10-Q · April 30, 2026
Indivior reported strong Q1 2026 results with revenue of $317 million, surpassing expectations of $272 million and showing a significant increase compared to $266 million in Q1 2025. EPS came in at $0.96, exceeding…
Earnings analysis · 10-Q
INDV earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
Indivior delivered a strong Q2, with revenue of $343 million rising 14% year over year and diluted EPS of $1.15 versus $0.14, led by 21% SUBLOCADE growth. Gross margin improved to 85% and operating margin expanded to…
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Indivior delivered a strong Q2, with revenue of $343 million rising 14% year over year and diluted EPS of $1.15 versus $0.14, led by 21% SUBLOCADE growth. Gross margin improved to 85% and operating margin expanded to 46.4% as SG&A fell 23%, although gross margin moderated from 87.4% in Q1. Liquidity improved to $249 million of cash and investments, but negative working capital of $142 million and the planned Supernus transaction—including a potential $650 million term loan—are key balance-sheet and execution considerations.
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
- $1.15
What stood out
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Revenue and EPS accelerated
Q2 revenue was $343 million, up $41 million or 14% from $302 million a year earlier and up $26 million or 8% from $317 million in Q1 2026. Diluted EPS of $1.15 rose from $0.14 in Q2 2025 and $0.69 in Q1 2026.
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Margins expanded sharply year over year
Gross margin reached 85%, up 2 percentage points from 83% in Q2 2025, although down from 87.4% in Q1 2026. Operating margin was 46.4%, versus 23.5% a year ago and 43.2% in Q1 2026.
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SUBLOCADE remained the growth engine
SUBLOCADE revenue increased $44 million, or 21%, to $253 million, driven by 18% U.S. dispense-unit volume growth, gross-to-net benefits and favorable price mix. The product represented 74% of quarterly net revenue.
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Cost actions drove operating leverage
SG&A fell $36 million, or 23%, to $122 million and R&D declined $9 million, or 42%, to $12 million. Management attributed the reductions primarily to headcount reductions, other corporate-initiative savings, and reduced pipeline activity.
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Operating cash generation remained strong
Six-month operating cash flow was $220 million, while capital expenditures were $27 million, implying $193 million of six-month cash generation before financing activities. Cash and investments increased to $249 million from $222 million at December 31, 2025.
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Capital returns continued
The company repurchased 8,638,693 shares for $300 million in the first half and had $100 million remaining under its $400 million authorization at June 30, 2026.
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Debt structure was refinanced
The company issued $500 million of 0.625% convertible senior notes due 2031 and used proceeds to repay the $333 million original term loan balance in full.
What to watch
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New merger approval and fixed-ratio risk
The sole new risk-factor update concerns the pending Supernus merger, which management expects to close in Q4 2026 but remains subject to stockholder and regulatory approvals. The consideration has a fixed 1.5401 Indivior-share exchange ratio per Supernus share, creating unhedged equity-value volatility if either stock price changes.
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Merger financing could add leverage
Indivior entered a commitment for a $650 million senior secured term loan in connection with the merger and special dividend. Existing long-term borrowings had already risen to $487 million at June 30, 2026 from $290 million at December 31, 2025.
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Negative working capital increases timing risk
Current liabilities exceeded current assets by $142 million at June 30, 2026, and management states that liquidity depends on sustaining sales volume and avoiding a material change in collection and rebate-payment timing. The company also reported $613 million of accrued rebates, returns and prompt-pay discounts.
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Concentration and international-sales pressure
Revenue remains concentrated in SUBLOCADE, which supplied 74% of Q2 net revenue, while Rest of World revenue declined 7% to $43 million. Management expects the Rest of World decline to continue because of exits from certain non-U.S. markets.
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Pipeline has been discontinued
Management ceased Phase 3 development of INDV-6001 and will not advance INDV-2000 internally; it is not currently pursuing pipeline activities. Although R&D expense declined to $12 million, the decisions reduce internal pipeline optionality.
Management's outlook
The 10-Q provides no numeric revenue or EPS outlook. Management expects the Supernus merger to close in Q4 2026 and expects approximately $10 million to $15 million of additional H2 2026 capital expenditures, primarily for the Raleigh SUBLOCADE manufacturing facility.
Earlier filings 2
10-K · February 26, 2026
Indivior remains the market leader in long‑acting injectable (LAI) treatments for opioid use disorder, with FY‑2025 revenue of $1,240.0M (sum of quarterly results) and Q4‑2025 revenue of $358.0M. The company completed…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.