Phathom Pharmaceuticals reported first‑quarter 2026 results that beat analyst expectations, with net revenue of $58.3 million, up 104% from $28.5 million a year earlier, and a non‑GAAP earnings per share of $‑0.18 versus the consensus estimate of $‑0.27, a beat of $0.09 or 33%. The company’s GAAP net loss narrowed to $30.4 million from a $94.3 million loss in Q1 2025, while the non‑GAAP loss was $30.4 million, reflecting the impact of a $15 million net cash usage during the quarter.
Operating expenses fell to $61.8 million on a GAAP basis, a 40% reduction from $103.7 million in Q1 2025, and to $56.2 million on a non‑GAAP basis. Gross profit of $46.3 million on revenue of $58.3 million yields a gross margin of 79.4%, consistent with the company’s FY 2026 guidance of roughly 80%. The company’s disciplined cost management, highlighted by a 40% cut in cash operating expenses, underpins the narrowing loss and supports the outlook for operating profitability by Q3 2026.
Cash and cash equivalents stood at $180.9 million as of March 31, 2026, up from $135 million reported in the original article. Net cash usage of approximately $15 million during the quarter was driven by operating expenses and capital expenditures, while a $122 million equity offering in January and a $55.8 million debt repayment in February have bolstered the balance sheet and provide a runway to profitability without additional financing.
The company reaffirmed its 2026 sales guidance of $320 million to $345 million and reiterated confidence in achieving operating profitability beginning in the third quarter of 2026 and reaching cash‑flow positivity in 2027. The guidance reflects management’s belief that the current growth trajectory and cost discipline will sustain profitability.
Prescription data show a 30% increase in new‑to‑brand VOQUEZNA prescriptions among the top 3,000 gastroenterologists, a key driver of revenue growth. The company’s focus on depth of prescribing among specialists is expected to continue fueling revenue expansion while maintaining disciplined operating expenses.
Phathom’s pipeline includes a Phase 2 pHalcon‑EoE‑201 trial for eosinophilic esophagitis, with topline results expected in late Q4 2026 or early Q1 2027. The company is also preparing for potential competition from a second P‑CAB, expected in 2027, and has positioned itself to capture a larger share of the gastroenterology market.
"In the first quarter, we more than doubled revenue compared to the prior year Q1. We have implemented our pivot to GI and the associated sales force expansion." – Steven Basta, President and CEO
"We believe there is a path to $1 billion annual revenue in gastroenterology prescriptions, and we are encouraged by the strength of our new‑to‑brand prescription momentum." – Steven Basta
"Among our top 3,000 GI prescribers as a group, approximately 30% of their new‑to‑brand prescriptions were for VOQUEZNA, compared to PPIs." – Steven Basta
"Our first quarter results demonstrate strong year‑over‑year revenue growth and continued execution against our plan, with net revenues of $58.3 million and net cash usage of approximately $15 million." – Sanjeev Narula, Chief Financial Officer
"We maintained disciplined operations, reducing year‑over‑year cash operating expenses by more than 40%, while continuing to invest in our commercial organization and clinical pipeline." – Sanjeev Narula
"We believe we are on track to achieve operating profitability beginning in the third quarter and for the full year 2026 and reach cash flow positivity in 2027." – Phathom Management
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.