10-Q · May 12, 2026
United-Guardian reported a solid performance in Q1 2026, with revenues increasing by approximately 16% year-over-year to $2,962,000. Despite challenges in the medical lubricants segment, pharmaceutical sales drove…
Earnings analysis · 10-Q
UG earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
United-Guardian delivered 10% Q2 net-sales growth to $3,108,000, led by a 44% increase in cosmetic and sexual wellness ingredients and partially offset by a 28% decline in medical lubricants. However, gross margin…
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United-Guardian delivered 10% Q2 net-sales growth to $3,108,000, led by a 44% increase in cosmetic and sexual wellness ingredients and partially offset by a 28% decline in medical lubricants. However, gross margin declined to 50% from 53% as a percentage of sales, while reported EPS was $0.16. Liquidity and cash generation improved materially, with first-half operating cash flow of $2,124,531 and working capital of $10,977,452, but the company remains exposed to customer concentration in India and the nonrecurring nature of the $339,493 Renacidin settlement product benefit.
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.
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
- $0.16
- Gross margin
- 50%
What stood out
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Revenue Grew 10% in Q2
Net sales increased $270,042, or 10%, in Q2 2026 versus Q2 2025, and increased $661,137, or 12%, for the first half of 2026 versus the first half of 2025.
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Ingredients Segment Drove Growth
Cosmetic and sexual wellness ingredient sales rose $390,150, or 44%, in Q2 and $536,417, or 34%, in the first half, led by a $286,282, or 38%, Q2 increase from ASI.
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Pharmaceutical Sales Improved
Pharmaceutical net sales increased $16,663, or 1%, in Q2 and $292,173, or 11%, for the first half; Renacidin gross sales increased $22,821, or 1%, in Q2 and $312,752, or 10%, year to date.
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Q2 Operating Expenses Declined
Operating expenses declined $26,768, or 4%, in Q2, primarily due to lower sales and marketing travel, consulting fees, and the 401K discretionary contribution.
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Operating Cash Flow Strengthened
Operating cash flow increased to $2,124,531 in the first half of 2026 from $625,323 in the first half of 2025, helped by higher net income, lower inventories, and lower prepaid income taxes.
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Liquidity Position Remained Strong
Working capital increased $445,376 to $10,977,452 at June 30, 2026 from $10,532,076 at December 31, 2025, while the current ratio remained 7.3 to 1.
What to watch
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Gross Margin Contracted
Cost of sales rose to 50% of net sales in Q2 2026 from 47% in Q2 2025, reducing gross margin by 3 percentage points. For the first half, cost of sales increased to 50% from 46%, a 4-point deterioration, due primarily to higher overhead costs per unit.
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India Customer Orders Declined
Medical lubricant sales declined $136,771, or 28%, in Q2 and $167,453, or 15%, in the first half, primarily because of reduced orders from the company’s largest customer in India.
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Settlement Benefit Is Nonrecurring
The Q2 settlement benefit included $36,360 of product received from the Renacidin contract manufacturer, following $303,133 received in March 2026; the manufacturer has fulfilled its obligation, so the benefit is nonrecurring.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management stated working capital is sufficient for at least the next 12 months, expects the effective tax rate to remain 21% for the current fiscal year, and expects to continue using cash for dividends, marketable securities, and growth opportunities.
Earlier filings 4
10-K · March 27, 2026
United-Guardian describes a product-innovation strategy focused on specialty hydrogel ingredients (Lubrajel) and a small pharmaceuticals franchise (Renacidin) with distribution partnerships to scale reach. Fiscal 2025…
10-K · March 21, 2025
United-Guardian, Inc. reported a total revenue of $2,477,000 for the fiscal year ending December 31, 2024, reflecting a growth trajectory, particularly in cosmetic ingredient sales which constituted 45% of total…
10-Q · May 13, 2024
Q1 2024 revenue increased to $3,254,944 (+$684,620 vs Q1 2023) driven by a surge in cosmetic ingredient sales. Gross margin compressed to ~52.2% from ~57.5% a year ago while operating margin was roughly stable at…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.