Siga Technologies (SIGA) Financials

SIGA Technologies’ Q2 2026 results show a sharp rebound from the first quarter, although the company’s financial performance remains highly dependent on the timing of product deliveries and contracts. Revenue reached $41.0 million, compared with $6.2 million in Q1 2026. However, Q2 revenue was approximately 49% below the $81.1 million reported in Q2 2025, underscoring the volatility of SIGA’s quarterly results.

Profitability improved substantially on a sequential basis. Gross profit was $23.4 million, representing a 57.2% gross margin, while operating income was $13.9 million and net income was $12.5 million, or $0.17 per diluted share. SIGA had reported a $3.5 million net loss and negative $5.3 million operating income in Q1 2026. Still, Q2 2026 operating income and net income were well below the $45.7 million and $35.5 million, respectively, recorded in Q2 2025.

Cash generation also recovered in Q2. Operating cash flow was $15.2 million, reversing the $8.7 million outflow in Q1 2026. The company continues to carry limited capital expenditure requirements, with no significant property and equipment purchases reported in either 2026 quarter. SIGA’s balance sheet remains conservatively financed, with $117.6 million of cash and equivalents, $10.4 million of total liabilities and $165.3 million of shareholders’ equity at June 30, 2026.

• Sequential earnings recovery: Q2 2026 revenue rose more than sixfold from Q1, and SIGA returned to positive operating income and net income.
• Strong operating cash flow: The company generated $15.2 million of operating cash flow in Q2, providing meaningful internal funding for operations and shareholder returns.
• Healthy balance sheet: Cash substantially exceeds reported liabilities, and the data shows no material debt burden.
• Inventory improvement: Net inventory declined to $41.1 million from $56.5 million at the end of Q1 2026 and $48.0 million in Q3 2025, which may indicate progress converting inventory into sales.
• Stable share count: Diluted weighted-average shares were approximately 71.9 million in Q2 2026, limiting evidence of meaningful dilution.
• Improving retained earnings: Retained earnings improved to a deficit of $78.0 million from a deficit of $110.8 million in Q2 2023, reflecting cumulative profitability over the period despite continued volatility.
• Revenue remains lumpy: Quarterly revenue has ranged from $2.6 million in Q3 2025 to $81.1 million in Q2 2025 and $41.0 million in Q2 2026. This makes individual-quarter comparisons difficult and increases the importance of annual results and contract timing.
• Research spending is relatively consistent: Q2 2026 research and development expense was $4.4 million, broadly similar to the prior-year quarter and indicative of continued investment in the product pipeline.
• Year-over-year deterioration: Q2 2026 revenue fell roughly 49% year over year, while net income dropped approximately 65% from Q2 2025. Operating margin also declined to about 34% from roughly 56%.
• Cash declined after shareholder distributions: Cash fell from $145.6 million at the end of Q1 to $117.6 million at the end of Q2, largely because SIGA paid approximately $43.1 million in dividends. Continued large distributions could reduce liquidity during weaker sales periods.

Overall, SIGA’s financial position remains strong, but its earnings outlook is less predictable than the balance sheet suggests. The Q2 rebound demonstrates that the business can produce substantial profit and cash when sales are realized, while the sharp swings between quarters highlight execution and order-timing risk. Investors should monitor whether future revenue can remain above the low levels seen in Q1 2026 and whether operating cash flow can consistently support the company’s dividend policy.