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LQDA Q3 Earnings Beat Estimates on Robust Yutrepia Sales
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Key Takeaways
Liquidia beat Q3 earnings and revenue estimates, with sales surging 314.6% year over year.
Yutrepia sales jumped to $222.7 million as patient demand, prescriptions and physician adoption strengthened.
A $389.7 million litigation charge impacted profitability, while cash reserves supported settlement payments.
Liquidia Corporation (LQDA - Free Report) reported third-quarter 2026 earnings of 80 cents per share (excluding a one-time litigation settlement charge), which topped the Zacks Consensus Estimate of 77 cents.
In the year-ago quarter, the company reported a loss of 4 cents per share.
Total revenues surged 314.6% year over year to $225.3 million from $54.3 million and beat the Zacks Consensus Estimate of $187 million. The quarterly performance was driven by strong demand for lead drug Yutrepia, which generated net product sales of $222.7 million, up 31% sequentially.
The stock gained 7.37% following the announcement.
Year to date, LQDA stock has gained 49% compared with the industry’s growth of 11.2%.
Image Source: Zacks Investment Research
LQDA's Yutrepia Sales Maintain Momentum
Yutrepia is a dry-powder inhaled formulation of treprostinil delivered through a compact device. It is currently approved for treating pulmonary arterial hypertension (PAH).
Yutrepia net product sales reached $222.7 million in the third quarter, up from $51.7 million in the year-ago period, driven by higher sales volumes. Paid patient demand accounted for $212.2 million of quarterly product sales.
LQDA began commercial shipments of Yutrepia in the United States in June 2025, shortly after receiving full FDA approval on May 23, 2025.
Commercial adoption remained strong. From launch through September, more than 60% of Yutrepia referrals included a PAH diagnosis, increasing to more than 70% in September. October patient shipments reached their highest monthly level since launch.
The prescription-to-patient-start conversion rate remained above 87%. Liquidia's prescriber base expanded to approximately 1,300 physicians through October, with roughly 60% prescribing Yutrepia to at least two patients.
Liquidia's Q3 Expenses Rise on Clinical Investments
Research and development expenses surged 170.4% year over year to $25.3 million. The increase primarily reflected $11.1 million in additional spending on the L606 program, $3.2 million in higher Yutrepia development expenses and increased personnel costs.
Selling, general and administrative expenses increased 47.4% to $59.0 million, led by higher personnel expenses, stock-based compensation and commercial spending to support Yutrepia's launch.
Service revenues declined to $2.6 million from $2.7 million a year earlier. The company's promotion agreement with Sandoz for Treprostinil Injection was terminated in October 2026, ending this revenue stream.
Liquidia reported a net loss of $236.3 million compared with a loss of $3.5 million in the year-ago quarter. The reported loss included a one-time litigation settlement charge of $389.7 million.
On Oct. 13, Liquidia reached a global settlement with United Therapeutics (UTHR - Free Report) , resolving six pending lawsuits. Under the agreement, Yutrepia will remain available to existing patients, but Liquidia has stopped promoting it for pulmonary hypertension associated with interstitial lung disease (PH-ILD).
The company agreed to make net settlement payments totaling $380.7 million in multiple installments in 2026 and 2027.
Liquidia's Cash Position Supports Pipeline Expansion
Cash and cash equivalents totaled $396.1 million as of Sept. 30, 2026. This balance preceded the settlement payments.
Management stated that cash generated by Yutrepia's commercial performance should support its payment obligations and planned clinical investments without requiring additional capital.
The company initiated an open-label study evaluating the safety and tolerability of Yutrepia in adults with PAH who switch from oral selexipag. Primary study completion is expected in the second quarter of 2027.
LQDA advanced the open-label SPRINT trial, which will assess the hemodynamic response to Yutrepia, measured by changes in pulmonary vascular resistance (PVR), following 16 weeks of treatment administered three or four times daily. Trial initiation is expected in the fourth quarter of 2026.
The company is also advancing EASY-PAH, a prospective, observational U.S. registry of Yutrepia to evaluate dose regimen, including frequency, titration, and longitudinal clinical endpoints. The registry is expected to begin in 2027.
LQDA enrolled the first patient in this phase II, randomized, open-label dose-finding study evaluating the safety, tolerability and pharmacodynamics of Yutrepia in adults with systemic sclerosis (SSc) who experience frequent symptomatic Raynaud’s phenomenon (RP) attacks. Primary study completion is expected in the first quarter of 2027. In September 2026, the FDA granted the program Fast Track designation, highlighting the significant unmet medical need and lack of approved treatments for this patient population.
LQDA Advances L606 Across Pulmonary Indications
L606 is an investigational, twice-daily, extended-release formulation of treprostinil delivered through a next-generation nebulizer.
The global pivotal Re-Spire study in PH-ILD continues enrollment, which is expected to be completed in 2028. Primary study completion is anticipated in 2029.
Liquidia also plans to initiate enrollment in the pivotal AMPLIFY-PAH study in 2027, targeting primary completion in 2029. Another pivotal study evaluating L606 in pulmonary hypertension associated with chronic obstructive pulmonary disease is expected to begin in the second half of 2027.
Liquidia Expects Continued Commercial Growth
Management remains confident in Yutrepia's growth prospects despite the recent changes to its approved indications.
The company expects patient shipments and profitability to continue increasing as its existing patient base expands. Management plans to provide further details regarding its 2027 outlook in early January.
With the legal dispute resolved, Liquidia intends to focus on expanding Yutrepia's position in PAH while advancing its broader clinical pipeline.
Our TAKE on LQDA's Q3 Results
Liquidia beat both earnings and revenue estimates for the third quarter, supported by continued Yutrepia adoption and improving operating leverage.
The litigation settlement has not only removed a major legal uncertainty but also restricted new PH-ILD commercialization opportunities for Yutrepia. Sustained PAH prescription growth and patient retention will be important for maintaining sales momentum.
Meanwhile, the company's expanding cash resources and advancing L606 pipeline provide support for future development, although ongoing clinical spending and the substantial settlement payments remain important considerations.
Over the past 30 days, estimates for Amneal’s 2026 earnings per share have risen from $1.03 to $1.06, while those for 2027 EPS have increased from $1.16 to $1.21 during the same time frame. AMRX shares have rallied 68.9% year to date.
Amneal’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 27.21%.
Over the past 30 days, estimates for Collegium Pharmaceutical’s 2026 EPS have risen from $7.15 to $7.39, while those for 2027 EPS have increased from $5.75 to $6.84 during the same time frame.
Collegium Pharmaceutical’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 10.53%.
View the Zacks #1 Rank List
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LQDA Q3 Earnings Beat Estimates on Robust Yutrepia Sales
Key Takeaways
Liquidia Corporation (LQDA - Free Report) reported third-quarter 2026 earnings of 80 cents per share (excluding a one-time litigation settlement charge), which topped the Zacks Consensus Estimate of 77 cents.
In the year-ago quarter, the company reported a loss of 4 cents per share.
Total revenues surged 314.6% year over year to $225.3 million from $54.3 million and beat the Zacks Consensus Estimate of $187 million. The quarterly performance was driven by strong demand for lead drug Yutrepia, which generated net product sales of $222.7 million, up 31% sequentially.
The stock gained 7.37% following the announcement.
Year to date, LQDA stock has gained 49% compared with the industry’s growth of 11.2%.
Image Source: Zacks Investment Research
LQDA's Yutrepia Sales Maintain Momentum
Yutrepia is a dry-powder inhaled formulation of treprostinil delivered through a compact device. It is currently approved for treating pulmonary arterial hypertension (PAH).
Yutrepia net product sales reached $222.7 million in the third quarter, up from $51.7 million in the year-ago period, driven by higher sales volumes. Paid patient demand accounted for $212.2 million of quarterly product sales.
LQDA began commercial shipments of Yutrepia in the United States in June 2025, shortly after receiving full FDA approval on May 23, 2025.
Commercial adoption remained strong. From launch through September, more than 60% of Yutrepia referrals included a PAH diagnosis, increasing to more than 70% in September. October patient shipments reached their highest monthly level since launch.
The prescription-to-patient-start conversion rate remained above 87%. Liquidia's prescriber base expanded to approximately 1,300 physicians through October, with roughly 60% prescribing Yutrepia to at least two patients.
Liquidia's Q3 Expenses Rise on Clinical Investments
Research and development expenses surged 170.4% year over year to $25.3 million. The increase primarily reflected $11.1 million in additional spending on the L606 program, $3.2 million in higher Yutrepia development expenses and increased personnel costs.
Selling, general and administrative expenses increased 47.4% to $59.0 million, led by higher personnel expenses, stock-based compensation and commercial spending to support Yutrepia's launch.
Service revenues declined to $2.6 million from $2.7 million a year earlier. The company's promotion agreement with Sandoz for Treprostinil Injection was terminated in October 2026, ending this revenue stream.
LQDA's Litigation Settlement Impacts Profitability
Liquidia reported a net loss of $236.3 million compared with a loss of $3.5 million in the year-ago quarter. The reported loss included a one-time litigation settlement charge of $389.7 million.
On Oct. 13, Liquidia reached a global settlement with United Therapeutics (UTHR - Free Report) , resolving six pending lawsuits. Under the agreement, Yutrepia will remain available to existing patients, but Liquidia has stopped promoting it for pulmonary hypertension associated with interstitial lung disease (PH-ILD).
The company agreed to make net settlement payments totaling $380.7 million in multiple installments in 2026 and 2027.
Liquidia's Cash Position Supports Pipeline Expansion
Cash and cash equivalents totaled $396.1 million as of Sept. 30, 2026. This balance preceded the settlement payments.
Management stated that cash generated by Yutrepia's commercial performance should support its payment obligations and planned clinical investments without requiring additional capital.
The company initiated an open-label study evaluating the safety and tolerability of Yutrepia in adults with PAH who switch from oral selexipag. Primary study completion is expected in the second quarter of 2027.
LQDA advanced the open-label SPRINT trial, which will assess the hemodynamic response to Yutrepia, measured by changes in pulmonary vascular resistance (PVR), following 16 weeks of treatment administered three or four times daily. Trial initiation is expected in the fourth quarter of 2026.
The company is also advancing EASY-PAH, a prospective, observational U.S. registry of Yutrepia to evaluate dose regimen, including frequency, titration, and longitudinal clinical endpoints. The registry is expected to begin in 2027.
LQDA enrolled the first patient in this phase II, randomized, open-label dose-finding study evaluating the safety, tolerability and pharmacodynamics of Yutrepia in adults with systemic sclerosis (SSc) who experience frequent symptomatic Raynaud’s phenomenon (RP) attacks. Primary study completion is expected in the first quarter of 2027. In September 2026, the FDA granted the program Fast Track designation, highlighting the significant unmet medical need and lack of approved treatments for this patient population.
LQDA Advances L606 Across Pulmonary Indications
L606 is an investigational, twice-daily, extended-release formulation of treprostinil delivered through a next-generation nebulizer.
The global pivotal Re-Spire study in PH-ILD continues enrollment, which is expected to be completed in 2028. Primary study completion is anticipated in 2029.
Liquidia also plans to initiate enrollment in the pivotal AMPLIFY-PAH study in 2027, targeting primary completion in 2029. Another pivotal study evaluating L606 in pulmonary hypertension associated with chronic obstructive pulmonary disease is expected to begin in the second half of 2027.
Liquidia Expects Continued Commercial Growth
Management remains confident in Yutrepia's growth prospects despite the recent changes to its approved indications.
The company expects patient shipments and profitability to continue increasing as its existing patient base expands. Management plans to provide further details regarding its 2027 outlook in early January.
With the legal dispute resolved, Liquidia intends to focus on expanding Yutrepia's position in PAH while advancing its broader clinical pipeline.
Our TAKE on LQDA's Q3 Results
Liquidia beat both earnings and revenue estimates for the third quarter, supported by continued Yutrepia adoption and improving operating leverage.
The litigation settlement has not only removed a major legal uncertainty but also restricted new PH-ILD commercialization opportunities for Yutrepia. Sustained PAH prescription growth and patient retention will be important for maintaining sales momentum.
Meanwhile, the company's expanding cash resources and advancing L606 pipeline provide support for future development, although ongoing clinical spending and the substantial settlement payments remain important considerations.
LQDA’s Zacks Rank and Stocks to Consider
LQDA currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the drug/biotech sector are Amneal Pharmaceuticals (AMRX - Free Report) and Collegium Pharmaceutical (COLL - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 30 days, estimates for Amneal’s 2026 earnings per share have risen from $1.03 to $1.06, while those for 2027 EPS have increased from $1.16 to $1.21 during the same time frame. AMRX shares have rallied 68.9% year to date.
Amneal’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 27.21%.
Over the past 30 days, estimates for Collegium Pharmaceutical’s 2026 EPS have risen from $7.15 to $7.39, while those for 2027 EPS have increased from $5.75 to $6.84 during the same time frame.
Collegium Pharmaceutical’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 10.53%.