Phathom Pharmaceuticals Posts First Profitable Quarter After Eight Straight Losses
As seen on the 24/7 Wall St. homepage on October 29, 2026.
First profitable quarter on a non-GAAP basis, with earnings topping expectations after eight straight losses. VOQUEZNA drove revenue up 71% year over year, and management reaffirmed full-year guidance while saying cash on hand covers all debt without new financing.
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Phathom Pharmaceuticals flipped to a non-GAAP profit for the first time in its commercial history, reporting adjusted earnings of $0.04 per share and beating expectations. That turnaround came after eight consecutive quarters of losses, making Q3 2026 a genuine inflection point.
The engine behind the shift is VOQUEZNA, the company's potassium-competitive acid blocker, which drove revenue of $84.72 million for the quarter, up 71% year over year.
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Revenue came in fractionally below estimates, missing expectations, so the story here is squarely on the earnings side. Operating cash flow was positive for a second straight quarter, and the GAAP net loss narrowed to $13.90 million, reflecting tighter operating leverage alongside the top-line growth.
Management reaffirmed full-year 2026 net revenue guidance of $310 to $325 million and said cash on hand and future operating cash flow cover all outstanding debt without additional financing. Topline Phase 2 results in eosinophilic esophagitis are expected in Q4 2026. Jefferies maintained a Buy rating heading into results.
Sources
Mentioned: PHAT