United-Guardian — Second Quarter 2026 Earnings Summary

Financial Performance

• Second quarter net sales increased 10% year-over-year to $3,108,267 from $2,838,225 in 2025; net income rose 16% to $728,579 ($0.16 per share) from $626,826 ($0.14 per share).
• First half 2026 net sales increased 12% to $5,980,489 from $5,319,352 in 2025; net income increased 30% to $1,547,481 ($0.34 per share) from $1,187,721 ($0.26 per share).
• Cost of sales for the second quarter was $1,562,465 (2025: $1,340,854); operating expenses were $667,282 (2025: $694,050); research and development expense was $124,395 (2025: $107,868).
• Total costs and expenses for the six-month period were $4,583,915 (2025: $4,012,977); income from operations was $1,396,574 (2025: $1,306,375).
• Total other income for the second quarter was $163,480 (2025: $95,149), driven by investment income of $70,445, net gain on marketable securities of $48,365, settlement income of $36,360, and gain on sale of asset of $8,310.
• Provision for income taxes for the second quarter was $189,026 (2025: $163,776); weighted average shares were 4,594,319 for both periods.

Business Segments and Product Lines

• Cosmetic ingredient sales increased 44% in the second quarter and 34% in the first half of 2026 compared to the same periods in 2025.
• Pharmaceutical sales increased 1% in the second quarter and 11% in the first half of 2026 compared to the same periods in 2025.
• Renacidin® served as the primary driver of pharmaceutical growth.
• Increased purchases by Ashland Specialty Ingredients ("ASI"), the company's largest cosmetic distributor, drove cosmetic ingredient sales growth after ASI reduced higher-than-normal inventory levels experienced in 2025.

Management Commentary and Tone

• President Donna Vigilante expressed pleasure regarding increased sales and earnings in both the second quarter and first half of 2026.
• Management remains focused on a growth plan that includes expanding promotional efforts and increasing market awareness for Renacidin among physicians and care providers.
• Strategic priorities include increasing awareness of "natural" products and growing the medical lubricant business.

Other Key Points

• The company is a manufacturer of cosmetic ingredients, pharmaceuticals, medical lubricants, and sexual wellness ingredients.
• Settlement income of $36,360 in the second quarter and $339,493 in the first half of 2026 was recorded, with no comparable amounts in 2025.
• A gain on sale of asset of $8,310 was recorded in both the second quarter and first half of 2026, with no comparable amounts in 2025.
• The press release includes forward-looking statements subject to risks and uncertainties detailed in the company's SEC filings.