Liquidia Corporation (LQDA) Earnings

Management highlights

### Utrepia Commercial Launch Progress - Three full quarters post-launch, Utrepia leads growth in the inhaled prostacyclin category for pulmonary arterial hypertension (PAH) and PH associated with ILD (PHLD), and is on track to become the foundational inhaled therapy for these patient populations. - As of April 30, 2026, Utrepia has ~4,500 unique patient prescriptions, ~3,750 patients initiated on therapy, and ~980 prescribing physicians; the number of physicians prescribing to 5+ patients grew 25% since the end of February 2026 to ~270, demonstrating high repeat adoption after initial trial. - Utrepia's differentiated formulation enables targeted pulmonary delivery that minimizes off-target effects, reduces upper airway intolerance, and allows for higher dose attainment, leading to better durable patient outcomes. Utrepia reached an annualized net revenue run rate exceeding $500 million less than one full year post-launch. - The sales prescription split between PAH and PHLD is currently 50/50 (up from an earlier smaller PHLD share), with 85% pull-through from prescription to patient start, and a 75/25 split between treatment-naive patients and patients switching from competing therapies. Major academic centers remain the largest prescribing cohort, but community prescriber adoption is growing steadily. ### Pipeline and Clinical Development Progress - Recruitment is ongoing for Cohort B of the ASCENT study, which evaluates transitioning inadequate responders from competitor inhaled therapies to Utrepia to generate clinical evidence of Utrepia's superior tolerability at higher doses. - Patient screening is active for the pivotal Phase 3 RESPIRE study of L606, a next-generation twice-daily inhaled treprostinil that maintains consistent treprostinil exposure 24 hours a day, addressing the four-times-daily dosing requirement of Utrepia. - The company is advancing clinical programs to expand inhaled prostacyclin use into additional high-unmet-need indications: idiopathic pulmonary fibrosis (IPF), progressive pulmonary fibrosis (PPF), PH-COPD, and scleroderma-associated Raynaud's phenomenon, with existing mechanistic validation for these use cases. - Near-term clinical plans include initiating a study of transitioning patients from oral prostacyclins to open-label Utrepia, with a study of transitioning patients from parenteral pump therapy to Utrepia planned for 2026-2027. The PH-COPD program is in study design, with steering committee meetings planned at ATS and initiation expected no earlier than 2027. ### Financial and Operational Highlights - The company achieved its third consecutive quarter of profitability, with growing top-line revenue, net income, and cash balance, making it self-funded via operating cash flow (no reliance on capital market financing for current investment). - The company ended Q1 2026 with $222.8 million in cash and cash equivalents, an increase of $32.1 million from year-end 2025. It is investing profits into Salesforce expansion for broader community prescriber penetration, new manufacturing capacity in North Carolina, and ongoing pipeline development.

Guidance

- Management reaffirmed its prior guidance of at least $1 billion in net revenue for 2027, maintaining the original target with no upward or downward revision. - Management confirmed it expects sustained consistent growth from current levels, and noted that if current launch trajectory holds, the 2027 revenue target remains achievable. It declined to provide specific guidance for reaching $1 billion annual run rate before 2027, but noted strong momentum that will continue to build through 2026. - Management expects to continue generating increasing net income and adjusted EBITDA as the business grows, and correspondingly expects to record ongoing income tax expense going forward after recording income tax expense for the first time in Q1 2026. - The company estimates the total current inhaled treprostinil market is ~$2 billion, split evenly between PAH and PHLD, with the PHLD market expected to grow to well over $2-$3 billion on its own as awareness increases; the total combined addressable market for PAH and PHLD is estimated at up to $6 billion, with additional large opportunities in other indications.

Segment performance

Liquidity Incorporation has one primary commercial product segment: **Utrepia (eutrephia, inhaled prostacyclin therapy)**. In Q1 2026, Utrepia generated net product sales of $129.9 million, representing 44% sequential growth from $90.1 million in Q4 2025. Utrepia is the sole source of the company's net income, which reached $52.9 million in Q1 2026, up from $14.6 million in Q4 2025. Non-GAAP adjusted EBITDA for the company (all driven by Utrepia commercial performance) was $71.2 million in Q1 2026, up from $27.3 million in Q4 2025, a nearly threefold sequential increase. The company's pipeline segment (L606 and expanded indication clinical programs) has not yet generated revenue, representing 0% of current revenue contribution. Utrepia held 23% market share in the inhaled prostacyclin category in Q1 2026, up from 16% in Q4 2025 and 10% in Q3 2025, and accounted for 100% of the category's 5% overall market growth in the quarter.

Risks & headwinds

- There is ongoing patent litigation with competitors, and while management noted parallels between the recently argued HCMA v. Ameren Supreme Court case and the company's 327 litigation, the outcome and impact of the HCMA decision on the company's litigation remains uncertain; management stated speculation on timing or outcome is premature, though it remains confident in its legal position. - The PHLD market is currently significantly underpenetrated, requiring large investment in physician education and awareness building to drive diagnosis and treatment adoption, creating uncertainty around how quickly the market can expand. - All pipeline expansion and clinical study outcomes are inherently uncertain, with no guarantee that clinical trials will validate the efficacy of Utrepia or L606 in new indications or for switching patients from competing therapies.

Analyst Q&A

• Q: What is driving recent prescription growth, what is the breakdown across patient segments, and are there parallels between the HCMA Supreme Court case and the company's ongoing patent litigation? /

  A: Growth remains consistent with the launch trajectory that supports the 2027 $1 billion revenue target. Growth is driven by increasing depth of prescribing: as more physicians gain experience with Utrepia, it becomes their preferred inhaled prostacyclin. Growth is split evenly between PAH and PHLD, with 75% of patients treatment-naive and 25% switching from other therapies. There are clear parallels between the induced infringement issues and conduct at issue in HCMA and the company's litigation, but any impact on the company's case outcome or timing is speculative. Management remains confident in its legal position, and believes any read-through from HCMA would likely favor the company.

• Q: What is the current split between academic center and community prescribers, and how is community adoption progressing? /

  A: Major academic centers were early adopters and remain the largest cohort of prescribers, and they continue to grow. Community adoption, including both experienced PH prescribers and ILD-focused prescribers new to prostacyclin therapy, is increasing faster than early launch, shifting the overall balance gradually toward community prescribers. Physician feedback consistently notes a stark difference in tolerability (especially reduced cough) between Utrepia and older competing products, driving word-of-mouth adoption.

• Q: Are switches to Utrepia from other therapies accelerating, what is the most common source of switches, and could Utrepia hit a $1 billion annual run rate before 2027? /

  A: Switches from oral prostacyclins (which carry significant GI systemic side effects) and older inhaled prostacyclins are growing, with increasing interest in transitioning patients from parenteral pump therapies as well. The company has initiated trials to generate formal clinical data for switching from inadequate response to competitor inhaled and oral prostacyclins, with a pump switching trial planned next. Management reaffirmed the 2027 $1 billion target and noted very strong ongoing growth momentum, but declined to provide guidance on an earlier run rate achievement.

• Q: What are the challenges and opportunities for expanding PHLD market penetration, and how penetrated is the market today? /

  A: The current PHLD patient population is estimated at ~60,000, with massive unpenetrated headroom. Registry data shows 50-75% of ILD patients have a PH component, but most of these patients are in the community and undiagnosed. The company is expanding its Salesforce to educate community pulmonologists on screening for PH in ILD patients, either to treat in the community or refer to academic centers, which will drive overall market growth that benefits all players in the space.