PLX earnings analysis
What we found in PLX'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
Protalix reported $16 million of second-quarter revenue, flat year over year but down 52.9% from Q1 2026, while gross margin was 62.5% and operating margin was 7.5%. Free cash flow declined to negative $6 million from positive $21 million in the prior quarter, indicating substantial quarter-to-quarter cash-flow volatility. The supplied filing text provides no new quantitative guidance; the principal new risk disclosures are potential U.S. pharmaceutical tariffs scheduled for September 2026 and uncertainty around Israeli R&D grants.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue fell sharply sequentially
- Second-quarter revenue was $16 million, unchanged from $16 million in the prior-year quarter but down $18 million, or 52.9%, from $34 million in Q1 2026.
- Gross margin held year over year
- Gross margin was 62.5%, down from 87.8% in Q1 2026 and unchanged from 62.5% in Q2 2025.
- Operating profitability remained positive
- Operating margin was 7.5%, down from 62.6% in Q1 2026 but up from negative 41.0% in Q1 2025; it was unchanged from 7.5% in Q2 2025.
- Free cash flow turned negative
- Free cash flow was negative $6 million, compared with positive $21 million in Q1 2026 and negative $6 million in Q2 2025.
- Disclosure controls remained effective
- The company reported that disclosure controls were effective as of June 30, 2026, providing reasonable assurance that required information was recorded, processed, summarized and reported timely.
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.
- Potential pharmaceutical tariffs
- U.S. tariffs on certain pharmaceutical products, active pharmaceutical ingredients and key starting materials are scheduled to generally take effect in September 2026. The company states that increased tariffs could impair commercialization and materially and adversely affect business, results of operations and financial condition.
- NIS currency and inflation exposure
- Approximately 41% of the company's costs, including salaries, expenses and office expenses, are incurred in NIS. Management states that a 1% revaluation of the NIS would affect loss before tax by less than 1%, while currency volatility and inflation may still increase the U.S.-dollar cost of Israeli operations.
- Uncertainty over R&D grants
- The company has begun applying for grants under the Israeli R&D Law and intends to continue applying, but states there is no guarantee it will receive the full amount or any amount of grants because awards are subject to the discretion of the Israeli Minister of Finance.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 62.5%
- Operating margin
- 7.5%
What they said about what is next.
The provided 10-Q excerpt does not include quantitative revenue or EPS guidance. The prior outlook was $78 million-$83 million of 2026 revenue, but no change to that outlook is stated in the supplied filing text.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 13, 2026
- Protalix BioTherapeutics reported a significant increase in revenues and net income for Q1 2026 compared to the previous year, driven largely by milestone payments and higher licensing revenues. The company achieved…
- 10-K · March 18, 2026
- Protalix presents a commercial-stage rare-disease platform (ProCellEx) with two marketed ERTs (Elelyso and Elfabrio) and an advancing pipeline (PRX-115 Phase 2 underway). Revenue was effectively flat year-over-year at…
- 10-Q · August 14, 2025
- Protalix reported Q2 2025 revenue of $15,658,000, up from $13,474,000 in Q2 2024, driven by a large increase in Fabry (Chiesi) sales. Gross margin expanded to ~62.5% and the company swung to operating income of…
- 10-Q · May 9, 2025
- Protalix reported Q1 2025 revenue of $10,113 (thousands), up from $3,748 (thousands) in Q1 2024, driven by higher product sales to Pfizer and Fiocruz. Despite the top-line improvement, gross margin compressed to 19.1%…
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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