Executive Summary

Liquidia delivered a decisive beat in its first full quarter post‑launch: revenue of $54.3M vs Street ~$19.5M*, EBITDA turned positive, and GAAP net loss narrowed to $(3.5)M; operating income was $1.8M as YUTREPIA net product sales reached $51.7M . EPS of $(0.04) beat consensus of ~$(0.40)* materially.
YUTREPIA launch metrics show strong adoption: >2,000 unique prescriptions, >1,500 patient starts, and >600 prescribers as of Oct 30, with ~85% referral‑to‑start conversion; voucher utilization ticked above 50% for new patients .
Commercial enablers strengthened: contracts with the three largest commercial payers, removal of new‑to‑market blocks underway/complete, and specialty pharmacy inventory normalized at ~3–4 weeks .
Momentum and cash: September was the first month of positive net cash flow (~$5M) with continued gains in October; cash and equivalents were $157.5M at Q3 end .
Key watch item: ongoing litigation with United Therapeutics carries a wide range of potential remedies (from royalty to market withdrawal), with timing of a decision uncertain (window could extend into Q1) .

What Went Well and What Went Wrong

What Went Well

Commercial traction exceeded expectations: “Utrepia continued to exceed expectations on every front” with >2,000 Rx, >1,500 patient starts, and >600 prescribers; conversion from referral to start ~85% .
Early profitability milestones: first full quarter operating income of $1.7M and positive adjusted EBITDA of $10.1M; September was first month of positive net cash flow (~$5M) with momentum into October .
Access and pull‑through improving: contracts with three major commercial payers and new‑to‑market blocks removed or being removed, supporting high pull‑through (“~85% of referrals converted into a script”) .

What Went Wrong

GAAP still at a loss due to SG&A and interest: Q3 GAAP net loss of $(3.5)M; SG&A nearly doubled YoY to $40.1M (commercial build‑out, legal), and total other expense rose to $(5.3)M on higher HCR borrowings .
Service revenue pressure: Sandoz promotion revenue fell to $2.7M vs $4.4M YoY, reflecting lower volumes; similar trend noted in Q2 (managed care adjustments) .
Ongoing litigation overhang: management underscored a wide range of potential outcomes (including injunctive relief or royalty); timing uncertain, likely within a broad window into early 2026 .

Financial Results

Headline P&L vs prior year and prior quarter

Metric	Q3 2024	Q2 2025	Q3 2025
Total Revenue ($M)	$4.45	$8.84	$54.34
Product Sales, net ($M)	$0.00	$6.52	$51.67
Service Revenue, net ($M)	$4.45	$2.32	$2.67
Operating Income (Loss) ($M)	$(29.19)	$(37.51)	$1.77
Net Loss ($M)	$(31.03)	$(41.58)	$(3.53)
Diluted EPS ($)	$(0.40)	$(0.49)	$(0.04)
Operating Margin (%)	(656.7%)	(424.4%)	3.3%

Notes: Operating margin calculated as operating income divided by total revenue, using company‑reported figures in cited sources.

Segment/Revenue Mix

Revenue Component ($M)	Q3 2024	Q2 2025	Q3 2025
Product Sales (YUTREPIA)	$0.00	$6.52	$51.67
Service Revenue (Sandoz promotion)	$4.45	$2.32	$2.67
Total Revenue	$4.45	$8.84	$54.34

KPIs (Commercial)

KPI	Q2 2025 (as of Aug 8)	Q3 2025 Update (as of Oct 30)
Unique Prescriptions (cumulative)	>900	>2,000
Patient Starts (cumulative)	>550	>1,500
Prescribers (cumulative)	>350	>600
Referral → Start Conversion	~75% first 6 weeks	~85% ongoing
Voucher Utilization (new patients)	n/a	Slightly >50%

Cash and Balance Sheet Highlights

Cash & equivalents: $157.5M (Sep 30, 2025) .
Specialty pharmacy inventory at ~3–4 weeks (normalized) .

Guidance Changes

Metric / Topic	Period	Previous Guidance	Current Update	Change
Profitability timeline	Post‑launch	Profitability expected within 3–4 quarters post‑launch (implied prior outlook)	Achieved positive adjusted EBITDA in first full quarter (Q3 2025)	Raised/Accelerated
Net cash flow trajectory	2H25–2026	n/a	First month of positive net cash flow in Sep (~$5M); expect positive trend to extend into 2026	New
Commercial access	2H25	n/a	Contracts signed with three largest commercial payers; new‑to‑market blocks removed/being removed	New
SP inventory levels	2H25	n/a	Normalized to ~3–4 weeks	New
L606 pivotal timing	Late 2025 / 1H26	n/a	Global pivotal “RESPIRE” to initiate later this year; enrollment to start 1H26	New

Management did not provide quantitative ranges for revenue, margins, OpEx, OI&E, tax rate, or dividends for Q4/FY; commentary was qualitative.

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1–Q2 2025)	Current Period (Q3 2025)	Trend
Market access & payer contracting	Pre‑launch (Q1): preparing for full approval; early launch (Q2): accelerating access; new‑to‑market blocks and contracting work underway	Contracts with top 3 commercial payers; NTMBs removed/being removed; ~85% pull‑through conversion	Improving access and pull‑through
YUTREPIA adoption	Q2: >900 Rx and >550 starts in first 11 weeks; strong early demand across PAH and PH‑ILD	>2,000 Rx, >1,500 starts; ~85% conversion; >600 prescribers; breadth and depth growing	Rapid acceleration
Specialty pharmacy inventory	Not discussed prior	Normalized to ~3–4 weeks; ordering patterns managed closely	Stabilized post‑launch
R&D – ASCENT (PH‑ILD)	Q2: interim 6MWD +31.5m at Week 16; tolerability maintained at higher doses	CHEST Oct presentations planned; continued dose/tolerability narrative	Reinforcing profile
R&D – L606	Q1: active open‑label; planning pivotal	Pivotal “RESPIRE” to initiate later this year; enrollment 1H26	Advancing to pivotal
Legal/regulatory	Q1–Q2: ongoing litigation as a risk factor	Wide range of outcomes; timing uncertain (decision could come anytime through Q1)	Continuing overhang

Management Commentary

“In the third quarter, Utrepia continued to exceed expectations on every front… more than 2,000 unique prescriptions, initiated therapy for over 1,500 patients, and have over 600 healthcare practitioners who have prescribed Utrepia” – CEO .
“We generated positive adjusted EBITDA of $10.1 million in the first full quarter of Utrepia sales… September marked our first month of positive net cash flow, adding $5 million in net cash” – CFO/COO .
“We’ve signed contracts with the three major commercial payers… new market blocks have or will be removed here in the coming weeks” – CFO/COO .
“We have settled into… a normal level of inventory… specialty pharmacies hold between three and four weeks of inventory” – CFO/COO .
On litigation outcomes and timing: “The consequence ranges from Utrepia being removed from the market to a royalty… timing… any time between now and sometime in the first quarter even would not be unexpected” – General Counsel .

Q&A Highlights

Adoption mix and growth trajectory: ~75% of starts are prostacyclin‑naïve; ~25% transitions (including ~10% from oral in PAH); October referrals highest month to date; management expects seasonality and early ordering choppiness but remains confident in continued execution .
Payer contracting and rebates: Contracts with three largest commercial payers; on even footing in Medicare Part D; commercial rebates starting; goal is enabling patient choice without contracting barriers .
Voucher utilization and time to fill: Slightly over 50% of new patients use the 28‑day voucher; Rx‑to‑fill typically “within a few weeks,” consistent with SP norms .
Channel inventory: Normalized at ~3–4 weeks’ inventory at SPs; strong relationships to manage ordering patterns .
Litigation: Wide range of remedies possible, heavily dependent on judge’s findings; initial decision expected as to “who won,” followed by remedies phase if needed; commercial uptake not expected to factor into the legal decision .

Estimates Context

Q3 2025 results vs S&P Global consensus:
- Revenue: $54.34M actual vs ~$19.46M estimate* → beat by ~$34.88M (+179%) .
- EPS: $(0.04) actual vs ~$(0.401) estimate* → beat by ~$0.36.
- EBITDA: $2.24M actual vs ~$(32.21)M estimate* → beat by ~$34.45M .
- Estimate coverage: EPS (9 ests); Revenue (7 ests).

Metric	Q3 2025 Estimate	Q3 2025 Actual	Surprise
Revenue ($M)	19.46*	54.34	+$34.88 (+179%)
EPS ($)	(0.401)*	(0.04)	+$0.361
EBITDA ($M)	(32.21)*	2.24	+$34.45

Values marked with * are retrieved from S&P Global.
Estimate counts: EPS 9*, Revenue 7*.

Key Takeaways for Investors

YUTREPIA launch is scaling rapidly with broad prescriber adoption and high referral‑to‑start conversion; early profitability and positive cash inflection de‑risk near‑term liquidity .
The quarter was a clean triple‑beat (revenue, EPS, EBITDA) versus Street*, with the magnitude of the revenue surprise likely to reset near‑term sell‑side models upward*.
Commercial barriers continue to fall (major payer contracts, normalized SP inventory), supporting sustained momentum into 2026 .
Watch the legal overhang: potential outcomes range widely; timing of a decision remains uncertain but could arrive any time through Q1—this binary risk could dominate trading into the decision .
R&D catalysts: CHEST presentations (ASCENT) and L606 entering pivotal “RESPIRE” with enrollment in 1H26 offer medium‑term differentiation and pipeline value .
Short‑term trading: strong beat and positive cash commentary are supportive; headline risk from litigation may create volatility.
Medium‑term thesis: sustaining share gains and market expansion across PAH and PH‑ILD with improving access and growing real‑world evidence supports a path to durable profitability, contingent on legal outcomes and continued execution .

Additional Data and Sources:

Q3 2025 8‑K earnings press release and financial tables .
Q3 2025 earnings call transcript (prepared remarks and Q&A) –.
Q2 2025 8‑K press release and financial tables for sequential comparison –.
Q1 2025 press release for pre‑launch context –.
Additional press releases (ASCENT data presentations; R&D Day) – –.

Liquidia Corp (LQDA)·Q3 2025 Earnings Summary