01—Abstract
Summary
Summary of the 10-Q filed August 5, 2026. Cited figures are marked; the original filing is the authoritative source.
United Therapeutics Corporation reported total revenues of $783.3 milliona for the three months ended June 30, 2026, down 2% from $798.6 million a year earlier, and $1,564.8 million for the six months, down 2% from $1,593.0 million.
Net income rose to $333.0 millionb for the quarter from $309.5 million, and diluted EPS was $7.27 versus $6.41. Operating income fell to $330.8 million from $364.5 million, and the company's effective tax rate dropped to 12% for the six months from 24%, which the filing attributes mainly to increased excess tax benefits from share-based compensation. Interest income declined to $31.5 million from $51.3 million, reflecting lower marketable investments after the March 2026 accelerated share repurchases.
Product mix shifted within the Tyvaso franchise. Tyvaso DPI net product sales increased 4% to $326.6 millionc in the quarter, while Nebulized Tyvaso fell 18% to $126.0 million, and the filing says competitive therapies negatively affected Nebulized Tyvaso, Tyvaso DPI and Remodulin sales. Cost of sales rose to $99.5 million from $87.6 million, including $19.2 million of inventory reserve expense in the quarter, of which $7.5 million related to estimated losses under a commercial supply agreement for Tyvaso DPI inventory.
Capital deployment was heavy during the period. The company paid $1.5 billiond under two 2026 accelerated share repurchase agreements, leaving $500 million available under the program through March 9, 2027.
Cash and cash equivalents were $1,803.2 million and total cash and marketable investments were $3,803.4 million at June 30, 2026, down from $4,697.0 million at December 31, 2025. Subsequent to quarter end, the company acquired Thymmune Therapeutics for an upfront payment of approximately $140.0 million plus up to $160.0 million in milestone-based earnouts, and Boehringer Ingelheim filed a trade secret and tortious interference lawsuit on July 17, 2026, which the company says it intends to vigorously defend.
02—Key points
Key Highlights
- Total revenues were $783.3 million in Q2 2026, down 2% from $798.6 million, and $1,564.8 million for the six months, down 2% from $1,593.0 million.
- Net income increased to $333.0 million in Q2 2026 from $309.5 million, and diluted EPS rose to $7.27 from $6.41, aided by lower income tax expense of $39.7 million versus $98.9 million.
- Tyvaso DPI grew 4% to $326.6 million in Q2, while Nebulized Tyvaso declined 18% to $126.0 million, with the filing citing competitive therapies as a negative factor.
- Cost of sales rose to $99.5 million from $87.6 million, driven by inventory reserve expense, including $34.3 million of estimated losses under a Tyvaso DPI commercial supply agreement for the six months.
- The company paid $1.5 billion under 2026 accelerated share repurchase agreements; $500 million remains under the $2.0 billion program expiring March 9, 2027.
- Cash, cash equivalents and marketable investments fell to $3,803.4 million from $4,697.0 million, while the $2.5 billion revolving credit facility remained undrawn at June 30, 2026.
- Pipeline milestones included a June 2026 sNDA for Nebulized Tyvaso in IPF and an NDA for ralinepag extended-release tablets in PAH, both submitted to the FDA.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, United Therapeutics kept $0.43.
- Revenue$783.3M100.0%
- Cost of revenue−$99.5M12.7%
- Gross profit$683.8M87.3%
- Operating costs−$353.0M45.1%
- Operating income$330.8M42.2%
- Interest, other & tax$2.2M0.3%
- Net income$333.0M42.5%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 5, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $783.30M$798.60M | −1.9% |
| Cost of Revenue | $99.50M$87.60M | +13.6% |
| Gross Profit | $683.80M$711.00M | −3.8% |
| R&D Expenses | $146.30M$134.00M | +9.2% |
| SG&A Expenses | $206.70M$212.50M | −2.7% |
| Operating Expenses | $452.50M$434.10M | +4.2% |
| Operating Income | $330.80M$364.50M | −9.2% |
| Net Income | $333.00M$309.50M | +7.6% |
| EPS (Basic) | $7.82$6.86 | +14.0% |
| EPS (Diluted) | $7.27$6.41 | +13.4% |
| Shares Outstanding (Basic) | 42.60M45.10M | −5.5% |
| Shares Outstanding (Diluted) | 45.80M48.30M | −5.2% |
05—Questions
Frequently Asked Questions
Why did revenue decline even though Tyvaso DPI sales grew?
Nebulized Tyvaso net product sales fell 18% in the quarter to $126.0 million, and Remodulin fell 6% to $126.3 million. The filing attributes the decline mainly to lower U.S. quantities sold and says the availability of competitive therapies negatively affected Nebulized Tyvaso, Tyvaso DPI and Remodulin. Growth in Tyvaso DPI of 4% to $326.6 million and in Orenitram and Unituxin only partly offset these declines.
How much cash did the company return to shareholders, and how much capacity remains?
The company made a $1.5 billion upfront payment under two 2026 accelerated share repurchase agreements with Citi. Under the $2.0 billion program approved in March 2026, $500 million remained available as of June 30, 2026, for purchases through March 9, 2027. The company has never paid cash dividends and the filing says it does not intend to do so.
What is the financial impact of the Thymmune acquisition?
The company acquired Thymmune Therapeutics on July 1, 2026 for an upfront cash payment of approximately $140.0 million, subject to adjustments, plus up to $160.0 million in milestone earnouts tied to THY-100. The company expects to record substantially all of the upfront consideration as research and development expense in the third quarter of 2026, as the transaction is accounted for as an asset acquisition.
What are the main legal risks disclosed in the filing?
The Sandoz breach of contract judgment has been accrued, with the company recording a total of $75.7 million in connection with the case, and the appeal is pending before the Third Circuit. Litigation with Liquidia continues, including a trade secret trial scheduled for January 2027 and a pending patent case over the '327 patent. Boehringer Ingelheim filed a new complaint on July 17, 2026 alleging trade secret misappropriation and tortious interference, which the company intends to vigorously defend.
06—Continue