Knight Therapeutics (TSE:GUD) has raised its 2026 revenue and adjusted EBITDA outlook following strong third-quarter performance. The company now expects full-year revenue of CAD 560 million to CAD 570 million, up at least 24% from 2025, and adjusted EBITDA to reach approximately 17.5% of revenue, marking a 34% increase from last year. President and CEO Samira Sakhia attributed the improved outlook to better-than-expected performance from promoted products and favorable currency conditions in Latin America.
Third-quarter revenue grew 13% year-over-year to CAD 138 million, with constant-currency revenue up 4%. Launch pipeline products contributed CAD 21 million, a 137% increase in constant currency, driven by products like ORGOVYX and IMVEXXY. Promoted strategic products generated CAD 65 million, down 7% in constant currency due to customer purchasing patterns and lower Lenvima revenue in Colombia. Adjusted EBITDA rose 13% to CAD 24 million, while adjusted EBITDA per share increased 15% to CAD 0.24.
For the first nine months of 2026, revenue grew 36% to CAD 430 million, and adjusted EBITDA increased 57% to over CAD 76 million. Knight's pipeline includes more than 75 product launches across Canada and Latin America, with 22 completed since January 2024. The company also signed an exclusive distribution agreement with Kyowa Kirin International to commercialize Poteligeo in certain Latin American countries.
Looking ahead, Knight anticipates competition from generic versions of AmBisome in Brazil starting in 2027, which could reduce sales and EBITDA contribution. Despite this, the company expects to retain some government sales due to its consistent supply. CEO Sakhia forecasts stable EBITDA margins for the next couple of years before expansion as newer products contribute more. Knight ended the third quarter with CAD 137 million in cash and marketable securities and a net cash position of CAD 115 million.