This article first appeared on GuruFocus .
-
Fiscal Q4 2026 Net Revenue:$24.7 million, a slight decrease from $24.8 million in the same period last year.
-
Fiscal Year 2026 Net Revenue:$99.3 million, down from $108.3 million in fiscal year 2025.
-
GRAFAPEX Net Revenue for Fiscal Year 2026:$11.6 million.
-
Adjusted EBITDA for Fiscal Q4 2026:$4.3 million, up from $2.3 million in the same period last year.
-
Adjusted EBITDA for Fiscal Year 2026:$16.5 million, compared to $20.2 million in fiscal year 2025.
-
Net Loss for Fiscal Q4 2026:$2.7 million, compared to a net loss of $0.6 million in the same period last year.
-
Net Loss for Fiscal Year 2026:$2.4 million, compared to net income of $2.2 million in fiscal year 2025.
-
Gross Margin for Fiscal Q4 2026:53.8%, an improvement from 50.2% in the same period last year.
-
Gross Margin for Fiscal Year 2026:54.8%, up from 52.2% in fiscal year 2025.
-
Operating Cash Flow for Fiscal Q4 2026:$3.8 million, compared to $2.3 million in the same period last year.
-
Operating Cash Flow for Fiscal Year 2026:$18.9 million, down from $24 million in fiscal year 2025.
-
Cash on Hand at March 31, 2026:$6.5 million, compared to $24 million at March 31, 2025.
-
Net Debt to Adjusted EBITDA:0.95 for the trailing four fiscal quarters ended March 31, 2026.
Release Date: June 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
GRAFAPEX product level revenue exceeded initial investment, showing strong commercialization progress.
-
74 out of 180 US transplant centers have ordered GRAFAPEX, with 54 reordering, indicating strong market penetration.
-
Fiscal Q4 2026 adjusted EBITDA increased to $4.3 million from $2.3 million in the previous year, reflecting improved financial performance.
-
Gross margin improved to 53.8% in Q4 2026 from 50.2% in the previous year, driven by increased GRAFAPEX sales.
-
Secured exclusive Canadian rights to commercialize UM171 Cell Therapy, expanding the product pipeline in the Allo-HSCT space.
Negative Points
-
Fiscal year 2026 net revenue decreased to $99.3 million from $108.3 million in 2025, primarily due to the termination of the US Gleolan agreement and generic competition for Rupall in Canada.
-
Net loss for fiscal Q4 2026 was $2.7 million, an increase from a net loss of $0.6 million in the previous year.
-
Cash on hand decreased significantly to $6.5 million at March 31, 2026, from $24 million at March 31, 2025, due to a $15 million regulatory milestone payment.
-
SG&A expenses increased to $45.9 million for fiscal year 2026 from $43.2 million in the previous year, impacting profitability.
-
The company anticipates increased R&D spending in fiscal 2027, which may affect short-term financial results.
Q & A Highlights
Q: Can you discuss the expected revenue growth for GRAFAPEX in fiscal 2027 and the factors contributing to this growth? A: Ken d'Entremont, CEO, explained that they anticipate GRAFAPEX to generate between $30 million and $32 million in fiscal 2027. The growth is expected from increased order volumes from existing hospitals and new hospitals coming on board. They foresee a quarter-over-quarter progression to achieve these targets.
Q: Is there any seasonality in GRAFAPEX sales that should be considered for fiscal 2027? A: Ken d'Entremont noted that there is some seasonality, with fewer procedures typically occurring in the summer months and during the December holiday season. However, the exact magnitude of these seasonal changes is still uncertain as they are only entering the second year of sales.
Q: How should we view the Canadian revenue outlook for fiscal 2027 given the current lower run rate? A: Brendon Buschman, CFO, indicated that the established portfolio, excluding GRAFAPEX, should be considered stable. The impact from the return of Gleolan and the genericization of Rupall has been accounted for, and they expect the Canadian revenues to remain durable.
Q: Can you provide more details on the recent business development opportunity with UM171 and its regulatory pathway in Canada? A: Ken d'Entremont explained that UM171 is a strategic fit with their focus on HSCT and adjacent areas. They are exploring two potential regulatory pathways: an expedited path for unmet medical needs or completing clinical development through a phase III study. The exact pathway will depend on discussions with Health Canada.
Q: What should be expected for SG&A and R&D expenses as revenue scales in fiscal 2027? A: Brendon Buschman mentioned that SG&A expenses are expected to increase slightly due to GRAFAPEX-related costs. Additionally, R&D spending will rise, driven by investigator-initiated trials for GRAFAPEX and improvements in the IXINITY process.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
