ADMA Biologics Q1 Earnings Call Highlights

Key Points

• ADMA reported Q1 earnings growth and margin expansion despite flat revenue of $114.5M, with adjusted net income up ~22% YoY, operating cash flow of ~$58M, gross margin widening to 71%, ASCENIV revenue rising 28% to $97.5M while BIVIGAM fell 54% to $15.4M.
• Management blamed an industry “dislocation” — new product entries, surplus plasma supply and aggressive discounting — for steep BIVIGAM order pressure but called the dynamics transitory and said ordering began to revert in Q2 while ASCENIV remained largely insulated and pricing-disciplined.
• ADMA ended the quarter with $138M cash, pro forma net leverage below 0.5x and ~3.6% of shares repurchased into treasury, and updated 2026 guidance to $530–560M revenue, $265–300M adj. EBITDA, and $170–200M adj. net income, while withdrawing longer-term guidance amid uncertainty.

ADMA Biologics NASDAQ: ADMA executives said the company delivered earnings growth and margin expansion in the first quarter of 2026 despite essentially flat total revenue, as strong demand for its immunoglobulin product ASCENIV offset a steep decline in standard IG product BIVIGAM amid what management described as an unusually competitive and dislocated industry environment.

Quarterly performance highlighted by margin expansion and cash generation

President and CEO Adam Grossman said the company “had a strong start to the year with earnings growth and margin expansion, despite total revenue being essentially flat,” pointing to a 22% year-over-year increase in adjusted net income, corporate gross margin expansion to 71%, and approximately $58 million of operating cash flow generated during the quarter.

CFO and Treasurer Terry Kohler reported first-quarter total revenue of $114.5 million, compared with $114.8 million in the prior-year period. The revenue mix shifted materially:

• ASCENIV revenue: $97.5 million, up 28% year over year
• BIVIGAM revenue: $15.4 million, down 54% year over year
• Intermediates and other products: down $3 million year over year

Gross profit was $80.8 million, resulting in a 71% gross margin versus 53% in the prior-year quarter. Kohler said adjusted EBITDA was $59.7 million, up 24% year over year, and adjusted net income was $40.7 million. GAAP net income was $45.3 million.

Management points to industry “dislocation” pressuring BIVIGAM ordering

Grossman said the first quarter reflected “top-line pressures primarily impacting BIVIGAM” and characterized the quarter as “likely” the “trough revenue baseline” from which the company expects to drive growth in coming quarters, citing “enduring ASCENIV demand, expanding margins, and continued strong cash generation.”

He described a changing immunoglobulin backdrop, saying that after a long period in which IG demand outpaced supply, the market saw new IG product entries in the back half of 2025 and into early 2026. Grossman said the first quarter also featured “a surplus of raw material plasma supply,” increased plasma-derived therapy and finished IG inventory within distribution channels, and “aggressive pricing tactics, including discounting and rebating from newer entrants.”

Those factors, he said, drove “greater than expected competitive intensity and distribution recalibration,” leading to “a rapid shift in the ordering patterns” at wholesalers and distributors that hurt reported first-quarter revenue and increased within-quarter variability for ADMA’s products. He said the dynamics were “timing related and are transitory in nature,” and added that the company was “observing signs of reversion in the second quarter.”

On the Q&A portion of the call, Grossman told Mizuho’s Anthony Petrone that while new entrants launched in the second half of 2025, ADMA “really started to see the competitive nature of some of the rebating and discounting…towards the end of February, beginning of March.” He said BIVIGAM utilization “took a decent hit in Q1,” but added that utilization began to revert later in March and that “April was the best utilization month of the year so far” for BIVIGAM.

ASCENIV demand described as record-level; pricing discipline maintained

Grossman emphasized that ASCENIV’s end-market demand reached record levels in the first quarter, with approximately 28% year-over-year revenue growth. He said the company saw “continued strength in record metrics across new patient starts, prescriber adoption, product pull-through, and patient adherence.”

Management also discussed distributor inventory practices, noting that distributors maintain safety stock for patient continuity and often keep extra inventory to guard against disruptions. Grossman said ADMA reviews distributors’ inventory and pull-through data regularly and believes inventory levels “are consistent with those of our industry peers and are appropriately sized.”

Grossman said ASCENIV was “largely insulated” from the standard IG competitive dynamics and reiterated that the company remains “disciplined in our pricing strategy.” In response to a question from Canaccord Genuity’s Gary Nachman about competitive discounting, Grossman said competitors’ reported ASPs for some new products had eroded “between 15%-20%” from original pricing. He said ADMA does not plan to engage in heavy discounting, including for ASCENIV, and argued that ASCENIV’s differentiated profile supports its positioning.

Grossman also pointed to real-world evidence as supportive in both clinical and payer conversations. Responding to Cantor Fitzgerald’s Kristen Kleczka, he said published datasets have been “very helpful” with commercial payers, who are seeing fewer hospitalizations and reduced ER visits in patients who switch from standard IG to ASCENIV due to chronic persistent infection. He added that the data is also helping convert clinicians “on the fence” about reimbursement in buy-and-bill settings.

Balance sheet, capital deployment, and updated 2026 outlook

Kohler said ADMA ended the quarter with $138 million in cash and cash equivalents. The company generated $58 million in cash from operations and received an additional $5 million from the sale of three plasma centers during the period. Grossman said the plasma-center monetization enhanced liquidity and coincided with adding a new third-party plasma supplier to further diversify sourcing.

On leverage and liquidity, Kohler said pro forma net leverage remained below 0.5 times, even after a revolving credit facility draw and “accelerated stock repurchase deployment,” and that ADMA retained roughly $100 million of additional borrowing capacity. He said share repurchases through March 31 resulted in converting approximately 3.6% of outstanding shares into treasury stock, and that the company expects to continue repurchasing shares opportunistically.

Kohler also addressed receivables and working capital. He said days sales outstanding rose to about 107 days in the quarter and that the company believes DSOs stabilized during Q1. ADMA is targeting DSOs between 90 and 105 days, with expected improvement in the back half of 2026 as ordering patterns normalize and as the McKesson specialty distribution agreement continues to ramp. Kohler said McKesson is expected to be “an important factor” in improving DSO performance and that the company expects to tailor back certain distribution-partner concessions in the second half of the year.

For full-year 2026, Kohler updated guidance to:

• Total revenue: $530 million to $560 million
• Adjusted EBITDA: $265 million to $300 million
• Adjusted net income: $170 million to $200 million

He said the outlook reflects continued ASCENIV growth partially offset by expectations of sustained competitive pressure in standard IG through 2026. Kohler also said ADMA expects a step-up in operating expenses, driven primarily by R&D spending for SG-001 and increased SG&A investment to support commercial operations.

Given uncertainty in the competitive landscape, Kohler said the company is withdrawing longer-term guidance “at this time,” adding that the update does not reflect a change in confidence in ASCENIV’s underlying demand fundamentals. Grossman also told investors the company has taken a conservative approach because it “just don’t have the visibility right now.”

SG-001 pipeline plans and upcoming data presentation

Grossman highlighted SG-001 as a key pipeline focus, saying the company expects upcoming preclinical data to be presented at the International Symposium on Pneumococci and Pneumococcal Diseases conference. He said ADMA remains on track to submit a pre-IND package for SG-001 to the FDA later this year. Grossman described SG-001 as leveraging ADMA’s plasma-derived platform and yield-enhancement production methods and said preclinical proof of concept has been observed for two virulent and prevalent pneumonia serotypes.

Grossman said the company has not provided specific timelines for SG-001 clinical trials but discussed a potential regulatory pathway for immunoglobulins, noting FDA guidance typically involves a 12-month study in which patients are switched from commercial IG to the investigational product. He said that historically such a 12-month study “takes about 18 months to do,” while emphasizing ADMA will provide more guidance after FDA interactions.

In closing remarks, Grossman reiterated management’s view that ASCENIV utilization trends remain strong even as distributors work through what ADMA called a temporary dislocation in plasma-derived therapies ordering patterns. He said the company remains focused on patient outcomes, prescriber expansion, and long-term margin expansion, and that it expects to navigate the evolving U.S. immunoglobulin environment from a “position of relative strength.”

About ADMA Biologics NASDAQ: ADMA

ADMA Biologics, Inc is a biopharmaceutical company headquartered in Ramsey, New Jersey, that focuses on the development, manufacturing and commercialization of specialty plasma-derived biologics for the treatment of primary immunodeficiency and infectious diseases. Leveraging an integrated model that spans plasma collection, fractionation, formulation and fill-finish operations, ADMA Biologics aims to address unmet needs in immune-compromised and high-risk patient populations.

The company's marketed product portfolio includes BIVIGAM, a human immunoglobulin intravenous (IGIV) therapy approved by the U.S.

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