10-Q · April 30, 2026
Pacira BioSciences reported Q1 2026 revenues of $177.4 million, reflecting a 5% increase from $168.9 million a year ago, while EPS was $0.07, significantly underperforming the consensus estimate of $0.52. The company…
Earnings analysis · 10-Q
PCRX earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Pacira delivered 6% year-over-year Q2 revenue growth to $192.399 million, driven by EXPAREL and ZILRETTA, while GAAP diluted EPS improved to $0.12. However, operating margin fell to approximately 2.2% from 4.7% a year…
Read full summary
Pacira delivered 6% year-over-year Q2 revenue growth to $192.399 million, driven by EXPAREL and ZILRETTA, while GAAP diluted EPS improved to $0.12. However, operating margin fell to approximately 2.2% from 4.7% a year earlier, reflecting higher development and operating costs plus $5.931 million of iovera° divestiture expense. Strong six-month operating cash flow of $83.140 million and $251.0 million of cash and investments support liquidity, but lost future iovera° revenue, tariff pressure, and reliance on uncertain divestiture milestones temper the outlook.
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
- $0.12
What stood out
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Revenue and GAAP EPS improved
Q2 revenue was $192.399 million, up 6% from $181.099 million in Q2 2025 and 8.7% from $177 million in Q1 2026. GAAP diluted EPS improved to $0.12 from a $0.11 loss in Q2 2025 and $0.07 in Q1 2026.
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Core product sales grew
Core franchises both expanded: EXPAREL revenue rose 3% to $147.823 million on 4% gross-vial-volume growth, while ZILRETTA revenue increased 4% to $32.648 million, supported by 2% kit-volume growth and a 2% net-price increase.
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Cash conversion strengthened
Six-month operating cash flow increased $35.7 million year over year to $83.140 million. With $4.110 million of six-month capex, derived free cash flow was $79.030 million and capex was approximately 1.1% of six-month revenue of $369.775 million.
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Liquidity and working capital remain strong
Liquidity was substantial at June 30, with $251.0 million of cash, cash equivalents and available-for-sale investments and $493.2 million of working capital. Cash and cash equivalents increased $47.330 million during the first six months.
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Access and pipeline catalysts advanced
UnitedHealthcare added separate outpatient reimbursement for EXPAREL, bringing separately reimbursed access to approximately 150 million covered lives. Management also completed enrollment of 49 patients in ASCEND Part A and expects topline data before year-end 2026.
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iovera° sale added near-term cash
The iovera° divestiture closed July 31 and generated $73.6 million of cash after purchase-price adjustments, versus a stated $70.0 million upfront payment. The deal can also provide up to $70.0 million of contingent consideration through December 31, 2031.
What to watch
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Operating-margin compression
Operating margin contracted to approximately 2.2% ($4.267 million of operating income) from 4.7% in Q2 2025 and 3.9% in Q1 2026. Q2 included $5.931 million of divestiture-related expense, while R&D rose 7% to $30.243 million and SG&A rose 4% to $91.809 million.
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Tariffs threaten gross margin
Management expects tariffs to negatively affect gross margin. Relevant exposure includes 15% tariffs on certain imports from the E.U. and Switzerland and a 10% tariff on certain U.K. imports, where finished dosage manufacturing occurs.
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New risk: iovera° divestiture execution
The newly added 10-Q risk factor states Pacira may not realize the expected iovera° divestiture benefits. iovera° generated $6.806 million of Q2 revenue, which will cease after the July 31 closing, and the company may not receive up to $70.0 million in contingent milestones.
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New risk: contingent milestones uncertain
A second new risk factor highlights uncertainty around Zimmer-controlled milestone payments: the $18.5 million, $23.5 million, and $28.0 million payments require annual iovera° revenue thresholds of $50.0 million, $60.0 million, and $70.0 million, respectively, through December 31, 2031.
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Tax benefit supported reported EPS
GAAP earnings benefited from a $6.4 million discrete U.K. deferred-tax benefit in Q2. The reported $0.12 GAAP EPS therefore includes a material non-operating tax benefit alongside only $2.555 million of pretax income.
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Leverage and floating-rate exposure
Debt totaled $368.5 million at June 30, comprising $287.5 million of 2.125% 2029 convertible notes and $81.0 million drawn on the revolver. The revolver's approximate all-in rate was 6.72%, and a 100-basis-point rate increase would add about $0.8 million of annual interest expense.
Management's outlook
The 10-Q does not provide explicit quantitative revenue or EPS guidance. Management expects PCRX-201 ASCEND Part A topline 12-month data before the end of 2026, expects to initiate a PCRX-2002 Phase 2 bunionectomy program later in 2026, and expects LG Chem partnership revenue to begin in 2027.
Earlier filings 4
10-K · February 26, 2026
Pacira reports modest topline growth to $727.0M for the year (sum of 2025 quarters) with EXPAREL remaining the primary driver at $575.1M (79% of revenues). The company launched its 5x30 strategy in January 2025 (goal:…
10-Q · August 5, 2025
Pacira reported Q2 revenue of $181.1M (up from $178.0M in Q2 2024) with a gross margin around 77.4% and operating margin of ~4.7%, but swung to a GAAP net loss of $4.8M (loss per diluted share $0.11) versus net income…
10-K · February 27, 2025
Pacira’s 10-K (year ended December 31, 2024) emphasizes a transition to a broader musculoskeletal/biopharma strategy via the January 2025 “5x30” plan while continuing to rely on three commercial products (EXPAREL,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.