Shares of Elite Pharmaceuticals, Inc. (ELTP) have lost 15.9% since the company reported its earnings for the quarter ended Sept. 30, 2025. This compares with the S&P 500 Index’s 2.2% loss over the same period. Over the past month, Elite stock plunged 4.9%, while the S&P 500 slipped 2%.ELTP’s Earnings and Revenue PerformanceIn the second quarter of fiscal 2026, Elite Pharmaceuticals posted revenues of $36.3 million, up 92.4% year over year from $18.9 million, driven largely by the launch and rapid expansion ...

Core Insights - Elite Pharmaceuticals, Inc. reported consolidated revenues of $36.3 million for the second quarter of fiscal year 2026, marking an increase of $17.4 million or approximately 92% compared to the same period in the previous fiscal year [2] - Income from operations reached $8.2 million, an increase of $4.7 million or approximately 136% year-over-year, primarily driven by sales of lisdexamfetamine products and strong growth in Elite's product lines [2] Financial Performance - The significant revenue growth of 92% is attributed to the successful launch of new products and overall strong performance in the company's product lines [2] - The increase in income from operations reflects improved operational efficiency and market demand for Elite's niche generic products [2] Conference Call Information - A conference call is scheduled for November 17, 2025, at 11:30 AM EST to discuss the financial results and recent business developments [3][4] - Stakeholders are encouraged to submit questions in advance of the call [3]

Core Insights - Elite Pharmaceuticals, Inc. (ELTP) shares increased by 6.3% following the earnings report for the quarter ended June 30, 2025, outperforming the S&P 500 Index, which saw a 1.1% loss during the same period [1] Financial Performance - ELTP reported first-quarter fiscal 2026 revenues of $40.2 million, a 113.9% increase from $18.8 million year-over-year [2] - Manufacturing fees rose by 115.7% to $39.8 million from $18.4 million, while licensing fees increased by 20.7% to $0.43 million from $0.36 million [2] - Gross profit surged 221.3% to $27.2 million from $8.5 million, driven by a favorable product mix and a higher proportion of direct sales [2] Operating Income and Loss - Operating income was $21.7 million, significantly up from $3.9 million a year earlier, but the company reported a net loss of $5.9 million, or $0.01 per share, compared to a net income of $0.6 million in the previous year [3] - The net loss was primarily due to a non-cash charge of $22.1 million related to the change in fair value of warrant derivative liabilities [7] Operating Expenses and Margins - Operating expenses increased by 19.9% year-over-year to $5.5 million, with general and administrative costs rising by 72.9% to $3.4 million [4] - Research and development spending decreased by 22.6% to $1.7 million due to lower product development activity [4] - Gross margin expanded to 68% from 45%, supported by sales of higher-margin Elite label products [4] Cash Flow and Working Capital - As of June 30, 2025, the company had $21.7 million in cash, up from $11.3 million as of March 31, 2025 [5] - Cash flow from operations was strong, generating $14.8 million during the quarter compared to $3.1 million in the prior year [5] - Working capital improved to $67.1 million from $45.9 million at the end of March 2025, reflecting higher accounts receivable, inventory, and cash balances [5] Management Commentary - Management attributed the strong performance to growth in Elite label product lines and contributions from newly launched lisdexamfetamine products [6] - The company emphasized that recent launches are effectively scaling in the market, contributing to revenue growth and margin expansion [6] Future Guidance - Elite Pharmaceuticals did not provide formal financial guidance for fiscal 2026 but indicated a focus on scaling recently launched generics and transitioning to direct sales under the Elite label [8] Product Developments - The company launched a generic version of Percocet in April 2025 and reported positive bioequivalence study results for a generic anticoagulant in June 2025, paving the way for a potential ANDA filing [10] - These developments enhance ELTP's diverse portfolio of niche generics, including recent introductions like generic Norco and generic Vyvanse [10]