Scienture Holdings, Inc. — Q2 2026 Earnings Summary

Financial Performance

• Q2 2026 revenue increased approximately 510% sequentially to $343,639, compared to $56,325 in Q1 2026.
• First-half 2026 revenue increased significantly year-over-year to $399,964, compared to $10,258 for the first six months of 2025.
• Q2 2026 gross profit was $335,779 with a gross margin of approximately 97.7%, compared to $0 in Q2 2025.
• First-half 2026 gross profit increased to $389,629 with a gross margin of approximately 97.4%, compared to $673 for the first six months of 2025.
• Q2 2026 operating expenses decreased approximately 41% year-over-year to approximately $3.0 million, compared to approximately $5.2 million in Q2 2025.
• First-half 2026 operating expenses decreased approximately 24% to about $6.6 million, compared to approximately $8.7 million during the first six months of 2025.
• Q2 2026 operating loss improved approximately 48% to about $2.7 million, compared to an operating loss of approximately $5.2 million in Q2 2025.
• Q2 2026 net loss narrowed approximately 58% to about $2.8 million, compared to a net loss of approximately $6.7 million in Q2 2025; basic and diluted net loss per share improved to $0.07 from $0.48.
• First-half 2026 net loss narrowed approximately 36% to about $6.2 million, compared to approximately $9.8 million for the first six months of 2025; basic and diluted net loss per share improved to $0.16 from $0.83.
• As of June 30, 2026, the Company held cash, cash equivalents, and restricted cash of approximately $11.2 million, compared to approximately $6.7 million as of December 31, 2025.
• Total liabilities increased to $23,632,481 as of June 30, 2026, from $14,057,946 as of December 31, 2025, driven by a $9,568,586 note payable and a $11,037,595 deferred tax liability.
• Stockholders' equity decreased to $64,101,526 as of June 30, 2026, from $70,120,384 as of December 31, 2025.

Guidance and Future Outlook

• Management expects to meaningfully accelerate top-line revenue growth during the second half of 2026 and into 2027.
• The Company has established a clear path toward achieving profitability in 2027.
• REZENOPY™ is scheduled to be commercially launched in the third quarter of 2026.

Business Segments and Product Lines

• Commenced the commercial launch of REZENOPY™ (naloxone hydrochloride) Nasal Spray 10 mg, establishing the Company's second commercial product.
• Secured formulary coverage for REZENOPY™ with a large national health plan.
• Expanded ARBLI™ (losartan potassium) payer coverage and commercial access, adding approximately 12.5 million covered lives.
• United States Patent and Trademark Office (USPTO) granted a second patent covering REZENOPY™, extending intellectual property protection through 2041.
• USPTO granted a third patent covering ARBLI™, extending expected market exclusivity through 2041.
• Expanded the commercial team to support market penetration and growth for REZENOPY™.
• ARBLI™ is the first and only FDA-approved oral liquid formulation of losartan, indicated for hypertension, stroke risk reduction, and diabetic nephropathy.
• REZENOPY™ is indicated for the emergency treatment of known or suspected opioid overdose in adult and pediatric patients.

Market and Competitive Landscape

• Hypertension affects nearly half of adults in the United States, approximately 119.9 million people.
• ARBLI™ addresses unmet market needs by providing a liquid formulation that does not require compounding, offering consistent quality and dosing accuracy compared to extemporaneously compounded prescriptions.
• REZENOPY™ serves the emergency treatment market for opioid overdoses in settings where opioids may be present.

Risks and Challenges

• Forward-looking statements are subject to risks including the ability to raise future funding, potential dilution, and the ability to continue as a going concern.
• Risks include security interests under credit arrangements, maintaining Nasdaq listing, intellectual property claims, and outcomes of legal proceedings.
• Specific product risks include the risk of recurrent respiratory and CNS depression, limited efficacy with partial agonists, precipitation of severe opioid withdrawal (for REZENOPY™), and fetal harm (for ARBLI™).
• Actual results may differ from projections due to unanticipated difficulties or expenditures related to the business plan.

Management Commentary and Tone

• Narasimhan Mani, President, Interim CFO, and Co-CEO, stated the results demonstrate an "important inflection point" and that the Company is realizing operating leverage.
• Shankar Hariharan, Executive Chairman and Co-CEO, expressed confidence in the ability to scale differentiated products and noted the Company has "turned an important corner."
• Management highlighted the strengthened cash position, high gross margins, and disciplined operating expense structure as key drivers for future value creation.

Other Key Points

• The Company is a holding company for existing and planned pharmaceutical operating companies focused on specialty products addressing unmet market needs.
• The balance sheet reflects a $5,000,000 note receivable and $437,500 interest receivable as of June 30, 2026.
• The Company has 41,064,146 shares of common stock issued and outstanding as of June 30, 2026.
• The Company previously operated under the name TRxADE HEALTH, INC.