Fortress Biotech Reports 14% Revenue Growth and Net Income Turnaround in Q2 2026

Fortress Biotech, Inc. reported a net revenue of $18.7 million for the three months ended June 30, 2026, marking a 14% increase from $16.4 million in the same period last year. The growth was primarily driven by a 19% rise in product revenue, which reached $17.8 million, largely attributed to the sales of Journey Medical Corporation's product Emrosi, which generated $8.1 million in the second quarter of 2026 compared to $2.8 million in the prior year. However, other revenue decreased by 37% to $0.9 million, reflecting a decline in contributions from Avenue related to a license termination in the previous year.

In terms of operating expenses, Fortress reported a significant reduction, totaling $28.7 million for the second quarter of 2026, down 46% from $52.9 million in the same quarter of 2025. This decrease was driven by a substantial drop in research and development expenses, which fell by 90% to $0.8 million, primarily due to the deconsolidation of Checkpoint Therapeutics following its acquisition by Sun Pharma in May 2025. Selling, general, and administrative expenses also decreased by 46%, reflecting a reduction in costs associated with the launch of Emrosi.

The company reported a net income of $602,000 for the second quarter of 2026, a significant turnaround from a net loss of $11.7 million in the same quarter of 2025. This improvement was bolstered by other income, which included a gain from the deconsolidation of Checkpoint and increased interest income. For the six months ended June 30, 2026, Fortress recorded a net income of $137.8 million, largely due to a gain of approximately $158.9 million from the sale of a priority review voucher by its subsidiary Cyprium Therapeutics.

Fortress's total assets increased to $316.7 million as of June 30, 2026, compared to $185.5 million at the end of 2025, driven by a rise in cash and cash equivalents, which reached $196.6 million. The company’s accumulated deficit stood at $624.1 million, reflecting ongoing investments in research and development. Fortress has indicated that it expects to continue incurring operating losses as it advances its product candidates and expands its operations.

Looking ahead, Fortress Biotech anticipates the need for additional financing to support its research and development programs and operational costs. The company has paused dividend payments on its Series A Preferred Stock, which has resulted in a cumulative dividend obligation of approximately $16 million as of June 30, 2026. Fortress's management has expressed confidence that its current cash reserves are sufficient to fund operations for at least the next 12 months, but acknowledges the potential need for further capital to sustain its growth strategy and operational needs.