient mix. Source
• VIVITROL rose on gross-to-net favorability: VIVITROL revenue was $124.5 million against $121.7 million. About $4 million of gross-to-net favorability, mainly from patient mix, was recorded in the quarter. Source
• LUMRYZ included inventory timing benefit: LUMRYZ revenue was $96.6 million, including about $7 million of inventory benefit from shipment timing. Six-month LUMRYZ revenue was $136.1 million, covering the period since the Avadel acquisition closed. Source
• Manufacturing and royalty revenue steady: Manufacturing and royalty revenues were $84.3 million against $83.4 million. VUMERITY contributed $30.6 million, royalties on XEPLION and INVEGA products $27.5 million, and RISPERDAL CONSTA manufacturing $20.9 million. Source

“we are generating significant new datasets that may open new opportunities for our orexin 2 receptor portfolio”

Blair Jackson, Chief Operating Officer of Alkermes

Costs and one-time items

• R&D and SG&A rose year over year: GAAP R&D expense was $112.9 million against $77.4 million, and GAAP SG&A was $217.6 million against $170.8 million. Excluding Avadel transaction adjustments, R&D was $112.8 million and SG&A $216.3 million. Source
• Avadel acquisition costs hit quarter: Costs related to the Avadel acquisition were $32.5 million in the quarter and $88.4 million for six months. Share-based compensation was $31.3 million in the quarter, against $25.0 million. Source
• Contingent consideration charge of $26.4 million: A $26.4 million increase in the fair value of the Avadel CVR liability was recorded, because the milestone became more likely to be achieved after LUMRYZ phase 3 idiopathic hypersomnia topline results. Source
• Amortization of acquired intangibles began: Amortization of acquired intangible assets was $22.6 million in the quarter and $34.3 million for six months. The prior-year periods had no such amortization. Source

Balance sheet and capital

• Cash and investments increased in quarter: Cash, cash equivalents and total investments were $691.6 million at June 30, 2026, up from $538.2 million at March 31, 2026. Source
• Long-term debt on balance sheet: Long-term debt was $1,476.6 million at June 30, 2026, with a current portion of $26.5 million. Source
• Intangible assets and goodwill rose: Intangible assets, net were $1,761.5 million and goodwill $594.3 million at June 30, 2026, against $0.8 million and $83.0 million at December 31, 2025. Source
• Ordinary shares outstanding rose: Ordinary shares outstanding were 167.5 million at June 30, 2026, against 165.6 million at December 31, 2025. Source

“As I prepare to transition the Chief Executive Officer role, I do so with tremendous pride in what this organization has achieved and great optimism for its future.”

Richard Pops, Chairman and Chief Executive Officer of Alkermes

Pipeline and orexin 2 strategy

• Orexin 2 portfolio is stated focus: Management described its orexin 2 receptor agonist portfolio as a potential growth driver in neuroscience, positioned in an emerging therapeutic category. Source
• Alixorexton phase 3 Brilliance studies initiated: The company said it had recently initiated the phase 3 Brilliance studies of alixorexton in the first quarter of 2026, to characterize narcolepsy type 1 and type 2 use.

Leadership transition

• Blair Jackson to become CEO: Blair Jackson, currently Chief Operating Officer, assumes the CEO role on August 1, 2026. Richard Pops continues as Chairman of the Board. Source
• Pops reflects on his CEO tenure: Pops said he prepares to transition the CEO role with pride in the organization's achievements and optimism for its future, and will support the new leadership as Chairman. Source

Coming up, as management said on 28 July 2026

• CEO handover effective August 1: Blair Jackson assumes the CEO role on August 1, 2026, with Richard Pops continuing as Chairman of the Board of Directors. Source
• ADHD and IH readouts ahead: Management expects first ADHD data for ALKS 7290 in the coming months, and topline results from the alixorexton phase 2 idiopathic hypersomnia study toward year-end. Source
• Form 10-Q for second quarter: Balance sheet figures are to be read with the Form 10-Q for the quarter ended June 30, 2026, which the company intended to file in July 2026. Source

Figures management reported

Risks management discussed

• Financial: Contingent consideration was remeasured upward by $26.4 million, adding to the GAAP loss, and the full-year GAAP net loss expectation was widened. Source
• Operational: About $7 million of LUMRYZ revenue came from inventory benefit tied to shipment timing, so quarterly LUMRYZ revenue includes a timing-related item. Source

Earlier plans management reported on

• Met: Management said the phase 3 Brilliance studies were recently initiated, in the first quarter of 2026.
• Met: Management referred to the topline results as recently announced, and cited them in the higher likelihood of the CVR milestone. Source

Other quarters

• Q1 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.