Earnings Analysis November 3, 2026

Madrigal Pharmaceuticals Inc ($MDGL) Q3 2026 Earnings Analysis: First Profitable Quarter · Revenue Up 50%

Earnings Report

Revenue: $431.3 million (Year-over-year +50%, expected $405 million) ✅ Beat

EPS (Earnings Per Share): $1.83 (Diluted/GAAP, expected -$1.09) ✅ Beat

Guidance: Not provided · No revenue outlook for the next quarter/year, F4c Phase 3 MAESTRO-CSPH expected to commence in the first half of 2027

Stock Reaction: After-hours +4.37% ($450, as of 11-03 22:22 KST)

Highlights

50% Revenue Growth: $431.3 million, exceeding expectations by 6%.

First Profitable Quarter: Recorded a net income of $55.4 million and diluted EPS of $1.83.

Achieved Blockbuster Status: Cumulative revenue for Q1–Q3 surpassed $1 billion, reaching $1.1 billion, and the number of patients prescribed doubled in one year to 55,850.

With revenue exceeding expectations and total operating expenses decreasing compared to the same period last year, the company turned a profit. The key achievement this quarter is reaching first-time profitability while simultaneously expanding its commercial organization.

Lowlights

Cost of Goods Sold Doubled: Reached $37.8 million due to increased royalties paid to Roche.

SG&A Expenses Increased 27%: Reached $265.7 million, reflecting the expansion of the endocrine sales organization and direct-to-consumer advertising costs.

Single-Product Dependency: All revenue is derived from a single product, Rezdiffra.

As both the cost of goods sold and SG&A expenses increased, operating income was limited to $56 million. The gap between the rate of revenue growth and the rate of expense growth will determine next quarter's earnings.

What the Company Said

CEO Bill Sibold summarized the quarter as one where demand, expanded prescriptions, and market growth moved in tandem. The company views F4c as its next key milestone and presented the schedule for the MAESTRO-CSPH commencement and MAESTRO-NASH OUTCOMES data.

Market Reaction and Future Key Points

Buying pressure emerged in after-hours trading as revenue exceeded expectations and the first quarterly profit was confirmed.

It is necessary to confirm whether Rezdiffra revenue rises to the high $400 million range in the next quarter.

Whether the growth rate of SG&A expenses falls below the revenue growth rate is the turning point for sustaining profitability.

The launch of MAESTRO-CSPH in the first half of 2027 and the MAESTRO-NASH OUTCOMES results at the end of 2027 are the watershed moments for F4c expansion.

Earnings Call Key Summary

Once the earnings call concludes and the company script is released, the key takeaways from the call will be added to this section. We will select and summarize only the important points, such as how management explained performance and outlook, and what analysts asked.