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Revenue growth accelerated to 98.6% year-over-year in Q2 2026, with gross margin expanding to 67.6% from 35.0% a year prior, indicating a successful shift toward higher-margin orphan drug sales.
Eton Pharmaceuticals, Inc. (ETON) annual income statement — 9-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 |
|---|
| Sales/Revenue | 105.59M | 79.95M | 39.01M | 31.64M | 21.25M | 21.83M | 39K | 959K | 0 | 0 |
| Revenue Growth % | 81.49% | 104.94% | 23.29% | 48.9% | -2.66% | 55879.49% | -95.93% | - | - | - |
| Cost of Goods Sold | 44.49M | 37.21M | 15.6M | 10.58M | 6.93M | 2.62M | 286K | 453K | 63K | 13K |
| COGS % of Revenue | - | 46.54% | 39.99% | 33.44% | 32.62% | 12.01% | 733.33% | 47.24% | - | - |
| Gross Profit | 61.1M | 42.74M | 23.41M | 21.06M | 14.32M | 19.21M | -247K | 506K | -63K | -13K |
| Gross Margin % | 57.87% | 53.46% | 60.01% | 66.56% | 67.38% | 87.99% | -633.33% | 52.76% | - | - |
| Gross Profit Growth % | - | 82.56% | 11.16% | 47.09% | -25.46% | 7876.92% | -148.81% | 903.17% | -384.62% | - |
| Operating Expenses | 44.79M | 42.67M | 26.01M | 22.25M | 22.58M | 20.7M | 26.86M | 19.11M | 10.32M | 7.14M |
| OpEx % of Revenue | - | 53.37% | 66.67% | 70.33% | 106.24% | 94.83% | 68882.05% | 1992.39% | - | - |
| Selling, General & Admin | 39.03M | 35.82M | 22.75M | 18.93M | 18.58M | 14.47M | 12.76M | 7.55M | 4.69M | 3.21M |
| SG&A % of Revenue | - | 44.8% | 58.32% | 59.83% | 87.44% | 66.27% | 32717.95% | 787.49% | - | - |
| Research & Development | 5.76M | 7.76M | 3.25M | 3.32M | 4M | 6.24M | 14.1M | 11.55M | 5.63M | 3.93M |
| R&D % of Revenue | - | 9.71% | 8.34% | 10.5% | 18.8% | 28.56% | 36164.1% | 1204.9% | - | - |
| Other Operating Expenses | 0 | -916K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 16.31M | 72K | -2.6M | -1.19M | -8.26M | -1.5M | -27.11M | -18.6M | -10.32M | -7.15M |
| Operating Margin % | 15.44% | 0.09% | -6.66% | -3.77% | -38.87% | -6.85% | -69515.38% | -1939.62% | - | - |
| Operating Income Growth % | - | 102.77% | -117.87% | 85.57% | -452.51% | 94.49% | -45.75% | -80.22% | -44.35% | - |
| EBITDA | 19.47M | 4.12M | -1.45M | -291K | -6.49M | -1.03M | -26.46M | -18.15M | -10.26M | -7.14M |
| EBITDA Margin % | 18.43% | 5.15% | -3.72% | -0.92% | -30.52% | -4.73% | -67846.15% | -1893.01% | - | - |
| EBITDA Growth % | 955.64% | 383.67% | -398.63% | 95.51% | -527.88% | 96.1% | -45.75% | -76.97% | -43.73% | - |
| D&A (Non-Cash Add-back) | 3.16M | 4.04M | 1.15M | 901K | 1.77M | 462K | 651K | 447K | 63K | 13K |
| EBIT | 15.41M | 223K | -1.8M | -689K | -9.02M | -1.96M | -27.11M | -18.6M | -10.32M | -7.16M |
| Net Interest Income | -2.66M | -4.78M | -2M | -1.06M | -955K | -1.04M | -889K | 281K | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 281K | 164K | 52.5K |
| Interest Expense | 2.66M | 4.78M | 2M | 1.06M | 955K | 1.04M | 889K | 0 | 0 | 0 |
| Other Income/Expense | -3.56M | -4.63M | -1.21M | 503K | -761K | -460K | -859K | 281K | -2.42M | -6K |
| Pretax Income | 12.75M | -4.56M | -3.81M | -689K | -9.02M | -1.96M | -27.97M | -18.32M | -12.74M | -7.16M |
| Pretax Margin % | 12.08% | -5.7% | -9.76% | -2.18% | -42.45% | -8.95% | -71717.95% | -1910.32% | - | - |
| Income Tax | 63K | 43K | 15K | 247K | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0.49% | -0.94% | -0.39% | -35.85% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | 12.69M | -4.6M | -3.82M | -936K | -9.02M | -1.96M | -27.97M | -18.32M | -12.74M | -7.16M |
| Net Margin % | 12.02% | -5.75% | -9.8% | -2.96% | -42.45% | -8.95% | -71717.95% | -1910.32% | - | - |
| Net Income Growth % | 407.36% | -20.35% | -308.44% | 89.62% | -361.43% | 93.01% | -52.67% | -43.8% | -78.03% | - |
| Net Income (Continuing) | 12.69M | -4.6M | -3.82M | -936K | -9.02M | -1.96M | -27.97M | -18.32M | -12.74M | -7.16M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.39 | -0.17 | -0.15 | -0.04 | -0.36 | -0.08 | -1.33 | -1.02 | -1.99 | -0.41 |
| EPS Growth % | 349.9% | -13.33% | -310.96% | 89.86% | -363.92% | 94.17% | -30.39% | 48.74% | -385.37% | - |
| EPS (Basic) | - | -0.17 | -0.15 | -0.04 | -0.36 | -0.08 | -1.33 | -1.02 | -1.99 | -0.41 |
| Diluted Shares Outstanding | 32.79M | 26.91M | 25.89M | 25.65M | 25.15M | 25.21M | 21.01M | 17.76M | 6.42M | 17.46M |
| Basic Shares Outstanding | 27.64M | 26.91M | 25.89M | 25.64M | 25.15M | 25.21M | 21.01M | 17.76M | 6.42M | 17.46M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying ETON stock.
For fiscal year 2025, Eton Pharmaceuticals, Inc. (ETON) reported total revenue of $80.0M.
Eton Pharmaceuticals, Inc. (ETON) reported a net loss of $4.6M for the fiscal year ending 2025.
Eton Pharmaceuticals, Inc. (ETON) reported an operating income of $0.1M, resulting in an operating profit margin of 0.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Eton Pharmaceuticals, Inc. (ETON) generated $42.7M in gross profit for the year, representing a gross profit margin of 53.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Profitability conversion lagging growth
Metrics are mathematically derived from official filings.
Orphan Drug Launch Drives Explosive Growth
Eton's revenue growth has accelerated dramatically, reaching 98.6% year-over-year in Q2 2026, driven by the successful commercialization of its orphan drug portfolio, as reported in the company's latest quarterly financials.
The growth trajectory shows a clear inflection point starting in Q3 2025, with revenue more than doubling year-over-year for four consecutive quarters. This acceleration appears to be driven by the scaling of higher-margin orphan products like Alkindi Sprinkle and Carglumic Acid, which are displacing the company's earlier, more volatile hospital-based revenue. The sustainability of this growth rate will depend on continued market penetration in rare disease indications and the successful launch of new pipeline candidates.
Gross Margin Expansion Signals Portfolio Shift
Gross margin expanded significantly to 67.6% in Q2 2026 from 35.0% a year prior, suggesting a favorable mix shift toward higher-margin orphan drug sales and improved pricing power, according to the company's income statement.
The dramatic improvement in gross margin, particularly the jump from the mid-50s to the high-60s, indicates that the orphan drug segment is now the primary revenue driver, carrying structurally higher margins than the legacy hospital business. This expansion suggests Eton is successfully executing its strategy to become a specialty pharmaceutical company. However, the margin level remains below some pure-play orphan drug peers, which may indicate ongoing royalty obligations or manufacturing costs that warrant monitoring.
Operating Leverage Finally Emerging
Operating income swung to $12.8 million in Q2 2026 from a loss of $1.5 million a year ago, demonstrating significant operating leverage as revenue scales over a relatively fixed SG&A base, based on the reported quarterly results.
The company has achieved a critical inflection point where revenue growth is now outpacing the growth of operating expenses. SG&A expenses grew only 19.6% year-over-year in Q2 2026 while revenue grew 98.6%, indicating that the commercial infrastructure is now being leveraged across a larger revenue base. This operating leverage is the key driver behind the swing to profitability and suggests that incremental revenue should flow through to the bottom line at a high rate, assuming the cost structure remains disciplined.
Q2 2026 Marks Profitability Breakthrough
The second quarter of 2026 represents a clear operational inflection point, with the company achieving its first quarterly net profit of $11.6 million and a 30.8% net margin, as reported in its latest financial statements.
This quarter marks the culmination of Eton's strategic transition from an R&D-focused entity to a commercial-stage specialty pharmaceutical company. The inflection was driven by the simultaneous scaling of orphan drug revenue and the maturation of its commercial infrastructure, allowing operating leverage to finally materialize. The lasting impact is a fundamentally different earnings profile, where the company is now generating cash from operations and can self-fund a portion of its pipeline development, reducing future dilution risk.
Sustainability of Growth and Margin Peak
The strongest challenge to the narrative is whether the current 67.6% gross margin and near-100% revenue growth are sustainable, as they may reflect favorable launch dynamics and inventory stocking that could normalize, based on the company's reported quarterly trends.
Short-sellers would focus on the potential for gross margin compression as the product mix matures and competition enters the orphan drug space. The rapid revenue growth could also be partially driven by wholesaler inventory builds for new product launches, which may not translate into consistent end-user demand. Furthermore, the company's net margin, while positive, is still below the gross margin, indicating that significant operating expenses remain and could pressure profitability if revenue growth decelerates.