10-Q · July 28, 2026
Alkermes delivered Q2 revenue of $496.0 million, up 27.0% year over year and 26.2% sequentially, led by the acquired LUMRYZ franchise and continued LYBALVI growth. However, acquisition-related costs, including $31.0…
Earnings analysis · 10-Q
ALKS earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
Alkermes delivered strong year-over-year revenue growth to $480.1 million and exceeded the $464.0 million consensus estimate, led by $417.3 million of product sales and $89.9 million of LUMRYZ revenue. However, diluted…
Read full summary
Alkermes delivered strong year-over-year revenue growth to $480.1 million and exceeded the $464.0 million consensus estimate, led by $417.3 million of product sales and $89.9 million of LUMRYZ revenue. However, diluted EPS of $0.09 missed the $0.18 estimate and declined from $0.49 a year earlier, while GAAP net income fell to $16.3 million from $82.8 million. The balance sheet carries $1.511 billion of borrowings, although new interest-rate collars provide partial protection against higher SOFR. Management reiterated its 2026 expectations, resulting in a mixed, neutral outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.09
- Segment
- Product sales: $417.3 million; LUMRYZ revenue: $89.9 million and approximately 4,100 patients
What stood out
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Revenue beat consensus and rose year over year
Third-quarter revenue was $480.1 million, up from $496 million in Q2 2026? No—based on the supplied quarterly history, revenue declined sequentially by $15.9 million, or 3.2%, but increased $86.1 million, or 21.8%, from $394 million in Q3 2025. Revenue exceeded the $464.0 million consensus estimate.
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LUMRYZ supported product sales growth
Product sales reached $417.3 million, including $89.9 million of LUMRYZ revenue. LUMRYZ had reached approximately 4,100 patients, supporting the product-sales growth profile.
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Debt maturities extend into 2031
The company had $1.511 billion of borrowings outstanding under its credit facilities at September 30, 2026. The TLA Facility matures February 12, 2031, and the TLB Facility matures August 12, 2031.
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Interest-rate collars add some protection
Alkermes entered into two zero-cost interest-rate collars in October 2026, each with a $375.0 million notional amount, with SOFR caps of 5.25% and floors of 4.25% and 4.30%.
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No material control deficiencies reported
Disclosure controls were concluded to be effective as of September 30, 2026, and the company reported no changes in internal control over financial reporting that materially affected, or were reasonably likely to materially affect, those controls.
What to watch
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Sharp decline in earnings and EPS miss
Diluted EPS was $0.09, below the $0.18 consensus estimate and down from $0.49 in Q3 2025. GAAP net income was $16.3 million versus $82.8 million a year earlier, a decline of $66.5 million, or 80.3%.
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High leverage increases financial risk
Borrowings totaled $1.511 billion at September 30, 2026, creating material leverage and refinancing exposure even though the facilities mature in 2031.
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Floating-rate debt remains interest-sensitive
The company stated that a 10% increase in the three-month SOFR rate would increase expected interest expense by $1.6 million for October 1 through December 31, 2026. Current three-month SOFR was 4.07% at September 30, 2026.
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Variable-rate debt pressures margins
The 10-Q identifies $1.511 billion of facility borrowings bearing interest at SOFR plus applicable margins of 1.75% to 2.25% for the TLA Facility and 2.25% for the TLB Facility, leaving earnings exposed to variable borrowing costs.
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No formal risk-factor update disclosed
The filing states that there have been no material changes in market-risk exposures since December 31, 2025 and refers readers to the Annual Report for risk factors; therefore, no new formal risk-factor changes were identified in the provided Item 1A text.
Management's outlook
Management reiterated its 2026 financial expectations as set forth in the July 28, 2026 press release; the 10-Q does not provide specific numeric revenue or EPS guidance.
Earlier filings 4
10-Q · May 5, 2026
Alkermes’ Q1 2026 results showed stronger-than-expected revenue of $392.9 million, surpassing estimates by 8.7%. However, the company faced a significant net loss of $66.5 million compared to net income of $22.5 million…
10-K · February 25, 2026
Alkermes completed the Avadel acquisition (consideration of $21.00 per share plus a CVR up to $1.50) to add LUMRYZ and a narcolepsy commercial organization, while continuing to commercialize ARISTADA, LYBALVI and…
10-Q · July 29, 2025
Alkermes reported Q2 2025 revenue of $390.7M and diluted EPS of $0.52, beating consensus and showing a sharp recovery versus Q1 2025. Gross margin expanded to ~87.3% and operating margin recovered to 23.8% from a weak…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.