TG Therapeutics (TGTX) Q3 2026 earnings review
TG Therapeutics raises its 2026 outlook, while US growth slows
TG Therapeutics, the maker of the multiple sclerosis infusion BRIUMVI, lifted its full-year sales plan while its operating profit rebounded. Third-quarter revenue rose 61% from a year ago to $260 million, helped by $16 million in European partner milestones, while operating profit nearly tripled from last quarter as factory startup bills eased. Chief executive Michael S. Weiss raised the 2026 global sales outlook to $1 billion, which by our math points to US drug growth slowing to 44% in the fourth quarter.
| Total global revenue | $259.9M +61% from a year ago |
|---|---|
| US BRIUMVI net product revenue | $232.6M +52% from a year ago; +2% from last quarter |
| Operating margin | 33.0% 18.2% a year ago; 9.0% last quarter |
| Full-year global revenue outlook | Raised $50M to ~$1 billion (+62% growth) |
⚖️ Verdict: 🟢 Bullish
The story got better because operating margins reached 33% as upfront factory expenses rolled off and the US outlook moved above the $1 billion year-end run-rate target. Clinical data also backed a single-infusion starting dose for mid-2027 and a quarterly at-home shot. One caution: US sales beat what the prior plan pointed to, which shows the plan was cautious, but sequential US growth still slowed to 2%.
The question now is whether the quarterly self-administered shot can win Phase 3 and expand the franchise before rival at-home shots cap clinic infusion growth. Either the upcoming trial readout confirms a competitive quarterly shot for 2028 while simplified infusions carry 2027, or slowing US growth shows rival shots are already taking the market. Topline Phase 3 subcutaneous results around year-end or early 2027 will decide.
🐂 Bull Case
Operating Margin Jumped as Factory Costs Eased
TG Therapeutics makes BRIUMVI, an antibody infusion that depletes immune cells to treat relapsing multiple sclerosis (MS). In the second quarter, operating profit fell because the biotech company expensed $54.6 million in research and development for future self-administered shot batches and backup suppliers. Those factory charges calmed down in the third quarter, so operating profit nearly tripled from the prior quarter to $85.9 million.
- Operating margin: 33.0% of revenue, up 14.9 percentage points from a year ago
- Research and development: 19.7% of revenue, down 5.6 percentage points from a year ago and down from 39.7% last quarter
- Selling, general and administrative costs: 31.0% of revenue, down 8.2 percentage points from a year ago
Even though advertising and staff expenses rose to $80.7 million from $63.4 million a year ago due to an "increase in marketing and media spend, and personnel costs", revenue grew much faster. Gross margin also improved by 1.2 percentage points to 83.8%. That shows the core infusion business generates high profit margins whenever upfront factory startup bills subside.
What to watch: fourth-quarter operating expenses excluding stock compensation. By our math, the full-year outlook leaves about $101.5 million for the fourth quarter, down from $107.3 million in the third quarter, which would keep operating margins above 30%.
Fourth Raise Pushes Global Outlook to $1 Billion
Chief executive Michael S. Weiss said, "With solid third-quarter performance and a strong fourth quarter anticipated, we are on track to exceed $1 billion in global revenue in 2026, less than four years after launching BRIUMVI." The drugmaker raised its full-year global revenue plan by $50 million, marking its third increase this year after raises of $37.5 million in the first quarter and $25 million in the second.
Both US prescription sales and European partner payments drove the increase. Management lifted its US BRIUMVI outlook by $20 million at the middle of the range to $917.5 million. By our math, that leaves $262.4 million for the fourth quarter, topping the $250 million target the company previously set to reach a $1 billion yearly pace.
What to watch: fourth-quarter US BRIUMVI net product revenue. A reading above $265 million would extend the company's streak of beating its own quarterly targets and set a higher base for 2027.
New Trials and Formulations Advance the Pipeline
TG Therapeutics wants to expand BRIUMVI beyond its current schedule, which requires two initial infusions two weeks apart, and beyond MS. At the Toronto medical meeting, the drugmaker presented positive Phase 3 ENHANCE trial data showing a single 600-milligram starting infusion matches the two-day schedule without severe reactions. Weiss pointed to "a potential launch of simplified IV initiation in mid-2027".
- Seven-year MS follow-up: 88.3% of patients free from 24-week disability progression
- Real-world ENABLE study: 99.2% of 1,076 patients relapse-free; 30% switched from prior anti-CD20 therapy, though the share of newly treated patients was not in the release
- Azer-cel Phase 1 in progressive MS: 88% of evaluable patients among 26 participants had stable or improved disability at Day 180
- New diseases: started Phase 2 trials for BRIUMVI in myasthenia gravis (a muscle-weakening autoimmune disease) and treatment-resistant schizophrenia
What to watch: regulatory filing confirmation for the ENHANCE single-infusion schedule by early 2027. Approval would remove a clinic visit for every new patient starting the drug.
🐻 Bear Case
US Drug Growth Slowed Despite Beating the Plan
Weiss described the business as "laying the foundation for sustained, long-term growth" after US BRIUMVI sales reached $232.6 million. By our math, the company's prior full-year outlook and fourth-quarter floor pointed to a third-quarter ceiling of $217.5–232.5 million. Beating that range proves the prior outlook was cautious, but it does not hide a clear slowdown in US prescription growth.
US sales rose 52.1% from a year ago, stepping down from 64% growth in the second quarter and 84% a year earlier. From last quarter, US revenue grew only 2.2%, compared with a 10% third-quarter gain last summer. Furthermore, by our math, the raised full-year outlook implies US growth slows again in the fourth quarter to 43.6% from a year ago.
What to watch: the initial 2027 US BRIUMVI revenue outlook, which management typically issues in the first quarter. An outlook near $1.05 billion would confirm that the intravenous drug is maturing before new dosing options arrive.
Self-Administered Shot Remains Years Behind Rivals
TG Therapeutics is developing a subcutaneous version of BRIUMVI—an under-the-skin shot patients can give themselves at home—to expand its market while defending against rival shots like Kesimpta, Ocrevus Zunovo, and upcoming oral BTK pills. Phase 1 data showed drug absorption above 60% compared with the infusion, "supporting the quarterly dosing regimen being evaluated in the fully enrolled Phase 3 trial".
However, the company remains years away from selling the product. Weiss highlighted "pivotal Phase 3 subcutaneous BRIUMVI results expected around year-end or early 2027" and "a potential subcutaneous BRIUMVI launch in 2028". Until 2028, BRIUMVI must compete solely as a clinic infusion while rivals sign up patients who prefer at-home injections.
What to watch: topline Phase 3 subcutaneous BRIUMVI results around year-end 2026 or early 2027. If the quarterly shot fails to match the infusion's drug exposure or shows high injection reactions, TG Therapeutics would remain stuck without an at-home option.
Buybacks and Interest Costs Drain Cash
After borrowing $750 million in the first quarter, TG Therapeutics spent $100 million in the third quarter to buy back 2.0 million shares at an average price of $49.43. That price is 69% higher than the $29.28 average it paid across its first $200 million of repurchases. Meanwhile, the loan cost $15.8 million in quarterly interest, or $12.0 million after subtracting $3.8 million of interest income.
Because of the buyback and debt costs, cash and investments fell by $55.5 million from last quarter to $556.7 million, even though the business earned $55.5 million in net profit. What to watch: fourth-quarter cash balances and share count in the annual report. Buying more shares near $50 while paying over $60 million a year in interest reduces the cash cushion before the Phase 3 shot readout.
Risks this quarter didn't answer
Three standing financial and operational concerns received no updated figures in the third-quarter earnings release because the detailed tables live in the quarterly filing or conference call.
- US gross-to-net price realization: not in the release; the call and filing notes on discount accruals will show whether hospital and 340B clinic discounts pushed net realization below the mid-60% range.
- Inventory build and foreign supplier concentration: balance sheet inventory was omitted from the release; the quarterly filing will show whether work-in-process inventory kept rising above $193.2 million.
- Exact third-quarter subcutaneous factory charge: management said R&D rose "primarily attributable to subcutaneous manufacturing and secondary manufacturer expenses", and the filing will quantify how much of the ~$100 million annual budget remains for the fourth quarter.
👓 Other Themes
One-Time Tax Release Skewed Year-Ago Net Income
Reported net income fell 86% from a year ago to $55.5 million, or $0.35 per diluted share, only because third-quarter 2025 profit included a one-time $365.0 million tax benefit from releasing a deferred tax valuation allowance. Excluding that accounting gain, third-quarter 2025 net income was $25.9 million by our math, meaning underlying net profit more than doubled (+114%) this quarter despite an $18.4 million tax expense.
💲 Other KPIs
Revenue outside US product sales jumped more than threefold from $8.8 million a year ago, combining $7.4 million in product sales to European partner Neuraxpharm (+15.6%) and $19.9 million in license, royalty, and milestone revenue (+731.6%). A $15.8 million partner milestone drove the increase and supplied over half of TG Therapeutics' sequential revenue gain.
Diluted shares fell 3.2% from 161.0 million a year ago and dropped 0.9% from 157.3 million in the second quarter. The drugmaker has now repurchased 8.9 million shares for $300 million since starting its buyback programs, reducing basic shares outstanding to 140.8 million.
🔮 Guidance
Raised. Management lifted its full-year global sales target by $50 million, which points to 62.3% growth for the year. By our math, that leaves $294.8 million for the fourth quarter, up 53.1% from a year ago compared with 60.7% growth in the third quarter. This is the third raise this year following increases of $37.5 million and $25 million.
Raised. The middle of the US drug sales plan moved up $20 million to $917.5 million, or 54.4% annual growth. By our math, that leaves $262.4 million in the fourth quarter, up 12.8% from the third quarter and up 43.6% from a year ago. It is the third raise of the year (+$55M, +$5M, +$20M), and if the 3.6% quarterly beat pattern holds, Q4 would top $270 million.
Unchanged. The company combined its prior $350–400 million operating cost target and its ~$100 million subcutaneous factory startup budget into a single $450–500 million range, representing 45.0% growth at the middle of the range. By our math, after spending $373.5 million in the first nine months, the plan leaves $101.5 million for the fourth quarter, down from $107.3 million in the third quarter.
❓ Key Questions
Did hospital discounts push net prices below the mid-60% target?
Management previously said net realized prices would average around 65% of list price in 2026. Because the press release omits discount accruals, investors need to know whether hospital and 340B clinic volume widened the gap between prescription volume and net revenue.
How much did subcutaneous factory charges cost in the third quarter?
Research and development spending fell by $44.0 million from the second quarter, when factory startup bills hit $54.6 million. Disclosing the exact third-quarter factory charge will show whether underlying research spending is rising as new Phase 2 trials begin.
What drove the $15.8 million partner milestone, and will it repeat?
Payments from European partner Neuraxpharm jumped to $19.9 million from $4.5 million last quarter. Management has not said which countries or sales targets triggered the $15.8 million milestone, or how much partner revenue is baked into the fourth-quarter plan.
Did BRIUMVI inventory keep building on the balance sheet?
Gross inventory rose by $82.2 million in the first half of 2026 while the company relied on a single foreign bulk drug supplier. The condensed release omits inventory, leaving open whether working capital tied up more cash in the third quarter.