INDV earnings analysis
What we found in INDV's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.15
- Gross margin
- 85.0%
- Operating margin
- 46.4%
- Segment
- Single operating segment. U.S. revenue was $300 million (up 17% year over year), including SUBLOCADE revenue of $238 million (up 22%).
- Segment
- Rest of World revenue was $43 million (down 7% year over year). Total SUBLOCADE revenue, including Rest of World, was $253 million (up 21%).
What they said about what is next.
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.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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