Kamada (NASDAQ:KMDA) reported third-quarter financial results on Monday. The transcript from the company’s third-quarter earnings call has been provided below.
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Summary
Kamada Ltd reported a strong financial performance with double-digit growth in revenues and adjusted EBITDA for Q3 and the first nine months of 2026, leading to an increase in annual guidance for 2026.
Total revenues for the nine-month period reached $150 million, a 12% year-over-year increase, while adjusted EBITDA increased by 20% to $40.9 million, representing a 27% margin.
The company declared an additional cash dividend of $0.14 per share, totaling approximately $8 million, adding to the $24.2 million paid earlier in 2026.
Kamada’s growth is driven by strong demand for products like KEDRAB in the U.S. and internationally, along with expanding sales of Varizig, HepaGam, and the distribution segment.
The company plans to expand its commercial portfolio through acquisitions and M&A transactions to further accelerate growth.
New initiatives include the launch of biosimilar products in Israel and the expansion of the distribution business into the MENA region.
A three-year $50 million plasma sales agreement was signed, validating Kamada’s plasma collection strategy.
The future outlook includes projections for continued double-digit revenue and profitability growth in 2027, with detailed guidance to be provided in January.
Full Transcript
OPERATOR
A brief question-and-answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please press Star-0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brian Ritchie, Managing Director of LifeSci Advisors. Thank you. You may begin.
Brian Ritchie (Managing Director)
Thank you, operator. This is Brian Ritchie with LifeSci Advisors. Thank you all for participating in today’s call. Joining me from Kamada are Amir London, Chief Executive Officer, and Chaime Orlev, Chief Financial Officer. Earlier today, Kamada announced its financial results for the three and nine months ended September 30, 2026. If you have not received this news release, please go to the Investors page of the company’s website at www.kamada.com. Before we begin, I would like to caution that comments made during this conference call by management will contain forward-looking statements that involve risks and uncertainties regarding the operations and future results of Kamada.
I encourage you to review the Company’s filings with the Securities and Exchange Commission, including without limitation the Company’s Forms 20-F and 6-K, which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements. Furthermore, the content of this conference call contains time-sensitive information that is accurate only as of the date of this live broadcast, Monday, Nov. 9, 2026. Kamada undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this conference call.
With that said, it is my pleasure to turn the call over to Amir London, CEO.
Amir London (Chief Executive Officer)
Thank you, Brian. My thanks also to our investors and analysts for your interest in Kamada and for participating in today’s call. During the third quarter of 2026, we continued with strong operational and financial performance. We demonstrated throughout the year with double-digit growth in revenues and adjusted EBITDA for both the third quarter and the nine-month reporting periods. Based on our excellent performance, we are increasing our 2026 annual guidance and we are projecting continued double-digit profitable growth during 2027. Total revenues for the nine-month period were a record of 150, an increase of approximately 12% year over year.
Adjusted EBITDA was $40.9 million, up 20% year over year and representing a 27% margin of revenues, and net income totaled $21.4 million, up 29% year over year. The underlying demand for our products, especially KEDRAB in the U.S. market as well as Varizig and HepaGam, continues to expand. We are also pleased to announce another cash dividend of $0.14 per share for a total payment of approximately $8 million to be paid to our shareholders during the fourth quarter of this year. This is in addition to the $24.2 million dividend payments already made earlier this year, bringing the total dividend in 2026 to approximately $32.3 million. Our ability to continue paying dividends while maintaining our strong cash position and continuing to invest in commercial growth is indicative of our excellent financial and operational performance.
Based on our excellent performance, we are increasing our 2026 annual guidance to a range of $205 million to $208 million in revenues and $52 million to $54 million of adjusted EBITDA, with the midpoint representing 14% and 26% growth respectively, compared to our 2025 results. Importantly, the significant growth we are currently experiencing is driven solely by our existing commercial product portfolio. Once we execute acquisitions and M&A transactions we pursue as part of our strategic plan, we expect this growth to accelerate even further and enhance our financial performance.
As you know, Kamada’s continued double-digit profitable annual growth is driven by our four strategic growth drivers. First, we are continuing to grow sales of our entire commercial portfolio, including our six FDA-approved specialty plasma-derived products. As said, the underlying demand for our products continues to increase. Our lead product continues to be our anti-rabies immunoglobulin, and end-user utilization of the product in the U.S. is continuing to increase significantly, and our product supply to our distributor, Kedrion, is increasing year over year and beyond Kedrion’s minimum commitment.
During our third quarter we confirmed that we are maintaining sufficient KEDRAB supply and manufacturing capacity to meet the increased demand for the product in the U.S. in response to a health advisory published by the CDC. We have both inventory and the manufacturing capacity to support the increased demand for the product, which is one of only two FDA-approved anti-rabies immunoglobulins indicated for post-exposure prophylactic treatment. In addition to our significant market share in the U.S., we continue to grow sales of KEDRAB in leading international markets such as Canada, Latin America, and England.
Glassia, our Alpha-1 product, is also advancing well, with revenue contribution driven by our growing product sales in ex-U.S. markets such as Argentina, Russia, Switzerland, and Israel, as well as additional markets mainly in Latin America, and the royalty income generated from several products by Takeda in the U.S. and Canada. We continue to support the comprehensive post-marketing research program for Cytogam, our anti-CMV immunoglobulin which we launched last year, which we believe will help demonstrate the advantages of the product in the prevention and management of CMV disease.
With respect to Varizig, anti–varicella-zoster immunoglobulin, and HepaGam, our hepatitis B immunoglobulin, we are experiencing strong market demand for these products, resulting, among other things, from our product awareness activities in the U.S. market. In our distribution segment, growth is supported by the launch of additional biosimilar products in the Israeli market, as well as expansion of the distribution business to the MENA region, which is already ongoing with new distribution agreements being signed and product registrations submitted to local health authorities. During the third quarter we announced expansion of our biosimilar portfolio with a commercial launch of two additional new products in Israel.
The two newly launched biosimilar products are Ustekinumab Kamada, a biosimilar to Stelara, and Enoxaparin Kamada, a biosimilar to Clexane. We expect our biosimilar product portfolio to generate approximately $10 million in annual revenues in 2028, growing to approximately $20 to $25 million in annual revenues by 2030. We also expect to launch at least two additional biosimilar products next year. Turning to our plasma collection operation, as you know, in July we announced a three-year sales agreement of approximately $50 million to supply normal source plasma to a leading biopharmaceutical company focused on plasma-derived therapy. This agreement validates our plasma collection strategy and the investment we made in our U.S.-based state-of-the-art plasma collection centers, as well as our vertical integration strategy and multi-year revenue growth objectives.
Initial commercial sales under this agreement will be recorded in the current quarter and have already been included in our current annual guidance. Lastly, securing new business development and M&A opportunities remains a core focus and, as already said, we are committed to expanding our current commercial portfolio and accelerating our current double-digit organic growth. Before I turn the call over to Chaime for a detailed discussion of our financial results, I’d like to emphasize that for the remainder of 2026 and into 2027 our focus continues to be on the profitable growth of our entire commercial portfolio, leveraging our multiple growth engines. While the detailed financial guidance for 2027 will be provided in January, I can already share our projection that 2027 will be another year of double-digit growth in revenues and profitability.
With that, I now turn the call over to Chaime.
Chaime Orlev (Chief Financial Officer)
Thank you, Amir. As Amir stated at the top of the call, we continue our record year. Total revenues were $52 million for the third quarter of 2026, up 11% compared to the third quarter of 2025. For the first nine months of 2026, total revenues were $152.2 million, a 12% increase from the $135.8 million generated in the first nine months of 2025. The increase in revenues was primarily attributable to increased sales of KEDRAB, Varizig, and HepaGam, as well as growth in the distribution segment, where revenues increased 35% to a total of $24.1 million.
Gross profit and gross margins were $23.3 million and 45% in the third quarter of 2026. The increase in gross profit and gross margins was primarily attributable to higher gross margins of our proprietary products due to improved product and market sales mix. For the first nine months of 2026, gross profit and gross margins were $64.9 million and 43%, compared to $59.4 million and 40% in the first nine months of 2025. Operating expenses, including R&D, sales and marketing, G&A, and other expenses totaled $13 million in the third quarter of 2026 and $38.1 million for the first nine months of 2026. The increase was primarily due to higher G&A and S&M expenses in support of the company’s expanded commercial operations. Net income was $8 million, or $0.14 per diluted share, in the third quarter of 2026, up 51% compared to the third quarter of 2025. Net income for the first nine months was $21.4 million, or $0.37 per diluted share, up 29% year over year.
Adjusted EBITDA was $15.2 million in the third quarter, up 30% and indicative of a 29% margin of revenues. For the first nine months of 2026, adjusted EBITDA was $40.9 million, a 20% increase year over year and represents a 27% margin of revenue. The increase in adjusted EBITDA is the outcome of our continued commercial growth. Cash provided by operating activities during the first nine months of 2026 was approximately $37.6 million, compared to $17.9 million during the first nine months of 2025.
The increase in operating cash flow is indicative of Kamada’s ability to continue and convert its profitability into cash flows. As of September 30, 2026, cash and cash equivalents and short-term investments were $75.3 million, compared to $75.5 million at the end of 2025. During the first nine months of 2026, we made a total dividend payment of $24.2 million. Our ability to maintain a strong cash position while making these dividend payments is another indication of our ability to convert increased profitability into cash flow.
With that, we will open the call for questions. Operator.
OPERATOR
Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press Star-1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star-2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we poll for questions.
The first question is from Annabel Samini from Stifel. Please go ahead.
Annabel Samini (Analyst)
Hi, good morning. Thanks for taking my questions, and congratulations on a strong quarter. I want to ask about KEDRAB first. Obviously growth has been pretty solid. Based on the CDC reports and the recent trend, is there any contemplation of expansion of the Kedrion agreement? Is this rabies issue going to be a persistent problem, or are they comfortable with the level of manufacturing they have right now? Separately, on margin expansion—obviously that’s been very solid too—can you confirm whether this is with or without the benefit of your proprietary specialty plasma? And if it’s not, is it primarily driven from improvement in distribution margins due to biosimilars?
And I guess last question is on business development. Can you talk about the competitive landscape? Has it become more challenging, or is there just a lack of appropriate assets in your opinion? Thanks.
Amir London (Chief Executive Officer)
Thank you, Annabel. I’ll try to answer the questions one by one. So KEDRAB, yes, there is a significant solid growth of the product demand in the U.S. We believe that, you know, we are with at least 50% market share, and as the CDC have detailed earlier this year, there’s been an overall growth in anti-rabies immunoglobulin utilization in the U.S. market. We are equipped with sufficient inventory and capacity to support such growth, even if it continues to grow further.
We have the capacity at our manufacturing plant to support this, and the current agreement with Kedrion goes until end of 2031. They are already ordering way above the minimum commitment in the agreement because of the need, because of the market demand. We believe this will continue. We do not think that 2026 was just like a one-time demand thing, but that this trend will continue into 2027 and hopefully beyond. So that’s regarding KEDRAB. In regards to the next question, it was about the plasma contribution. So plasma—normal source plasma sales—or specialty plasma utilization in our own manufacturing is not yet part of our P&L, mainly because the normal source plasma sales start this quarter, and in terms of the anti-rabies and other specialty plasma collection, we collect the plasma, it goes into what we call validation batches that need to be manufactured.
Only then we can start using it. So this is a longer process. So any additional improvements in top line and profitability as a result of our own vertical integration is yet to come and yet to be demonstrated or part of our P&L. In regards to the distribution business, we are seeing significant expansion as a result of a few multiple aspects. One is the fact that we launched the biosimilars in Israel. Secondly, because we’re starting to sell distributed products also in the MENA region. And thirdly, because we are simply growing our market share with our existing products in the Israeli market. We have a highly diverse portfolio of distributed products with a strong presence in the Israeli market, and we are taking greater market share with existing products and new additional products that we launch.
We don’t report publicly each and every product that we launch, but we focus on the biosimilars in terms of the public disclosures because some of the other products are immaterial if I kind of look at them one by one. But when I accumulate all of them together, it supports our growing distribution business. Did I answer all the questions?
Annabel Samini (Analyst)
Yeah, just the last one. On business development—has it become more competitive, or are you just not finding the assets that you think would be good for your platform?
Amir London (Chief Executive Officer)
So we have been—we’re doing our due diligence. We are screening for opportunities. We do have opportunities, and we believe that hopefully in the near term we already will have some good news to report.
Annabel Samini (Analyst)
Thank you.
OPERATOR
As a reminder, to ask a question, please press Star-1. The next question is from Jim Sedoti from Sidoti & Company. Please go ahead.
Jim Sedoti (Analyst)
Hi, good afternoon. Thanks for taking the questions. So just a follow-up on KEDRAB. Obviously you’re seeing strong demand in the U.S. because of the higher incidence of rabies. Is that something that’s also happening internationally?
Amir London (Chief Executive Officer)
Yes, we saw greater demand in other countries where KEDRAB or KamRAB is being distributed. Primarily, we mentioned it on the call—Canada, Israel, and LATAM, Latin America. I would like to remind the listeners that there are only three basically products that are meeting either FDA or EMA standards. This is the Grifols product, CSL product, and our product. And there is, I think, greater awareness of the risks of rabies in general, greater use or better utilization of post-exposure prophylactics following the medical protocol of if someone has been exposed to a potentially rabid animal and they go to the ER, they need to get the vaccine but also the immunoglobulin. And we are there with a very competitive, good product that has some competitive advantage over the other products, such as the fact that we’ve done a pediatric study on label as well as additional benefit, and the fact that we have the capacity to support and we’ve been very good in terms of our supply chain robustness.
And now with the additional plasma that we are collecting with Kamada Plasma, this vertical integration, this is a product that is here to stay and will continue to take significant market share and to grow its profitability in the years to come.
Jim Sedoti (Analyst)
Thank you. And with regard to the distribution business, how should we think of the cadence of revenue when you launch these new products? Is there an initial pipe fill when these new products are launched, or does it take a while for you to introduce the product and to build demand in the market?
Amir London (Chief Executive Officer)
It depends by product. In some cases, if it’s part of a public tender, there is kind of inventory being acquired, purchased by the local authorities or the local wholesalers. If we sell directly to consumers, to the pharmacies, then it’s more gradual growth of the product. But I think what’s good about the distribution business is the fact that it’s a highly diverse portfolio. We are signing new agreements every quarter with companies to represent and distribute their products in the Israeli and the MENA region.
The fact that we were able to leverage our success in Israel to this additional, much greater territory is indicative of the high collaboration that we’ve signed with many of the international manufacturers that would like to put their products in Kamada’s hands in order to be successful in those territories. So that’s a gradual growth that you will see over time, and specifically within that portfolio we spoke about the biosimilar portfolio, which—and we gave specific guidance—that we’ll be selling around $10 million in 2028 and then through to $20 to $25 million by 2030.
So this is just kind of a subset of the overall growth of the distribution business, which is part of our growth engines, one of the four growth engines. And we expect this to continue contributing to our top line and bottom line results.
Jim Sedoti (Analyst)
And how many products do you plan on launching in 2027?
Amir London (Chief Executive Officer)
For the biosimilars, we are going to launch an additional two in Israel. There’s going to be additional launches that we have not disclosed publicly.
Jim Sedoti (Analyst)
Okay. All right, thank you.
OPERATOR
There are no further questions at this time. I would like to turn the floor back over to Amir London for closing comments.
Amir London (Chief Executive Officer)
Thank you, operator. So, as communicated at the opening of the call, we continue to execute on our strategic multi-year growth plan, delivering record high operational and financial performance during 2026. We continue to reach new highs and deliver on our commitment to deliver double-digit profitable growth. We invest in our four-pillar growth strategy, with continued progress made in organic growth of our existing commercial portfolio, expansion of our distribution and in-licensing business, growth of our plasma collection operation, and advancing business development and M&A transactions to support and expedite our growth.
We look forward to continuing to support clinicians and patients with the important life-saving products that we develop, manufacture, and commercialize. We thank you all for your support, and we remain committed to creating long-term shareholder value. We hope you all stay healthy and safe, and thank you for joining our call today.
OPERATOR
This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.
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