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Eton Pharmaceuticals
(NASDAQ:ETON)
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Rating:75Outperform
Price Target:
$66.00
▲(4.68% Upside)
Action:Upgraded
Date:08/17/26
The score is driven primarily by the sharp improvement in financial performance (return to profitability, strong cash generation, and reduced leverage) and an upbeat earnings update with raised FY2026 guidance and strong margin expansion. Technicals are supportive due to a strong uptrend, but an elevated RSI signals near-term pullback risk. Valuation is the main drag given the very high P/E and no dividend yield provided.
Positive Factors
Rapid revenue growth and upgraded 2026 outlook
The sharp sales increase and higher full-year outlook indicate strong commercial adoption across Eton’s portfolio. Sustained growth would improve operating leverage and provide a larger base for future product launches.
Negative Factors
Limited history of sustained profitability
The recent earnings inflection is encouraging, but Eton has not yet demonstrated profitability across a long operating history. A short track record makes future margin durability less certain if launches, pricing, or product mix weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid revenue growth and upgraded 2026 outlook
The sharp sales increase and higher full-year outlook indicate strong commercial adoption across Eton’s portfolio. Sustained growth would improve operating leverage and provide a larger base for future product launches.
Read all positive factors
Eton Pharmaceuticals (ETON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.79B
Dividend YieldN/A
Average Volume (3M)471.28K
Price to Earnings (P/E)134.8
Beta (1Y)0.61
Revenue Growth81.49%
EPS GrowthN/A
CountryUS
Employees44
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.47
Shares Outstanding28,583,136
10 Day Avg. Volume601,246
30 Day Avg. Volume471,279
Financial Highlights & Ratios
PEG Ratio-7.46
Price to Book (P/B)17.40
Price to Sales (P/S)5.69
P/FCF Ratio44.65
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$61.50Price Target Upside-2.46% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.05
Revenue Forecast (FY)$128.20M
Eton Pharmaceuticals Business Overview & Revenue Model
Company Description
Eton Pharmaceuticals, Inc., a pharmaceutical company, focuses on developing and commercializing treatments for rare diseases. Its commercial rare disease products include Increlex for the treatment of severe primary igf-1 deficiency; Alkindi Sprin...
How the Company Makes Money
Eton Pharmaceuticals primarily makes money by commercializing prescription drugs and recording net product sales in the U.S. Revenue is generated when Eton sells its marketed products to customers in the pharmaceutical supply chain (typically whol...
Eton Pharmaceuticals Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call emphasized strong, broad-based commercial momentum (record revenue +99% YoY), significant margin expansion (adjusted EBITDA to $16.2M; 43% margin), strategic portfolio expansion (HEMANGEOL relaunch, ASN-001 and IMPAVIDO additions), and raised full-year guidance, demonstrating positive operational execution and scalable economics. Key risks include modest cash after recent transactions, near-term R&D and acquisition-related expenses (including a $3M ASN-001 upfront and ~$4M bioavailability study), slightly lower adjusted gross margin driven by non-U.S. Increlex sales, and execution/timing risk around several pending regulatory and clinical milestones. Overall, positives materially outweigh the manageable lowlights given the magnitude of revenue and profitability improvements and upgraded guidance.Positive Updates
Record Revenue and Strong Top-Line Growth
Revenue of $37.6 million in Q2 2026, up 99% year-over-year (from $18.9 million in Q2 2025); management raised full-year 2026 revenue guidance to exceed $145 million (previous guidance: >$120 million).
Negative Updates
Adjusted Gross Margin Slightly Down
Adjusted gross margin decreased to 73% in Q2 2026 from 75% in the prior-year period, primarily attributable to higher Increlex sales outside the U.S. which generate a negative gross margin.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Strong Top-Line Growth
Revenue of $37.6 million in Q2 2026, up 99% year-over-year (from $18.9 million in Q2 2025); management raised full-year 2026 revenue guidance to exceed $145 million (previous guidance: >$120 million).
Read all positive updates
Company Guidance
Eton raised full‑year 2026 revenue guidance to exceed $145 million (up from >$120M) and now expects full‑year adjusted EBITDA margin to exceed 35% (vs. prior >30%), after reporting Q2 revenue $37.6M (+99% YoY) and Q2 adjusted EBITDA $16.2M (43% of revenue); Q2 adjusted gross profit was $27.4M with an adjusted gross margin of 73%, and full‑year adjusted gross margin is expected to exceed 70% (inclusive of a potential Q4 commercial milestone). FY R&D spending is guided to $10–$14M (including a $3M ASN‑001 upfront expensed in Q3); ASN‑001 requires a 24‑patient, 29‑day bioavailability study (~$4M over 12 months) with an NDA targeted H2 2027 and potential launch in 2028. Additional timelines/targets: Amglidia NDA by year‑end for potential 2027 approval, KHINDIVI label expansion H1 2027, ET‑700 pilot (36 volunteers) initial read in 1–2 months/full report by year‑end (pivotal early 2027; peak >$100M potential). Balance sheet/capital: $26.8M cash at 6/30 after $3M debt prepayment, ~$22M valuation allowance may be released if cumulative losses reverse in H2 2026, plan to accelerate credit facility repayment over 6–12 months; long‑term goals remain exit‑2027 $200M annualized revenue, 50% adjusted EBITDA margin in 2028, and $500M revenue by 2030.Eton Pharmaceuticals Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 105.59M | 79.95M | 39.01M | 31.64M | 21.25M | 21.83M |
| Gross Profit | 61.10M | 42.74M | 23.41M | 21.06M | 14.32M | 19.21M |
| EBITDA | 18.56M | 4.27M | -657.00K | 212.00K | -7.25M | -1.49M |
| Net Income | 12.69M | -4.60M | -3.82M | -936.00K | -9.02M | -1.96M |
Balance Sheet | ||||||
| Total Assets | 115.81M | 92.11M | 76.12M | 31.74M | 25.03M | 27.46M |
| Cash, Cash Equivalents and Short-Term Investments | 26.84M | 25.94M | 14.94M | 21.39M | 16.30M | 14.41M |
| Total Debt | 28.99M | 31.02M | 29.99M | 5.40M | 6.52M | 6.70M |
| Total Liabilities | 69.22M | 65.96M | 51.70M | 16.26M | 11.95M | 9.84M |
| Stockholders Equity | 46.59M | 26.15M | 24.43M | 15.48M | 13.08M | 17.63M |
Cash Flow | ||||||
| Free Cash Flow | 14.73M | 10.19M | 943.00K | 6.04M | 2.03M | -7.98M |
| Operating Cash Flow | 15.13M | 10.52M | 969.00K | 6.82M | 4.82M | -4.72M |
| Investing Cash Flow | -15.40M | -333.00K | -40.01M | -775.00K | -2.79M | -2.56M |
| Financing Cash Flow | 1.73M | 815.00K | 32.59M | -957.00K | -134.00K | 391.00K |
Eton Pharmaceuticals Technical Analysis
Positive
63.05
Price Trends
43.92
Positive
36.23
Positive
26.76
Positive
Market Momentum
5.99
Negative
70.03
Negative
83.82
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETON, the sentiment is Positive. The current price of 63.05 is above the 20-day moving average (MA) of 52.51, above the 50-day MA of 43.92, and above the 200-day MA of 26.76, indicating a bullish trend. The MACD of 5.99 indicates Negative momentum. The RSI at 70.03 is Negative, neither overbought nor oversold. The STOCH value of 83.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ETON.
Eton Pharmaceuticals Risk Analysis
Eton Pharmaceuticals disclosed 50 risk factors in its most recent earnings report. Eton Pharmaceuticals reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Eton Pharmaceuticals Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.79B | 134.77 | 40.13% | ― | 81.49% | ― | |
75 Outperform | $1.71B | 15.22 | 19.19% | ― | 30.90% | ― | |
73 Outperform | $134.40M | -12.11 | -47.10% | ― | -25.68% | -244.92% | |
69 Neutral | $1.03B | 73.36 | 2.13% | ― | 5.71% | ― | |
67 Neutral | $936.69M | 12.57 | 10.11% | ― | 1.02% | -38.09% | |
62 Neutral | $895.60M | 17.28 | 15.96% | ― | 14.31% | 34.35% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ETON
Eton Pharmaceuticals
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Eton Pharmaceuticals Corporate Events
Business Operations and StrategyProduct-Related Announcements
Eton Pharmaceuticals Licenses ASN-001 Hemangioma Therapy
Positive
Aug 5, 2026
On July 31, 2026, Eton Pharmaceuticals entered a license agreement with Auson Pharmaceuticals for U.S. rights to ASN-001, a late-stage timolol topical gel candidate for proliferating superficial infantile hemangiomas, paying a $3 million upfront f...
Business Operations and StrategyExecutive/Board Changes
Eton Pharmaceuticals Promotes Radosavljevic to Chief Operating Officer
Positive
Aug 4, 2026
On July 31, 2026, Eton Pharmaceuticals, Inc. appointed longtime executive Danka Radosavljevic as Chief Operating Officer, elevating her from the Executive Vice President, Operations role she has held for more than five years. Radosavljevic, who ha...
Business Operations and StrategyProduct-Related AnnouncementsRegulatory Filings and Compliance
Eton Seeks Expanded KHINDIVI Label for Pediatric Use
Positive
Jul 29, 2026
On July 29, 2026, Eton Pharmaceuticals announced it had submitted a Prior Approval Supplement to the U.S. Food and Drug Administration to expand the indication of its hydrocortisone oral solution KHINDIVI to younger pediatric patients with adrenal...
Executive/Board ChangesShareholder Meetings
Eton Shareholders Back Board Nominees and Auditor Selection
Positive
Jun 9, 2026
Eton Pharmaceuticals, Inc. held its 2026 Annual Meeting of Stockholders virtually on June 9, 2026, where shareholders elected director nominees Jenn Adams and Charles J. Casamento to new three-year terms on the board. Stockholders also ratified th...
Business Operations and Strategy
Eton Pharmaceuticals Secures U.S. Rights to IMPAVIDO
Positive
May 19, 2026
On May 18, 2026, Eton Pharmaceuticals entered a supply and distribution agreement with an affiliate of Knight Therapeutics for exclusive U.S. commercialization rights to IMPAVIDO (miltefosine), the first and only FDA-approved oral therapy for cert...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.