Aytu Fiscal Q4 2026 Earnings: EXXUA Drives Revenue Growth

Aytu BioPharma (NASDAQ: AYTU) reported fiscal Q4 2026 net revenue of $16.1 million, up 6.4% from $15.1 million, while diluted net loss per share improved to $0.00 from $2.92 a year earlier. EXXUA contributed $3.9 million in its first full commercial quarter, more than offsetting lower ADHD and Pediatric Portfolio revenue. Adjusted EBITDA remained positive but declined as the company increased EXXUA commercialization spending.

Core Financial Results

Revenue returned to year-over-year growth, but gross profit increased more slowly than sales, reducing gross margin by 3.2 percentage points. Adjusted EBITDA fell to $0.5 million from $2.0 million as higher commercialization expenses offset the new revenue contribution.

The near-break-even GAAP result requires context. Fiscal Q4 2026 included a $1.0 million derivative warrant liability gain, while the prior-year quarter included a $9.9 million derivative warrant liability loss and $8.3 million of impairment expense.

Adjusted EBITDA is a non-GAAP measure. The operating-loss comparison also reflects the impairment expense recorded in the prior-year quarter.

EXXUA Offset Legacy Portfolio Declines

EXXUA was the principal source of growth, generating $3.9 million in a quarter with no year-earlier contribution. ADHD remained the largest portfolio, but its revenue declined approximately 21% because Aytu prioritized EXXUA, removed ADHD promotion and faced generic competition for Adzenys.

EXXUA also advanced sequentially from $2.4 million in fiscal Q3. Total prescriptions reached 3,323, up approximately 138% from 1,398, while shipments increased nearly 40% to approximately 4,600 units. June prescriptions reached 1,261.

The legacy portfolios improved from fiscal Q3 despite their year-over-year declines. ADHD revenue increased from $9.1 million as units and gross-to-net economics improved. Pediatric revenue rose from $0.9 million as product availability normalized following an earlier supply disruption.

Launch Spending Pressured Underlying Profitability

EXXUA added $3.9 million of revenue, but total company revenue increased by only about $1.0 million because declines in the legacy portfolios absorbed most of that contribution. This indicates that Aytu’s current growth still depends on EXXUA scaling faster than ADHD and Pediatric revenue contracts.

Operating expenses excluding amortization, restructuring and impairment increased to $10.4 million from $8.7 million, primarily because of EXXUA commercialization investments. Selling and marketing expense rose to $6.1 million from $4.8 million, while general and administrative expense increased to $4.3 million from $3.7 million. Consequently, adjusted EBITDA declined even though revenue grew.

Full-Year Transition Costs Remained Significant

For the full fiscal year, net revenue declined 13.3% to $57.6 million from $66.4 million as EXXUA’s $6.6 million contribution did not offset lower ADHD and Pediatric sales. Full-year gross margin fell to 64.0% from 69.0%, partly reflecting a $2.2 million inventory write-down and the absence of a favorable $3.3 million variable-consideration adjustment recorded in fiscal 2025.

Full-year adjusted EBITDA was negative $3.7 million, compared with positive $9.2 million in fiscal 2025, primarily due to EXXUA commercialization investments. The annual figures show that the positive fourth-quarter adjusted EBITDA represented an improvement from the full-year result, but not yet a return to the prior year’s profitability level.

Liquidity and Balance Sheet

Cash and cash equivalents were $26.3 million at June 30, 2026, down from $31.0 million a year earlier. Accounts receivable declined to $22.8 million from $31.2 million, while inventory fell to $6.9 million from $11.4 million.

Reported revolving credit and current and non-current debt totaled approximately $17.0 million, compared with approximately $21.8 million at the end of fiscal 2025. Derivative warrant liabilities fell to $1.2 million from $26.3 million, primarily because an amended warrant agreement allowed Aytu to reclassify $26.4 million from liabilities to equity. Stockholders’ equity consequently increased to $35.3 million from $19.0 million, but much of that change was accounting-related rather than generated by operating earnings.

Management Commentary

Management said EXXUA adoption was broadening across prescribers, territories and geographies rather than depending on a small group of physicians or markets. It also reported improving refill activity, conversion from titration packs to full prescriptions and early reimbursement trends that were favorable relative to its initial expectations.

For the legacy business, management described ADHD as profitable on a standalone basis and an important source of cash generation. However, it did not assume that either the ADHD or Pediatric Portfolio had returned to sustained growth. Aytu’s stated objective is to move toward more consistent positive adjusted EBITDA as fiscal 2027 progresses, although it did not provide a quantitative forecast.

Risks Investors Need to Watch

• EXXUA remains early in its launch. Prescription growth, payer coverage and gross-to-net patterns are still developing, making the durability and profitability of its initial revenue uncertain.
• Legacy portfolio erosion continues. ADHD revenue declined approximately 21% year over year amid generic competition and reduced promotion, while Pediatric revenue also remained below the prior-year level.
• Commercial spending is limiting operating leverage. Higher EXXUA investment reduced adjusted EBITDA despite revenue growth, and full-year adjusted EBITDA remained negative.
• Margins have contracted. Quarterly gross margin fell 3.2 percentage points, while the full-year margin declined five percentage points.
• GAAP earnings remain sensitive to warrant accounting. The fourth-quarter net result benefited from a derivative liability gain, so adjusted EBITDA and operating results provide important additional context.

Summary

Aytu’s fiscal Q4 2026 marked a return to revenue growth as EXXUA produced its first full-quarter contribution and prescription activity accelerated. That progress offset declining legacy revenue, but higher commercialization costs and a lower gross margin reduced adjusted EBITDA. The next operating test is whether EXXUA can continue scaling fast enough to overcome generic pressure in ADHD, support more consistent positive adjusted EBITDA and stabilize the company’s cash position.