Alvotech posts $111.56 million in revenue, keeps outlook near low end
Key Facts
Alvotech reported third-quarter results on November 11, 2026, after the U.S. market close, posting revenue of $111.56 million, 18.62% below the Zacks consensus estimate. The company’s statement showed total revenue of $111.6 million, down 2% from $113.9 million in the year-earlier quarter. By contrast, product and service revenue rose to $58.2 million from $32.6 million a year earlier, while licensing and other revenue fell to $53.2 million from $81.1 million. The report therefore combined growth in product sales with a decline in total revenue, as results continued to depend on revenue mix and licensing timing.
The company said product and service revenue was about $58 million, up 6% quarter over quarter and 78% year over year. The chief executive said the company continues to ramp up supply to meet demand after completing its manufacturing optimization program in the first half. This growth offsets a decline in licensing revenue, which fell by more than a quarter from the same period a year earlier. However, higher product sales did not prevent a decline in quarterly total revenue, as the drop in licensing and other revenue exceeded the increase in product and service revenue. The company said its next priority is to convert progress in production and supply into planned product shipments during the fourth quarter.
On an adjusted operating-profit basis, the company posted EBITDA of $31.5 million in the third quarter, compared with $14.4 million in the year-earlier period, an annual increase of 118.8%. But gross margin fell to 54% from 69% a year earlier, putting growth in adjusted operating profit alongside clear margin pressure. In the nine months ended September 30, adjusted revenue was $323.4 million, compared with $420 million in the corresponding period of 2025. Gross margin for that period fell to 54% from 59%. First-half results also showed adjusted revenue declining to $211.9 million from $306.1 million, and adjusted EBITDA falling to $46.9 million from $53.7 million.
Cash at the end of September stood at $61.5 million, compared with $172.4 million on December 31, 2025. In manufacturing, the U.S. Food and Drug Administration approved a new manufacturing process for Simlandi at the Reykjavik facility, more than doubling batch output, and also approved production of the drug substance in a second production suite. The FDA closed its inspection of the facility, conducted during April and May 2026, with a VAI classification, according to the company. In product developments, Alvotech said the agency had accepted the license application for AVT80, a proposed biosimilar to Entyvio, with Teva holding the U.S. commercial rights. Alvotech and its partner Advanz Pharma also announced the submission to the European Medicines Agency of what they said was the first known global regulatory application for a proposed biosimilar to Eylea HD.
Alvotech maintained its 2026 financial guidance at total revenue of $650 million to $700 million and EBITDA of $180 million to $220 million, but said performance is now expected near the low end of both ranges. That makes execution on fourth-quarter shipments and supply a focus for tracking the annual outlook, according to company statements. The company scheduled its third-quarter results call for November 12 at 08:00 a.m. Eastern Time. Fourth-quarter and full-year 2026 results are due to be announced on March 10, 2027, followed by an earnings call on March 11. The company said its focus now is executing planned fourth-quarter deliveries while continuing to ramp up production and commercial supply.