Knight Therapeutics Reports Third Quarter 2025 Results
Executive Summary
- Knight Therapeutics reported record‑high Q3 2025 revenues of C$121.5 M (up 32% YoY) and Adjusted EBITDA of C$20.99 M (up 56% YoY), delivering the highest adjusted earnings since inception.
- FY 2025 guidance was raised: revenue now expected $430‑$440 M (vs prior $410‑$420 M) and Adjusted EBITDA margin to 13.5‑14.5% of revenue (up from 13%).
- Post‑quarter, the company doubled its revolving credit facility to US$100 M with an additional US$100 M accordion feature and repurchased 388,700 shares at $5.84 per share.
Key Details
- Financial Highlights – Q3 2025
- Revenues: C$121,548 k (+32% YoY).
- Gross margin: C$55,810 k (46% of revenue).
- Operating income: C$646 k (vs C$3,203 k prior year).
- Net loss: C$3,791 k (vs net profit of $85 k prior year).
- Adjusted EBITDA: C$20,987 k (+56% YoY).
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Adjusted EBITDA per share: $0.21 (+62% YoY).
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Adjusted (Non‑GAAP) Metrics
- Adjusted revenues: C$122,628 k (+34% YoY).
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Adjusted gross margin: C$59,898 k (49% of adjusted revenue, +39% YoY).
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Balance Sheet & Liquidity
- Cash & equivalents at quarter‑end: C$95,558 k (down 33% YoY due to acquisition payments and share repurchases).
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Bank loans increased to C$96,545 k (+123% YoY) after drawdown of $60 k from the revolving facility.
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Financing Activity
- Revolving credit facility expanded to US$100 M with an optional additional US$100 M accordion.
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NCIB share repurchase: 388,700 shares at $5.84 average price for C$2,272 k (total Q3‑25 purchases 606,400 shares for C$3,351 k).
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Corporate & Product Updates
- Launched/relauched products: Minjuvi® (Argentina), Jornay PM™ (Canada), Pemazyre® (Mexico & Brazil).
- Expanded Incyte distribution agreement to include retifanlimab and axatilimab in Latin America.
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Regulatory setbacks: ANVISA rejection of Tavalisse® (Brazil) – appeal filed; Health Canada non‑compliance notice for Qelbree® – response planned for 2026.
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Guidance Update – FY 2025
- Revenue forecast raised to $430–$440 M.
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Adjusted EBITDA margin target increased to 13.5%–14.5% of revenue.
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Management Commentary (Samira Sakhia, President & CEO)
- Highlighted record adjusted revenues (~C$319 M YTD) and EBITDA (~C$49 M YTD).
- Emphasized contribution from Paladin and Sumitomo acquisitions and organic growth of promoted portfolio.
Notable Quotes
“For the first nine months of 2025, we achieved record‑high adjusted revenues of $319 million and adjusted EBITDA of approximately $49 million… The doubled revolving credit facility provides us with the financial flexibility to continue to transact and grow our business.” – Samira Sakhia, President & CEO.