SIGA Technologies, Inc. (SIGA) Earnings

Management highlights

- Core Business and Government Partnerships * SIGA's core mission is supporting government medical countermeasure stockpiles for smallpox preparedness, with TPOXX positioned for rapid large-scale deployment if an outbreak occurs. * The Q2 2026 IV TPOX delivery to the U.S. Strategic National Stockpile marked the full completion of all product obligations under the company's 19C contract with the U.S. government, a 7+ year partnership that has been fully executed successfully. * SIGA is actively negotiating a new multi-year procurement contract with the U.S. government, though progress on the contract has been slower than initially expected. * The company notes ongoing U.S. government funding for TPOX development programs and recent completed orders confirm TPOX's continuing role in national smallpox preparedness. - International Business Expansion * International opportunities for TPOX remain strong, with growing government focus on biodefense preparedness amid shifting geopolitical conditions. * The $13 million Asia-Pacific customer order received in Q1 2026 was fully delivered in Q2 2026, alongside a small delivery of oral TPOX courses to a new European customer. * SIGA recently entered into an exclusive license and distribution agreement with HICMA MENA FCE for the Middle East and North Africa (MENA) region, where SIGA has historically had limited market presence. HICMA leads registration and commercialization across MENA, while SIGA acts as the exclusive manufacturer and finished product supplier. The teams are currently developing a regional expansion plan. * The Meridian international promotion agreement officially expired in May 2026, but SIGA has directly handled all international sales, marketing, distribution, and manufacturing functions since 2024, so no operational changes or interruptions have occurred. - Pipeline Development * The post-exposure prophylaxis (PEP) program is advancing: the CDC is currently processing immunogenicity samples, and SIGA targets an FDA submission for the program in the first half of 2027. * The pediatric liquid formulation program is ongoing, with Phase 1 study results expected by the end of 2026, after which next steps will be determined. This formulation will extend TPOX coverage to infants and children, a vulnerable population in potential smallpox outbreaks, completing full population coverage alongside existing IV and oral formulations. - Financial Discipline * Management maintains a focus on long-term financial and operational discipline, and notes SIGA's business model has inherent quarter-to-quarter revenue variability, so results should be evaluated over a longer time horizon rather than single periods.

Guidance

- No formal full-year financial guidance was issued in this call. Management confirmed they are targeting an FDA submission for the TPOX PEP program in the first half of 2027, and expect Phase 1 study results for the pediatric formulation by the end of 2026. * Management expects that a new international order could be finalized, with delivery targeted by March 2027. * While progress on the new U.S. multi-year procurement contract has been slower than originally expected, management remains confident in TPOX's ongoing role in U.S. smallpox preparedness, and still holds open the possibility of a contract award in the second half of 2026, which would support 2027 TPOX deliveries if finalized.

Segment performance

SIGA reports only one core product segment for revenue: TPOX (smallpox antiviral, available in IV and oral formulations). For Q2 2026, total product-related revenue was $38 million: $24 million (63.2% of total product revenue) from IV TPOX deliveries to the U.S. Strategic National Stockpile, and $13 million (34.2% of total product revenue) from oral TPOX deliveries to two international customers. Additional research and development revenue was $3 million for Q2 2026, bringing total Q2 2026 revenue to $41 million. For the six months ended June 30, 2026, total product-related revenue was $41 million, with total R&D revenue of $6 million, bringing total first-half 2026 revenue to $47 million. In Q2 2026, pre-tax operating income was $14 million, net income was $12 million, and fully diluted earnings per share was $0.17. For the first half of 2026, pre-tax operating income and net income were both $9 million, with fully diluted earnings per share of $0.13. As of June 30, 2026, the company held $118 million in cash with no outstanding debt.

Risks & headwinds

- Forward-looking statements regarding new contract awards, pipeline progress, and international sales are subject to inherent risks and uncertainties that could cause actual results to differ materially from current expectations, per standard SEC disclosures. * U.S. government contract procurement timelines are uncertain: leadership transitions, changing department priorities, and the transition of the contract from BARDA to the Strategic National Stockpile have slowed progress on the new multi-year U.S. contract, creating near-term revenue visibility uncertainty. * International government procurement processes are inherently complex, with no guarantee that ongoing discussions will result in finalized orders or revenue. * SIGA's business model has significant inherent quarter-to-quarter revenue variability due to the large, infrequent nature of government stockpile orders, which can lead to uneven financial results across reporting periods.

Analyst Q&A

• Q: The new U.S. RFP contract process has been slower than expected. What is causing the delay, is an award possible in H2 2026, and would that be timely enough to support 2027 deliveries? /

  A: Key contributing factors to the slow progress include widespread organizational change within HHS, shifting department priorities, the contract transition from BARDA to the Strategic National Stockpile, and unfilled key leadership positions. Management remains confident in TPOX's established role in the U.S. government's smallpox preparedness strategy, which is still classified as a top-priority Category A threat by the CDC.

• Q: With U.S. contract delays, has SIGA shifted greater strategic focus to international markets, and can we expect additional international orders in 2026? /

  A: SIGA maintains equal focus on both domestic and international customers. Broader geopolitical shifts have led more governments to increase their focus on biodefense and medical countermeasure preparedness. While government procurement is complex and no specific outcomes are confirmed, ongoing discussions are advanced enough that management targets a new contract and delivery by March 2027.

• Q: The previous promotion agreement with Meridian expired recently. Has it been renewed or replaced, and how will SIGA manage the former Meridian territories? /

  A: SIGA has already directly handled all international sales, marketing, distribution, and manufacturing functions across all international markets since 2024, even before the official May 2026 expiration. No operational changes have occurred, and international business continues to progress without interruption.