ADMA Biologics Q2 Earnings Call Highlights

Key Points

• Second-quarter revenue rose 2% to $124.4 million, driven by a 24% increase in ASCENIV sales to $102.9 million, which offset ongoing pressure on BIVIGAM. Gross margin expanded to 69%, while adjusted EBITDA grew 22% to $61.8 million.
• ADMA reiterated its 2026 guidance of $530 million–$560 million in revenue, $265 million–$300 million in adjusted EBITDA and $170 million–$200 million in adjusted net income. The company remains on track to repurchase at least $200 million of shares during the year.
• The company reported accelerating ASCENIV utilization and favorable real-world patient outcomes, while advancing SG-001 toward potential FDA engagement by year-end 2026; ADMA estimates the candidate could generate $300 million–$500 million in annual revenue if approved.

ADMA Biologics NASDAQ: ADMA reported second-quarter revenue growth of 2% as increased sales of its ASCENIV immune globulin product offset pressure on BIVIGAM in the standard immunoglobulin market. The company reiterated its full-year financial outlook and said it remains on track to meet or exceed those expectations.

Total revenue for the quarter was $124.4 million, compared with $122 million a year earlier. ASCENIV revenue rose 24% year over year to $102.9 million, while BIVIGAM revenue totaled $19.4 million and improved sequentially from the first quarter as market conditions stabilized.

“ASCENIV demand accelerated during the second quarter, and June delivered the strongest sequential utilization growth we have experienced since the first half of 2024,” President and Chief Executive Officer Adam Grossman said. He attributed the trend to physician adoption, broader provider engagement, new patient starts and higher patient utilization.

Profitability and Cash Generation

Gross profit increased to $86.3 million, producing a gross margin of 69%, compared with 55% in the prior-year quarter. Chief Financial Officer and Treasurer Terry Kohler said the expansion reflected a greater proportion of ASCENIV in the company’s sales mix and benefits from its yield-enhanced manufacturing process.

• Adjusted EBITDA increased 22% year over year to $61.8 million.
• Adjusted net income rose 8% to $39 million.
• GAAP net income increased 11% to $37.8 million.
• Cash from operations totaled about $30 million.

The company’s effective tax rate was 24.7% during the quarter, roughly 10 percentage points higher than a year earlier. Kohler said the year-ago period included discrete tax benefits and that ADMA expects its normalized effective tax rate to be approximately 24% going forward.

ADMA ended the quarter with about $136 million in cash and cash equivalents, net leverage of less than half a turn, and approximately $100 million of additional borrowing capacity under its revolving credit facility. Accounts receivable were $138.2 million, with days sales outstanding improving to about 101 days from approximately 107 days at the end of the first quarter. Inventory was $239.3 million.

Capital Returns and 2026 Outlook

During the quarter, ADMA repurchased approximately 7.1 million shares using internally generated cash flow. Year-to-date repurchases totaled about 13.8 million shares, representing approximately 5.3% of common shares outstanding as of June 30. Grossman said the company remains on track to complete its target of at least $200 million in share repurchases during 2026.

The company reiterated its full-year 2026 guidance:

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

Kohler said the outlook assumes continued competitive pressure and pricing dynamics in the standard immune globulin market, while ASCENIV is expected to remain the principal contributor to revenue growth, profitability and cash generation.

ASCENIV Evidence and Commercial Trends

Grossman said ASCENIV utilization grew progressively through the quarter, while distributor-reported end-user inventory remained consistent with underlying demand. He said the product is being adopted among later-line, refractory and medically complex patients with primary immunodeficiency.

ADMA submitted an abstract to the 2026 American College of Allergy, Asthma and Immunology annual scientific meeting covering a real-world analysis of 127 medically complex primary immunodeficiency patients. According to Grossman, the analysis compared the 12 months before patients began ASCENIV with the following 12 months and found statistically significant reductions in infection-related hospitalizations, outpatient utilization, oral antibiotic use and corticosteroid use. The proportion of patients with infection-related emergency-room visits also declined, he said.

The company said it believes the findings may support physician adoption, payer engagement and patient access. Grossman told analysts that ASCENIV and BIVIGAM have broad commercial reimbursement access, with ASCENIV generally in parity with other immunoglobulin brands. He added that more than 70% of immunoglobulin prescriptions require prior authorization.

While ADMA continues to face increased supply, discounting and rebate pressure in the standard immune globulin market, Grossman said BIVIGAM stabilized during the quarter and posted sequential gains in utilization and revenue. The company still expects BIVIGAM revenue to be down about 40% to 50% from 2025 levels, while it expects ASCENIV growth in the upper-20% to low-30% range year over year.

Grossman also discussed ADMA’s relationship with McKesson, saying it is part of the company’s strategy to expand ASCENIV penetration. Some group purchasing organization customers buying through McKesson focus primarily on secondary immune deficiency and do not overlap with ADMA’s existing ASCENIV call points through legacy distribution partners, he said. He added that McKesson’s payment terms are somewhat faster than those of certain other customers.

SG-001 Development Plans

ADMA is advancing SG-001, its development-stage product candidate intended to address pneumococcal disease risk among immunocompromised patients. Grossman said the company is pursuing plasma-collection optimization, potency-assay development and additional preclinical work to support production of cGMP conformance lots in the second half of 2026 and submission of a pre-IND meeting package to the U.S. Food and Drug Administration by year-end.

Grossman said ADMA estimates that, if approved, SG-001 could represent a $300 million to $500 million annual revenue opportunity. Kohler said research and development expense rose as the company prepares for a potential future clinical trial, and that the approximately $6 million quarterly R&D level should continue through the rest of the year, with another smaller increase expected in the fourth quarter as conformance lots are manufactured.

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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