10-Q · May 14, 2026
Fennec Pharmaceuticals reported a notable performance in Q1 2026, with revenue rising to $15.1 million from $8.8 million in the same quarter last year, marking a 72.6% year-over-year growth. Additionally, the company…
Earnings analysis · 10-Q
FENC earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
Fennec delivered a strong Q2 2026, with revenue up 85.2% year over year to $17.874 million and operating income of $1.737 million versus a $2.732 million operating loss in Q2 2025. EPS improved to $0.05, and first-half…
Read full summary
Fennec delivered a strong Q2 2026, with revenue up 85.2% year over year to $17.874 million and operating income of $1.737 million versus a $2.732 million operating loss in Q2 2025. EPS improved to $0.05, and first-half operating cash flow turned positive at $2.429 million. Growth was driven by PEDMARK market penetration, access expansion and AYA focus, although the company remains highly dependent on one product and is increasing commercial spending substantially.
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.
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
- $0.05
- Operating margin
- 9.7%
What stood out
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Revenue Growth Accelerated
Second-quarter revenue was $17.874 million, up $8.222 million, or 85.2%, from $9.652 million in Q2 2025 and approximately 19.2% from $15 million in Q1 2026. PEDMARK product sales were $17.164 million, while other revenue contributed $0.710 million.
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Operating Profitability Improved
Income from operations improved to $1.737 million from a $2.732 million operating loss in Q2 2025, producing an operating margin of approximately 9.7% versus negative 28.3% in the prior-year quarter and negative 0.8% in Q1 2026.
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EPS Turned More Profitable
Reported EPS was $0.05, versus $(0.11) in Q2 2025 and $0.01 in Q1 2026. Net income was $1.973 million, compared with a $3.152 million net loss in the prior-year quarter.
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Operating Cash Flow Turned Positive
Six-month operating cash flow was $2.429 million, reversing from $8.004 million of cash used in operations in the first half of 2025. Six-month net cash flow was $4.461 million, including $2.032 million from financing activities; capex was not disclosed, so free cash flow cannot be determined.
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Liquidity Position Strengthened
Cash and equivalents increased to $41.249 million from $36.788 million at December 31, 2025, while working capital rose to $60.106 million from $56.525 million. Other current assets increased by $0.996 million, primarily due to higher inventory.
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Commercial Expansion Continues
Management attributed product-sales growth to increased market penetration and access and greater focus on the AYA population. Norgine launched PEDMARQSI in Germany and the U.K. in 2025 and plans launches in several additional markets in 2026; Fennec may receive up to approximately $230 million in additional milestones, although none had been received by June 30, 2026.
What to watch
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Single-Product Concentration
The company remains heavily dependent on PEDMARK: product sales were $17.164 million of total revenue of $17.874 million in Q2 2026, or approximately 96%. The 10-Q states that PEDMARK is the company's only FDA-approved product.
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Commercial Spending Leverage Risk
Selling and marketing expense rose to $10.659 million from $4.784 million in Q2 2025, an increase of $5.875 million, as Fennec expanded its commercial headcount and marketing initiatives. Sustaining this investment could pressure profitability if market penetration does not continue.
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Cash Concentration and Funding Risk
Approximately $38.705 million of the company's $41.249 million in cash and equivalents was held in savings and money-market accounts, substantially above the $250,000 FDIC insurance limit cited by management. The company also stated that future capital requirements are subject to substantial uncertainty.
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No Material Risk-Factor Update
The company disclosed no material changes to the risk factors in its December 31, 2025 Annual Report. Patent protection nevertheless remains important: the Cipla settlement bars U.S. entry until September 1, 2033, subject to specified earlier-entry circumstances, while orphan exclusivity runs through September 20, 2029.
Management's outlook
No quantitative revenue or EPS guidance was provided in the 10-Q. Management stated that future capital requirements remain subject to substantial uncertainty and that it continues to pursue strategic alternatives and collaborations.
Earlier filings 4
10-K · March 27, 2026
Fennec is a commercial-stage specialty pharma company focused on PEDMARK®, the first FDA- and EMA-approved therapy to reduce cisplatin-induced ototoxicity in pediatric patients. The company reported Q4 product revenue…
10-Q · November 13, 2025
Fennec reported Q3 2025 PEDMARK product sales of $12,462,000 (vs. $6,974,000 in Q3 2024) and GAAP diluted EPS of $(0.02). Gross profit on product sales remained very high (product COGS $660,000), driving a small…
10-Q · August 14, 2025
Fennec reported Q2 2025 revenue of $9,652,000 (all PEDMARK product sales), up from $7,262,000 in Q2 2024 and up versus Q1 2025 ($8,751,000). Gross margin remained high at 90.0%, but the company posted an operating loss…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.