Elite Pharmaceuticals (ELTP) investor relations material

Executive summary

• Achieved record quarterly revenue of $40.2M, up 114% year-over-year, and record operating income of $21.7M, driven by strong Elite label performance and new product launches, notably Lisdexamfetamine and Oxycodone/Acetaminophen generics.

• Growth fueled by Elite label, Lisdex launch (8% market share), and new generics, with significant market share gains in key ADHD and pain management products.

• Gross profit margin improved to 68% from 45% year-over-year, reflecting favorable product mix and higher-margin direct sales.

• Net loss of $5.9M to $55.4M, primarily due to a $22M+ non-cash derivative/warrant expense, despite strong operating results.

• Working capital increased to $67M, supported by higher inventory, accounts receivable, and cash balances.

Financial highlights

• Revenue for Q1 FY26 was $40.2M, up 114% from $18.8M in Q1 FY25.

• Gross profit rose to $27.2M (68% margin), up from $8.5M (45% margin) year-over-year.

• Operating income reached $21.7M, a 456%-462% increase from $3.9M last year.

• Operating cash flow improved to $14.8M, up from $3.1M, a 577% increase.

• Manufacturing fees rose 116% to $39.8M; licensing fees increased 21% to $0.43M year-over-year.

Outlook and guidance

• Expectation of continued volume growth for Lisdex as generic conversion accelerates and market expands.

• Margins for Lisdex expected to decline due to increased competition, but higher volumes may offset price pressure.

• Ongoing evaluation of M&A and uplisting options, with a decision expected by early 2026 if no material M&A progress.

• Commercialization of new generics, including anticoagulant and pain management products, is contingent on FDA approval and patent outcomes.

• Shift from licensing to direct marketing of Elite label products to target higher margins.