Knight Therapeutics Reports Fourth Quarter and Year-End 2025 Results

Core Insights - Knight Therapeutics Inc. reported record-high revenues, adjusted EBITDA, and cash flow from operations since its inception, with 2026 revenue guidance of CAD 490 million to CAD 510 million and adjusted EBITDA of approximately 15% [1][51]. Financial Results - Revenues for 2025 were CAD 450,088, an increase of CAD 78,784 or 21% compared to the previous year, driven by incremental revenues from the Paladin and Sumitomo transactions and growth in key promoted products [6][14]. - Gross margin was 44% of revenues, down from 47% in the prior year, primarily due to hyperinflation impacts and fair value adjustments on inventory from the Paladin transaction [6][21]. - Operating loss was CAD 2,350 compared to an operating income of CAD 7,397 in the prior year, while net loss was CAD 5,374 compared to a net income of CAD 4,332 [6][26]. - Cash inflow from operations was CAD 68,957, a 90% increase over the prior year [6]. - Adjusted EBITDA was CAD 73,056, a 26% increase over the previous year, with adjusted EBITDA per share at CAD 0.74, up 28% [6][12]. Corporate Developments - The company launched a Normal Course Issuer Bid (NCIB) to repurchase up to 3,000,000 common shares and purchased 1,130,600 shares at an average price of CAD 5.69 in 2025 [6][9]. - Knight closed a secured syndicated revolving credit facility for USD 100 million and a working capital line of credit agreement with Citibank [6][9]. - The company executed an asset purchase agreement to acquire the Paladin business for CAD 90,002, with additional payments expected based on sales milestones [6][36]. Product Updates - Knight expanded its product portfolio significantly, adding over fifty products, including eight pipeline and early launch stage assets [6][9]. - The company launched multiple innovative products in Canada and Latin America, including Minjuvi and Pemazyre, and submitted several products for regulatory approval [6][41][45]. - Revenues from key promoted products in Oncology/Hematology increased by CAD 14,531 or 20% on a constant currency basis, driven by new product launches [18][19]. Financial Outlook - For fiscal 2026, Knight expects revenues between CAD 490 million to CAD 510 million and adjusted EBITDA to be approximately 15% of revenues, based on various assumptions regarding market conditions and product performance [51][54].