LQDA Q2 Earnings Top, Strong Yutrepia Sales Fuel Top-Line Growth

The quarterly performance was powered by continued adoption of lead drug Yutrepia.

However, shares were down 10% following the second-quarter results.

Shares of LQDA have surged 128.5% year to date compared with the industry’s growth of  5.9%.

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LQDA's Yutrepia Sales Accelerate

Yutrepia is a dry-powder inhaled formulation of treprostinil delivered through a compact, easy-to-use device. It is approved to treat pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD) to improve exercise capacity.

Yutrepia net product sales reached $170.4 million in the second quarter, up from $6.5 million a year earlier driven by higher Yutrepia volume. Product sales increased 31.0% sequentially.

LQDA began commercial shipments of Yutrepia in the United States in June 2025, shortly after receiving full FDA approval on May 23, 2025.

As of July 31, 2026, Liquidia had received approximately 5,900 unique prescriptions since launch and started more than 5,000 patients on therapy.

More than 1,100 physicians had prescribed Yutrepia since launch as of July 31, and more than 30% of them had written prescriptions for at least five patients. The prescription-to-start conversion rate remained above 85%.

LQDA’s Q2 in Detail

LQDA also generates service revenues through its promotion agreement with Sandoz, under which the companies share profits from U.S. sales of Treprostinil Injection.

Service revenues totaled $1.3 million in the second quarter, down from $2.3 million in the prior-year quarter mainly due to unfavorable gross-to-net adjustments.

Research and development expenses skyrocketed 185% year over year to $17.2 million. The increase primarily reflected higher L606 program spending, greater Yutrepia research activity and increased personnel costs.

Selling, general and administrative expenses increased 48.0% to $57.4 million, caused by higher personnel costs, increased stock-based compensation expenses, and commercial and consulting costs.

Net income was $74.7 million in the quarter. The company had reported a net loss of $41.6 million in the year-ago quarter.

Strong Yutrepia sales drove its fourth consecutive quarter of increasing profitability.

LQDA Builds Cash and Advances Its Pipeline

Cash and cash equivalents totaled $284.2 million as of June 30, up from $222.8 million at the end of the first quarter.

Management said cash flow from the commercial business allows Liquidia to fund expanded clinical investment alongside ongoing commercialization.

Liquidia now has 10 clinical studies, between Yutrepia and L606, either underway or planned to start over the next 12 months. L606 is a twice-daily, liposomal formulation of treprostinil delivered through a next-generation nebulizer and is being evaluated in PAH and PH-ILD. The phase III Re-Spire study on L606 is currently enrolling.

The company also plans to explore Yutrepia in additional indications, including pulmonary hypertension associated with chronic obstructive pulmonary disease, idiopathic pulmonary fibrosis (IPF), progressive pulmonary fibrosis and Raynaud’s phenomenon associated with systemic sclerosis.

Liquidia Targets Continued Revenue and Profit Growth

Liquidia said it is confident that it is on track for more than $1 billion in net revenues in 2027 while continuing to grow profitability. Management expects revenues to keep increasing in line with the quarterly growth trajectory seen since launch.

LQDA expects second-half 2026 R&D spending to be double the first-half level and to increase again in 2027 as Re-Spire enrollment and other studies ramp up.

SG&A expenses are expected to rise as the company scales commercially, with certain costs increasing in line with revenues.

Our TAKE on LQDA’s Q2 Results

LQDA topped both revenue and earnings estimates in the second quarter. Yutrepia has emerged as a leading player in the inhaled prostacyclin market for PAH and PH-ILD.

Liquidia’s solid commercial performance is strengthening its financial position, with cash and equivalents reaching $284.2 million at quarter-end.

The differentiated tolerability and dosing profiles of both Yutrepia and L606 should enable the company to tap into incremental opportunity in the PAH market. Management expects revenues to exceed $1 billion in 2027, supporting a favorable long-term growth outlook.

Yutrepia’s primary competitor is United Therapeutics' UTHR Tyvaso (treprostinil), the long-established inhaled therapy approved for PAH in 2009 and PH-ILD in 2021.

United Therapeutics highlighted two major regulatory filings — ralinepag tablets for PAH and nebulized Tyvaso for IPF — as potentially significant catalysts for long-term growth. Additional planned filings for ralinepag DPI and treprostinil SMI could further expand UTHR’s pipeline and growth opportunities.

LQDA’s Zacks Rank and Stock to Consider

LQDA currently carries a Zacks Rank #1 (Strong Buy). Another top-ranked stock in the biotech sector is Repligen RGEN, which carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Repligen’s 2026 earnings per share have risen from $1.99 to $2.06, while those for 2027 EPS have increased from $2.57 to $2.62 during the same time. RGEN shares have gained 1.1% year to date.

Repligen’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 16.80%.

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