Revenue is highly volatile, swinging from $255.0M in 2024Q1 to $4.2M in 2024Q2, with gross margins artificially at 100% due to zero COGS, while R&D expenses have grown 25.7% from $33.5M to $42.1M over the same period.
Protagonist Therapeutics, Inc. (PTGX) annual income statement — 12-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 |
|---|
| Sales/Revenue | 551.69M | 46.02M | 434.43M | 60M | 26.58M | 27.36M | 28.63M | 231K | 30.93M | 20.06M | 0 | 0 | 0 |
| Revenue Growth % | 163.69% | -89.41% | 624.05% | 125.73% | -2.84% | -4.44% | 12293.07% | -99.25% | 54.14% | - | - | - | - |
| Cost of Goods Sold | 1.51M | 1.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 317K | 247K | 0 |
| COGS % of Revenue | - | 2.66% | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 550.18M | 44.79M | 434.43M | 60M | 26.58M | 27.36M | 28.63M | 231K | 30.93M | 20.06M | -317K | -247K | 0 |
| Gross Margin % | 99.73% | 97.34% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | - | - | - |
| Gross Profit Growth % | - | -89.69% | 624.05% | 125.73% | -2.84% | -4.44% | 12293.07% | -99.25% | 54.14% | 6429.02% | -28.34% | - | - |
| Operating Expenses | 227.09M | 202.92M | 181.59M | 153.65M | 157.95M | 153.2M | 93.14M | 80.75M | 73.19M | 57.96M | 32.67M | 14.79M | 9.32M |
| OpEx % of Revenue | - | 440.97% | 41.8% | 256.09% | 594.24% | 560.01% | 325.36% | 34957.58% | 236.68% | 288.89% | - | - | - |
| Selling, General & Admin | 51.06M | 44.85M | 43.46M | 33.49M | 31.74M | 27.2M | 18.64M | 15.75M | 13.7M | 11.78M | 6.96M | 2.96M | 1.86M |
| SG&A % of Revenue | - | 97.47% | 10% | 55.82% | 119.4% | 99.41% | 65.1% | 6817.75% | 44.29% | 58.71% | - | - | - |
| Research & Development | 176.43M | 159.29M | 138.13M | 120.16M | 126.22M | 126.01M | 75.98M | 65M | 59.5M | 46.18M | 25.7M | 11.83M | 7.46M |
| R&D % of Revenue | - | 346.16% | 31.8% | 200.27% | 474.83% | 460.6% | 265.42% | 28139.83% | 192.39% | 230.18% | - | - | - |
| Other Operating Expenses | -407K | -1.23M | 0 | 0 | 0 | 0 | -1.48M | -1K | 0 | 0 | -34K | 0 | 0 |
| Operating Income | 323.1M | -158.13M | 252.84M | -93.65M | -131.37M | -125.84M | -64.52M | -80.52M | -42.27M | -37.9M | -32.67M | -14.79M | -9.32M |
| Operating Margin % | 58.56% | -343.63% | 58.2% | -156.09% | -494.24% | -460.01% | -225.36% | -34857.58% | -136.68% | -188.89% | - | - | - |
| Operating Income Growth % | - | -162.54% | 369.98% | 28.71% | -4.39% | -95.06% | 19.88% | -90.5% | -11.54% | -16.01% | -120.81% | -58.75% | - |
| EBITDA | 332.51M | -156.85M | 255.81M | -90.34M | -128M | -123.07M | -61.79M | -78M | -41.74M | -37.49M | -32.35M | -14.55M | -9.06M |
| EBITDA Margin % | 60.27% | -340.85% | 58.88% | -150.57% | -481.56% | -449.87% | -215.85% | -33764.94% | -134.98% | -186.87% | - | - | - |
| EBITDA Growth % | 1526.14% | -161.31% | 383.16% | 29.42% | -4.01% | -99.17% | 20.78% | -86.86% | -11.34% | -15.9% | -122.38% | -60.55% | - |
| D&A (Non-Cash Add-back) | 1.18M | 1.28M | 2.96M | 3.31M | 3.37M | 2.77M | 2.72M | 2.52M | 527K | 406K | 317K | 247K | 258K |
| EBIT | 350.25M | -129.31M | 279.41M | -78.95M | -127.39M | -125.55M | -64.52M | -77.71M | -39.72M | -36.96M | -32.67M | -14.79M | -9.32M |
| Net Interest Income | 27.32M | 28.79M | 26.32M | 14.9M | 4.06M | 443K | 302K | 2.64M | 2.57M | 948K | 0 | 0 | 0 |
| Interest Income | 27.32M | 28.79M | 26.32M | 14.9M | 4.06M | 443K | 900K | 2.81M | 2.57M | 948K | 242K | 19K | 16K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 598K | 169K | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 27.15M | 28.82M | 26.57M | 14.7M | 3.98M | 294K | -329K | 2.64M | 2.55M | 940K | -4.51M | -64K | -1.75M |
| Pretax Income | 350.25M | -129.31M | 279.41M | -78.95M | -127.39M | -125.55M | -64.84M | -77.88M | -39.72M | -36.96M | -37.18M | -14.86M | -11.07M |
| Pretax Margin % | 63.49% | -281.01% | 64.32% | -131.59% | -479.26% | -458.94% | -226.51% | -33713.42% | -128.45% | -184.2% | - | - | - |
| Income Tax | 7.99M | 838K | 4.22M | 0 | 0 | 0 | 1.3M | -691K | -799K | 0 | 0 | 64K | 0 |
| Effective Tax Rate % | 2.28% | -0.65% | 1.51% | 0% | 0% | 0% | -2.01% | 0.89% | 2.01% | 0% | 0% | -0.43% | 0% |
| Net Income | 342.26M | -130.15M | 275.19M | -78.95M | -127.39M | -125.55M | -66.15M | -77.19M | -38.92M | -36.96M | -37.18M | -14.86M | -11.07M |
| Net Margin % | 62.04% | -282.83% | 63.34% | -131.59% | -479.26% | -458.94% | -231.07% | -33414.29% | -125.87% | -184.2% | - | - | - |
| Net Income Growth % | 645.52% | -147.29% | 448.54% | 38.02% | -1.47% | -89.8% | 14.3% | -98.3% | -5.32% | 0.59% | -150.22% | -34.19% | - |
| Net Income (Continuing) | 342.26M | -130.15M | 275.19M | -78.95M | -127.39M | -125.55M | -66.15M | -77.19M | -38.92M | -36.96M | -37.18M | -14.86M | -11.07M |
| Discontinued Operations | 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 |
| EPS (Diluted) | 4.77 | -2.05 | 4.23 | -1.39 | -2.52 | -2.65 | -1.92 | -2.98 | -1.74 | -2.09 | -5.72 | -2.52 | -1.88 |
| EPS Growth % | 661.89% | -148.46% | 404.32% | 44.84% | 4.91% | -38.02% | 35.57% | -71.26% | 16.75% | 63.46% | -126.98% | -34.04% | - |
| EPS (Basic) | - | -2.05 | 4.47 | -1.39 | -2.52 | -2.65 | -1.92 | -2.98 | -1.74 | -2.09 | -5.72 | -2.52 | -1.88 |
| Diluted Shares Outstanding | 71.73M | 63.57M | 65.08M | 56.76M | 49.04M | 46.32M | 34.4M | 25.89M | 22.36M | 17.69M | 6.5M | 5.88M | 5.88M |
| Basic Shares Outstanding | 66.36M | 63.57M | 61.57M | 56.76M | 49.04M | 46.32M | 34.4M | 25.89M | 22.36M | 17.69M | 6.5M | 5.88M | 5.88M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying PTGX stock.
For fiscal year 2025, Protagonist Therapeutics, Inc. (PTGX) reported total revenue of $46.0M.
Protagonist Therapeutics, Inc. (PTGX) reported a net loss of $130.1M for the fiscal year ending 2025.
Protagonist Therapeutics, Inc. (PTGX) reported an operating income of $-158.1M, resulting in an operating profit margin of -343.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Protagonist Therapeutics, Inc. (PTGX) generated $44.8M in gross profit for the year, representing a gross profit margin of 97.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue concentration in partnership milestones
Metrics are mathematically derived from official filings.
Milestone-Driven Revenue Volatility
PTGX's revenue swings wildly between quarters, from $255.0M in 2024Q1 to $4.2M in 2024Q2, reflecting lumpy milestone payments. According to the income statement data, 2026Q2 revenue surged 37.5% sequentially to $213.5M, but this follows a 99% jump in 2026Q1, indicating a pattern of episodic spikes.
The revenue trajectory is not organic product sales but rather milestone-driven, as evidenced by the extreme quarter-to-quarter swings. The 2026Q2 revenue of $213.5M appears to be another milestone event, given the 100% gross margin and the absence of COGS. Investors should monitor the sustainability of these payments, as they are inherently unpredictable and may not recur at the same magnitude.
Gross Margin Artificially High
Gross margin is reported at 100% across all quarters, as COGS is essentially zero, which is typical for a biotech with no product sales. According to the income statement data, this margin is not indicative of operational efficiency but rather reflects the nature of milestone and licensing revenue.
The 100% gross margin is a function of the revenue mix, which consists of collaboration and milestone payments rather than manufactured goods. This makes the gross margin a less meaningful metric for assessing pricing power or cost structure. The real cost drivers are R&D and SG&A, which are the primary expenses, and these should be the focus of margin analysis.
Operating Leverage Masked by Milestones
Operating income swings from -$50.4M in 2025Q4 to $158.8M in 2026Q2, driven by revenue spikes rather than cost discipline. As reported in the income statement data, R&D and SG&A expenses have remained relatively stable, ranging from $33.5M to $46.7M and $9.0M to $14.9M respectively, indicating that operating leverage is not being achieved through cost scaling.
The operating margin of 74.4% in 2026Q2 is a direct result of the high-margin milestone revenue, not operational efficiency. In quarters without such revenue, operating margins are deeply negative, as seen in 2025Q3 and 2025Q4. This suggests that the company's cost base is not well-aligned with its revenue stream, and the apparent operating leverage is an artifact of revenue volatility.
Earnings Quality Tied to Non-Recurring Items
Net income in 2026Q2 was $162.8M, but this includes a $28.6M stock-based compensation expense, which is a non-cash charge. According to the income statement data, SBC has been rising, from $9.1M in 2024Q4 to $28.6M in 2026Q2, potentially inflating reported earnings relative to cash generation.
The quality of earnings is questionable because the profitability is heavily dependent on milestone payments, which are non-recurring by nature. Additionally, the increasing SBC expense, which is excluded from non-GAAP measures, may overstate the true economic profitability. Investors should adjust for SBC and consider the sustainability of the revenue sources when evaluating the company's earnings power.
R&D and SG&A Discipline Amid Volatility
R&D expenses have grown from $33.5M in 2024Q2 to $42.1M in 2026Q2, a 25.7% increase, while SG&A has remained relatively flat, ranging from $9.0M to $14.9M. Based on the income statement data, the company appears to be managing its cost base prudently, with R&D as the primary investment driver.
The steady increase in R&D spending suggests a commitment to advancing the pipeline, but it also means that the company will continue to incur significant costs regardless of revenue fluctuations. SG&A has been kept in check, which is positive, but the overall cost structure is still high relative to the sporadic revenue, leading to negative operating income in most quarters. This indicates that the company is in a growth phase, prioritizing pipeline development over near-term profitability.
2024Q1 Milestone Spike Defines Pattern
The most significant inflection occurred in 2024Q1, when revenue hit $255.0M and net income reached $207.3M, marking the first major milestone payment. As reported in the income statement data, this quarter set the precedent for the lumpy revenue pattern, with subsequent quarters showing sharp declines and occasional spikes.
The 2024Q1 results were a watershed moment, demonstrating the potential for large milestone payments but also highlighting their unpredictability. The subsequent quarters, such as 2024Q2 with revenue of $4.2M, illustrate the volatility that follows such events. This pattern suggests that the company's financial performance will continue to be driven by partnership milestones, making it difficult to forecast future results with confidence.
Milestone Dependency Undermines Valuation
The short thesis would focus on the extreme revenue volatility and reliance on non-recurring milestones, which could lead to negative operating income in most quarters. According to the income statement data, excluding the milestone quarters, the company consistently posts operating losses, raising questions about the sustainability of its business model.
A short-seller might argue that the company's valuation is not supported by its underlying operational performance, as the core business is still in development with no approved products. The high margins and profitability in certain quarters are misleading, as they are not indicative of the company's ability to generate consistent returns. Additionally, the increasing SBC expense could dilute shareholders, and the reliance on a few large partners for revenue concentration poses a significant risk. Investors should monitor the pipeline progress and the likelihood of future milestones to assess the validity of the current valuation.