10-Q · May 11, 2026
Arvinas reported a dramatic decline in revenue for Q1 2026, with total revenue falling to $15.6 million from $188.8 million in Q1 2025. The company experienced a net loss of $57.6 million, compared to a net income of…
Earnings analysis · 10-Q
ARVN earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Arvinas reported a large Q2 profit and revenue surge, with $249.7 million of revenue and $2.58 diluted EPS, but the result was driven principally by deferred-revenue release, the Rigel license and the $50.0 million…
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Arvinas reported a large Q2 profit and revenue surge, with $249.7 million of revenue and $2.58 diluted EPS, but the result was driven principally by deferred-revenue release, the Rigel license and the $50.0 million VEPPANU approval milestone rather than recurring product sales. Cost reductions lowered Q2 R&D to $52.6 million and improved six-month operating cash use to $117.5 million, while liquidity of $567.9 million is expected to fund operations into H2 2028. The outlook is balanced by a clinical hold on ARV-102 in PSP and heightened dependence on Rigel to commercialize the company's only approved product.
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.
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
- $2.58
What stood out
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Collaboration revenue drove major Q2 beat
Q2 revenue was $249.7 million, up $227.3 million from $22.4 million a year earlier and $233.7 million from $16.0 million in Q1 2026. The increase reflected $112.6 million from the Pfizer collaboration, $62.5 million from the Rigel license, and a $50.0 million VEPPANU approval milestone.
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Profitability turned sharply positive
Net income was $169.4 million, versus a $61.2 million net loss in Q2 2025; diluted EPS was $2.58 versus a $0.84 loss a year ago and a $0.90 loss in Q1 2026. Calculated operating margin reached 65.7%, compared with a 319.2% operating loss margin a year ago.
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Cost actions reduced operating spend
R&D expense declined $16.0 million year over year to $52.6 million, while G&A fell $1.3 million to $24.0 million. R&D personnel expense fell $11.0 million, partly offset by higher ARV-806, ARV-027 and ARV-393 external spend of $3.9 million, $3.2 million and $2.3 million, respectively.
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VEPPANU approval creates licensing optionality
The FDA approved VEPPANU in Q2 2026, and the Rigel agreement provides an aggregate $70.0 million upfront payment, a further $15.0 million upon transition activities, and up to $320.0 million in development, regulatory and commercial milestones, all shared equally with Pfizer.
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Cash runway extends into H2 2028
Liquidity remained substantial at $567.9 million at June 30, 2026, although down $117.5 million from $685.4 million at December 31, 2025. Management believes this cash runway supports operations into the second half of 2028; debt was only $0.5 million.
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Multiple near-term pipeline milestones
Pipeline catalysts are scheduled for the second half of 2026: ARV-393 early monotherapy data and ARV-806 Phase 1 dose-escalation data. ARV-6723 is expected to enter Phase 1 in Q3 2026.
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Operating cash burn improved year over year
Six-month operating cash use improved to $117.5 million from $184.3 million a year earlier. Capital expenditures were not separately disclosed, so free cash flow and capex intensity cannot be calculated from the filing.
What to watch
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Q2 earnings rely on one-time revenue recognition
The $249.7 million quarter was largely nonrecurring license/collaboration recognition, including $126.4 million of remaining Pfizer deferred revenue, $62.5 million from the Rigel agreement and a $50.0 million FDA-approval milestone. Arvinas states it does not expect product-sales revenue in the near future, if ever.
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VEPPANU economics now depend on Rigel
The amended risk factor makes Rigel solely responsible for VEPPANU commercialization and key decisions. Arvinas and Pfizer may receive up to $320.0 million in contingent Rigel milestones, but payment and any sales-derived economics depend on Rigel's performance.
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ARV-102 PSP program is on FDA clinical hold
The ARV-102 PSP Phase 1b has not dosed patients and is on clinical hold after the FDA requested additional information and final chronic toxicology data following its 30-day review. Subject to clearance, management now plans to initiate PSP trials in 2027.
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Cash burn continues despite extended runway
Cash, cash equivalents and marketable securities declined $117.5 million in six months to $567.9 million, while operating cash flow was negative $117.5 million. Management expects to need substantial additional financing despite its second-half 2028 runway estimate.
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New AI governance and cybersecurity risk
A new risk factor identifies AI and machine-learning exposure in discovery operations, including data leakage, model poisoning, IP, privacy and regulatory risks. The EU AI Act, which entered into force on August 1, 2024, is expected to become largely effective in August 2026.
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Research collaboration base is narrowing
Genentech gave termination notice on June 9, 2026, and the collaboration will terminate effective August 8, 2026. The Pfizer research-program term has also concluded, reducing the pool of active research collaborations.
Management's outlook
No quantitative revenue or EPS guidance was provided in the 10-Q. Management expects $567.9 million of cash, cash equivalents and marketable securities at June 30, 2026 to fund planned operating expenses and capital expenditures into the second half of 2028.
Earlier filings 4
10-K · February 24, 2026
Arvinas positions itself as a clinical‑stage PROTAC platform company focused on oncology and neurology, highlighting an accepted NDA for vepdegestrant with a PDUFA date of June 5, 2026 and multiple clinical programs…
10-Q · August 6, 2025
Arvinas reported Q2 revenue of $22.4 million, down sharply from $76.5 million in Q2 2024, and posted an operating loss of $71.5 million (versus $48.5 million a year ago). Diluted EPS was a loss of $0.84 compared with a…
10-Q · May 1, 2025
Arvinas reported a large, one-time-driven revenue and profit swing in Q1 2025: revenue was $188.8M and GAAP net income $82.9M (EPS $1.14), versus revenue $25.3M and net loss $(69.4)M (EPS $(0.97)) in Q1 2024. The result…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.