10-Q · August 5, 2026
Second-quarter revenue was $783.3 million, down $15.3 million, or 2%, year over year, as Tyvaso DPI growth did not offset declines in Nebulized Tyvaso and Remodulin amid competitive therapies. Gross margin contracted to…
Earnings analysis · 10-Q
UTHR earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
United Therapeutics delivered a revenue beat in Q3, led by 13% Tyvaso DPI growth and 11% Orenitram growth, but profitability weakened materially: operating margin fell to 37.0% from 48.6% and diluted EPS declined 20% to…
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United Therapeutics delivered a revenue beat in Q3, led by 13% Tyvaso DPI growth and 11% Orenitram growth, but profitability weakened materially: operating margin fell to 37.0% from 48.6% and diluted EPS declined 20% to $5.71. Cash generation remained strong, with $1,083.4 million of nine-month operating cash flow and $693.9 million of calculated free cash flow, although cash and investments declined 25% after $2.0 billion of repurchases and significant capital investment. The Liquidia settlement and prospective pipeline approvals provide upside, but the ScinoPharm OAI designation, elevated R&D spending, competitive pressure on Nebulized Tyvaso and Remodulin, and substantial Q4 commitments temper the 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.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
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
- $5.71
What stood out
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Revenue beat consensus by 6.5%
Q3 revenue increased 4% year over year to $832.5 million from $799.5 million, beating the $781.6 million consensus estimate by approximately 6.5%.
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DPI and Orenitram drove growth
Tyvaso DPI revenue rose 13% to $378.5 million, while Orenitram increased 11% to $145.0 million and Unituxin increased 9% to $52.3 million.
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Gross margin up; operating leverage reversed
Gross margin improved to 88.1% from 87.4%, but operating margin fell sharply to 37.0% from 48.6% as R&D increased to $279.2 million from $127.5 million, including $133.6 million of Thymmune IPR&D expense.
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EPS declined and missed estimates
Diluted EPS declined 20% to $5.71 from $7.16 and missed the $6.00 consensus estimate by approximately 4.8%. Net income fell to $258.6 million from $338.7 million.
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Strong cash generation funds expansion
Nine-month operating cash flow was $1,083.4 million and calculated free cash flow was $693.9 million after $389.5 million of capital expenditures. Capex increased from $347.6 million in the prior-year period, reflecting substantial facility investment.
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Liquidia settlement creates Q4 catalyst
The Liquidia settlement requires $330.4 million of aggregate payments to United Therapeutics, including $185.0 million received in October 2026 and $145.4 million due in two installments by April 30, 2027; management expects to recognize the full amount in Q4 2026.
What to watch
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Ralinepag approval faces API risk
The FDA classified the facility of sole-source ralinepag API supplier ScinoPharm as Official Action Indicated. Management stated that remediation and inspection may be required before approval of the ralinepag NDA, whose user fee goal date is June 24, 2027; failure could result in a complete response letter and delay launch.
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New Boehringer litigation exposure
Boehringer filed litigation on July 17, 2026 seeking injunctive relief, damages, and attorneys’ fees over alleged sales-force raiding and trade-secret misuse. The court denied both discovery-related motions on October 5, 2026, and the parties remain engaged in discovery.
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Large pipeline and capital commitments
The company paid Arena $525.0 million on November 3, 2026 to eliminate future ralinepag royalties and expects to record the amount as Q4 2026 R&D expense. This follows $2.0 billion of share repurchases during the first nine months and leaves cash and marketable investments at $3,535.7 million as of September 30, 2026, down 25% from December 31, 2025.
Management's outlook
No explicit numeric revenue or EPS guidance was provided. Management expects near-term revenue growth from continued Tyvaso DPI growth, removal of PH-ILD from the Yutrepia label, potential ralinepag and IPF approvals, treprostinil SMI, Orenitram growth, and modest price increases. Management expects to recognize $330.4 million of Liquidia settlement income in Q4 2026 and $525.0 million of Arena-related R&D expense in Q4 2026.
Earlier filings 4
10-Q · May 6, 2026
United Therapeutics reported a revenue of $781.5 million for Q1 2026, down 2% year-over-year, primarily due to declines in Nebulized Tyvaso and Remodulin sales. The diluted EPS was $6.71, a decrease from the previous…
10-K · February 25, 2026
United Therapeutics positions itself around treprostinil-based franchise (Tyvaso, Remodulin, Orenitram) and organ-manufacturing technologies, with Tyvaso DPI/Nebulized Tyvaso accounting for the largest share of sales.…
10-Q · July 30, 2025
United Therapeutics reported Q2 2025 revenue of $798.6M, up 11.7% versus Q2 2024 ($714.9M) and modestly higher than Q1 2025 ($794.4M). Diluted EPS was $6.41 (vs. $5.85 in Q2 2024) but missed consensus of $6.87 (-6.7%).…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.