Revenue grew 27% sequentially to $496.0M in 2026Q2, but operating margin fell to 3.7% from 23.8% year-over-year, with net income nearly zero at $0.5M due to cost escalation.
Alkermes plc (ALKS) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 | Mar'00 | Mar'99 | Mar'98 | Mar'97 | Mar'96 |
|---|
| Sales/Revenue | 1.67B | 1.48B | 1.56B | 1.66B | 1.11B | 1.17B | 1.04B | 1.17B | 1.09B | 903.37M | 745.69M | 628.34M | 618.79M | 575.55M | 575.55M | 389.98M | 186.64M | 178.28M | 326.84M | 240.72M | 239.97M | 166.6M | 76.13M | 39.05M | 47.27M | 54.1M | 56.03M | 22.92M | 33.9M | 31.37M | 19.83M |
| Revenue Growth % | 10.79% | -5.25% | -6.36% | 49.61% | -5.28% | 13% | -11.29% | 7.01% | 21.13% | 21.15% | 18.68% | 1.54% | 7.51% | 0% | 47.59% | 108.95% | 4.69% | -45.45% | 35.78% | 0.31% | 44.04% | 118.85% | 94.92% | -17.37% | -12.63% | -3.44% | 144.45% | -32.39% | 8.08% | 58.2% | 24.55% |
| Cost of Goods Sold | 257.49M | 196.46M | 245.33M | 253.04M | 218.07M | 197.32M | 178.32M | 180.38M | 176.42M | 154.75M | 132.12M | 138.99M | 175.83M | 310.48M | 170.47M | 127.58M | 52.19M | 49.44M | 43.4M | 40.68M | 45.21M | 23.49M | 16.83M | 19.04M | 10.91M | 0 | -7.7M | -6.43M | -21.6M | 0 | 0 |
| COGS % of Revenue | - | 13.31% | 15.75% | 15.21% | 19.61% | 16.81% | 17.17% | 15.41% | 16.12% | 17.13% | 17.72% | 22.12% | 28.42% | 53.94% | 29.62% | 32.71% | 27.96% | 27.73% | 13.28% | 16.9% | 18.84% | 14.1% | 22.11% | 48.74% | 23.08% | - | -13.74% | -28.06% | -63.72% | - | - |
| Gross Profit | 1.41B | 1.28B | 1.31B | 1.41B | 893.73M | 976.43M | 860.44M | 990.56M | 917.85M | 748.63M | 613.57M | 489.35M | 442.96M | 265.07M | 405.08M | 262.4M | 134.46M | 128.84M | 283.44M | 200.04M | 194.76M | 143.11M | 59.29M | 20.02M | 36.36M | 0 | 63.73M | 29.35M | 55.5M | 0 | 0 |
| Gross Margin % | 84.56% | 86.69% | 84.25% | 84.79% | 80.39% | 83.19% | 82.83% | 84.59% | 83.88% | 82.87% | 82.28% | 77.88% | 71.58% | 46.06% | 70.38% | 67.29% | 72.04% | 72.27% | 86.72% | 83.1% | 81.16% | 85.9% | 77.89% | 51.26% | 76.92% | - | 113.74% | 128.06% | 163.72% | - | - |
| Gross Profit Growth % | - | -2.5% | -6.95% | 57.81% | -8.47% | 13.48% | -13.14% | 7.92% | 22.61% | 22.01% | 25.39% | 10.47% | 67.11% | -34.56% | 54.38% | 95.16% | 4.36% | -54.54% | 41.69% | 2.71% | 36.09% | 141.37% | 196.2% | -44.94% | - | -100% | 117.12% | -47.11% | - | - | -100% |
| Operating Expenses | 1.29B | 1.03B | 891.66M | 996.25M | 899.82M | 878.68M | 972.87M | 1.17B | 1.02B | 896.53M | 822.24M | 713.65M | 530.1M | 167.61M | 323.27M | 350.68M | 180.09M | 171.88M | 148.49M | 202.83M | 183.71M | 129.45M | 132.67M | 116.92M | 118.58M | 116.48M | 93.63M | 105.29M | 100.9M | 42.32M | 37.24M |
| OpEx % of Revenue | - | 69.48% | 57.24% | 59.89% | 80.93% | 74.86% | 93.66% | 99.58% | 92.94% | 99.24% | 110.26% | 113.58% | 85.67% | 29.12% | 56.17% | 89.92% | 96.49% | 96.41% | 45.43% | 84.26% | 76.56% | 77.7% | 174.27% | 299.38% | 250.88% | 215.3% | 167.12% | 459.35% | 297.64% | 134.92% | 187.84% |
| Selling, General & Admin | 844.46M | 714.52M | 645.24M | 689.75M | 590.75M | 549.61M | 538.83M | 599.45M | 526.41M | 421.58M | 374.13M | 311.56M | 199.91M | 125.76M | 125.76M | 137.63M | 82.85M | 76.51M | 59.01M | 59.51M | 66.4M | 40.38M | 29.5M | 26.03M | 26.7M | 24.39M | 17.16M | 44.37M | 30.8M | 10.56M | 7.69M |
| SG&A % of Revenue | - | 48.41% | 41.42% | 41.47% | 53.13% | 46.83% | 51.87% | 51.19% | 48.11% | 46.67% | 50.17% | 49.58% | 32.31% | 21.85% | 21.85% | 35.29% | 44.39% | 42.92% | 18.05% | 24.72% | 27.67% | 24.24% | 38.75% | 66.65% | 56.48% | 45.08% | 30.63% | 193.59% | 90.86% | 33.66% | 38.78% |
| Research & Development | 391.04M | 323.96M | 245.33M | 270.81M | 272.7M | 290.92M | 394.59M | 512.83M | 425.41M | 412.89M | 387.15M | 344.4M | 272.04M | 6.54M | 140.01M | 141.89M | 97.24M | 95.36M | 89.48M | 125.27M | 117.31M | 89.07M | 91.64M | 91.1M | 85.39M | 92.09M | 68.77M | 54.48M | 48.5M | 31.76M | 29.55M |
| R&D % of Revenue | - | 21.95% | 15.75% | 16.28% | 24.53% | 24.79% | 37.99% | 43.8% | 38.88% | 45.71% | 51.92% | 54.81% | 43.96% | 1.14% | 24.33% | 36.38% | 52.1% | 53.49% | 27.38% | 52.04% | 48.89% | 53.46% | 120.38% | 233.26% | 180.65% | 170.22% | 122.74% | 237.7% | 143.07% | 101.26% | 149.06% |
| Other Operating Expenses | 1000K | -13M | 1.1M | 35.69M | 36.36M | 38.15M | 39.45M | 53.76M | 65.17M | 62.06M | 60.96M | 57.69M | 58.15M | 1.78M | 57.5M | 71.16M | 0 | 0 | 0 | 18.05M | 0 | 0 | 11.53M | -208.15K | 6.5M | 0 | 7.7M | 6.43M | 21.6M | 0 | 0 |
| Operating Income | 117.28M | 253.96M | 420.64M | 414.12M | -6.09M | 97.75M | -112.43M | -175.48M | -99.13M | -147.9M | -208.66M | -224.3M | -87.14M | 81.81M | 81.81M | -88.28M | -45.63M | -43.03M | 134.96M | -2.79M | 11.04M | 13.66M | -73.38M | -96.9M | -82.22M | -62.38M | -29.91M | -75.93M | -45.4M | -10.95M | -17.42M |
| Operating Margin % | 7.03% | 17.21% | 27% | 24.9% | -0.55% | 8.33% | -10.82% | -14.99% | -9.06% | -16.37% | -27.98% | -35.7% | -14.08% | 14.21% | 14.21% | -22.64% | -24.45% | -24.14% | 41.29% | -1.16% | 4.6% | 8.2% | -96.39% | -248.12% | -173.96% | -115.3% | -53.38% | -331.29% | -133.92% | -34.92% | -87.84% |
| Operating Income Growth % | - | -39.63% | 1.57% | 6901.15% | -106.23% | 186.94% | 35.93% | -77.02% | 32.98% | 29.12% | 6.97% | -157.39% | -206.52% | 0% | 192.67% | -93.47% | -6.03% | -131.89% | 4938.9% | -125.26% | -19.17% | 118.62% | 24.28% | -17.85% | -31.82% | -108.57% | 60.61% | -67.25% | -314.49% | 37.11% | -37.1% |
| EBITDA | 178.91M | 281.12M | 449.17M | 489.05M | 71.77M | 176.4M | -30.57M | -95.07M | 4.53M | -49.38M | -114.41M | -138.71M | 10.94M | 155.56M | 155.56M | -40.4M | -36.98M | -18.01M | 145.22M | 9.35M | 23.03M | 24.54M | -62.76M | -85.99M | -72.9M | -51.88M | -22.21M | -69.5M | -23.8M | -6.16M | -14.85M |
| EBITDA Margin % | 10.73% | 19.05% | 28.84% | 29.4% | 6.46% | 15.03% | -2.94% | -8.12% | 0.41% | -5.47% | -15.34% | -22.07% | 1.77% | 27.03% | 27.03% | -10.36% | -19.81% | -10.1% | 44.43% | 3.88% | 9.6% | 14.73% | -82.44% | -220.17% | -154.24% | -95.89% | -39.64% | -303.24% | -70.21% | -19.64% | -74.9% |
| EBITDA Growth % | -55.63% | -37.41% | -8.15% | 581.38% | -59.31% | 676.97% | 67.84% | -2197.66% | 109.18% | 56.84% | 17.52% | -1367.52% | -92.97% | 0% | 485.09% | -9.24% | -105.35% | -112.4% | 1453.34% | -59.41% | -6.14% | 139.1% | 27.02% | -17.95% | -40.53% | -133.57% | 68.04% | -192.03% | -286.33% | 58.52% | -43.46% |
| D&A (Non-Cash Add-back) | 61.63M | 27.16M | 28.53M | 74.93M | 77.86M | 78.65M | 81.85M | 80.41M | 103.66M | 98.52M | 94.26M | 85.6M | 98.09M | 73.75M | 73.75M | 47.88M | 8.65M | 25.03M | 10.27M | 12.14M | 11.99M | 10.88M | 10.62M | 10.91M | 9.32M | 10.5M | 7.7M | 6.43M | 21.6M | 4.79M | 2.57M |
| EBIT | 156.41M | 303.73M | 466.33M | 444.55M | -18.09M | 98.95M | -87.88M | -183.46M | -111.53M | -131.27M | -199.5M | -210.76M | -599K | 55.52M | 84.44M | -86.28M | -43.19M | -38.73M | 144.77M | 3.63M | 11.04M | 13.66M | -61.85M | -97.11M | -75.73M | -62.38M | -29.91M | -75.93M | -45.4M | -10.95M | -17.42M |
| Net Interest Income | -21.14M | 33.03M | 19.87M | 7.82M | -5.41M | -8.81M | -1.7M | 375K | -6.2M | -7.36M | -11.14M | -9.92M | -11.46M | -48.15M | -48.15M | -26.59M | -570K | -1.31M | -2.36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 37.96M | 45.3M | 42.45M | 30.85M | 7.63M | 2.41M | 6.96M | 13.98M | 9.24M | 4.65M | 3.75M | 3.33M | 1.97M | 841K | 841K | 1.52M | 2.73M | 4.67M | 11.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 59.09M | 12.28M | 22.58M | 23.03M | 13.04M | 11.22M | 8.66M | 13.6M | 15.44M | 12.01M | 14.89M | 13.25M | 13.43M | 48.99M | 48.99M | 28.11M | 3.3M | 5.97M | 13.76M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -19.96M | 37.49M | 23.11M | 7.4M | -25.04M | -10.02M | 15.89M | -21.58M | -27.84M | 4.63M | -5.72M | 296K | 73.11M | 963K | -46.37M | -26.11M | -860K | -1.67M | -3.94M | 175.62M | -499K | -13.66M | -1.79M | 96.9M | -24.68M | 1.02M | 13.04M | 75.93M | 45.4M | 10.95M | 17.42M |
| Pretax Income | 97.32M | 291.45M | 443.75M | 421.52M | -31.13M | 87.73M | -96.54M | -197.06M | -126.97M | -143.27M | -214.39M | -224M | -14.03M | 35.44M | 35.44M | -114.39M | -46.49M | -44.7M | 131.01M | 172.83M | 10.54M | 0 | -75.17M | 0 | -106.9M | -61.35M | -16.87M | 0 | 0 | 0 | 0 |
| Pretax Margin % | 5.84% | 19.75% | 28.49% | 25.34% | -2.8% | 7.47% | -9.29% | -16.83% | -11.6% | -15.86% | -28.75% | -35.65% | -2.27% | 6.16% | 6.16% | -29.33% | -24.91% | -25.07% | 40.08% | 71.8% | 4.39% | - | -98.74% | - | -226.16% | -113.41% | -30.11% | - | - | - | - |
| Income Tax | 31.2M | 49.79M | 71.61M | -97.64M | 2.02M | 11.33M | 14.32M | -436K | 12.34M | 14.67M | -5.94M | 3.16M | 16.03M | 10.46M | 10.46M | -714K | -951K | -5.08M | 507K | 5.85M | 1.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 32.06% | 17.08% | 16.14% | -23.16% | -6.5% | 12.91% | -14.84% | 0.22% | -9.72% | -10.24% | 2.77% | -1.41% | -114.28% | 29.51% | 29.51% | 0.62% | 2.05% | 11.35% | 0.39% | 3.39% | 10.41% | - | 0% | - | 0% | 0% | 0% | - | - | - | - |
| Net Income | 66.12M | 241.66M | 367.07M | 355.76M | -158.27M | -48.17M | -110.86M | -196.62M | -139.31M | -157.94M | -208.44M | -227.16M | -30.06M | 24.98M | 24.98M | -113.68M | -45.54M | -39.63M | 130.5M | 166.98M | 9.45M | 3.82M | -75.17M | -102.38M | -106.9M | -61.35M | -16.87M | -68.05M | -41.1M | -12.58M | -18.8M |
| Net Margin % | 3.96% | 16.37% | 23.57% | 21.39% | -14.24% | -4.1% | -10.67% | -16.79% | -12.73% | -17.48% | -27.95% | -36.15% | -4.86% | 4.34% | 4.34% | -29.15% | -24.4% | -22.23% | 39.93% | 69.37% | 3.94% | 2.29% | -98.74% | -262.16% | -226.16% | -113.41% | -30.11% | -296.89% | -121.24% | -40.11% | -94.81% |
| Net Income Growth % | -81.02% | -34.16% | 3.18% | 324.78% | -228.57% | 56.55% | 43.62% | -41.14% | 11.8% | 24.23% | 8.24% | -655.67% | -220.33% | 0% | 121.98% | -149.62% | -14.92% | -130.36% | -21.84% | 1667.91% | 147.38% | 105.08% | 26.58% | 4.22% | -74.23% | -263.71% | 75.21% | -65.57% | -226.65% | 33.07% | -36.74% |
| Net Income (Continuing) | 66.12M | 241.66M | 372.14M | 519.16M | -33.15M | 76.4M | -110.86M | -196.62M | -139.31M | -157.94M | -208.44M | -227.16M | -30.06M | 23.53M | 24.98M | -113.68M | -45.54M | -39.63M | 130.5M | 166.98M | 9.45M | 3.82M | -75.17M | -102.38M | -106.9M | -61.35M | -16.87M | -68.05M | -41.1M | -12.58M | -18.8M |
| Discontinued Operations | 0 | 0 | -5.07M | -163.4M | -125.11M | -124.57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.40 | 1.43 | 2.17 | 2.10 | -0.97 | -0.30 | -0.70 | -1.25 | -0.90 | -1.03 | -1.38 | -1.52 | -0.21 | 0.18 | 0.18 | -0.99 | -0.48 | -0.42 | 1.36 | 1.62 | 0.09 | 0.04 | -0.83 | -1.25 | -1.70 | -0.96 | -0.43 | -1.52 | -0.99 | -0.28 | -0.51 |
| EPS Growth % | -81.59% | -34.1% | 3.33% | 316.49% | -223.33% | 57.14% | 44% | -38.89% | 12.62% | 25.36% | 9.21% | -623.81% | -216.67% | 0% | 118.18% | -106.25% | -14.29% | -130.88% | -16.05% | 1700% | 125% | 104.82% | 33.6% | 26.47% | -77.08% | -123.26% | 71.71% | -53.54% | -253.57% | 45.1% | -8.51% |
| EPS (Basic) | - | 1.47 | 2.22 | 2.14 | -0.97 | -0.30 | -0.70 | -1.25 | -0.90 | -1.03 | -1.38 | -1.52 | -0.21 | 0.19 | 0.19 | -0.99 | -0.48 | -0.42 | 1.37 | 1.66 | 0.10 | 0.04 | -0.83 | -1.25 | -1.70 | -0.96 | -0.43 | -1.52 | -0.99 | -0.28 | -0.51 |
| Diluted Shares Outstanding | 166.61M | 168.74M | 169.2M | 169.73M | 163.74M | 160.94M | 158.8M | 157.05M | 155.11M | 153.41M | 151.48M | 149.21M | 145.27M | 137.1M | 137.1M | 114.7M | 95.61M | 94.84M | 96.25M | 102.92M | 103.35M | 97.38M | 90.09M | 82.08M | 64.37M | 63.67M | 59.86M | 51.01M | 49.12M | 46.04M | 36.58M |
| Basic Shares Outstanding | 166.61M | 164.7M | 165.39M | 166.22M | 163.74M | 160.94M | 158.8M | 157.05M | 155.11M | 153.41M | 151.48M | 149.21M | 145.27M | 131.71M | 131.71M | 114.7M | 95.61M | 94.84M | 95.16M | 100.74M | 99.24M | 91.02M | 90.09M | 82.08M | 64.37M | 63.67M | 55.75M | 51.01M | 49.12M | 46.04M | 36.58M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying ALKS stock.
For fiscal year 2025, Alkermes plc (ALKS) reported total revenue of $1.48B. This represents a 7343.9% increase compared to $19.8M in 1996.
Alkermes plc (ALKS) is profitable, generating $241.7M in net income for the fiscal year ending 2025 with a net profit margin of 16.4%.
Alkermes plc (ALKS) reported an operating income of $254.0M, resulting in an operating profit margin of 17.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Alkermes plc (ALKS) generated $1.28B in gross profit for the year, representing a gross profit margin of 86.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue decline and royalty uncertainty
Metrics are mathematically derived from official filings.
Top-Line Contraction Amidst Mixed Signals
Revenue fell 5.2% year-over-year on a TTM basis, yet the latest quarter surged 27% sequentially, suggesting volatility rather than a clear trend. According to recent financial statements, the decline appears driven by legacy product erosion.
The 27% sequential jump in 2026Q2 to $496.0M contrasts with the -5.2% TTM growth, indicating lumpy revenue recognition or one-time items. The peer set shows mixed growth, with Axsome growing 65.5% while Alkermes lags, suggesting competitive pressure in CNS markets. Investors should monitor whether the sequential spike is sustainable or a channel fill effect.
Gross Margin Resilience Masks Operating Pressure
Gross margin remains high at 86.7% TTM, but operating margin compressed to 17.2% from 27.5% a year ago. As reported in financial statements, the 2026Q2 operating margin of 3.7% highlights cost escalation.
The gross margin of 86.7% is supported by high-margin royalty streams, but the operating margin drop to 3.7% in 2026Q2 suggests SG&A and R&D costs are outpacing revenue. The 2026Q2 SG&A of $217.6M is 43.9% of revenue, up from 42.1% in 2025Q2, indicating limited operating leverage. This may reflect investment in Lybalvi launch and pipeline, but investors should watch for margin recovery as revenue scales.
Operating Leverage Turns Negative
Operating income swung from $93.0M in 2025Q2 to $18.4M in 2026Q2, a decline of 80%, while revenue rose 27%. Based on reported figures, SG&A and R&D increases are absorbing gross profit gains.
The 2026Q2 gross profit of $397.9M is up 16.6% from 2025Q2, but operating income fell sharply due to a $46.8M increase in SG&A and a $35.5M increase in R&D. This suggests the company is investing heavily in commercial and pipeline activities, but the lack of operating leverage is concerning. If revenue growth does not accelerate, margin compression could persist.
Earnings Quality Clouded by One-Time Items
Net income in 2026Q2 was just $0.5M despite $397.9M gross profit, with EPS of $0.00, a 99.4% decline year-over-year. As per the income statement, this suggests significant non-operating charges or tax effects.
The near-zero net income on $496M revenue implies a tax rate or other items that are not evident from operating income. The negative SBC in 2025Q4 (-$72.4M) and zero SBC in 2026Q1 and 2024Q2 indicate volatility in stock-based compensation, which may distort EPS. Investors should examine the cash flow statement to assess the sustainability of reported earnings.
R&D and SG&A Escalation Pressures Profitability
R&D and SG&A combined rose to $330.5M in 2026Q2, up 33% from 2025Q2, outpacing revenue growth. According to recent filings, this cost surge is the primary driver of operating margin compression.
The 2026Q2 R&D of $112.9M is up 45.9% year-over-year, while SG&A of $217.6M is up 27.4%, both exceeding the 27% revenue growth. This suggests management is deliberately increasing investment in pipeline and commercial infrastructure, possibly for the orexin program. However, the lack of corresponding revenue growth raises questions about cost discipline.
2024Q4 Peak Marks a Turning Point
Operating margin peaked at 37.8% in 2024Q4, followed by a steady decline to 3.7% by 2026Q2. As reported in financial statements, this inflection suggests a strategic shift toward higher spending.
The 2024Q4 quarter showed exceptional profitability with $162.7M operating income, likely benefiting from one-time royalty payments or low expenses. Since then, margins have deteriorated as R&D and SG&A increased, possibly due to the oncology spin-off and pipeline investment. This inflection indicates a transition from a mature, high-margin business to a growth-oriented one, which may pressure near-term earnings.
What Could Invalidate the Base Case
The sharp revenue decline and margin compression could signal structural erosion rather than temporary investment. As reported in financial statements, the -5.2% TTM growth and 3.7% operating margin in 2026Q2 suggest the company may struggle to regain profitability.
Short-sellers might argue that the 27% sequential revenue jump is unsustainable, masking a broader downtrend. The high gross margin of 86.7% is offset by escalating SG&A and R&D, which could indicate a lack of cost control. If the royalty arbitration with Janssen resolves unfavorably, the high-margin royalty stream could be impaired, further pressuring earnings. Investors should monitor whether the company can convert its pipeline investments into revenue growth without eroding margins further.