Harmony Biosciences Holdings, Inc 10-Q for FY2026 Q3

Harmony Biosciences Holdings, Inc. (HRMY)

10-Q 2026-11-04 For: 2026-09-30

Added on November 04, 2026

About this 10-Q

Harmony Biosciences Holdings, Inc filed this 10-Q on November 4, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

Harmony’s net product revenue increased $29.5 million, or 12.3%, for the three months ended September 30, 2026. Pitolisant GR received full FDA review with a target PDUFA date of April 1, 2027. AI summary

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $268.92M; up 12.3% from $239.46M a year earlier
Net income: $48.2M; down 5.2% from net income of $50.87M a year earlier
Diluted EPS: $0.81; down 6.9% from $0.87 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Delaware	82-2279923
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)


630 W. Germantown Pike, Suite 215, Plymouth Meeting, PA	19462
(Address of principal executive offices)	(Zip Code)



Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐


	Page
Part I. Financial Information	3
Item 1. Financial Statements	3
Condensed Consolidated Balance Sheets (Unaudited)	3
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)	4
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)	5
Condensed Consolidated Statements of Cash Flows (Unaudited)	6
Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3. Quantitative and Qualitative Disclosures About Market Risk	43
Item 4. Controls and Procedures	44
Part II. Other Information	44
Item 1. Legal Proceedings	44
Item 1A. Risk Factors	45
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 3. Defaults upon Senior Securities	45
Item 4. Mine Safety Disclosures	45
Item 5. Other Information	45
Item 6. Exhibits	46
Signatures	47


		September 30,			December 31,
		2026			2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	647,099		$	752,502
Investments, short-term			124,039			22,838
Trade receivables, net			127,739			96,787
Inventory, net			5,871			5,357
Prepaid expenses			18,101			16,014
Other current assets			11,981			13,516
Total current assets			934,830			907,014
NONCURRENT ASSETS:
Investments, long-term			280,467			107,127
Intangible assets, net			71,535			89,418
Deferred tax asset			161,365			149,699
Other noncurrent assets			30,048			18,373
Total noncurrent assets			543,415			364,617
TOTAL ASSETS		$	1,478,245		$	1,271,631
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Trade payables		$	26,919		$	17,693
Accrued compensation			14,886			18,443
Accrued expenses			208,062			191,039
Current portion of long-term debt			20,000			20,000
Other current liabilities			1,675			4,957
Total current liabilities			271,542			252,132
NONCURRENT LIABILITIES:
Long-term debt, net			129,104			143,663
Other noncurrent liabilities			5,367			5,618
Total noncurrent liabilities			134,471			149,281
TOTAL LIABILITIES			406,013			401,413
COMMITMENTS AND CONTINGENCIES (Note 12)
STOCKHOLDERS’ EQUITY:
Common stock—$0.00001 par value; 500,000,000 shares authorized at September 30, 2026 and December 31, 2025, respectively; 58,720,081 and 57,726,170 shares issued and outstanding at September 30, 2026, and December 31, 2025, respectively			1			1
Additional paid in capital			757,153			708,968
Accumulated other comprehensive (loss) income			(1,940)			346
Retained earnings			317,018			160,903
TOTAL STOCKHOLDERS’ EQUITY			1,072,232			870,218
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	1,478,245		$	1,271,631


		Three Months Ended September 30,						Nine Months Ended September 30,
		2026			2025			2026			2025
Net product revenue		$	268,917		$	239,455		$	745,584		$	624,677
Cost of product sold			80,686			59,650			188,396			129,797
Gross profit			188,231			179,805			557,188			494,880
Operating expenses:
Research and development			71,663			54,962			187,642			139,661
Sales and marketing			34,721			29,549			100,535			90,333
General and administrative			27,650			29,807			88,207			94,974
Total operating expenses			134,034			114,318			376,384			324,968
Operating income			54,197			65,487			180,804			169,912
Other expense, net			(316)			(106)			(496)			(575)
Interest expense			(3,060)			(3,621)			(9,364)			(11,103)
Interest income			8,428			5,730			21,257			16,070
Income before income taxes			59,249			67,490			192,201			174,304
Income tax expense			(11,053)			(16,625)			(36,086)			(38,103)
Net income		$	48,196		$	50,865		$	156,115		$	136,201
Unrealized (loss) income on investments			(1,213)			118			(2,286)			291
Comprehensive income		$	46,983		$	50,983		$	153,829		$	136,492
EARNINGS PER SHARE:
Basic		$	0.83		$	0.88		$	2.68		$	2.36
Diluted		$	0.81		$	0.87		$	2.63		$	2.32
Weighted average number of shares of common stock - basic			58,409,880			57,550,902			58,271,509			57,655,272
Weighted average number of shares of common stock - diluted			59,679,319			58,717,910			59,272,602			58,738,361


										Accumulated
							Additional			other						Total
		Common Stock					paid-in			comprehensive			Retained			stockholders’
		Shares		Amount			capital			loss			earnings			equity
Balance as of June 30, 2026		58,120,695		$	1		$	731,147		$	(727)		$	268,822		$	999,243
Net income		—			—			—			—			48,196			48,196
Unrealized loss on investments		—			—			—			(1,213)			—			(1,213)
Restricted stock unit tax withholding, net of stock option exercises		599,386			—			17,960			—			—			17,960
Stock-based compensation		—			—			8,046			—			—			8,046
Balance as of September 30, 2026		58,720,081		$	1		$	757,153		$	(1,940)		$	317,018		$	1,072,232


		As of
		September 30,		December 31,
		2026		2025
Cash and cash equivalents		$	647,099	$	752,502
Restricted cash included in other noncurrent assets			270		270
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows		$	647,369	$	752,772


	September 30, 2026
		Amortized	Unrealized	Unrealized		Fair
		Cost	Gains	Losses		Value
Short-term:
Commercial paper	$	58,577	—	(130)	$	58,447
Corporate debt securities		63,215	—	(121)		63,094
U.S. government securities		2,505	—	(7)		2,498
Total short-term investments	$	124,297	—	(258)	$	124,039

Long-term:
Corporate debt securities		248,534	10	(1,407)		247,137
U.S. government securities		33,615	—	(285)		33,330
Total long-term investments	$	282,149	10	(1,692)	$	280,467


	December 31, 2025
		Amortized	Unrealized	Unrealized		Fair
		Cost	Gains	Losses		Value
Short-term:
Commercial paper	$	7,558	7	—	$	7,565
Corporate debt securities		15,261	12	—		15,273
Total short-term investments	$	22,819	19	—	$	22,838

Long-term:
Commercial paper	$	805	1	—	$	806
Corporate debt securities		88,626	248	—		88,874
U.S. government securities		17,369	78	—		17,447
Total long-term investments	$	106,800	327	—	$	107,127


Years ending December 31,
2026 (excluding the nine months ended September 30, 2026)	$	5,962
2027		23,845
2028		23,845
2029		17,883
2030		—
Thereafter		—
Total	$	71,535


Years ending December 31,
2026 (excluding the nine months ended September 30, 2026)	$	5,000
2027		20,000
2028		125,000
2029		—
2030		—
Thereafter		—
Total	$	150,000


		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2026		2025		2026		2025
Interest on principal balance		$	2,917	$	3,460	$	8,923	$	10,613
Amortization of deferred financing costs			143		160		441		490
Total term loan interest expense		$	3,060	$	3,620	$	9,364	$	11,103


Leases	Classification		September 30, 2026		December 31, 2025
Assets
Operating lease right-of-use assets	Other noncurrent assets	$	5,432	$	5,344
Liabilities
Operating lease liability, current portion	Other current liabilities	$	1,371	$	1,073
Operating lease liability, long-term	Other long-term liabilities		4,439		4,512
Total operating lease liabilities		$	5,810	$	5,585


		September 30, 2026		September 30, 2025
Operating cash flows from operating leases	$	1,430	$	1,478
Right of use assets obtained in exchange for operating lease obligations	$	1,476	$	273


		Nine Months Ended September 30,
		2026		2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		$	156,115	$	136,201
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation			21		20
Intangible amortization			17,883		17,883
Acquired in-process research & development (IPR&D) expense			57,000		30,000
Stock-based compensation			28,001		34,923
Stock appreciation rights market adjustment			13		(255)
Debt issuance costs amortization			441		490
Deferred taxes			(11,666)		(14,677)
Amortization of premiums and accretion of discounts on investment securities			(1,352)		(1,240)
Other non-cash expenses			1,769		923
Change in operating assets and liabilities:
Trade receivables			(30,952)		(17,618)
Inventory			(514)		316
Prepaid expenses and other assets			(12,379)		6,942
Trade payables			9,226		12,597
Other liabilities			(16,721)		15,543
Net cash provided by operating activities			196,885		222,048
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment securities			(369,946)		(67,313)
Proceeds from maturities and sales of investment securities			94,474		60,500
Purchase of property and equipment			—		(203)
Payment of upfront fee related to license agreements			(32,000)		(15,000)
Net cash used in investing activities			(307,472)		(22,016)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal repayment of long-term debt			(15,000)		(11,250)
Payments of employee withholding taxes related to stock-based awards			(3,640)		(2,341)
Proceeds from exercised options			23,824		7,557
Net cash provided by (used in) financing activities			5,184		(6,034)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH			(105,403)		193,998
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period			752,772		453,271
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period		$	647,369	$	647,269
Supplemental Disclosure of Cash Flow Information:
Cash paid during the year for interest		$	9,189	$	11,168
Cash paid during the year for income taxes net of refunds received			51,400		35,430


		As of
		September 30,		December 31,
		2026		2025
Work in process			3,746		2,885
Finished goods			2,289		2,636
Inventory, gross			6,035		5,521
Reserve for excess inventory			(164)		(164)
Total inventory, net		$	5,871	$	5,357


							Weighted-
				Weighted-			Average
				Average			Remaining			Aggregate
		Number of		Exercise			Contractual			Intrinsic
		Awards		Price			Term			Value ($000's)
Awards outstanding—December 31, 2025		7,861,925		$	33.56		6.3
Awards issued		1,688,101		$	34.00
Awards exercised		(835,979)		$	28.05
Awards forfeited		(655,602)		$	34.96
Awards outstanding—September 30, 2026		8,058,445		$	34.11		6.2		$	58,492
Awards exercisable—September 30, 2026		5,538,200		$	34.03		5.0		$	45,788
Awards unvested—September 30, 2026		2,520,245		$	34.29		8.8		$	12,704


							Weighted-
				Weighted-			Average
				Average			Remaining			Aggregate
		Number of		Exercise			Contractual			Intrinsic
		Awards		Price			Term			Value ($000's)
Awards outstanding—December 31, 2025		33,471		$	8.72		3.2
Awards issued		—		$	—
Awards exercised		(3,651)		$	8.22
Awards forfeited		—		$	—
Awards outstanding—September 30, 2026		29,820		$	8.78		2.4		$	666
Awards exercisable—September 30, 2026		29,820		$	8.78		2.4		$	666


	Rare Neurological Diseases Segment
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net product revenue	$	268,917	$	239,455	$	745,584	$	624,677
Less:
Cost of product sold (a)		80,679		59,643		188,375		129,777
Research and development (b)		44,345		37,704		123,397		102,988
Sales and marketing (c)		32,983		28,055		95,193		84,443
General and administrative (d)		17,615		16,774		54,897		54,986
Depreciation and amortization		5,968		5,968		17,904		17,903
Stock-based compensation		8,130		10,824		28,014		34,668
Interest expense		3,060		3,621		9,364		11,103
Interest income		(8,428)		(5,730)		(21,257)		(16,070)
Income tax expense		11,053		16,625		36,086		38,103
Other segment items (e)		25,316		15,106		57,496		30,575
Consolidated net income	$	48,196	$	50,865	$	156,115	$	136,201


		Distribution Fees & Discounts		Co-Pay Assistance		Rebates		Total
Balance as of December 31, 2025	$	2,984	$	8,424	$	70,015	$	81,423
Provision, net		23,122		34,473		211,993		269,588
Payments/Credits		(22,827)		(38,954)		(210,416)		(272,197)
Balance as of September 30, 2026	$	3,279	$	3,943	$	71,592	$	78,814

Exhibit		Incorporated by Reference
No.	Exhibit Description	Form	Date	Number
2.1	Agreement and Plan of Merger, dated August 14, 2023, by and among Harmony Biosciences Holdings, Inc., Xylophone Acquisition Corp. and Zynerba Pharmaceuticals, Inc.	8-K/A	September 14, 2023	2.1
3.1	Amended and Restated Certificate of Incorporation of Harmony Biosciences Holdings, Inc.	8-K	August 21, 2020	3.1
3.2*	Amended and Restated Bylaws.
10.1#	Separation and Consulting Agreement by and between Harmony Biosciences Holdings, Inc., Harmony Biosciences Management, Inc., and Jeffrey M. Dayno, dated October 29, 2026.	8-K/A	October 30, 2026	10.1
10.2#	Amended and Restated Executive Employment Agreement by and between Harmony Biosciences Management, Inc. and Peter Anastasiou, dated October 29, 2026.	8-K/A	October 30, 2026	10.2
10.3#	Separation Agreement between Harmony Biosciences Management, Inc. and Glenn Reicin, dated July 16, 2026.	8-K	July 16, 2026	10.1
10.4#*	Retention Agreement between Harmony Biosciences Management, Inc. and Stephen Mollichella, dated October 6, 2026.
31.1*	Certification of Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101*	The following financial statements from the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2026, formatted in Inline XBRL: (i) Balance Sheets, (ii) Statements of Operations, (iii) Statements of Stockholders’ Equity and (iv) Notes to Financial Statements, tagged as blocks of text and including detailed tags.
104*	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


	HARMONY BIOSCIENCES HOLDINGS, INC.

	By:		/s/ Jeffrey M. Dayno
	Name:		Jeffrey M. Dayno, M.D.
	Title:		President, Chief Executive Officer and Director (principal executive officer)
	Date:		November 4, 2026

	By:		/s/ Stephen Mollichella
	Name:		Stephen Mollichella
	Title:		Senior Vice President, Controller and Interim Principal Financial Officer (principal financial officer)
	Date:		November 4, 2026


Date: November 4, 2026	By:	/s/ Jeffrey M. Dayno, M.D.
		Jeffrey M. Dayno, M.D.
		President, Chief Executive Officer and Director (Principal Executive Officer)