Mallinckrodt (MNK) Q4 2025 earnings summary

Executive summary

• Completed merger with Endo and spin-off of Par Health in 2025, transitioning to a branded therapeutics company focused on high unmet need areas and rare diseases.

• Financial and operational performance exceeded expectations, with robust Q4 and FY 2025 net sales and adjusted EBITDA growth, driven by Acthar Gel and XIAFLEX.

• Preparing for a potential NYSE listing in the second half of 2026, pending board and regulatory approvals.

• Hammer Toe clinical trial met primary safety and secondary efficacy endpoints, advancing to Phase 3.

Financial highlights

• Q4 2025 net sales reached $542 million, up 17% year-over-year, with $10 million from a Novavax milestone; adjusted EBITDA from continuing operations was $732 million, up 17% year-over-year.

• Full year 2025 net sales were $1.93 billion, up 11% from 2024; adjusted EBITDA was $609 million, excluding $123 million in transaction-related compensation.

• Acthar Gel Q4 2025 net sales were $206 million (+48% YoY); full year $677 million (+39% YoY).

• XIAFLEX Q4 2025 net sales were $157 million (+6% YoY); full year $546 million (+6% YoY).

• Adjusted EBITDA margin improved significantly year-over-year.

Outlook and guidance

• 2026 net sales expected at $1.94–$2 billion; adjusted EBITDA guidance of $730–$760 million, including anticipated merger synergies.

• Acthar Gel net sales projected to grow in the mid-teens percent; XIAFLEX in the mid- to high-single digits.

• Merger synergies of $100 million pre-tax expected in 2026, targeting $150 million annual run-rate by year three.

• Q1 2026 expected to be seasonally lowest for Acthar Gel and XIAFLEX due to typical dynamics and adverse weather.

• Guidance excludes potential acquisitions or divestitures, including a possible PERCOCET sale.