Revenue growth has accelerated to 40.4% year-over-year as of 2026Q1, though profitability remains sensitive to product mix shifts that caused gross margins to swing from 35.0% in 2025Q3 to 60.7% in 2026Q1.
| Sales/Revenue | 86.93M | 79.95M | 39.01M | 31.64M | 21.25M | 21.83M | 39K | 959K | 0 | 0 |
| Revenue Growth % | 79.89% | 104.94% | 23.29% | 48.9% | -2.66% | 55879.49% | -95.93% | - | - | - |
| Cost of Goods Sold | 39.32M | 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 | 47.61M | 42.74M | 23.41M | 21.06M | 14.32M | 19.21M | -247K | 506K | -63K | -13K |
| Gross Margin % | 54.77% | 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 | 45.57M | 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 | 37.09M | 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 | 8.48M | 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 | 2.04M | 72K | -2.6M | -1.19M | -8.26M | -1.5M | -27.11M | -18.6M | -10.32M | -7.15M |
| Operating Margin % | 2.35% | 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 | 5.07M | 4.12M | -1.45M | -291K | -6.49M | -1.03M | -26.46M | -18.15M | -10.26M | -7.14M |
| EBITDA Margin % | 5.83% | 5.15% | -3.72% | -0.92% | -30.52% | -4.73% | -67846.15% | -1893.01% | - | - |
| EBITDA Growth % | 1582.75% | 383.67% | -398.63% | 95.51% | -527.88% | 96.1% | -45.75% | -76.97% | -43.73% | - |
| D&A (Non-Cash Add-back) | 3.03M | 4.04M | 1.15M | 901K | 1.77M | 462K | 651K | 447K | 63K | 13K |
| EBIT | 2.67M | 72K | -2.6M | -1.19M | -8.26M | -1.5M | -27.11M | -18.6M | -10.32M | -7.16M |
| Net Interest Income | -2.78M | -4.78M | -2M | 0 | 0 | 0 | -889K | 281K | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 281K | 164K | 52.5K |
| Interest Expense | 2.78M | 4.78M | 2M | 0 | 0 | 0 | 889K | 0 | 0 | 0 |
| Other Income/Expense | -3.53M | -4.63M | -1.21M | 503K | -761K | -460K | -859K | 281K | -2.42M | -6K |
| Pretax Income | -1.49M | -4.56M | -3.81M | -689K | -9.02M | -1.96M | -27.97M | -18.32M | -12.74M | -7.16M |
| Pretax Margin % | -1.71% | -5.7% | -9.76% | -2.18% | -42.45% | -8.95% | -71717.95% | -1910.32% | - | - |
| Income Tax | -11K | 43K | 15K | 247K | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0.74% | -0.94% | -0.39% | -35.85% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -1.48M | -4.6M | -3.82M | -936K | -9.02M | -1.96M | -27.97M | -18.32M | -12.74M | -7.16M |
| Net Margin % | -1.7% | -5.75% | -9.8% | -2.96% | -42.45% | -8.95% | -71717.95% | -1910.32% | - | - |
| Net Income Growth % | 67.82% | -20.35% | -308.44% | 89.62% | -361.43% | 93.01% | -52.67% | -43.8% | -78.03% | - |
| Net Income (Continuing) | -1.48M | -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) | -0.05 | -0.17 | -0.15 | -0.04 | -0.36 | -0.08 | -1.33 | -1.02 | -1.99 | -0.41 |
| EPS Growth % | 65.41% | -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 | 31.55M | 26.91M | 25.89M | 25.65M | 25.15M | 25.21M | 21.01M | 17.76M | 6.42M | 17.46M |
| Basic Shares Outstanding | 27.29M | 26.91M | 25.89M | 25.64M | 25.15M | 25.21M | 21.01M | 17.76M | 6.42M | 17.46M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Orphan drug regulatory dependency
As reported in recent financial filings, Eton Pharmaceuticals achieved a 40.4% year-over-year revenue increase in 2026Q1, signaling that the company's strategic pivot toward specialized orphan drug formulations is successfully capturing market share and driving top-line expansion beyond historical hospital-based injectable product performance.
The consistent double-digit growth trajectory suggests that the company's 505(b)(2) regulatory strategy is effectively creating a durable niche for its pediatric and orphan products. Investors should monitor whether this momentum remains sustainable as the company moves deeper into the commercialization phase for its pipeline assets.
Based on the provided income statement data, gross margins have fluctuated significantly, dropping to 35.0% in 2025Q3 before recovering to 60.7% in 2026Q1, which suggests that the company's cost structure remains sensitive to product mix shifts and potential royalty obligations to development partners.
The inconsistency in gross margins implies that Eton has yet to achieve a stable, high-margin profile typical of mature orphan drug providers. This volatility may indicate that the company is still navigating the complex economics of third-party manufacturing and profit-sharing agreements inherent in its current portfolio.
According to the latest quarterly results, Eton's operating income reached $2.4 million in 2026Q1, marking a significant improvement from the negative operating margins observed in previous periods and suggesting that the company is finally beginning to scale its commercial infrastructure efficiently against its revenue base.
The transition to positive operating income appears to be driven by the company's ability to leverage its existing sales force across a growing portfolio of orphan drugs. If SG&A expenses remain disciplined, the company may be positioned to demonstrate meaningful operating leverage in upcoming quarters.
Financial statements indicate that stock-based compensation remains a recurring expense, with $1.1 million recorded in 2025Q4, which suggests that reported net income figures may be partially influenced by non-cash compensation practices that warrant careful adjustment when evaluating the company's true underlying profitability.
While the company has reached a point of positive net income in recent quarters, the reliance on equity-based incentives suggests that cash-based earnings power is still developing. Investors should assess whether the current level of dilution is commensurate with the value created by the company's commercial expansion.
As evidenced by the historical data, the company's path to profitability has been inconsistent, with significant quarterly swings in net income that suggest the current growth model may be vulnerable to lumpy revenue recognition or unexpected increases in R&D and commercialization costs.
Short-term volatility in net margins may indicate that the company's reliance on a narrow set of orphan indications creates a high-risk profile if payer coverage or competitive dynamics shift. The market should remain cautious regarding whether the current revenue growth can be sustained without further capital dilution.
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.