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…
Earnings analysis · 10-Q
PLX earnings analysis
Filed August 12, 2026 · Our reading of the company's report
The latest report
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…
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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.
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.
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.
What stood out
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.