Knight Therapeutics (TSE:GUD) reported record fourth-quarter and full-year 2025 financial results on its March 19, 2026 earnings call, highlighting strong revenue growth, expanding contributions from recent Canadian acquisitions, and a growing cadence of launches across Canada and Latin America.
Record 2025 results and Q4 outperformance
President and CEO Samira Sakhia said the company has delivered 12 consecutive years of record revenue. For 2025, Knight reported record revenue of CAD 452 million, record adjusted EBITDA of CAD 73 million, and record cash flow from operations of CAD 69 million. Sakhia attributed the year-over-year revenue increase to growth from key promoted products and incremental revenue from the Paladin and Sumitomo portfolios.
Management specifically pointed to Orgovyx, Myfembree, and Xcopri as outperforming expectations in the quarter, noting they were less impacted by promotional disruption during the transition because of their differentiated profiles and unmet-need positioning. Utchanah also said adjusted EBITDA outperformance reflected both higher revenue and lower spending as acquisition integration delayed certain selling, marketing, and medical initiatives.
Growth drivers: acquisitions, promoted products, and a heavier launch calendar
For full-year 2025, Utchanah said revenue increased by CAD 87 million year over year, driven by the addition of the Paladin and Sumitomo portfolios, which contributed CAD 56.5 million of incremental revenue, and growth in key promoted products, which increased by CAD 32.5 million or 12% on a constant-currency basis.
On the business development front, Chief Business Officer Amal Khoury said Knight deployed over CAD 140 million of capital in 2025 and expanded its portfolio by adding over 50 products, including 8 pipeline and launch assets. She said the Paladin and Sumitomo transactions increased the scale of the company’s Canadian operations and brought both growth products and mature cash-flow-generating products to help fund launches.
Sakhia said Knight has accelerated its pace of execution on launches, citing three launches in 2024 and 10 launches across Canada and Latin America in 2025. Looking ahead, she said the company expects at least another 10 launches in 2026.
Portfolio performance, therapeutic area mix, and margins
Utchanah provided 2025 revenue by therapeutic area and discussed drivers and offsets:
- Oncology and hematology: CAD 147.5 million, up 7%. Key promoted products increased 20% on a constant-currency basis, driven mainly by Orgovyx and ONICIT, growth in Minjuvi and Akynzeo, and the launch of Pemazyre, partly offset by declines in mature/branded generics and the termination of a non-strategic distribution agreement in Colombia.
- Infectious disease: CAD 161 million, up 8%, primarily due to growth of Cresemba and Ambisome, partly offset by customer purchasing patterns.
- Neurology (newly defined segment): CAD 85.5 million, up 61%, with CAD 28 million of incremental revenue from Paladin and Sumitomo and additional impact from purchasing patterns and the launch of Jornay PM.
- Other specialty: CAD 58.2 million, up 129% (and up 125% constant currency), including CAD 24.3 million of incremental revenue from Paladin and Sumitomo, plus growth from Imvexxy and Bijuva and purchasing patterns.
On profitability, Utchanah said adjusted gross margin as a percentage of adjusted revenues rose to 51% in Q4 2025 from 47% a year earlier. For full-year 2025, adjusted gross margin was 48% versus 47% in 2024, with the increase mainly attributed to the Paladin and Sumitomo portfolios in Canada.
In Q&A, management said gross margin is influenced by product mix and that a higher weighting of the Canadian business has contributed to a “couple points” upward shift compared with historical levels.
Operating expenses, cash flow, and balance sheet updates
Utchanah said 2025 sales, marketing, and R&D expenses totaled CAD 97.9 million, up 30%, reflecting infrastructure and spending required to support a larger portfolio of 50 products and 10 launches. G&A expenses were CAD 55.3 million, up 26%, driven in part by CAD 4.6 million of acquisition and transaction costs related to Paladin and higher share-based compensation expense tied to reassessing vesting targets.
The company ended 2025 with CAD 95 million in cash and marketable securities and CAD 68 million in debt. Utchanah said Knight improved its position from net debt at the end of Q3 2025 to net cash of CAD 27 million at year-end 2025, and that it had already repaid half the principal of the revolving credit facility drawn to finance the Paladin transaction. The debt-to-adjusted EBITDA leverage ratio improved from over 1.45x at the end of Q3 2025 to under 1x at the end of Q4 2025.
Knight’s financial assets were valued at CAD 98 million at the end of 2025. Utchanah said the company recorded a net loss of CAD 6.4 million from mark-to-market revaluations of strategic fund investments, while still receiving net proceeds from distributions of CAD 8 million during 2025 (and CAD 47 million since 2020).
2026 guidance, regulatory items, and launch execution
For fiscal 2026, Sakhia said Knight expects revenue of CAD 490 million to CAD 510 million and adjusted EBITDA of approximately 15% of revenue. She said the outlook assumes no material adjustment due to hyperinflation accounting in Argentina and reflects growth from new launches and the full-year effect of the Paladin and Sumitomo transactions, alongside higher operating expenses to support continued investment behind brands and pipeline.
In Q&A, Sakhia described the company’s approach to guidance as “cautiously optimistic,” noting it would update guidance if performance trends warrant. She also said buying patterns across countries and brands were “pretty neutral” overall, with some seasonality in Canada ahead of the Christmas holidays.
On specific updates discussed during the call:
- Ambisome (Brazil Ministry of Health): Management said the company signed near the end of Q4 and shipped about CAD 6.7 million in Q4 2025 under the 2026 contract, which was described as totaling about CAD 32.5 million.
- TAVALISSE (Brazil): Management said ANVISA reversed a prior denial and is continuing to review the submission, with an expectation to hear “later this year.”
- Qelbree (Canada): Management said it expects to refile later in 2026 and anticipates approval by year-end.
- Paladin/Sumitomo portfolio: Sakhia said the underlying mature portfolio (excluding growth assets) is tracking to expectations and is expected to be stable to slightly declining over time. She added that some returned non-core product rights are included in that base, and they are expected to phase out over the year, but management still viewed the “60-ish” range as reasonable for 2026.
- Integration and headcount: Management said integration is largely complete aside from systems work and noted over 30% headcount reduction as part of restructuring, with expectations that total operating expense levels will resemble Q4’s run rate, including a shift toward higher selling/marketing/R&D and lower G&A as stock-based compensation catch-up moderates.
On commercial staffing, Sakhia said Knight has the teams it needs for current products and does not expect to add more field teams for those products. She said additional infrastructure may be needed for the broader 2026 launch slate, but not at the scale of 2025, when the company was building up in Canada and Mexico.
Separately, Sakhia said Knight repurchased 1.1 million shares for CAD 6.4 million during 2025 under its normal course issuer bid, and purchased an additional 1.2 million shares for CAD 7.3 million in Q1 2026.
About Knight Therapeutics (TSE:GUD)
Knight Therapeutics Inc is a specialty and generic drug manufacturing company. The company’s principal business activity is focused on developing, acquiring, in-licensing, out-licensing, marketing, and distributing innovative pharmaceutical products, consumer health products, and medical devices in Canada and select international markets. Knight finances other life sciences companies across the globe in order to generate interest income, strengthen relationships in the life sciences industry, and to secure product distribution rights.
