Revenue growth accelerates sharply
Revenue increased 98.6% year over year to $37.6 million, while cost of revenue rose only 73.8%, driving a 113.1% increase in gross profit.
Source: 10-Q Income Statement (XBRL)
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
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AI Takeaway
ETON's Q2 FY2026 results were defined by a near doubling of revenue and a swing to profitability after a loss in the prior-year period. The income statement shows top-line growth accelerating while cost of revenue rose more slowly, expanding gross margin, and a sharp reduction in research and development expense helped push operating income well into positive territory. The balance sheet strengthened with equity nearly doubling and long-term debt down, although current liabilities rose while current assets were roughly flat. Year-to-date operating cash flow increased, but investing outflows consumed more cash than operations generated. The main tension is whether the current level of profitability can be sustained given the steep cut in R&D spending and limited free cash flow generation.
Revenue
$37.59M
+98.59% YoY
EPS (Diluted)
$0.35
+450.00% YoY
Gross Margin
67.6%
+4.6 pts YoY
Operating Income
$12.79M
+967.39% YoY
Source: SEC XBRL
Eton Pharmaceuticals (ETON) reported Q2 FY2026 revenue of $37.59M, up 98.6% year over year. Operating margin was 34.0%, against -7.8% a year earlier. ETON's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 0.35 | 0.12 | Beat +198.4% |
| Mar 2026 | 0.05 | 0.09 | Miss -45.5% |
| Dec 2025 | 0.06 | 0.09 | Miss -34.6% |
| Sep 2025 | -0.07 | 0.09 | Miss -176.3% |
Reported EPS of $0.35 versus the $0.12 analyst consensus — a +198.4% beat for Jun 2026.
Compiled by AI from this SEC filing
Revenue increased 98.6% year over year to $37.6 million, while cost of revenue rose only 73.8%, driving a 113.1% increase in gross profit.
Source: 10-Q Income Statement (XBRL)
Operating income swung from a loss of $1.5 million to a profit of $12.8 million, and net income turned from a loss of $2.6 million to a profit of $11.6 million.
Source: 10-Q Income Statement (XBRL)
Research and development expense fell 73.2% to $0.99 million, materially supporting the expansion in operating margin.
Source: 10-Q Income Statement (XBRL)
Stockholders' equity rose 94.4% to $46.6 million and long-term debt declined 30.4% to $19.1 million, but current liabilities increased 16.9% to $45.1 million.
Source: 10-Q Balance Sheet (XBRL)
Year-to-date operating cash flow increased 45.9% to $14.7 million, while investing activities used $15.1 million, suggesting acquisitions or asset purchases that outweighed operating cash generation.
Source: 10-Q Cash Flow Statement (XBRL)
Compiled by AI from this SEC filing · 0 high, 5 medium, 0 low
R&D expense fell 73.2% to $0.99 million, which boosted current margins but may impair the company's product pipeline and long-term competitiveness if investment remains low.
Source: 10-Q Income Statement (XBRL)
Current liabilities increased 16.9% to $45.1 million while current assets rose only 0.2% to $68.6 million, leaving a current ratio of 1.52 and limited headroom if obligations need to be settled quickly.
Source: 10-Q Balance Sheet (XBRL)
Debt-to-equity stands at 1.49, with total liabilities of $69.2 million exceeding equity of $46.6 million; although improved from the prior year, long-term debt of $19.1 million still poses interest and repayment risk.
Source: 10-Q Balance Sheet (XBRL)
Year-to-date operating cash flow of $14.7 million was more than offset by $15.1 million in investing outflows, leaving essentially no free cash flow surplus and potentially drawing on cash reserves.
Source: 10-Q Cash Flow Statement (XBRL)
The swing from net loss to a 30.8% net margin depended partly on the steep R&D reduction and strong revenue growth; any reversal in revenue growth or need to rebuild R&D spending could quickly erode operating and net margins.
Source: 10-Q Income Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $M | 37.59 $M | 18.93 $M | +98.59% |
Cost of Revenue $M | 12.18 $M | 7.00 $M | +73.84% |
Gross Profit $M | 25.41 $M | 11.92 $M | +113.12% |
Operating Income $M | 12.79 $M | -1.48 $M | +967.39% |
Net Income $M | 11.58 $M | -2.59 $M | +547.89% |
EPS (Basic) $ | 0.42 $ | -0.10 $ | +520.00% |
EPS (Diluted) $ | 0.35 $ | -0.10 $ | +450.00% |
R&D Expense $M | 0.99 $M | 3.71 $M | -73.25% |
Answers draw on this SEC filing and the data on this page