EQL Pharma (EQL) Q3 25/26 earnings summary

Executive summary

• Achieved record quarterly sales, with SEK 190 million reported in one summary and SEK 118.9 million in another, both reflecting a 29% year-over-year increase and a rebound from previous supply challenges.

• Gross margin improved to 42%, with EBITA margin at 21% and EBITDA up 44% to SEK 24.9 million, reflecting better supply and margin management.

• Supply issues persisted for some products in Q3 but are expected to ease in Q4, with several products returning to stock.

• Significant launches and process upgrades are planned for next year, aiming to support growth and operational resilience.

• Two new management team members were recruited to enhance international commercial capabilities.

Financial highlights

• Sales grew 29% year-over-year, setting a new quarterly record, with SEK 190 million and SEK 118.9 million reported in different summaries.

• Gross margin reached 42%, up from previous quarters, aided by high-margin product sales.

• EBITA margin was 21%, with EBITDA margin also at 21% and operating margin at 16%.

• Pipeline investments were nearly SEK 12 million in Q3, with CapEx for the year expected at SEK 65–70 million, down from earlier guidance.

• Cash and cash equivalents at period end: SEK 72.7 million, with SEK 31.8 million raised from warrant exercises.

Outlook and guidance

• Full-year sales growth outlook remains at 15%, with an EBITA/EBITDA margin target of around 20%.

• Q4 is expected to be strong in absolute terms, but year-over-year comparison is challenging due to a strong Q4 last year.

• Multiple major launches, including Memprex in France and Germany, are planned for next year.

• OpEx increases are expected to be marginal next year, with most investments already made.

• Scrapping in Q4 may impact margins by 2–4%.