Strong Top-Line Growth
Total net revenue grew 19% year-over-year to $317 million in Q1 2026.
Indivior
· INDV
April 30th, 2026
Summary
- Earnings Call Date:
- 2026-04-30
- Change Since:
- +12.75%
- Next Earnings Date:
- 2026-07-30
Earnings Call Sentiment
PositiveThe call emphasized strong commercial execution and substantial financial improvement driven by SUBLOCADE (double-digit revenue growth, 20% dispense unit growth, record adjusted EBITDA up 112% and raised 2026 guidance). It also announced disciplined capital actions that improve the balance sheet and return capital to shareholders. Offsetting these positives were setbacks in early-stage R&D (INDV-6001 and INDV-2000 not advancing internally), expected gross-to-net pressure for 2026, and ongoing reliance on SUBLOCADE for growth. On balance, the favorable commercial and financial momentum and upgraded guidance materially outweigh the program setbacks and known headwinds.
Company Guidance
Management raised 2026 guidance to total net revenue of $1.215–$1.285 billion (midpoint $1.25B, ~+1% vs 2025), with SUBLOCADE net revenue now guided to $950–$990 million (midpoint $970M, +13% YoY) driven by planned mid‑teens dispense‑unit growth in 2026 (vs 7% in 2025); adjusted EBITDA is guided to $620–$660 million (midpoint $640M, +50% YoY) implying a ~51% margin at the midpoint (up ~16 percentage points vs 2025), operating expenses $430–$450 million, and expected cash flow from operations of approximately $340 million. They ended Q1 with $201 million of gross cash and investments, project forward leverage of ~0.8x (midpoint), completed a $500 million convertible note due 2031 (used to repay a $333 million term loan and reduce interest to 0.625% from 9.5%), repurchased 4 million shares for $125 million at an average $31.45 (leaving roughly $275 million on the $400 million buyback), expect full‑year gross margins in the mid‑80s, and noted a $14 million prior‑year gross‑to‑net release in Q1 but cautioned gross‑to‑net adjustments will be a headwind in 2026.
SUBLOCADE Revenue Acceleration
Total SUBLOCADE net revenue increased 32% year-over-year to $232 million (U.S. SUBLOCADE up 33% to $218 million), driven by 20% dispense unit growth and favorable price/mix.
Patient and Prescriber Momentum
Record new patient starts of ~31,800 in Q1 (up 29% YoY); over 500,000 U.S. patients prescribed SUBLOCADE since launch (nearly 25% added in the last 5 quarters); total U.S. SUBLOCADE patients treated in last 12 months: 191,600. Active SUBLOCADE prescribers grew 19% YoY; prescribers treating 5+ patients grew 20% YoY.
Adjusted EBITDA and Margin Expansion
Adjusted EBITDA was a record $164 million in Q1, up 112% YoY, with margin improvement of 23 percentage points. 2026 adjusted EBITDA guidance raised to $620–$660 million (midpoint $640M), up ~50% YoY and implying a ~51% margin.
Raised 2026 Financial Guidance
Total 2026 net revenue guidance raised to $1.215–$1.285 billion (midpoint up ~1% vs 2025). SUBLOCADE 2026 net revenue guidance raised to $950–$990 million (midpoint +13% YoY). Company now expects SUBLOCADE dispense unit growth to accelerate to mid-teens in 2026 (from 7% in 2025).
Operating Efficiency and Cost Reduction
Non-GAAP operating expenses were $116 million in Q1, down 21% YoY due to headcount reductions, R&D/medical affairs restructuring, and footprint consolidation.
Capital Deployment and Balance Sheet Improvements
Completed $500 million senior convertible notes offering (used mostly to repay $333 million term loan), lowering interest to 0.625% from 9.5%. Repurchased $125 million of shares (4 million shares at $31.45 avg); remaining buyback capacity reported (~$275M). Q1 gross cash & investments: $201 million; projected 2026 leverage ~0.8x and ~$340 million expected cash flow from operations.
Commercial Execution and DTC Impact
DTC campaign 'Move Forward in Recovery' showing early impact: >1,200 new CRM enrollments/month, >8,300 engaged consumers since launch, >30,000 Find-a-Provider searches in Q1, and paid search volumes above pre-campaign levels. Specialty pharmacy enhanced service agreements and improved dispense yields underway.
Operator
Good day, and thank you for standing by. Welcome to the Indivior Pharmaceuticals Q1 2026 Financial Results Conference Call and Webcast. [Operator Instructions] Please be advised that this conference is being recorded. I would now like to hand the conference over to our first speaker today, Jason Thompson. Please go ahead.
Jason Thompson
Thanks, Nadia, and welcome to Indivior's First Quarter 2026 Results Conference Call. I'm joined today by Joe Ciaffoni, Chief Executive Officer; Pat Barry, Chief Commercial Officer; Ryan Preblick, Chief Financial Officer; and Christian Heidbreder, our Chief Scientific Officer. Before we begin, I need to remind everyone that on today's call, we may make forward-looking statements that are subject to risks and uncertainties, and that actual results may differ materially. We list the factors that may cause our results to be materially different here on Slide 2 of this presentation. We also may refer to non-GAAP measures, the reconciliations for which may also be found in the appendix of this presentation that is now posted on our website at indivior.com. I'll now turn the call over to Joe Ciaffoni, our CEO.
Joseph Ciaffoni
Thanks, Jason. Good morning, and thank you for joining us on today's call to review our first quarter results. I will begin with an overview of our performance and summarize our progress against Phase II - Accelerate of the Indivior Action Agenda. Pat will discuss SUBLOCADE performance, Christian will provide an update on the pipeline, and Ryan will review the financials. In the first quarter, we made significant progress in Phase II of the Indivior Action A...
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