Amneal Reports First Quarter 2026 Financial ResultsMay 7, 2026
Amneal Pharmaceuticals LLC
‒ Q1 2026 Net Revenue of $723 million; GAAP Net Income of $62 million; Diluted Income per Share of $0.19 ‒
‒ Adjusted EBITDA of $202 million; Adjusted Diluted EPS of $0.27 ‒
‒ No Change from Preliminary Results Previously Announced on April 22, 2026 ‒
‒ Affirms Previously Announced Increase in 2026 Full Year Guidance ‒
BRIDGEWATER, N.J., May 07, 2026 (GLOBE NEWSWIRE) -- Amneal Pharmaceuticals, Inc. (Nasdaq: AMRX) (“Amneal” or the “Company”) today announced its results for the first quarter ended March 31, 2026.
“Amneal delivered a very strong start to 2026, reflecting the strength of our diversified business and multiple growth drivers across the portfolio. Our Specialty business continues to perform exceptionally well, led by CREXONT® and the recent launch of BREKIYA® autoinjector, alongside a strong cadence of key launches in Affordable Medicines. We are entering the Kashiv transaction from a position of strength, at a time when we see an extended period of accelerated growth ahead with no shortage of opportunities across our core businesses. Combined with our very strong first quarter results, we are pleased to affirm our previously announced increase in our full year 2026 guidance,” said Chirag and Chintu Patel, Co-Founders and Co-Chief Executive Officers of Amneal.
First Quarter 2026 Results
Net revenue in the first quarter of 2026 was $723 million, an increase of 4% compared to $695 million in the first quarter of 2025. Specialty net revenue increased 23%, driven by key branded products, including CREXONT®, BREKIYA® autoinjector, and UNITHROID®. Affordable Medicines net revenue increased 2%, driven by strong performance of our complex portfolio, including women’s health and ADHD medicines. AvKARE net revenue declined 4% as growth in the government channel was offset by a decline in the low margin distribution channel. This continued portfolio shift drove a 750 basis point and 510 basis point increase in gross margin and adjusted gross margin, respectively, in the first quarter of 2026, compared to the prior year.
Net income attributable to Amneal Pharmaceuticals, Inc. was $62 million in the first quarter of 2026 compared to net income of $12 million in the first quarter of 2025, an increase of 411%, reflecting higher revenue and gross profit.
Adjusted EBITDA in the first quarter of 2026 was $202 million, an increase of 19% compared to the first quarter of 2025, reflecting higher revenue and gross profit.
Diluted income per share in the first quarter of 2026 was $0.19 compared to diluted income per share of $0.04 for the first quarter of 2025, an increase of 375%, due to the aforementioned factors. Adjusted diluted earnings per share in the first quarter of 2026 was $0.27, an increase of 29% compared to $0.21 for the first quarter of 2025.
Story Continues
The Company presents GAAP and adjusted (non-GAAP) quarterly results. Please refer to the “Non-GAAP Financial Measures” section and the accompanying GAAP to non-GAAP reconciliation tables for more information.
Affirming Previously Announced (on April 22, 2026) Increased 2026 Full Year Guidance
Net revenue $3.05 billion - $3.15 billion Adjusted EBITDA (1) $740 million - $770 million Adjusted diluted EPS (2) $0.95 - $1.05 Operating cash flow (3) $350 million - $400 million Operating cash flow, excluding discrete items (4) $375 million - $425 million Capital expenditures (5) ~$110 million (1) Includes 100% of adjusted EBITDA from AvKARE. See also “Non-GAAP Financial Measures” below.
(2) Accounts for 35% non-controlling interest in AvKARE. Assumes approximately 330 million weighted-average diluted shares outstanding for the year ending December 31, 2026.
(3) Represents cash provided by operating activities.
(4) Excludes discrete items such as legal settlement payments.
(5) Reflects estimated capital expenditures, net of expected contributions from an alliance party.
Amneal’s 2026 estimates are based on management’s current expectations, including with respect to prescription trends, pricing levels, the timing of future product launches, the costs incurred and benefits realized of restructuring activities, and our long-term strategy. The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company cannot provide a reconciliation between non-GAAP projections and the most directly comparable measures in accordance with GAAP without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items required for the reconciliation. The items include, but are not limited to, acquisition-related expenses, restructuring expenses and benefits, asset impairments, legal settlements, and other gains and losses. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results.
About Amneal
Amneal Pharmaceuticals, Inc. (Nasdaq: AMRX), headquartered in Bridgewater, New Jersey, is a diversified, global biopharmaceutical leader focused on expanding access to affordable and innovative medicines. Amneal was founded in 2002 by brothers and co-CEOs Chirag and Chintu Patel, and built on the belief that innovation only matters if it’s accessible. Today, Amneal has a diverse and growing portfolio of approximately 300 complex generic, specialty and biosimilar medicines, delivering more than 160 million prescriptions annually, primarily in the United States. Our Affordable Medicines segment spans retail generics, injectables, and biosimilars. Our Specialty segment provides branded treatments in neurology, including Parkinson’s disease and migraine, and endocrinology. Our AvKARE segment distributes pharmaceuticals and medical products to U.S. federal, retail, and institutional customers. For additional information, please visit amneal.com and follow us on LinkedIn.
Cautionary Statement on Forward-Looking Statements
Certain statements contained herein, regarding matters that are not historical facts, may be forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995). Such forward-looking statements include statements regarding management’s intentions, plans, beliefs, expectations, financial results, or forecasts for the future, including among other things: discussions of future operations; expected or estimated operating results and financial performance; statements regarding our positioning and potential growth, statements regarding our ability to create long-term value, and other non-historical statements. Words such as “plans,” “expects,” “will,” “anticipates,” “estimates,” and similar words, or the negatives thereof, are intended to identify estimates and forward-looking statements.
The reader is cautioned not to rely on these forward-looking statements. These forward-looking statements are based on current expectations of future events, including with respect to future market conditions, company performance and financial results, operational investments, business prospects, new strategies and growth initiatives, the competitive environment, and other events. If the underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the Company.
Such risks and uncertainties include, but are not limited to: risks related to our proposed transaction to acquire membership interests of Kashiv BioSciences, LLC (“Kashiv”), our ability to successfully develop, license, acquire and commercialize new products on a timely basis; the competition we face in the pharmaceutical industry from brand and generic drug product companies, and the impact of that competition on our ability to set prices; our ability to obtain exclusive marketing rights for our products; the impact of illegal distribution and sale by third parties of counterfeit versions of our products or stolen products; the impact of negative market perceptions of us and the safety and quality of our products; our revenues are derived from the sales of a limited number of products, a substantial portion of which are through a limited number of customers; the continuing trend of consolidation of certain customer groups; the impact of supply chain disruption; the imposition of tariffs may adversely affect our business, results of operations and financial condition; a U.S. government shutdown could adversely impact our regulatory, operational and financial performance; legal, regulatory and legislative efforts by our brand competitors to deter competition from our generic alternatives; our dependence on information technology systems and infrastructure and the potential for cybersecurity incidents, and risks associated with artificial intelligence; the impact of a prolonged business interruption within our supply chain; our ability to attract, hire and retain highly skilled personnel; risks related to federal regulation of arrangements between manufacturers of branded and generic products; our reliance on certain licenses to proprietary technologies from time to time; the significant amount of resources we expend on research and development; the risk of claims brought against us by third parties; risks related to changes in the regulatory environment, including U.S. federal and state laws related to government contracting, healthcare fraud abuse and health information privacy and security and changes in such laws; changes to Food and Drug Administration product approval requirements and review processes; the impact of healthcare reform and changes in coverage and reimbursement levels and funding by governmental authorities and other third-party payers; our ability to identify, make and integrate acquisitions or investments in complementary businesses and products on advantageous terms; our dependence on third-party agreements for a portion of our product offerings; our potential expansion into additional international markets subjecting us to increased regulatory, economic, social and political uncertainties; the impact of global economic, political or other catastrophic events; our substantial amount of indebtedness and our ability to generate sufficient cash to service our indebtedness in the future, and the impact of interest rate fluctuations on such indebtedness; our obligations under a tax receivable agreement may be significant; and the high concentration of ownership of our Class A common stock by the Amneal Group. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the Securities and Exchange Commission, including under Item 1A, “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and in its subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements included herein speak only as of the date hereof and we undertake no obligation to revise or update such statements to reflect the occurrence of events or circumstances after the date hereof.
Non-GAAP Financial Measures
This release includes certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted net income, adjusted diluted EPS, adjusted gross margin, adjusted operating income, net debt, gross leverage, and net leverage, which are intended as supplemental measures of the Company’s performance that are not required by or presented in accordance with GAAP.
Management uses these non-GAAP measures internally to evaluate and manage the Company’s operations and to better understand its business because they facilitate a comparative assessment of the Company’s operating performance relative to its performance based on results calculated under GAAP. These non-GAAP measures also isolate the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the Company’s operations and underlying operational performance. The compensation committee of the Company’s board of directors also uses certain of these measures to evaluate management’s performance and set its compensation. The Company believes that these non-GAAP measures also provide useful information to investors regarding certain financial and business trends relating to the Company’s financial condition and operating results facilitates an evaluation of the financial performance of the Company and its operations on a consistent basis. Providing this information therefore allows investors to make independent assessments of the Company’s financial performance, results of operations, cash flows, net leverage and trends while viewing the information through the eyes of management.
These non-GAAP measures are subject to limitations. The non-GAAP measures presented in this release may not be comparable to similarly titled measures used by other companies because other companies may not calculate one or more in the same manner. Additionally, the non-GAAP performance measures exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements; do not reflect changes in, or cash requirements for, working capital needs; and do not reflect interest expense, or the requirements necessary to service interest or principal payments on debt. Further, our historical adjusted results are not intended to project our adjusted results of operations or financial position for any future period. To compensate for these limitations, management presents and considers these non-GAAP measures in conjunction with the Company’s GAAP results; no non-GAAP measure should be considered in isolation from or as alternatives to any measure determined in accordance with GAAP. Readers should review the reconciliations included below, and should not rely on any single financial measure to evaluate the Company’s business.
A reconciliation of each historical non-GAAP measure to the most directly comparable GAAP measure is set forth below.
Contact
Anthony DiMeo
VP, Investor Relations
anthony.dimeo@amneal.com
Amneal Pharmaceuticals, Inc.
Consolidated Statements of Operations
(unaudited; in thousands, except per share amounts) Three Months Ended March 31, 2026 2025 Net revenue $ 722,519 $ 695,420 Cost of goods sold 402,406 439,529 Gross profit 320,113 255,891 Selling, general and administrative 138,860 118,288 Research and development 38,383 40,040 Intellectual property legal development expenses 1,542 1,767 Acquisition costs 5,153 — Restructuring and other charges 650 571 Charges related to legal matters, net 694 — Other operating income (6,941 ) (5,122 ) Operating income 141,772 100,347 Other (expense) income: Interest expense, net (53,361 ) (56,939 ) Foreign exchange (loss) gain, net (7,800 ) 4,247 Loss on refinancing (3,510 ) — Decrease (increase) in tax receivable agreement liability 2,333 (10,687 ) Other income, net 742 518 Total other expense, net (61,596 ) (62,861 ) Income before income taxes 80,176 37,486 Provision for income taxes 2,176 12,868 Net income 78,000 24,618 Less: Net income attributable to non-controlling interests (15,744 ) (12,423 ) Net income attributable to Amneal Pharmaceuticals, Inc. $ 62,256 $ 12,195 Net income per share attributable to Amneal Pharmaceuticals, Inc.’s Class A common stockholders: Basic $ 0.20 $ 0.04 Diluted $ 0.19 $ 0.04 Weighted-average common shares outstanding: Basic 316,023 311,054 Diluted 328,933 323,961
Amneal Pharmaceuticals, Inc.
Condensed Consolidated Balance Sheets
(unaudited; in thousands) March 31, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 197,656 $ 282,029 Restricted cash 4,174 28,842 Trade accounts receivable, net 850,860 895,143 Inventories 641,618 606,302 Prepaid expenses and other current assets 103,091 98,395 Related party receivables 508 470 Total current assets 1,797,907 1,911,181 Property, plant and equipment, net 444,607 442,950 Goodwill 593,800 595,470 Intangible assets, net 534,869 563,498 Operating lease right-of-use assets 46,748 38,832 Operating lease right-of-use assets - related party 14,473 15,216 Financing lease right-of-use assets 52,934 53,328 Other assets 54,880 57,805 Total assets $ 3,540,218 $ 3,678,280 Liabilities and Stockholders’ Deficiency Current liabilities: Accounts payable and accrued expenses $ 662,975 $ 761,316 Current portion of liabilities for legal matters 10,550 43,256 Current portion of long-term debt, net 6,200 6,761 Current portion of operating lease liabilities 8,922 8,668 Current portion of operating lease liabilities - related party 2,830 2,705 Current portion of financing lease liabilities 3,533 3,442 Related party payables - short term 33,039 55,485 Total current liabilities 728,049 881,633 Long-term debt, net 2,565,558 2,565,115 Operating lease liabilities 41,101 33,233 Operating lease liabilities - related party 13,467 14,195 Financing lease liabilities 54,876 54,927 Related party payables - long term 456 19,132 Liabilities for legal matters - long term 70,021 71,819 Other long-term liabilities 26,747 32,263 Total long-term liabilities 2,772,226 2,790,684 Redeemable non-controlling interests 85,912 77,292 Total stockholders’ deficiency (45,969 ) (71,329 ) Total liabilities and stockholders’ deficiency $ 3,540,218 $ 3,678,280
Amneal Pharmaceuticals, Inc.
Consolidated Statements of Cash Flows
(unaudited; in thousands) Three Months Ended March 31, 2026 2025 Cash flows from operating activities: Net income $ 78,000 $ 24,618 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 43,191 60,159 Unrealized foreign currency loss (gain) 8,215 (3,596 ) Amortization of debt issuance costs and discount 3,890 6,811 Reclassification of cash flow hedge 2,878 (6,444 ) Loss on refinancing 3,510 — Stock-based compensation 8,816 7,258 Inventory provision 13,353 23,669 Other operating charges and credits, net 1,486 1,313 Changes in assets and liabilities: Trade accounts receivable, net 44,013 21,148 Inventories (54,959 ) (13,263 ) Prepaid expenses, other current assets and other assets (13,400 ) (513 ) Related party receivables (56 ) (2 ) Accounts payable, accrued expenses and other liabilities (124,578 ) (112,626 ) Related party payables (41,102 ) (1,124 ) Net cash (used in) provided by operating activities (26,743 ) 7,408 Cash flows from investing activities: Purchases of property, plant and equipment (8,175 ) (13,162 ) Acquisition of intangible assets (7,850 ) (4,200 ) Deposits for future acquisition of property, plant and equipment (5,685 ) (960 ) Proceeds from sale of property, plant and equipment — 524 Net cash used in investing activities (21,710 ) (17,798 ) Cash flows from financing activities: Payments of principal on debt, revolving credit facilities, financing leases and other (140,842 ) (235,528 ) Proceeds from issuance of debt 134,673 — Payments of deferred financing and refinancing costs (1,982 ) — Borrowings on revolving credit facilities — 218,000 Proceeds from exercise of stock options 38 69 Employee payroll tax withholding on restricted stock unit vesting (44,305 ) (21,639 ) Tax and other distributions to non-controlling interests (7,147 ) (68 ) Proceeds from alliance party 510 — Net cash used in financing activities (59,055 ) (39,166 ) Effect of foreign exchange rate on cash (1,023 ) (470 ) Net decrease in cash, cash equivalents, and restricted cash (108,531 ) (50,026 ) Cash, cash equivalents, and restricted cash - beginning of period 312,939 118,420 Cash, cash equivalents, and restricted cash - end of period $ 204,408 $ 68,394 Cash and cash equivalents - end of period $ 197,656 $ 59,187 Restricted cash - end of period 4,174 6,583 Long-term restricted cash included in other assets - end of period 2,578 2,624 Cash, cash equivalents, and restricted cash - end of period $ 204,408 $ 68,394
Amneal Pharmaceuticals, Inc.
Non-GAAP Reconciliations
(unaudited, in thousands) Reconciliation of Net Income to EBITDA and Adjusted EBITDA Three Months Ended March 31, Year Ended
December 31, 2026 2025 2025 Net income $ 78,000 $ 24,618 $ 127,933 Adjusted to add: Interest expense, net 53,361 56,939 241,091 Provision for income taxes 2,176 12,868 11,276 Depreciation and amortization 43,191 60,159 223,572 EBITDA (Non-GAAP) $ 176,728 $ 154,584 $ 603,872 Adjusted to add (deduct): Stock-based compensation expense 8,816 7,128 31,823 Acquisition, site closure, and idle facility expenses (1) 5,682 1,241 5,301 Restructuring and other charges 499 571 4,208 Loss on refinancing (2) 3,510 — 31,365 Charges (credit) related to legal matters, net (3) 694 — (390 ) Asset impairment charges (4) — 68 23,022 Foreign exchange loss (gain) 7,800 (4,247 ) (7,635 ) (Decrease) increase in tax receivable agreement liability (2,333 ) 10,687 6,588 Other (5) 614 (54 ) (9,739 ) Adjusted EBITDA (Non-GAAP) $ 202,010 $ 169,978 $ 688,415
Amneal Pharmaceuticals, Inc.
Non-GAAP Reconciliations
(unaudited,$in thousands) Calculation of Net Debt and Net Leverage March 31, 2026 December 31, 2025 Term Loan Due 2032 $ 2,089,500 $ 2,094,750 Senior Notes Due 2032 600,000 600,000 Gross debt (6) $ 2,689,500 $ 2,694,750 Less: Cash and cash equivalents 197,656 282,029 Net debt (Non-GAAP) (7) $ 2,491,844 $ 2,412,721 Adjusted EBITDA (Non-GAAP) Adjusted EBITDA (Non-GAAP) Year ended December 31, 2025 $ 688,415 $ 688,415 Less: Three months ended March 31, 2025 169,978 Add: Three months ended March 31, 2026 202,010 Last twelve months ended March 31, 2026 $ 720,447 Last Twelve Months Ended
March 31, 2026 Year Ended December 31, 2025 Gross leverage (Non-GAAP) (8) 3.7 x 3.9 x Net leverage (Non-GAAP) (9) 3.5 x 3.5 x
Amneal Pharmaceuticals, Inc.
Non-GAAP Reconciliations
(unaudited; in thousands, except per share amounts)
Reconciliation of Net Income to Adjusted Net Income and Calculation of Adjusted Diluted Earnings Per Share Three Months Ended March 31, 2026 2025 Net income $ 78,000 $ 24,618 Adjusted to add (deduct): Non-cash interest 6,737 334 GAAP provision for income taxes 2,176 12,868 Amortization 29,021 44,274 Stock-based compensation expense 8,816 7,128 Acquisition, site closure, and idle facility expenses (1) 5,682 1,227 Restructuring and other charges 499 571 Loss on refinancing 3,510 — Charges related to legal matters, including interest, net (3) 1,450 — Asset impairment charges — 68 (Decrease) increase in tax receivable agreement liability (2,333 ) 10,687 Other 614 (44 ) Provision for income taxes (10) (28,755 ) (22,765 ) Net income attributable to non-controlling interests (15,744 ) (12,423 ) Adjusted net income (Non-GAAP) $ 89,673 $ 66,543 Weighted average diluted shares outstanding (Non-GAAP) (11) 328,933 323,961 Diluted earnings per share (GAAP) $ 0.19 $ 0.04 Adjusted diluted earnings per share (Non-GAAP) $ 0.27 $ 0.21
Amneal Pharmaceuticals, Inc.
Non-GAAP Reconciliations
(unaudited) Explanations for Non-GAAP Reconciliations (1) Acquisition, site closure, and idle facility expenses for the three months ended March 31, 2026 primarily included acquisition costs associated with the announced agreement to acquire Kashiv BioSciences, LLC and rent for vacated properties. Acquisition, site closure, and idle facility expenses for the three months ended March 31, 2025 and year ended December 31, 2025 primarily included costs related to a planned facility closure and rent for vacated properties. (2) For the year ended December 31, 2025, loss on refinancing was primarily comprised of debt issuance costs associated with the portion of the Term Loan Due 2028 that was modified as part of the Company’s debt refinancing on August 1, 2025. Refer to Note 14.Debt in the Company’s 2025 Annual Report on Form 10-K for information about the Company’s debt as of December 31, 2025. (3) For the three months ended March 31, 2026, charges related to legal matters, net were $0.7 million, primarily comprised of a $21.2 million charge associated with certain states electing a 25% cash conversion in lieu of product under the Nationwide Opioids Settlement Agreement, partially offset by a $20.8 million discount recorded on the expected settlement payments as of the agreement’s effective date. For the three months ended March 31, 2026, charges related to legal matters, including interest, net included $0.7 million of net charges primarily related to the legal matter discussed above and $0.8 million of interest expense. Refer to Note 19. Commitments and Contingencies in the Company’s 2025 Annual Report on Form 10-K for information about the Nationwide Opioids Settlement Agreement. (4) For the year ended December 31, 2025, asset impairment charges were primarily related to a Specialty segment product right for which the Company significantly reduced the cash flow forecast after receipt of a complete response letter dated July 22, 2025 from the U.S. Food and Drug Administration regarding a supplemental new drug application. (5) For the year ended December 31, 2025, the caption “other” primarily reflects a non-recurring, non-operating, non-cash gain. (6) Refer to Note 14.Debt in the Company’s 2025 Annual Report on Form 10-K for additional information. (7) Net debt was calculated as the total outstanding principal on the Company’s debt less cash and cash equivalents. (8) Gross leverage was calculated by dividing gross debt as of March 31, 2026 and December 31, 2025 by adjusted EBITDA for the last twelve months ended March 31, 2026 and year ended December 31, 2025, respectively. (9) Net leverage was calculated by dividing net debt as of March 31, 2026 and December 31, 2025 by adjusted EBITDA for the last twelve months ended March 31, 2026 and year ended December 31, 2025, respectively. (10) The non-GAAP effective tax rates for the three months ended March 31, 2026 and 2025 were 24.3% and 25.5%, respectively. (11) Weighted average diluted shares outstanding for the three months ended March 31, 2026 and 2025 consisted of fully diluted Class A common stock (inclusive of the effect of dilutive securities).
Amneal Pharmaceuticals, Inc.
Non-GAAP Reconciliations
(unaudited, $ in thousands) Reconciliation of Consolidated GAAP to Non-GAAP Operating Results Three Months Ended March 31, 2026 Three Months Ended March 31, 2025 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAP Net revenue $ 722,519 $ — $ 722,519 $ 695,420 $ — $ 695,420 Cost of goods sold (1) 402,406 (28,311 ) 374,095 439,529 (43,515 ) 396,014 Gross profit 320,113 28,311 348,424 255,891 43,515 299,406 Gross margin % 44.3 % 48.2 % 36.8 % 43.1 % Selling, general and administrative (2) 138,860 (11,281 ) 127,579 118,288 (9,547 ) 108,741 Research and development (3) 38,383 (773 ) 37,610 40,040 (1,480 ) 38,560 Intellectual property legal development expenses 1,542 — 1,542 1,767 — 1,767 Acquisition costs (4) 5,153 (5,153 ) — — — — Restructuring and other charges 650 (499 ) 151 571 (571 ) — Charges related to legal matters, net 694 (694 ) — — — — Other operating income (6,941 ) — (6,941 ) (5,122 ) — (5,122 ) Operating income $ 141,772 $ 46,711 $ 188,483 $ 100,347 $ 55,113 $ 155,460 (1) Adjustments for the three months ended March 31, 2026 and 2025, respectively, were comprised of stock-based compensation expense ($1.0 million and $0.9 million), amortization expense ($27.3 million and $42.5 million), and asset impairment charges (none and $0.1 million).
(2) Adjustments for the three months ended March 31, 2026 and 2025, respectively, were comprised of stock-based compensation expense ($7.0 million and $5.4 million), amortization expense ($2.7 million in each period), site closure costs ($0.5 million in each period), and other ($1.1 million and $0.9 million).
(3) Adjustments for the three months ended March 31, 2026 and 2025, respectively, were comprised of stock-based compensation expense ($0.8 million in each period) and site closure costs (none and $0.7 million).
(4) Acquisition costs for the three months ended March 31, 2026 primarily included acquisition costs associated with the announced agreement to acquire Kashiv BioSciences, LLC.
Amneal Pharmaceuticals, Inc.
Affordable Medicines Segment
Reconciliation of GAAP to Non-GAAP Operating Results(1)
(unaudited; $ in thousands) Three Months Ended March 31, 2026 Three Months Ended March 31, 2025 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAP Net revenue $ 423,237 $ — $ 423,237 $ 414,708 $ — $ 414,708 Cost of goods sold (2) 232,444 (9,570 ) 222,874 242,633 (10,875 ) 231,758 Gross profit 190,793 9,570 200,363 172,075 10,875 182,950 Gross margin % 45.1 % 47.3 % 41.5 % 44.1 % Selling, general and administrative (3) 41,318 (2,432 ) 38,886 33,715 (1,816 ) 31,899 Research and development (4) 33,286 (677 ) 32,609 30,980 (689 ) 30,291 Intellectual property legal development expenses 1,493 — 1,493 1,713 — 1,713 Charges related to legal matters, net 694 (694 ) — — — — Other operating income (6,941 ) — (6,941 ) (5,122 ) — (5,122 ) Operating income $ 120,943 $ 13,373 $ 134,316 $ 110,789 $ 13,380 $ 124,169 (1) Revenue, cost of goods sold, and gross profit from the sale of Amneal products by AvKARE were included in our Affordable Medicines segment.
(2) Adjustments for the three months ended March 31, 2026 and 2025, respectively, were comprised of stock-based compensation expense ($1.0 million and $0.9 million), amortization expense ($8.6 million and $9.9 million), and asset impairment charges (none and $0.1 million).
(3) Adjustments for the three months ended March 31, 2026 and 2025, respectively, were comprised of stock-based compensation expense ($1.9 million and $1.3 million) and site closure costs ($0.5 million in each period).
(4) Adjustments for the three months ended March 31, 2026 and 2025 were comprised of stock-based compensation expense.
Amneal Pharmaceuticals, Inc.
Specialty Segment
Reconciliation of GAAP to Non-GAAP Operating Results
(unaudited; $ in thousands) Three Months Ended March 31, 2026 Three Months Ended March 31, 2025 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAP Net revenue $ 133,265 $ — $ 133,265 $ 108,297 $ — $ 108,297 Cost of goods sold (1) 43,020 (18,741 ) 24,279 53,083 (32,640 ) 20,443 Gross profit 90,245 18,741 108,986 55,214 32,640 87,854 Gross margin % 67.7 % 81.8 % 51.0 % 81.1 % Selling, general and administrative (2) 34,691 (526 ) 34,165 30,978 (345 ) 30,633 Research and development (3) 5,097 (95 ) 5,002 9,060 (791 ) 8,269 Intellectual property legal development expenses 49 — 49 54 — 54 Restructuring and other charges 347 (347 ) — 130 (130 ) — Operating income $ 50,061 $ 19,709 $ 69,770 $ 14,992 $ 33,906 $ 48,898 (1) Adjustments for the three months ended March 31, 2026 and 2025 were comprised of amortization expense.
(2) Adjustments for the three months ended March 31, 2026 and 2025 were comprised of stock-based compensation expense.
(3) Adjustments for the three months ended March 31, 2026 and 2025, respectively, were comprised of stock-based compensation expense ($0.1 million in each period) and site closure costs (none and $0.7 million).
Amneal Pharmaceuticals, Inc.
AvKARE Segment
Reconciliation of GAAP to Non-GAAP Operating Results(1)
(unaudited; $ in thousands) Three Months Ended March 31, 2026 Three Months Ended March 31, 2025 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAP Net revenue $ 166,017 $ — $ 166,017 $ 172,415 $ — $ 172,415 Cost of goods sold 126,942 — 126,942 143,813 — 143,813 Gross profit 39,075 — 39,075 28,602 — 28,602 Gross margin % 23.5 % 23.5 % 16.6 % 16.6 % Selling, general and administrative (2) 16,680 (2,648 ) 14,032 15,694 (2,700 ) 12,994 Operating income $ 22,395 $ 2,648 $ 25,043 $ 12,908 $ 2,700 $ 15,608 (1) Revenue, cost of goods sold, and gross profit from the sale of Amneal products by AvKARE were included in our Affordable Medicines segment.
(2) Adjustments for the three months ended March 31, 2026 and 2025 were comprised of amortization expense.
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