Kiniksa realized significant operating leverage in 2026Q1, achieving a 13.7% operating margin despite structural gross margin constraints near 55% due to profit-sharing agreements.
| Sales/Revenue | 754.04M | 677.56M | 423.24M | 270.26M | 220.18M | 38.54M | 0 | 0 | 0 | 0 | 0 |
| Revenue Growth % | 56.71% | 60.09% | 56.61% | 22.74% | 471.24% | - | - | - | - | - | - |
| Cost of Goods Sold | 245.71M | 307.41M | 60.91M | 56.52M | 22.89M | 9.1M | 3.81M | 3.28M | 286K | 28K | 22K |
| COGS % of Revenue | - | 45.37% | 14.39% | 20.91% | 10.4% | 23.61% | - | - | - | - | - |
| Gross Profit | 294.06M | 370.15M | 362.33M | 213.74M | 197.28M | 29.44M | -3.81M | -3.28M | -286K | -28K | -22K |
| Gross Margin % | 39% | 54.63% | 85.61% | 79.09% | 89.6% | 76.39% | - | - | - | - | - |
| Gross Profit Growth % | - | 2.16% | 69.52% | 8.34% | 570.03% | 873.82% | -16.04% | -1046.5% | -921.43% | -27.27% | - |
| Operating Expenses | 415.12M | 292.93M | 407.94M | 238.93M | 187.51M | 186.08M | 153.56M | 166.68M | 108.16M | 65.4M | 24M |
| OpEx % of Revenue | - | 43.23% | 96.39% | 88.41% | 85.16% | 482.77% | - | - | - | - | - |
| Selling, General & Admin | 213.89M | 196.27M | 168.01M | 129.43M | 97.95M | 85.95M | 43.92M | 33.75M | 21.56M | 9.04M | 6.56M |
| SG&A % of Revenue | - | 28.97% | 39.7% | 47.89% | 44.49% | 222.99% | - | - | - | - | - |
| Research & Development | 105M | 96.85M | 111.62M | 76.1M | 65.49M | 99.3M | 109.64M | 132.93M | 86.6M | 56.36M | 17.44M |
| R&D % of Revenue | - | 14.29% | 26.37% | 28.16% | 29.74% | 257.62% | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 128.31M | 33.41M | 24.07M | 835K | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 93.22M | 77.22M | -45.62M | -25.2M | 9.77M | -156.64M | -157.36M | -169.96M | -108.16M | -65.4M | -24M |
| Operating Margin % | 12.36% | 11.4% | -10.78% | -9.32% | 4.44% | -406.38% | - | - | - | - | - |
| Operating Income Growth % | - | 269.28% | -81.04% | -357.81% | 106.24% | 0.46% | 7.41% | -57.14% | -65.38% | -172.48% | - |
| EBITDA | 94.42M | 78.78M | -43.92M | -22.86M | 12.18M | -154.28M | -153.56M | -166.68M | -107.87M | -65.37M | -23.98M |
| EBITDA Margin % | 12.52% | 11.63% | -10.38% | -8.46% | 5.53% | -400.27% | - | - | - | - | - |
| EBITDA Growth % | 763.66% | 279.36% | -92.17% | -287.72% | 107.89% | -0.47% | 7.87% | -54.52% | -65.02% | -172.61% | - |
| D&A (Non-Cash Add-back) | 1.21M | 1.55M | 1.7M | 2.34M | 2.4M | 2.35M | 3.81M | 3.28M | 286K | 28K | 22K |
| EBIT | 70.59M | 88.87M | -45.62M | -25.2M | 9.77M | -156.64M | -156.23M | -163.91M | -108.16M | -65.4M | -24M |
| Net Interest Income | 5.43M | 0 | 9.46M | 8.54M | 1.25M | 97K | 1.13M | 6.05M | 0 | 0 | 0 |
| Interest Income | 5.43M | 0 | 9.46M | 8.54M | 1.25M | 97K | 1.13M | 6.05M | 4.72M | 529K | 65K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 12.77M | 11.65M | 9.46M | 8.54M | 1.25M | 97K | 1.13M | 6.05M | 4.72M | 529K | 65K |
| Pretax Income | 105.98M | 88.87M | -36.15M | -16.65M | 11.03M | -156.54M | -156.23M | -163.91M | -103.44M | -64.87M | -23.94M |
| Pretax Margin % | 14.06% | 13.12% | -8.54% | -6.16% | 5.01% | -406.13% | - | - | - | - | - |
| Income Tax | 12.75M | 29.86M | 7.04M | -30.74M | -172.34M | 1.39M | 5.15M | -2.05M | -214K | 2K | 36K |
| Effective Tax Rate % | 12.03% | 33.6% | -19.48% | 184.58% | -1563.01% | -0.88% | -3.3% | 1.25% | 0.21% | -0% | -0.15% |
| Net Income | 73.06M | 59.01M | -43.19M | 14.08M | 183.36M | -157.92M | -161.38M | -161.87M | -103.23M | -64.87M | -23.97M |
| Net Margin % | 9.69% | 8.71% | -10.21% | 5.21% | 83.28% | -409.72% | - | - | - | - | - |
| Net Income Growth % | 531.02% | 236.61% | -406.68% | -92.32% | 216.11% | 2.14% | 0.3% | -56.81% | -59.12% | -170.61% | - |
| Net Income (Continuing) | 73.06M | 59.01M | -43.19M | 14.08M | 183.36M | -157.92M | -161.38M | -161.87M | -103.23M | -64.87M | -23.97M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.89 | 0.75 | -0.60 | 0.20 | 2.60 | -2.30 | -2.61 | -2.99 | -3.49 | -2.00 | -0.74 |
| EPS Growth % | 471.43% | 225% | -400% | -92.31% | 213.04% | 11.88% | 12.71% | 14.33% | -74.5% | -170.27% | - |
| EPS (Basic) | - | 0.80 | -0.60 | 0.20 | 2.64 | -2.30 | -2.61 | -2.99 | -3.49 | -2.00 | -0.74 |
| Diluted Shares Outstanding | 82.41M | 78.98M | 71.42M | 71.92M | 70.42M | 68.58M | 61.84M | 54.05M | 29.55M | 32.47M | 32.47M |
| Basic Shares Outstanding | 76.52M | 74.2M | 71.42M | 70.06M | 69.38M | 68.58M | 61.84M | 54.05M | 29.55M | 32.47M | 32.47M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Concentrated Revenue Dependency
As reported in recent financial statements, Kiniksa achieved a 55.5% year-over-year revenue growth in 2026Q1, reflecting the successful commercial penetration of ARCALYST within the recurrent pericarditis market and suggesting that the company is effectively capturing patient demand through its specialized high-touch commercial model.
The consistent double-digit revenue growth trajectory indicates that the company is successfully navigating the transition from a clinical-stage entity to a commercial-stage platform. Investors should monitor whether this growth rate remains durable as the company exhausts the initial pool of prevalent patients and shifts toward capturing new incident cases.
Based on the provided income statement data, gross margins have stabilized near 55%, a figure that appears structurally lower than industry peers due to the profit-sharing obligations associated with the ARCALYST commercialization agreement with Regeneron Pharmaceuticals.
This margin profile suggests that while the product is commercially successful, the company lacks the full operating leverage typically associated with wholly-owned orphan drug assets. The persistence of this margin ceiling warrants further investigation into whether future pipeline assets, such as KPL-404, will offer superior margin profiles upon potential commercialization.
According to the latest quarterly filings, Kiniksa has successfully transitioned to positive operating income, with 2026Q1 operating margins reaching 13.7%, signaling that the company is beginning to realize meaningful operating leverage as revenue growth outpaces the expansion of its commercial and administrative infrastructure.
The shift from operating losses in 2024 to consistent profitability in recent quarters suggests that management has successfully disciplined its SG&A spending relative to top-line gains. This trend appears to indicate that the core commercial engine is now self-sustaining, provided that R&D investments do not disproportionately escalate.
Analysis of the income statement reveals that Kiniksa has maintained a controlled cost structure, with R&D and SG&A expenses showing moderate fluctuations that have not hindered the company's ability to achieve profitability, as evidenced by the 2026Q1 operating income of $29.3 million.
The company appears to be balancing the necessity of funding late-stage clinical programs with the requirement to maintain commercial momentum. Investors should monitor the potential for R&D spikes as the KPL-404 program advances, which may temporarily compress operating margins if not offset by continued revenue expansion.
While the current financial performance is robust, the company's heavy reliance on a single product, ARCALYST, presents a significant risk, as indicated by the lack of diversified revenue streams and the potential for competitive entry to disrupt the current growth trajectory.
Short-term financial success may mask the underlying vulnerability of a single-product portfolio, particularly if payer reauthorization rates or competitive clinical data for alternative therapies shift. The market may be over-extrapolating current growth rates without fully accounting for the binary risks inherent in the company's pipeline development.
Quick answers to the most common questions about buying KNSA stock.
For fiscal year 2025, Kiniksa Pharmaceuticals, Ltd. (KNSA) reported total revenue of $677.6M.
Kiniksa Pharmaceuticals, Ltd. (KNSA) is profitable, generating $59.0M in net income for the fiscal year ending 2025 with a net profit margin of 8.7%.
Kiniksa Pharmaceuticals, Ltd. (KNSA) reported an operating income of $77.2M, resulting in an operating profit margin of 11.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Kiniksa Pharmaceuticals, Ltd. (KNSA) generated $370.1M in gross profit for the year, representing a gross profit margin of 54.6%. This demonstrates the company's core pricing power and production efficiency.