Alvotech (ALVO) investor relations material

Executive summary

• 9M26 adjusted revenue was $323.4m, down 23.0% YoY; adjusted EBITDA was $78.3m, up 15.1%.

• Q3 revenue was $111.6m, down 2.0% YoY; adjusted EBITDA rose 118.8% YoY to $31.5m and gross margin improved 3 percentage points QoQ to 54%.

• Commercial recovery and expanded manufacturing capacity support Q4 deliveries, while FY26 results are expected toward the lower end of guidance.

Financial highlights

• 9M26 product and service revenue was $164.2m, down from $237.4m; license and other revenue was $158.9m, down from $182.4m.

• Q3 product and service revenue was $58.2m, up 78.3% YoY and 6% QoQ; product margin improved to 12% from 6% in Q2.

• 9M26 adjusted gross margin was 54%, down from 59%; adjusted product margin was 9%, reflecting product mix and reduced production during facility improvements.

• 9M26 reported operating profit was $10.8m and net loss was $140.7m; finance costs were $168.7m.

• 9M26 revenue comparisons reflected lower milestone revenue and the prior-year U.S. bStelara launch; Japan led ROW revenue growth.

Outlook and guidance

• FY26 revenue guidance is $650m–$700m and adjusted EBITDA guidance is $180m–$220m, with results expected toward the lower end of both ranges.

• Q4 is expected to be the strongest quarter of 2026, with planned product deliveries as production and commercial supply ramp up following H1 manufacturing improvements.

• Cash flow positivity is expected in Q4; product margins are expected to remain compressed through 2026 and strengthen in 2027.

• Substantial EBITDA improvement is expected in 2027, with healthy deleveraging anticipated in H2; no detailed 2027 guidance was issued.

• Execution priorities include expanding product and market contributions, upcoming FDA decisions, and advancing strategic partnerships.