Negative Points

• Gross margin declined in the quarter due to product and market mix shifts, despite overall profitability improvements.

• Management chose not to raise 2026 guidance despite strong H1 performance, citing a focus on executing the existing plan.

• CFO Chaime Orlev announced departure at year-end, which could create transitional uncertainty.

• Plasma collection centers are operating at full capacity under the new supply agreement, limiting near-term flexibility for additional plasma sales.

• Dependence on a single plasma supply agreement for the two main centers could concentrate revenue risk.

• Growth is currently driven solely by organic products, with M&A and business development opportunities still pending execution.

• The company's ability to sustain double-digit growth relies on continued market demand and successful execution of expansion plans.

• Potential risks from international market volatility, including operations in regions like Russia and Latin America.

• The SHIELD study and other post-marketing programs for Cytogram are ongoing, with outcomes uncertain and not yet reflected in financials.

• The company's valuation may not fully reflect its growth potential, as noted by management, but this could also indicate market skepticism.

Q & A Highlights

Q: Given the solid quarter and balanced growth across all franchises, are there any specific reasons why you don't feel comfortable raising guidance at this time? Also, with EBITDA margins expanding, why did gross profit go down instead of up? A: Amir London (CEO): Our H1 performance is approximately 50% of the annual midpoint guidance. We have already guided significant growth this year (12% in revenue, 23% in EBITDA) and are executing to the plan. We expect another strong year of double-digit growth next year. Regarding gross margin, it shifts between quarters based on product and market mix. Importantly, we maintained our EBITDA rate of 26% of revenue and grew net income by over 18% year-over-year, demonstrating strong profitability and cash generation.

Q: Can you talk about whether or not the organic growth is sustainable and how sustainable that is long-term? A: Amir London (CEO): The business is highly sustainable. We have grown double-digit year over year and project continued growth, all organically. This is based on a strong strategic model: six FDA-approved products in over 30 countries, a growing distribution segment expanding into the MENA region, the newly signed plasma sales deal, and future M&A activities. Without future binary events, we are growing year after year, improving across all financial metrics, generating cash, and paying dividends.

Q: Why is it important for you to get that rabies antibody neutralizing test approved and be able to do that yourself? A: Amir London (CEO): Having the lab in-house allows for quicker response and ability to get product in process and final results, which allows us to release product faster to the market. With significant demand for KEDRAB, it is an important factor in our ability to continuously support a growing market demand and become even further vertically integrated.

Q: In the quarter, selling and marketing seemed particularly low compared to the level of sales. Was there a one-time item there or how were you able to keep that so low? A: Amir London (CEO): We have been very effective in the way we utilize our resources. We are happy to present year after year profitable growth, growing not just top-line but also bottom line, EBITDA, and net profits. This is all about synergies, economy of scale, and responsible management of resources.

Q: It seems like you are on track to get those three plasma collection plants up and running. That $50 million three-year contract, does that leave you enough capacity to fill other orders, or is that going to be the bulk of the output? A: Amir London (CEO): Each of the Houston and San Antonio centers will contribute between $8 to $10 million in revenue per year. Combined, that's $16 to $20 million per year, which aligns with the $50 million divided by three ($17 million per year). This current capacity has been basically sold based on the contract. We are also growing specialty plasma collection in those centers for our own production, which over time will allow us to improve gross margins and overall profitability.

Q: What about the third center? A: Amir London (CEO): The third center in Beaumont is a specialty center that collects only specialty plasma, which is used by our own production.

Q: Can you provide more color on the record financial results for the first half and second quarter of 2026? A: Chaime Orlev (CFO): Total revenues for the first six months of 2026 were $100.2 million, a 13% increase from $88.8 million in the first half of 2025, driven primarily by increased sales of KEDRAB in the U.S., as well as VARIZIG and HEPAGAM B. Second quarter revenues were $54.9 million, up 23% year-over-year, representing the highest revenue for a given quarter in Kamada's history. Net income for the first half was $13.4 million, up 18%, and adjusted EBITDA was $25.7 million, a 14% increase, representing a 26% margin of revenue.

Q: Can you elaborate on the company's cash position and operating cash flow? A: Chaime Orlev (CFO): Cash provided by operating activities during the first six months of 2026 was approximately $17.8 million compared to $7.5 million in the first half of 2025. As of June 30, 2026, we had cash and cash equivalents and short-term investments totaling $70.1 million. The company's ability to maintain its cash position while making a $14.4 million dividend during the second quarter is indicative of its continued ability to convert operating profits into cash flow.

Q: Can you provide an update on the distribution business and the biosimilar products? A: Amir London (CEO): We already have two biosimilar products launched in the Israeli market and are on track to launch two other products during this quarter. We have other biosimilar products in the pipeline for the coming years, and additional in-licensing agreements are in process. We believe this portfolio will become an increasingly important portion of our distribution business, with biosimilar annual sales of between $15 million to $20 million within the next few years. We are also advancing expansion of distribution activity to the MENA region with several new distribution agreements signed.

Q: Can you provide an update on the Cytogram post-marketing research program? A: Amir London (CEO): We continue to support the comprehensive post-marketing research program for Cytogram, which we launched last year. The benefits were recently highlighted by data presented by Dr. Danielle Calabrisi at the 2026 International Society for Heart and Lung Transplant Annual Meeting, suggesting Cytogram use is associated with improved clinical outcomes in CMV high-risk lung transplant recipients. Additionally, patients continue to be enrolled in the SHIELD Study, a prospective randomized controlled multicenter study in CMV high-risk kidney transplant recipients, which we believe will support increased product utilization.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .