10-Q · May 11, 2026
Heron Therapeutics reported a decline in revenue for Q1 2026, with net product sales of $34.7 million, missing analyst estimates of $36.6 million. The diluted EPS also fell to a loss of $0.04, worse than the anticipated…
Earnings analysis · 10-Q
HRTX earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
Heron’s Q2 revenue was $37.666 million, modestly above the prior-year quarter and materially above Q1, but profitability remained weak: gross margin fell 4.2 percentage points year over year to 69.3%, operating margin…
Read full summary
Heron’s Q2 revenue was $37.666 million, modestly above the prior-year quarter and materially above Q1, but profitability remained weak: gross margin fell 4.2 percentage points year over year to 69.3%, operating margin was negative 5.4%, and diluted EPS was a $0.03 loss. Acute Care growth of 43.9% was offset by a 15.9% Oncology decline caused by continued competitive pressure. Liquidity improved operationally, with six-month operating cash use declining to $3.8 million, but the company faces a $17.5 million debt prepayment, reduced borrowing availability, adverse CINVANTI patent rulings and an ongoing strategic review.
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
- $-0.03
What stood out
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Revenue Rebounded Sequentially
Net product sales were $37.666 million, up 1.3% from $37.200 million in the prior-year quarter and up 7.6% from $35 million in Q1 2026.
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Acute Care Growth Accelerated
Acute Care sales increased 43.9% year over year to $15.333 million, driven by higher units sold, increased market share and new customers for ZYNRELEF and APONVIE.
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Sequential Operating Improvement
Operating margin improved sequentially to negative 5.4% from negative 13.7% in Q1 2026, while general and administrative expense fell 22.1% year over year to $11.276 million.
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Operating Cash Burn Declined
Operating cash use for the first six months fell 81.0% year over year to $3.8 million from $19.7 million, primarily due to variability in working-capital payments.
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Liquidity Expected for One Year
Management stated that $42.7 million of cash, cash equivalents and short-term investments is expected to fund anticipated cash requirements for at least one year from issuance of the financial statements, subject to operating-plan assumptions.
What to watch
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Debt Amendment Tightens Liquidity
On August 7, 2026, the company amended its Working Capital Facility Agreement to require up to $17.5 million of principal prepayments, eliminate future availability of $20.0 million in tranche 2 and $20.0 million in tranche 3, and revise financial covenants effective August 31, 2026.
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CINVANTI Patent Protection Weakened
A June 1, 2026 court decision held asserted claims of the '255 and '520 CINVANTI patents invalid and found 10 other asserted patents not infringed; Heron appealed on June 30, 2026, while a new Long Grove generic CINVANTI application was disclosed on June 26, 2026 and litigated on August 7, 2026.
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Strategic Review Adds Uncertainty
The company disclosed on August 10, 2026 that it is considering strategic alternatives with no set timetable, warning that the process could adversely affect employees, customers, lenders and execution of operational initiatives, and could increase stock-price volatility.
Management's outlook
The 10-Q does not provide new quantitative revenue or EPS guidance. The prior $173 million-$183 million 2026 revenue outlook is not reaffirmed in this filing; management instead disclosed on August 10, 2026 that it is considering strategic alternatives with no set timetable.
Earlier filings 4
10-K · February 26, 2026
Heron’s 10‑K presents a commercial-stage biotech with a stable quarterly revenue run-rate (~$37–$41M per quarter in 2025) and a product portfolio spanning acute care (ZYNRELEF, APONVIE) and oncology (CINVANTI, SUSTOL).…
10-Q · August 8, 2025
Heron reported Q2 net product sales of $37.2M, up 3.3% year-over-year but down versus Q1 2025 (Q1 implied $38.903M). Gross margin expanded to 73.5% and operating loss narrowed versus Q2 2024, but the company swung back…
10-Q · May 6, 2025
Heron reported Q1 2025 net product sales of $38.903M (vs. $34.670M in Q1 2024) and returned to profitability with net income of $2.635M and diluted EPS of $0.01 (vs. net loss $(3.160)M and diluted loss $(0.02) in Q1…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.