Earnings release
Page 1
Amneal Reports Second Quarter 2026 Financial Results July 30, 2026 – Q2 2026 Net Revenue of $796 million; GAAP Net Income of $58 million; Diluted Income per Share of $0.18 – – Adjusted EBITDA of $206 million; Adjusted Diluted EPS of $0.30 – – Raising 2026 Full Year Guidance – – Successful Debt Repricing in July Reduces Interest Cost – BRIDGEWATER, N.J., July 30, 2026 (GLOBE NEWSWIRE) -- Amneal Pharmaceuticals, Inc. (Nasdaq: AMRX) (“Amneal” or the “Company”) today announced its results for the second quarter ended June 30, 2026. “Amneal delivered strong, broad-based performance in the second quarter and first half of 2026, reflecting the strength of our diversified portfolio and the contributions from multiple growth drivers. This robust first-half performance gives us confidence to raise our full-year 2026 guidance for the second time this year. We are excited about the pending Kashiv transaction, which will establish biosimilars as an important new, durable growth vertical for Amneal, further diversifying our portfolio and expanding our long-term growth opportunities. As we look ahead to the remainder of 2026, 2027 and beyond, we remain highly confident in Amneal’s outlook and the breadth and durability of the opportunities across our portfolio,” said Chirag and Chintu Patel, Co-Founders and Co-Chief Executive Officers of Amneal. Second Quarter 2026 Results Net revenue in the second quarter of 2026 was $796 million, an increase of 10% compared to $725 million in the second quarter of 2025. Specialty net revenue increased 17%, driven by key branded products, including CREXONT®, BREKIYA® autoinjector, and UNITHROID®. Affordable Medicines net revenue increased 13%, driven by strong performance of our complex portfolio, including women’s health products, and new product launches. AvKARE net revenue decreased 4% due to a decline in the low margin distribution channel partially offset by growth in the government channel. Net income attributable to Amneal Pharmaceuticals, Inc. was $58 million in the second quarter of 2026 compared to net income of $22 million in the second quarter of 2025, an increase of 157%, as higher revenue and gross profit, lower interest expense, and a lower tax provision more than offset increased SG&A expense. Adjusted EBITDA in the second quarter of 2026 was $206 million, an increase of 12% compared to the second quarter of 2025, reflecting higher revenue and gross profit. Diluted income per share in the second quarter of 2026 was $0.18 compared to diluted income per share of $0.07 for the second quarter of 2025, an increase of 157%, due to the aforementioned factors. Adjusted diluted earnings per share in the second quarter of 2026 was $0.30, an increase of 20% compared to $0.25 for the second quarter of 2025. The Company presents GAAP and adjusted (non-GAAP) quarterly results. Please refer to the “Non-GAAP Financial Measures” section and the accompanying GAAP to non-GAAP reconciliation tables for more information. Debt Repricing Further Reduces Future Interest Cost In July 2026, the Company launched a repricing of its $2.084B Term Loan B, which will reduce the interest rate by 50 basis points from Secured Overnight Financing Rate (“SOFR”) plus 300 basis points to SOFR plus 250 basis points. The repricing is expected to close as early as August 3, 2026. The Company also intends to obtain an additional $350 million Term Loan B financing to fund a portion of the purchase price of Kashiv Biosciences, as previously disclosed. Such additional Term Loans are expected to be incurred at the closing of the Kashiv acquisition at the reduced pricing. The repricing transaction is expected to generate about $12 million in annual cash interest savings and contribute towards the Company’s goal to reduce net leverage to below 3.0x by 2028. Raising 2026 Full Year Guidance We are raising select full year 2026 guidance metrics. Updated Guidance Prior GuidanceNet revenue $3.10 billion - $3.20 billion $3.05 billion - $3.15 billionAdjusted EBITDA(1) $750 million - $780 million $740 million - $770 millionAdjusted diluted EPS(2) $0.96 - $1.06 $0.95 - $1.05Operating cash flow(3) $350 million - $400 million $350 million - $400 millionOperating cash flow, excluding discrete items(4) $375 million - $425 million $375 million - $425 millionCapital expenditures(5) ~$150 million ~$110 million (1) Includes 100% of adjusted EBITDA from AvKARE. See also “Non-GAAP Financial Measures” below.(2) Accounts for 35% non-controlling interest in AvKARE. Assumes approximately 340 million weighted-average diluted shares outstanding for the year endingDecember 31, 2026.(3) Represents cash provided by operating activities.(4) Excludes discrete items such as opioid settlement costs of approximately $36 million and Kashiv acquisition and integration costs of approximately $30 million.(5) Reflects estimated capital expenditures and deposits for future acquisition of property, plant, and equipment. Amneal’s 2026 estimates are based on management’s current expectations, including with respect to prescription trends, pricing levels, the timing of future product launches, the costs incurred and benefits realized of restructuring activities, and our long-term strategy. The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company cannot provide a reconciliation between non- GAAP projections and the most directly comparable measures in accordance with GAAP without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items required for the reconciliation. The items include, but are not limited to, acquisition-related expenses, restructuring expenses and benefits, asset impairments, legal settlements, and other gains and losses. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results. Conference Call Information Amneal will host a conference call and live webcast at 8:30 am Eastern Time today, July 30, 2026, to discuss its results. The live webcast and presentation will be accessible through the Investor Relations section of the Company’s website at https://investors.amneal.com. To access the call through a conference line, dial 1 (833)
Page 2
461-5787 (in the U.S.) with access code 901153095. A replay of the conference call will be posted shortly after the call. For a list of toll-free international numbers, visit this website: https://help.events.q4inc.com/eahc/international-dial-in-numbers. About Amneal Amneal Pharmaceuticals, Inc. (Nasdaq: AMRX), headquartered in Bridgewater, New Jersey, is a diversified, global biopharmaceutical leader focused on expanding access to affordable and innovative medicines. Amneal was founded in 2002 by brothers and co-CEOs Chirag and Chintu Patel, and built on the belief that innovation only matters if it’s accessible. Today, Amneal has a diverse and growing portfolio of approximately 300 complex generic, specialty and biosimilar medicines, delivering more than 160 million prescriptions annually, primarily in the United States. Our Affordable Medicines segment spans retail generics, injectables, and biosimilars. Our Specialty segment provides branded treatments in neurology, including Parkinson’s disease and migraine, and endocrinology. Our AvKARE segment distributes pharmaceuticals and medical products to U.S. federal, retail, and institutional customers. For additional information, please visit amneal.com and follow us on LinkedIn. Cautionary Statement on Forward-Looking Statements Certain statements contained herein, regarding matters that are not historical facts, may be forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995). Such forward-looking statements include statements regarding management’s intentions, plans, beliefs, expectations, financial results, or forecasts for the future, including among other things: discussions of future operations; expected or estimated operating results and financial performance; statements regarding our positioning and potential growth, statements regarding our ability to create long-term value, and other non-historical statements. Words such as “plans,” “expects,” “will,” “anticipates,” “estimates,” and similar words, or the negatives thereof, are intended to identify estimates and forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. These forward-looking statements are based on current expectations of future events, including with respect to future market conditions, company performance and financial results, operational investments, business prospects, new strategies and growth initiatives, the competitive environment, and other events. If the underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the Company. Such risks and uncertainties include, but are not limited to: risks related to our proposed transaction to acquire membership interests of Kashiv BioSciences, LLC (“Kashiv”), our ability to successfully develop, license, acquire and commercialize new products on a timely basis; the competition we face in the pharmaceutical industry from brand and generic drug product companies, and the impact of that competition on our ability to set prices; our ability to obtain exclusive marketing rights for our products; the impact of illegal distribution and sale by third parties of counterfeit versions of our products or stolen products; the impact of negative market perceptions of us and the safety and quality of our products; our revenues are derived from the sales of a limited number of products, a substantial portion of which are through a limited number of customers; the continuing trend of consolidation of certain customer groups; the impact of supply chain disruption; the imposition of tariffs may adversely affect our business, results of operations and financial condition; a U.S. government shutdown could adversely impact our regulatory, operational and financial performance; legal, regulatory and legislative efforts by our brand competitors to deter competition from our generic alternatives; our dependence on information technology systems and infrastructure and the potential for cybersecurity incidents, and risks associated with artificial intelligence; the impact of a prolonged business interruption within our supply chain; our ability to attract, hire and retain highly skilled personnel; risks related to federal regulation of arrangements between manufacturers of branded and generic products; our reliance on certain licenses to proprietary technologies from time to time; the significant amount of resources we expend on research and development; the risk of claims brought against us by third parties; risks related to changes in the regulatory environment, including U.S. federal and state laws related to government contracting, healthcare fraud abuse and health information privacy and security and changes in such laws; changes to Food and Drug Administration product approval requirements and review processes; the impact of healthcare reform and changes in coverage and reimbursement levels and funding by governmental authorities and other third-party payers; our ability to identify, make and integrate acquisitions or investments in complementary businesses and products on advantageous terms; our dependence on third-party agreements for a portion of our product offerings; our potential expansion into additional international markets subjecting us to increased regulatory, economic, social and political uncertainties; the impact of global economic, political or other catastrophic events; our substantial amount of indebtedness and our ability to generate sufficient cash to service our indebtedness in the future, and the impact of interest rate fluctuations on such indebtedness; our obligations under a tax receivable agreement may be significant; and the high concentration of ownership of our Class A common stock by the Amneal Group. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the Securities and Exchange Commission, including under Item 1A, “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and in its subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements included herein speak only as of the date hereof and we undertake no obligation to revise or update such statements to reflect the occurrence of events or circumstances after the date hereof. Non-GAAP Financial Measures This release includes certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted net income, adjusted diluted EPS, adjusted gross margin, adjusted operating income, net debt, gross leverage, and net leverage, which are intended as supplemental measures of the Company’s performance that are not required by or presented in accordance with GAAP. Management uses these non-GAAP measures internally to evaluate and manage the Company’s operations and to better understand its business because they facilitate a comparative assessment of the Company’s operating performance relative to its performance based on results calculated under GAAP. These non-GAAP measures also isolate the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the Company’s operations and underlying operational performance. The compensation committee of the Company’s board of directors also uses certain of these measures to evaluate management’s performance and set its compensation. The Company believes that these non-GAAP measures also provide useful information to investors regarding certain financial and business trends relating to the Company’s financial condition and operating results facilitates an evaluation of the financial performance of the Company and its operations on a consistent basis. Providing this information therefore allows investors to make independent assessments of the Company’s financial performance, results of operations, cash flows, net leverage and trends while viewing the information through the eyes of management. These non-GAAP measures are subject to limitations. The non-GAAP measures presented in this release may not be comparable to similarly titled measures used by other companies because other companies may not calculate one or more in the same manner. Additionally, the non-GAAP performance measures exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements; do not reflect changes in, or cash requirements for, working capital needs; and do not reflect interest expense, or the requirements necessary to service interest or principal payments on debt. Further, our historical adjusted results are not intended to project our adjusted results of operations or financial position for any future period. To compensate for these limitations, management presents and considers these non-GAAP measures in conjunction with the Company’s GAAP results; no non-GAAP measure should be considered in isolation from or as alternatives to any measure determined in accordance with GAAP. Readers should review the reconciliations included below, and should not rely on any single financial measure to evaluate the Company’s business. A reconciliation of each historical non-GAAP measure to the most directly comparable GAAP measure is set forth below.
Page 3
Contact Anthony DiMeo VP, Investor Relations anthony.dimeo@amneal.com Amneal Pharmaceuticals, Inc.Consolidated Statements of Operations(unaudited; in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025Net revenue $ 796,197 $ 724,508 $ 1,518,716 $ 1,419,928 Cost of goods sold 461,689 438,255 864,095 877,784 Gross profit 334,508 286,253 654,621 542,144 Selling, general and administrative 148,722 124,266 287,582 242,554 Research and development 39,017 47,964 77,400 88,004 Intellectual property legal development expenses 2,087 2,017 3,629 3,784 Acquisition costs 7,600 — 12,753 — Restructuring and other charges 554 1,024 1,204 1,595 Charges (credit) related to legal matters, net 8,057 (390) 8,751 (390)Other operating income (1,298) — (8,239) (5,122)Operating income 129,769 111,372 271,541 211,719 Other (expense) income: Interest expense, net (55,043) (65,101) (108,404) (122,040)Foreign exchange (loss) gain, net (1,950) 8,256 (9,750) 12,503 Loss on refinancing — — (3,510) — Increase in tax receivable agreement liability (2,439) (4,420) (106) (15,107)Other income, net 653 1,604 1,395 2,122 Total other expense, net (58,779) (59,661) (120,375) (122,522)Income before income taxes 70,990 51,711 151,166 89,197 Provision for income taxes 1,376 16,101 3,552 28,969 Net income 69,614 35,610 147,614 60,228 Less: Net income attributable to non-controlling interests (11,952) (13,193) (27,696) (25,616) Net income attributable to Amneal Pharmaceuticals, Inc.$ 57,662 $ 22,417 $ 119,918 $ 34,612 Net income per share attributable to Amneal Pharmaceuticals, Inc.’sClass A common stockholders: Basic $ 0.18 $ 0.07 $ 0.38 $ 0.11 Diluted $ 0.18 $ 0.07 $ 0.37 $ 0.11 Weighted-average common shares outstanding: Basic 319,200 313,739 317,620 312,404 Diluted 328,102 322,363 328,527 323,171 Amneal Pharmaceuticals, Inc.Condensed Consolidated Balance Sheets(unaudited; in thousands) June 30, 2026 December 31, 2025Assets Current assets: Cash and cash equivalents $ 127,637 $ 282,029 Restricted cash 8,643 28,842 Trade accounts receivable, net 1,020,360 895,143 Inventories 677,954 606,302 Prepaid expenses and other current assets 112,011 98,395 Related party receivables 424 470 Total current assets 1,947,029 1,911,181 Property, plant and equipment, net 456,877 442,950 Goodwill 593,499 595,470 Intangible assets, net 587,830 563,498 Operating lease right-of-use assets 44,361 38,832 Operating lease right-of-use assets - related party 13,723 15,216 Financing lease right-of-use assets 52,360 53,328 Other assets 80,669 57,805 Total assets $ 3,776,348 $ 3,678,280 Liabilities and Stockholders’ Equity (Deficiency) Current liabilities: Accounts payable and accrued expenses $ 721,208 $ 761,316 Current portion of liabilities for legal matters 18,488 43,256 Revolving credit facility 100,000 — Current portion of long-term debt, net 5,961 6,761 Current portion of operating lease liabilities 9,040 8,668 Current portion of operating lease liabilities - related party 2,899 2,705 Current portion of financing lease liabilities 3,521 3,442 Related party payables - short term 22,070 55,485 Total current liabilities 883,187 881,633 Long-term debt, net 2,564,335 2,565,115 Operating lease liabilities 38,691 33,233 Operating lease liabilities - related party 12,712 14,195 Financing lease liabilities 54,602 54,927 Related party payables - long term 2,892 19,132 Liabilities for legal matters - long term 70,830 71,819 Other long-term liabilities 32,119 32,263 Total long-term liabilities 2,776,181 2,790,684 Redeemable non-controlling interests 83,956 77,292 Total stockholders’ equity (deficiency) 33,024 (71,329) Total liabilities and stockholders’ equity (deficiency) $ 3,776,348 $ 3,678,280
Page 4
Amneal Pharmaceuticals, Inc.Consolidated Statements of Cash Flows(unaudited; in thousands) Six Months Ended June 30, 2026 2025Cash flows from operating activities: Net income $ 147,614 $ 60,228 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 90,991 120,272 Unrealized foreign currency loss (gain) 10,495 (11,813)Amortization of debt issuance costs and discount 7,954 13,686 Reclassification of cash flow hedge 5,788 (5,876)Loss on refinancing 3,510 — Stock-based compensation 19,208 15,532 Inventory provision 44,957 38,432 Other operating charges and credits, net 3,086 2,254 Changes in assets and liabilities: Trade accounts receivable, net (125,765) (32,615)Inventories (124,150) (36,039)Prepaid expenses, other current assets and other assets (24,150) (10,015)Related party receivables 25 (1,108)Accounts payable, accrued expenses and other liabilities (57,918) (67,004)Related party payables (49,632) 5,293 Net cash (used in) provided by operating activities (47,987) 91,227 Cash flows from investing activities: Purchases of property, plant and equipment (38,872) (35,992)Acquisition of intangible assets (85,000) (5,100)Deposits for future acquisition of property, plant and equipment (20,580) (4,632)Proceeds from sale of property, plant and equipment — 1,379 Net cash used in investing activities (144,452) (44,345)Cash flows from financing activities: Payments of principal on debt, revolving credit facilities, financing leases and other (147,027) (251,076)Proceeds from issuance of debt 134,673 — Payments of deferred financing and refinancing costs (1,982) (1,745)Borrowings on revolving credit facilities 100,000 218,000 Proceeds from exercise of stock options 80 754 Employee payroll tax withholding on restricted stock unit and performance stock unit vesting (44,481) (21,828)Tax and other distributions to non-controlling interests (21,067) (24,958)Proceeds from alliance party 510 — Acquisition of non-controlling interest (400) — Net cash provided by (used in) financing activities 20,306 (80,853)Effect of foreign exchange rate on cash (1,187) (777)Net decrease in cash, cash equivalents, and restricted cash (173,320) (34,748)Cash, cash equivalents, and restricted cash - beginning of period 312,939 118,420 Cash, cash equivalents, and restricted cash - end of period $ 139,619 $ 83,672 Cash and cash equivalents - end of period $ 127,637 $ 71,544 Restricted cash - end of period 8,643 9,642 Long-term restricted cash included in other assets - end of period 3,339 2,486 Cash, cash equivalents, and restricted cash - end of period $ 139,619 $ 83,672 Amneal Pharmaceuticals, Inc.Non-GAAP Reconciliations(unaudited, in thousands) Reconciliation of Net Income to EBITDA and Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, Year EndedDecember 31, 2026 2025 2026 2025 2025Net income $ 69,614 $ 35,610 $ 147,614 $ 60,228 $ 127,933 Adjusted to add: Interest expense, net 55,043 65,101 108,404 122,040 241,091 Provision for income taxes 1,376 16,101 3,552 28,969 11,276 Depreciation and amortization 47,800 60,113 90,991 120,272 223,572 EBITDA (Non-GAAP) $ 173,833 $ 176,925 $ 350,561 $ 331,509 $ 603,872 Adjusted to add (deduct): Stock-based compensation expense 10,392 8,274 19,208 15,402 31,823 Acquisition, site closure, and idle facilityexpenses(1) 8,076 1,203 13,758 2,444 5,301 Restructuring and other charges — 1,024 499 1,595 4,208 Loss on refinancing(2) — — 3,510 — 31,365 Charges (credit) related to legal matters, net(3) 8,057 (390) 8,751 (390) (390)Asset impairment charges(4) — 36 — 104 23,022 Foreign exchange loss (gain) 1,950 (8,256) 9,750 (12,503) (7,635)Increase in tax receivable agreement liability 2,439 4,420 106 15,107 6,588 Other(5) 1,703 424 2,317 370 (9,739)Adjusted EBITDA (Non-GAAP) $ 206,450 $ 183,660 $ 408,460 $ 353,638 $ 688,415 Amneal Pharmaceuticals, Inc.Non-GAAP Reconciliations(unaudited, $ in thousands) Calculation of Net Debt and Net Leverage
Page 5
June 30, 2026 December 31, 2025Term Loan Due 2032 $ 2,084,263 $ 2,094,750 Senior Notes Due 2032 600,000 600,000 2025 Revolving Credit Facility 100,000 — Gross debt (6) $ 2,784,263 $ 2,694,750 Less: Cash and cash equivalents 127,637 282,029 Net debt (Non-GAAP) (7) $ 2,656,626 $ 2,412,721 Adjusted EBITDA(Non-GAAP) Adjusted EBITDA(Non-GAAP) Year ended December 31, 2025 $ 688,415 $ 688,415 Less: Six months ended June 30, 2025 353,638 Add: Six months ended June 30, 2026 408,460 Last twelve months ended June 30, 2026 $ 743,237 Last TwelveMonths EndedJune 30, 2026 Year EndedDecember 31,2025 Gross leverage (Non-GAAP) (8) 3.7x 3.9x Net leverage (Non-GAAP) (9) 3.6x 3.5x Amneal Pharmaceuticals, Inc.Non-GAAP Reconciliations(unaudited; in thousands, except per share amounts) Reconciliation of Net Income to Adjusted Net Income and Calculation of Adjusted Diluted Earnings Per Share Three Months EndedJune 30, Six Months EndedJune 30, 2026 2025 2026 2025Net income $ 69,614 $ 35,610 $ 147,614 $ 60,228 Adjusted to add (deduct): Non-cash interest 6,944 7,411 13,681 7,745 GAAP provision for income taxes 1,376 16,101 3,552 28,969 Amortization 34,004 44,820 63,025 89,094 Stock-based compensation expense 10,392 8,274 19,208 15,402 Acquisition, site closure, and idle facility expenses(1) 8,076 1,189 13,758 2,416 Restructuring and other charges — 1,017 499 1,588 Loss on refinancing — — 3,510 — Charges (credit) related to legal matters, including interest, net(3) 9,117 (390) 10,567 (390)Asset impairment charges — 36 — 104 Increase in tax receivable agreement liability 2,439 4,420 106 15,107 Other 1,703 424 2,317 380 Provision for income taxes(10) (33,005) (26,089) (61,760) (48,854)Net income attributable to non-controlling interests (11,952) (13,193) (27,696) (25,616)Adjusted net income (Non-GAAP) $ 98,708 $ 79,630 $ 188,381 $ 146,173 Weighted average diluted shares outstanding(11) 328,102 322,363 328,527 323,171 Diluted earnings per share (GAAP) $ 0.18 $ 0.07 $ 0.37 $ 0.11 Adjusted diluted earnings per share (Non-GAAP)$ 0.30 $ 0.25 $ 0.57 $ 0.45 Amneal Pharmaceuticals, Inc.Non-GAAP Reconciliations(unaudited) Explanations for Non-GAAP Reconciliations (1) Acquisition, site closure, and idle facility expenses for the three and six months ended June 30, 2026 primarily included acquisition costs associated with theannounced agreement to acquire Kashiv BioSciences, LLC and rent for vacated properties. Acquisition, site closure, and idle facility expenses for the three andsix months ended June 30, 2025 and year ended December 31, 2025 primarily included costs related to a planned facility closure and rent for vacated properties.(2) For the year ended December 31, 2025, loss on refinancing was primarily comprised of debt issuance costs associated with the portion of the Term Loan Due2028 that was modified as part of the Company’s debt refinancing on August 1, 2025. Refer to Note 14. Debt in the Company’s 2025 Annual Report on Form 10-Kfor information about the Company’s debt as of December 31, 2025.(3) For the three months ended June 30, 2026, charges related to legal matters, net were $8.1 million, primarily consisting of charges related to antitrust class actionlitigation. For the six months ended June 30, 2026, charges related to legal matters, net were $8.8 million, primarily consisting of (i) a $21.2 million chargeassociated with certain states electing a 25% cash conversion in lieu of product under the Nationwide Opioids Settlement Agreement, partially offset by a$20.8 million discount recorded on the expected settlement payments as of the agreement’s effective date and (ii) charges associated with antitrust class actionlitigation. For the three and six months ended June 30, 2026, charges related to legal matters, including interest, net also included interest expense associatedwith the Nationwide Opioids Settlement Agreement. For additional information regarding the Nationwide Opioids Settlement Agreement and antitrust class actionlitigation, refer to Note 16. Commitments and Contingencies in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.(4) For the year ended December 31, 2025, asset impairment charges were primarily related to a Specialty segment product right for which the Company significantlyreduced the cash flow forecast after receipt of a complete response letter dated July 22, 2025 from the U.S. Food and Drug Administration regarding asupplemental new drug application.(5) For the year ended December 31, 2025, the caption “other” primarily reflects a non-recurring, non-operating, non-cash gain.(6) Refer to Note 14. Debt in the Company’s 2025 Annual Report on Form 10-K for additional information.(7) Net debt was calculated as the total outstanding principal on the Company’s debt less cash and cash equivalents.(8) Gross leverage was calculated by dividing gross debt as of June 30, 2026 and December 31, 2025 by adjusted EBITDA for the last twelve months endedJune 30, 2026 and year ended December 31, 2025, respectively.(9) Net leverage was calculated by dividing net debt as of June 30, 2026 and December 31, 2025 by adjusted EBITDA for the last twelve months ended June 30,2026 and year ended December 31, 2025, respectively.(10) The non-GAAP effective tax rates for the three and six months ended June 30, 2026 were 25.1% and 24.7%, respectively. The non-GAAP effective tax rates forthe three and six months ended June 30, 2025 were 24.7% and 25.0%, respectively.(11) Weighted average diluted shares outstanding for the three and six months ended June 30, 2026 and 2025 consisted of fully diluted Class A common stock(inclusive of the effect of dilutive securities).
Page 6
Amneal Pharmaceuticals, Inc.Non-GAAP Reconciliations(unaudited, $ in thousands) Reconciliation of Consolidated GAAP to Non-GAAP Operating Results Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAPNet revenue $ 796,197 $ — $ 796,197 $ 724,508 $ — $ 724,508 Cost of goods sold(1) 461,689 (33,317) 428,372 438,255 (44,050) 394,205 Gross profit 334,508 33,317 367,825 286,253 44,050 330,303 Gross margin % 42.0% 46.2% 39.5% 45.6% Selling, general and administrative(2) 148,722 (13,781) 134,941 124,266 (11,424) 112,842 Research and development(3) 39,017 (855) 38,162 47,964 (1,573) 46,391 Intellectual property legal development expenses 2,087 — 2,087 2,017 — 2,017 Acquisition costs(4) 7,600 (7,600) — — — — Restructuring and other charges 554 — 554 1,024 (1,024) — Charges (credits) related to legal matters, net(5) 8,057 (8,057) — (390) 390 — Other operating income (1,298) — (1,298) — — — Operating income $ 129,769 $ 63,610 $ 193,379 $ 111,372 $ 57,681 $ 169,053 (1) Adjustments for the three months ended June 30, 2026 and 2025, respectively, were comprised of stock-based compensation expense ($1.0 million in eachperiod) and amortization expense ($32.3 million and $43.1 million).(2) Adjustments for the three months ended June 30, 2026 and 2025, respectively, were comprised of stock-based compensation expense ($8.6 million and$6.4 million), amortization expense ($2.6 million and $2.7 million), site closure costs ($0.5 million in each period), and other ($2.1 million and $1.8 million).(3) Adjustments for the three months ended June 30, 2026 and 2025, respectively, were comprised of stock-based compensation expense ($0.9 million in eachperiod) and site closure costs (none and $0.7 million).(4) Acquisition costs for the three months ended June 30, 2026 included acquisition costs associated with the announced agreement to acquire Kashiv BioSciences,LLC.(5) For the three months ended June 30, 2026, charges related to legal matters, net were $8.1 million, primarily consisting of charges related to antitrust class actionlitigation. For additional information regarding antitrust class action litigation, refer to Note 16. Commitments and Contingencies in the Company’s QuarterlyReport on Form 10-Q for the quarter ended March 31, 2026. Amneal Pharmaceuticals, Inc.Non-GAAP Reconciliations(unaudited, $ in thousands) Reconciliation of Consolidated GAAP to Non-GAAP Operating Results Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAPNet revenue $ 1,518,716 $ — $ 1,518,716 $ 1,419,928 $ — $ 1,419,928 Cost of goods sold(1) 864,095 (61,628) 802,467 877,784 (87,565) 790,219 Gross profit 654,621 61,628 716,249 542,144 87,565 629,709 Gross margin % 43.1% 47.2% 38.2% 44.3% Selling, general and administrative(2) 287,582 (25,062) 262,520 242,554 (20,971) 221,583 Research and development(3) 77,400 (1,628) 75,772 88,004 (3,053) 84,951 Intellectual property legal development expenses 3,629 — 3,629 3,784 — 3,784 Acquisition costs(4) 12,753 (12,753) — — — — Restructuring and other charges 1,204 (499) 705 1,595 (1,595) — Charges (credits) related to legal matters, net(5) 8,751 (8,751) — (390) 390 — Other operating income (8,239) — (8,239) (5,122) — (5,122) Operating income $ 271,541 $ 110,321 $ 381,862 $ 211,719 $ 112,794 $ 324,513 (1) Adjustments for the six months ended June 30, 2026 and 2025, respectively, were comprised of stock-based compensation expense ($2.0 million and $1.9million), amortization expense ($59.6 million and $85.6 million), and asset impairment charges (none and $0.1 million).(2) Adjustments for the six months ended June 30, 2026 and 2025, respectively, were comprised of stock-based compensation expense ($15.6 million and $11.9million), amortization expense ($5.3 million and $5.4 million), site closure costs ($1.0 million in each period), and other ($3.2 million and $2.6 million).(3) Adjustments for the six months ended June 30, 2026 and 2025, respectively, were comprised of stock-based compensation expense ($1.6 million and $1.7million) and site closure costs (none and $1.4 million).(4) Acquisition costs for the six months ended June 30, 2026 included acquisition costs associated with the announced agreement to acquire Kashiv BioSciences,LLC.(5) For the six months ended June 30, 2026, charges related to legal matters, net were $8.8 million, primarily consisting of (i) a $21.2 million charge associated withcertain states electing a 25% cash conversion in lieu of product under the Nationwide Opioids Settlement Agreement, partially offset by a $20.8 million discountrecorded on the expected settlement payments as of the agreement’s effective date and (ii) charges associated with antitrust class action litigation. For additionalinformation regarding the Nationwide Opioids Settlement Agreement and antitrust class action litigation, refer to Note 16. Commitments and Contingencies in theCompany’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. Amneal Pharmaceuticals, Inc.Affordable Medicines SegmentReconciliation of GAAP to Non-GAAP Operating Results(1)(unaudited; $ in thousands) Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAPNet revenue $ 489,913 $ — $ 489,913 $ 433,425 $ — $ 433,425 Cost of goods sold(2) 282,684 (14,513) 268,171 252,646 (11,171) 241,475 Gross profit 207,229 14,513 221,742 180,779 11,171 191,950 Gross margin % 42.3% 45.3% 41.7% 44.3%
Page 7
Selling, general and administrative(3) 42,367 (2,939) 39,428 34,226 (2,183) 32,043 Research and development(4) 33,023 (725) 32,298 41,899 (777) 41,122 Intellectual property legal development expenses 2,002 — 2,002 1,978 — 1,978 Restructuring and other charges — — — 683 (683) — Charges (credits) related to legal matters, net(5) 8,057 (8,057) — (390) 390 — Other operating income (1,298) — (1,298) — — — Operating income $ 123,078 $ 26,234 $ 149,312 $ 102,383 $ 14,424 $ 116,807 (1) Revenue, cost of goods sold, and gross profit from the sale of Amneal products by AvKARE were included in our Affordable Medicines segment.(2) Adjustments for the three months ended June 30, 2026 and 2025, respectively, were comprised of stock-based compensation expense ($1.0 million and $0.9million) and amortization expense ($13.5 million and $10.3 million).(3) Adjustments for the three months ended June 30, 2026 and 2025, respectively, were comprised of stock-based compensation expense ($2.5 million and $1.6million) and site closure costs ($0.5 million and $0.6 million).(4) Adjustments for the three months ended June 30, 2026 and 2025 were comprised of stock-based compensation expense.(5) For the three months ended June 30, 2026, charges related to legal matters, net were $8.1 million, primarily consisting of charges related to antitrust class actionlitigation. For additional information regarding antitrust class action litigation, refer to Note 16. Commitments and Contingencies in the Company’s QuarterlyReport on Form 10-Q for the quarter ended March 31, 2026. Amneal Pharmaceuticals, Inc.Affordable Medicines SegmentReconciliation of GAAP to Non-GAAP Operating Results(1)(unaudited; $ in thousands) Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAPNet revenue $ 913,150 $ — $ 913,150 $ 848,133 $ — $ 848,133 Cost of goods sold(2) 515,128 (24,083) 491,045 495,279 (22,046) 473,233 Gross profit 398,022 24,083 422,105 352,854 22,046 374,900 Gross margin % 43.6% 46.2% 41.6% 44.2% Selling, general and administrative(3) 83,685 (5,371) 78,314 67,941 (3,999) 63,942 Research and development(4) 66,309 (1,402) 64,907 72,879 (1,466) 71,413 Intellectual property legal development expenses 3,495 — 3,495 3,691 — 3,691 Restructuring and other charges — — — 683 (683) — Charges (credits) related to legal matters, net(5) 8,751 (8,751) — (390) 390 — Other operating income (8,239) — (8,239) (5,122) — (5,122) Operating income $ 244,021 $ 39,607 $ 283,628 $ 213,172 $ 27,804 $ 240,976 (1) Revenue, cost of goods sold, and gross profit from the sale of Amneal products by AvKARE were included in our Affordable Medicines segment.(2) Adjustments for the six months ended June 30, 2026 and 2025, respectively, were comprised of stock-based compensation expense ($2.0 million and $1.8million), amortization expense ($22.1 million and $20.1 million), and asset impairment charges (none and $0.1 million).(3) Adjustments for the six months ended June 30, 2026 and 2025, respectively, were comprised of stock-based compensation expense ($4.4 million and $2.9million) and site closure costs ($1.0 million and $1.1 million).(4) Adjustments for the six months ended June 30, 2026 and 2025 were comprised of stock-based compensation expense.(5) For the six months ended June 30, 2026, charges related to legal matters, net were $8.8 million, primarily consisting of (i) a $21.2 million charge associated withcertain states electing a 25% cash conversion in lieu of product under the Nationwide Opioids Settlement Agreement, partially offset by a $20.8 million discountrecorded on the expected settlement payments as of the agreement’s effective date and (ii) charges associated with antitrust class action litigation. For additionalinformation regarding the Nationwide Opioids Settlement Agreement and antitrust class action litigation, refer to Note 16. Commitments and Contingencies in theCompany’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. Amneal Pharmaceuticals, Inc.Specialty SegmentReconciliation of GAAP to Non-GAAP Operating Results(unaudited; $ in thousands) Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAPNet revenue $ 149,295 $ — $ 149,295 $ 128,043 $ — $ 128,043 Cost of goods sold(1) 48,265 (18,804) 29,461 55,795 (32,880) 22,915 Gross profit 101,030 18,804 119,834 72,248 32,880 105,128 Gross margin % 67.7% 80.3% 56.4% 82.1% Selling, general and administrative(2) 40,095 (664) 39,431 30,314 (486) 29,828 Research and development(3) 5,994 (130) 5,864 6,065 (796) 5,269 Intellectual property legal development expenses 85 — 85 39 — 39 Restructuring and other charges — — — 341 (341) — Operating income $ 54,856 $ 19,598 $ 74,454 $ 35,489 $ 34,503 $ 69,992 (1) Adjustments for the three months ended June 30, 2026 and 2025 were comprised of amortization expense.(2) Adjustments for the three months ended June 30, 2026 and 2025 were comprised of stock-based compensation expense.(3) Adjustments for the three months ended June 30, 2026 and 2025, respectively, were comprised of stock-based compensation expense ($0.1 million in eachperiod) and site closure costs (none and $0.7 million). Amneal Pharmaceuticals, Inc.Specialty SegmentReconciliation of GAAP to Non-GAAP Operating Results(unaudited; $ in thousands)
Page 8
Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAPNet revenue $ 282,560 $ — $ 282,560 $ 236,340 $ — $ 236,340 Cost of goods sold(1) 91,285 (37,545) 53,740 108,878 (65,520) 43,358 Gross profit 191,275 37,545 228,820 127,462 65,520 192,982 Gross margin % 67.7% 81.0% 53.9% 81.7% Selling, general and administrative(2) 74,786 (1,190) 73,596 61,292 (831) 60,461 Research and development(3) 11,091 (225) 10,866 15,125 (1,587) 13,538 Intellectual property legal development expenses 134 — 134 93 — 93 Restructuring and other charges 347 (347) — 471 (471) — Operating income $ 104,917 $ 39,307 $ 144,224 $ 50,481 $ 68,409 $ 118,890 (1) Adjustments for the six months ended June 30, 2026 and 2025 were comprised of amortization expense.(2) Adjustments for the six months ended June 30, 2026 and 2025 were comprised of stock-based compensation expense.(3) Adjustments for the six months ended June 30, 2026 and 2025, respectively, were comprised of stock-based compensation expense ($0.2 million in each period)and site closure costs (none and $1.4 million). Amneal Pharmaceuticals, Inc.AvKARE SegmentReconciliation of GAAP to Non-GAAP Operating Results(1)(unaudited; $ in thousands) Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAPNet revenue $ 156,989 $ — $ 156,989 $ 163,040 $ — $ 163,040 Cost of goods sold 130,740 — 130,740 129,814 — 129,814 Gross profit 26,249 — 26,249 33,226 — 33,226 Gross margin % 16.7% 16.7% 20.4% 20.4% Selling, general and administrative(2) 16,913 (2,648) 14,265 15,079 (2,700) 12,379 Operating income $ 9,336 $ 2,648 $ 11,984 $ 18,147 $ 2,700 $ 20,847 (1) Revenue, cost of goods sold, and gross profit from the sale of Amneal products by AvKARE were included in our Affordable Medicines segment.(2) Adjustments for the three months ended June 30, 2026 and 2025 were comprised of amortization expense. Amneal Pharmaceuticals, Inc.AvKARE SegmentReconciliation of GAAP to Non-GAAP Operating Results(1)(unaudited; $ in thousands) Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAPNet revenue $ 323,006 $ — $ 323,006 $ 335,455 $ — $ 335,455 Cost of goods sold 257,682 — 257,682 273,627 — 273,627 Gross profit 65,324 — 65,324 61,828 — 61,828 Gross margin % 20.2% 20.2% 18.4% 18.4% Selling, general and administrative(2) 33,593 (5,296) 28,297 30,773 (5,400) 25,373 Operating income $ 31,731 $ 5,296 $ 37,027 $ 31,055 $ 5,400 $ 36,455 (1) Revenue, cost of goods sold, and gross profit from the sale of Amneal products by AvKARE were included in our Affordable Medicines segment.(2) Adjustments for the six months ended June 30, 2026 and 2025 were comprised of amortization expense. Source: Amneal Pharmaceuticals LLC