KMDA — Kamada Ltd.

Kamada Limited Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Total revenues for Q1 2026 were $42.5 million, a 3% increase from $44 million in Q1 2025.
• Gross profit was $19.1 million with a gross margin of 42%, down from 47% in the prior year, attributed to product mix.
• Operating expenses totaled $12.1 million, a decrease from $13 million in Q1 2025, mainly due to reduced R&D expenses.
• Net income was $4.1 million ($0.07 per diluted share), up 4% from $4 million in Q1 2025.
• Adjusted EBITDA was $11.6 million, consistent with the prior year.
• Cash and cash equivalents stood at $73.1 million, slightly down from $75.5 million at year-end 2025.
• A dividend of $0.25 per share was declared, amounting to approximately $14.4 million.

2. Strategic Updates and Business Highlights:

• The company reiterated its 2026 annual guidance of $200 million to $205 million in revenues and $50 million to $53 million in adjusted EBITDA, reflecting 12% and 23% growth from 2025.
• Growth is driven by the expansion of its commercial product portfolio, including six FDA-approved specialty plasma-derived products.
• Plans to launch additional biosimilars in Israel and expand distribution to the MENA region.
• Increased plasma collection efforts at three centers to enhance vertical integration and reduce costs.
• Notable products include KEDRAB (anti-rabies) and GLASSIA (AAT deficiency), with increasing sales in both U.S. and international markets.

3. Forward Guidance and Outlook:

• Kamada expects stronger results for the remainder of 2026, driven by underlying demand for its products.
• The company aims to ramp up plasma collection and expects to start normal source plasma sales in the second half of 2026, with full capacity anticipated by late 2027 or early 2028.
• Continued investment in clinical programs for CYTOGAM to enhance product utilization and outcomes.

4. Bad News, Challenges, or Points of Concern:

• A temporary shipment delay of $2.4 million impacted Q1 revenue, attributed to logistical issues in the Middle East.
• Gross margin decline due to product mix, indicating potential pricing pressures or cost increases.
• The company faces challenges in demonstrating the clinical advantages of CYTOGAM, which may affect its market performance until new data is available.

5. Notable Q&A Insights:

• The delayed shipment was a singular event, and the company is less sensitive to seasonality due to its B2B model with Kedrion.
• Kamada currently distributes around 40 products in Israel, with plans to reach approximately 45 by year-end.
• The plasma collection centers are currently focused on collecting normal source plasma, with specialty programs running concurrently.
• The company is optimistic about the potential of CYTOGAM, bolstered by ongoing clinical studies that aim to validate its efficacy in high-risk transplant patients.

Overall, Kamada's Q1 2026 performance reflects solid operational execution, though challenges remain in managing margins and product utilization, particularly for CYTOGAM. The company is well-positioned for growth through strategic initiatives and market expansion.