Liquidia (NASDAQ:LQDA) Announces Earnings Results

Key Points

• Liquidia missed on earnings but beat revenue expectations: It reported a quarterly loss of $2.64 per share versus consensus expectations of $0.96 EPS, while revenue of $225.3 million exceeded estimates of $214.2 million and rose 314.9% year over year. The reported $236.3 million net loss included a one-time $389.7 million settlement charge.
• YUTREPIA continued to grow: Third-quarter net product sales increased 31% sequentially to $222.7 million, and adjusted EBITDA rose to $140.5 million for a fifth consecutive quarterly increase.
• Management said the settlement resolves the litigation overhang and reported $396.1 million in quarter-end cash before settlement payments, saying it can fund its plans without raising capital. However, litigation uncertainty briefly slowed referrals, and the company plans to provide 2027 revenue guidance in early January.

Liquidia (NASDAQ:LQDA - Get Free Report) released its earnings results on Tuesday. The company reported ($2.64) EPS for the quarter, missing analysts' consensus estimates of $0.96 by ($3.60), FiscalAI reports. The business had revenue of $225.30 million for the quarter, compared to analyst estimates of $214.18 million. Liquidia had a return on equity of 149.65% and a net margin of 30.74%. Liquidia's revenue was up 314.9% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.04) EPS.

Here are the key takeaways from Liquidia's conference call:

• YUTREPIA continued its strong launch growth: third-quarter net product sales rose 31% sequentially to $222.7 million, and adjusted EBITDA reached $140.5 million, its fifth consecutive quarterly increase. The company said more than 70% of September prescriptions included a PAH diagnosis and October shipments were the highest since launch.
• The settlement ended the litigation overhang and, according to Liquidia, requires no switch for existing PH-ILD patients; the company reported no changes to payer formularies or coverage. Liquidia said it has no ongoing royalty or payment obligations to United Therapeutics after its final settlement payment in April 2027.
• Management said litigation-related uncertainty briefly slowed referrals at some centers: October’s daily referral rate was more than 75% of Q3’s rate. Liquidia expects referrals to recover but said it wants more data before providing 2027 revenue guidance, which it expects to address in early January.
• Liquidia reported a substantial cash balance and said it can fund its plans without raising capital: cash and equivalents were $396.1 million at quarter-end before settlement payments. The GAAP net loss of $236.3 million included a one-time $389.7 million settlement charge, with $380.7 million payable in cash through April 2027.
• The company outlined a broad development agenda, including a PH-ILD pivotal study for L606 expected to complete enrollment in 2028, with data intended to support an NDA submission in 2029; a PAH pivotal study is planned for 2027. It also expects to complete its YUTREPIA Raynaud’s dose-finding study in the first half of 2027 and plans a PH-COPD pivotal study in the second half of 2027.

Liquidia Trading Down 1.0%

NASDAQ:LQDA traded down $0.49 during trading hours on Tuesday, hitting $47.38. The stock had a trading volume of 987,698 shares, compared to its average volume of 2,282,903. Liquidia has a one year low of $22.31 and a one year high of $93.61. The company has a debt-to-equity ratio of 0.63, a quick ratio of 2.12 and a current ratio of 2.31. The company has a market cap of $4.24 billion, a price-to-earnings ratio of 34.58, a P/E/G ratio of 0.41 and a beta of 0.40. The business's 50 day moving average is $49.99 and its 200-day moving average is $54.47.

Insider Buying and Selling

In related news, insider Jason Adair sold 688 shares of the company's stock in a transaction on Monday, October 26th. The shares were sold at an average price of $43.19, for a total value of $29,714.72. Following the completion of the sale, the insider owned 177,269 shares in the company, valued at $7,656,248.11. This represents a 0.39% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Scott Moomaw sold 8,863 shares of the company's stock in a transaction on Monday, October 12th. The shares were sold at an average price of $28.48, for a total transaction of $252,418.24. Following the completion of the sale, the insider owned 181,487 shares of the company's stock, valued at approximately $5,168,749.76. This represents a 4.66% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 566,579 shares of company stock valued at $25,746,120. 25.60% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on LQDA. Wall Street Zen lowered Liquidia from a "buy" rating to a "hold" rating in a research report on Saturday, October 3rd. Bank of America upped their price objective on Liquidia from $79.00 to $92.00 and gave the company a "neutral" rating in a report on Thursday, August 13th. Jefferies Financial Group upgraded Liquidia to a "strong-buy" rating in a report on Thursday, October 1st. Weiss Ratings raised Liquidia from a "sell (d-)" rating to a "hold (c)" rating in a research note on Tuesday, September 22nd. Finally, Wedbush set a $58.00 target price on Liquidia in a report on Friday, October 2nd. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Liquidia has an average rating of "Hold" and a consensus target price of $72.85.

Liquidia Company Profile

Liquidia Corporation is a biopharmaceutical company focused on developing and commercializing treatments for pulmonary hypertension and other serious diseases. Its work includes inhaled therapies designed to deliver medicines to the lungs.

The company's marketed product, Yutrepia (treprostinil) inhalation powder, is approved in the United States for adults with pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease. Liquidia also has a pipeline of investigational therapies, including other formulations of treprostinil.

Liquidia was founded in 2004 and uses its PRINT particle-engineering technology in drug development.

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