Transcript: Liquidia Q1 2026 Earnings Conference Call – Liquidia (NASDAQ:LQDA)

Liquidia (NASDAQ:LQDA) released first-quarter financial results and hosted an earnings call on Monday. Read the complete transcript below.

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The full earnings call is available at https://edge.media-server.com/mmc/p/2hke8bmq/

Summary

Eutrepia has become a leading product in the inhaled prostacycline category, with significant prescription growth and a strong uptake among physicians, demonstrating its potential as a foundational therapy.

The company is expanding its clinical studies, including transitioning patients from other therapies to Eutrepia and exploring new indications such as PH-COPD and scleroderma-associated Raynaud’s phenomenon, aiming to significantly grow the franchise value.

Laquinia Corporation has reported its third consecutive quarter of profitability, with a 44% sequential growth in net product sales, and is funding its growth initiatives through operating cash flow.

The company has achieved a half-billion-dollar annualized revenue run rate for Eutrepia in less than a year, with aspirations to reach at least $1 billion in net revenue by 2027.

Management emphasized the importance of expanding their market reach through increased sales force and driving awareness in the PH-ILD and community pulmonologist sectors.

Full Transcript

Jonathan, Operator

Good morning and welcome to Laquinia Corporation First Quarter 2026 Financial Results and Corporate Update conference call. My name is Jonathan and I will be your operator today. All participants are currently in a listen-only mode. Following the presentation, we will conduct a question and answer session. Instructions for joining the queue will be provided at that time. Please note that today’s call is being recorded. And now I’d like to turn the call over to Jason Adair, Laquinia’s Chief Business Officer.

You may proceed.

Jason Adair, Chief Business Officer

Thank you and good morning everyone. It’s my pleasure to welcome you to our first quarter 2026 financial results and Corporate Update call. Joining me today are Dr. Roger Jeffs, Chief Executive Officer, Michael Caseta, Chief Operating Officer and Chief Financial Officer, Dr. Rajeev Sagar, Chief Medical Officer, Scott Moonmaw, Chief Commercial Officer, and Rufti Sundar, our General Counsel. Before we begin, please note that today’s discussion will include forward-looking statements including statements regarding future results, product performance, and ongoing clinical or commercial activities.

These statements are subject to risks and uncertainties that may cause actual results to differ materially. For further information, please refer to our filings with the SEC which are available on our website. Please also note that our earnings release and our commentary include non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most comparable GAAP measures can be found in our earnings press release. With that, I’ll turn the call over to Roger.

Roger Jeffs, Chief Executive Officer

Thanks Jason and good morning everyone. We’re delighted to share our business results with you today. We’ll keep our prepared remarks somewhat brief this morning as we’d like to allow as much time for questions as we can. Having said that, I’d like to share some bigger picture thoughts regarding the state of the business and allow the Q&A to serve as time to delve into the specifics. Three full quarters into the commercial launch of Eutrepia, I would summarize the state of our business with three main points.

The first is that in the third full quarter on the market, Eutrepia is now leading the growth of the inhaled prostacycline category. Eutrepia is well on its way to becoming the anchored inhaled therapy for patients with PAH and PH ID. As of April 30th, we have received approximately 4,500 unique patient prescriptions and started approximately 3,750 patients on therapy since launch, and approximately 980 physicians have prescribed Eutrepia since launch.

This breadth of prescriptions is also complemented by increasing depth of prescriptions. For example, just since the end of February, the number of physicians who have prescribed Eutrepia to five or more patients has grown 25% to approximately 270 physicians. What this clearly demonstrates is that physicians who try Eutrepia are coming back to it for more and more of their patients. That is the pattern you see when a therapy is becoming foundational to a treatment paradigm, not when it is being trialed as an alternative, and strongly suggests that Eutrepia is already establishing itself as the best-in-class and first-in-choice inhaled therapy.

This increasing breadth and depth of prescriptions is driven by a product profile that is setting a new bar for others to match, one where targeted pulmonary delivery minimizes off-target effects with a formulation technology that preferentially lessens upper airway intolerance while enhancing local effects on the alveolar capillary membrane. This allows for higher dose attainment and most importantly better and more durable patient outcomes. The second main point is that we are purposefully and diligently broadening the opportunity in front of us by launching additional studies.

We have started recruiting into Cohort B of the ASCENT study to transition inadequate responders from Tyvaso DPI to Eutrepia in order to provide empiric evidence that higher doses of Eutrepia are uniquely well tolerated and advantaged versus competitive alternatives. Additionally, we are actively screening patients in our pivotal phase 3 RESPire study of L606, the most tolerable inhaled treprostinil studied to date, as evidenced by our 48-week data from the open-label US study in PAH and PH ID patients.

In addition, we are also advancing clinical programs to expand the role of inhaled prostacycline into other serious pulmonary and vascular diseases such as IPF, PPF, PH-COPD, and scleroderma-associated Raynaud’s phenomenon. For all of these opportunities, the mechanistic validation largely exists, yet unmet need and high opportunity value remain. We believe the differentiated tolerability and dosing profiles of both Eutrepia and L606 is foundational to that opportunity as it may support improved patient retention while also enabling higher therapeutic exposures over time.

The through line of our clinical investment is that we have extraordinary and real potential to expand the franchise value of our portfolio by multiples in the years to come with therapies that reimagine what a best-in-class profile must be. The third main point is that we have established a profitable self-funded business in a remarkably short period of time. We have now delivered our third consecutive quarter of profitability with top line growing, bottom line growing, and cash growing, which Mike will expand on shortly.

What that gives us is the freedom to reinvest our own profits into the next phase of the company’s growth. We are building new manufacturing capacity. We’re advancing both Eutrepia and L606 in a related array of clinical studies, and we are doing all of it from operating cash flow rather than via the capital markets. This is rare in our business, especially at this early stage of our commercial life cycle. To put it all in context, we could not be happier with where the business is today, and we are even more excited about where it is going.

Eutrepia has already exceeded a half billion dollars in annualized net revenue run rate in less than one full year on the market. Our clinical programs are fully funded by operating cash flow, and we have a clear line of sight to at least a billion dollars in net revenue in 2027 with multiple growth opportunities to sustain further growth well into the future. And what gives us confidence in achieving our ambitions is that the engine that gets us there is already up and running flawlessly.

With that, I’ll turn it over to Mike to walk you through the financials.

Michael Caseta, Chief Operating Officer and Chief Financial Officer

Thank you, Roger, and good morning everyone. As Roger has indicated, the first quarter is a continuation of the story that we discussed in March: sustained patient growth and disciplined execution. Net product sales of Eutrepia were $129.9 million in the first quarter of 2026, up from $90.1 million in the fourth quarter of 2025, representing 44% sequential growth in net product sales. The first quarter also marked our third consecutive quarter of increasing profitability, and the growth from quarter to quarter is striking.

Net income was approximately $52.9 million, up from $14.6 million in the fourth quarter of 2025. Non-GAAP adjusted EBITDA was approximately $71.2 million, up from $27.3 million. We almost tripled our EBITDA profitability from Q4 to Q1. We’ve achieved this increase in profitability while continuing to invest more heavily into the commercial organization through our sales force expansion and expanding our manufacturing capacity and footprint in North Carolina and in our clinical development programs.

We ended the quarter with approximately $222.8 million in cash and cash equivalents, an increase of $32.1 million from year end. So in addition to growing the top line, we continue to grow the balance sheet that funds our priorities and are confident in our ability to remain profitable in the future. Roger, back to you.

Roger Jeffs, Chief Executive Officer

Thanks, Mike. As we close out our third quarter on the market, what stands out to me is how much we have built in such a short period of time. A product that is leading the growth of the inhaled prostacycline category in PAH and PH ID, a pipeline with multiple paths to extend the franchise well beyond where it stands today, and a self-funded business with the freedom to invest in its own future. We have never been more confident in where this company is headed based on the robust momentum we continue to see in this business.

With that, operator, please open the line for questions.

Jonathan, Operator

Certainly. Ladies and gentlemen, if you do have a question at this time, please press star one one on your telephone. If your question has been answered and you’d like to remove yourself from the queue, simply press star 11. Again, our first question comes from the line of Amy Lee from Jefferies. Your question please.

Amy Lee, Jefferies