Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
FY2026 Reported With Onvansertib Review. Cardiff reported a FY2025 loss of $45.8 million or $(0.69) per share and reviewed the clinical data for onvansertib, its drug for RAS-mutated metastatic colorectal cancer (mCRC). Updated plans for Phase 3 are expected after discussions with the FDA during 1H26. On December 31, 2025, Cardiff ended the year with $58.3 million in cash and equivalents, which it believes can fund operations through 1Q27.
Phase 2 CRDF-004 Trial Design. The CDRF-004 Phase 2 trial was designed to test two doses of onvansertib in combination with two standard-of-care (SOC) regimens against each standard of care regimen alone. It enrolled 110 patients with RAS-mutated mCRC. The primary endpoint was objective response rate (ORR).
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Clinical development is inherently capital intensive. As programs move from early-stage studies into Phase 2 and Phase 3 trials, costs typically rise due to expanded enrollment, multi-site coordination, manufacturing scale-up, and regulatory preparation.
Companies such as Eledon Pharmaceuticals, which is advancing immune-modulating therapies, and Cardiff Oncology, focused on targeted oncology treatments including onvansertib, illustrate the type of clinical-stage businesses navigating these funding dynamics. As programs mature, capital planning becomes increasingly tied to milestone timing.
Similarly, Ocugen, with gene therapy and ophthalmology-focused programs, and Cocrystal Pharma, which develops antiviral therapeutics, operate in segments where development timelines and regulatory pathways can require sustained financial flexibility.
Even companies earlier in commercialization strategy development, such as Nutriband, which is advancing transdermal pharmaceutical technologies, must balance product advancement with capital market realities.
These examples reflect a broader sector pattern: advancing innovation requires consistent access to funding.
The Importance of the Catalyst Calendar
Biotech financing windows often open around meaningful clinical or regulatory catalysts. Positive data can strengthen negotiating leverage. But waiting until after results are announced can introduce risk — particularly if broader market conditions shift.
With 2026 shaping up to include a number of anticipated data readouts across the industry, companies are evaluating whether to raise capital ahead of milestones, opportunistically during periods of sector strength, or in response to results.
Preparation matters.
Management teams that establish investor visibility and maintain consistent communication before catalysts emerge may find themselves better positioned if and when market windows open.
M&A Activity Is a Tailwind — Not a Strategy
Large pharmaceutical companies continue to evaluate external pipelines to supplement internal research efforts. Periodic acquisition activity can improve sentiment across small-cap biotech and help reset valuation benchmarks.
However, M&A remains selective and unpredictable. Most clinical-stage companies must plan under the assumption that equity or structured financing will remain the primary funding path.
For investors, that distinction is important.
Why Capital Strategy Matters for Shareholders
In small-cap biotech, capital access influences more than just cash runway. It can affect development pace, trial continuity, partnership leverage, and dilution levels.
A company that secures funding under stable market conditions may retain greater operational flexibility. One that is forced to raise under pressure may encounter less favorable terms.
As 2026 approaches, the differentiator may not simply be who generates data — but who manages capital strategy effectively alongside clinical execution.
Biotech remains data-driven and inherently volatile. Yet improving sector sentiment and a growing milestone calendar suggest that capital formation decisions could play a defining role in shaping outcomes over the next 12–18 months.
For small-cap investors, understanding both the science and the financing strategy may be equally important in the year ahead.
Partnership Expected to Accelerate System Placements and Support Recurring Consumables Revenue Growth
ANN ARBOR, MI / ACCESS Newswire / February 25, 2026 / Zomedica Corp. (OTCQB:ZOMDF) (“Zomedica” or the “Company”), an animal health company offering innovative diagnostic and therapeutic products for equine and companion animals, today announced a commercial distribution agreement with Moichor, a recognized leader in veterinary reference and point-of-care laboratory services across the United States.
Under the agreement, in addition to Zomedica’s own direct placements of TRUVIEW systems in the United States, it will also supply its TRUVIEW digital microscopy systems and associated testing supplies for Moichor’s sale to its point-of-care veterinary customers nationwide. The systems will be co-branded and integrated with Moichor’s proprietary AI engine and board-certified pathology services to support rapid, accurate clinical decision-making in veterinary practices.
Moichor is widely regarded for its expertise in both canine and feline diagnostic services and has established leadership in the exotic animal segment, with placements in numerous exotic veterinary practices throughout the United States. This agreement expands the TRUVIEW platform’s reach into both traditional companion animal practices and specialized exotic animal hospitals.
Each TRUVIEW system placement drives demand for proprietary testing materials and consumables supplied by Zomedica. As systems are adopted across Moichor’s customer base, the Company expects to generate recurring revenue tied to diagnostic utilization.
“Partnering with Moichor represents a meaningful step forward in expanding the commercial footprint of the TRUVIEW microscope,” said Bill Campbell, Zomedica’s Vice President, Imaging. “Moichor’s reputation for pathology excellence and its growing presence in both companion and exotic animal medicine align perfectly with our mission to deliver accessible, high-quality diagnostic solutions at the point of care. By combining digital slide preparation, high-resolution imaging, and integrated pathology support, we are helping practices modernize cytology workflows while maintaining diagnostic confidence.”
Expanding Access to AI-Enhanced Digital Cytology
The TRUVIEW® platform is designed to modernize in-clinic cytology by enabling automated slide preparation and high-resolution digital imaging that can be reviewed locally or shared remotely. Consistent, standardized slide preparation is a critical component of accurate cytologic interpretation. By automating this process, the TRUVIEW system helps reduce variability between samples, minimize the occurrence of unreadable or suboptimal slides, and improve overall diagnostic confidence.
Through this agreement, veterinary customers will utilize Moichor’s proprietary AI engine in combination with its pathology services to help ensure rapid and accurate diagnoses.
By combining TRUVIEW digital microscopy capabilities with Moichor’s AI-enabled workflow and pathology expertise, practices can:
Improve diagnostic turnaround times
Increase confidence in cytology interpretation
Leverage the TRUVIEW microscope’s automated slide preparation to reduce unreadable slides and improve consistency of pathology interpretation
Enhance collaboration between in-clinic teams and pathology specialists
Deliver improved patient care across canine, feline, and exotic species
“We are excited to partner with Zomedica to expand access to advanced digital cytology solutions,” said Joe Faiella, CEO of at Moichor. “The integration of the TRUVIEW platform with our proprietary AI engine and pathology services allows us to provide veterinarians with a seamless, technology-enabled diagnostic experience. Together, we are strengthening point-of-care capabilities while maintaining the high standards of accuracy and service our customers expect.”
The co-branded systems will support Moichor’s expanding point-of-care strategy, allowing practices to integrate advanced digital cytology into their existing workflows while maintaining access to expert pathology oversight.
Strengthening Zomedica’s Recurring Revenue Model
From a strategic perspective, this commercial agreement is expected to contribute to both capital equipment sales and ongoing consumables revenue. As TRUVIEW systems are deployed through Moichor’s customer network, Zomedica will supply the associated consumables, supporting a scalable, recurring revenue stream tied to diagnostic utilization.
“This agreement reflects our disciplined approach to expanding distribution through partners who bring strong clinical credibility and national reach,” said Larry Heaton, Chief Executive Officer of Zomedica. “By integrating Zomedica’s TRUVIEW platform with Moichor’s AI engine and pathology services, we are enhancing the value proposition for veterinarians while strengthening our long-term growth trajectory. We believe that partnerships like this allow us to accelerate adoption, increase recurring revenue, and deliver sustainable value for our shareholders.”
Supporting Innovation in Veterinary Diagnostics
The veterinary diagnostics market continues to evolve as practices seek faster, technology-enabled tools that improve clinical efficiency and elevate standards of care. Digital imaging, artificial intelligence, and remote pathology integration are increasingly shaping the future of in-clinic laboratory services.
Through this agreement, Zomedica and Moichor aim to deliver a comprehensive, technology-driven cytology solution that empowers veterinarians to make informed decisions with speed and confidence-ultimately benefiting both patients and pet owners.
About Zomedica
Zomedica is a leading equine and companion animal health company dedicated to improving animal health by providing veterinarians with innovative therapeutic and diagnostic solutions. Our gold standard PulseVet® shock wave system, which accelerates healing in musculoskeletal conditions, has transformed veterinary therapeutics. Our suite of products also includes the Assisi® line of therapeutic devices, the TRUFORMA® diagnostic platform, the TRUVIEW® digital cytology system, the VETGuardian® PLUS™Zero Touch™ monitoring system, and Vetigel® hemostatic gel, a revolutionary hemostatic agent that rapidly stops bleeding, each designed to empower veterinarians to deliver top-tier care. In the aggregate, their total addressable market in the U.S. exceeds $2 billion. Headquartered in Michigan, Zomedica employs approximately 150 people and manufactures and distributes its products from its world-class facilities in Georgia and Minnesota. Zomedica grew revenue 8% in 2024 to $27 million and maintains a strong balance sheet with approximately $54.4 million in liquidity as of September 30, 2025. Zomedica is advancing its product offerings, leveraging strategic acquisitions, and expanding internationally as we work to enhance the quality of care for pets, increase pet parent satisfaction, and improve the workflow, cash flow and profitability of veterinary practices. For more information visit www.zomedica.com.
Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Cadrenal Announced Phase 2 Data With End-of-Phase-2 Meeting Scheduled. Cadrenal announced data from the Phase 2 trial of its anti-thrombotic CAD-1005 (formerly known as VLX-1005) for HIT, or heparin-induced thrombocytopenia. Cadrenal has also been granted an End-of-Phase 2 meeting with the FDA to discuss the trial results and design of a Phase 3 trial. These are important milestones in the development of CAD-1005.
Phase 2 Produced Unexpected Findings. The Phase 2 trial tested safety and efficacy of CAD-1005 in patients receiving standard anticoagulant therapy. Its Primary Endpoint was designed to show CAD-1005 improved platelet recovery, testing platelet count recovery as a biomarker for thrombosis and outcome. This Primary Endpoint did not meet statistical significance, and did not find a correlation between platelet count normalization and thrombotic events.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Gilead Sciences (Nasdaq: GILD) is doubling down on cell therapy. The Foster City–based biopharma announced it will acquire Arcellx (Nasdaq: ACLX) in a transaction valued at approximately $7.8 billion in equity value, giving Gilead full control of anitocabtagene autoleucel (anito-cel), an investigational BCMA-directed CAR T-cell therapy for multiple myeloma.
Kite, a Gilead company, has partnered with Arcellx since 2022 to co-develop and co-commercialize anito-cel. Under the new agreement, Gilead will acquire all outstanding shares of Arcellx it does not already own for $115 per share in cash, plus one non-transferable contingent value right (CVR) worth $5 per share if cumulative global net sales of anito-cel reach $6.0 billion from launch through year-end 2029.
The $115 cash component represents a 68% premium to Arcellx’s 30-day volume-weighted average share price as of February 20, 2026. Gilead already owns approximately 11.5% of Arcellx’s outstanding common stock. The transaction, approved by both companies’ boards, is expected to close in the second quarter of 2026, subject to customary conditions including the tender of a majority of outstanding shares, regulatory approvals and other standard closing requirements.
If completed, the acquisition would eliminate profit-sharing, milestone payments and royalty obligations tied to the existing collaboration, streamlining economics as Gilead prepares for potential commercialization.
The timing is notable. The U.S. Food and Drug Administration has accepted the Biologics License Application (BLA) for anito-cel as a fourth-line treatment for adult patients with relapsed or refractory multiple myeloma. The application is supported by results from a Phase 1 study and the pivotal Phase 2 iMMagine1 trial. The FDA has set a Prescription Drug User Fee Act (PDUFA) target action date of December 23, 2026.
In clinical studies to date, anito-cel has demonstrated deep and durable responses with a predictable and manageable safety profile, according to company disclosures. Multiple myeloma remains an area of high unmet need, particularly among heavily pretreated patients who often face diminishing responses, increasing toxicity and fewer therapeutic options over time.
Full ownership provides Gilead with greater flexibility to align development strategy, scale manufacturing through Kite, and potentially explore expansion into earlier lines of therapy, subject to clinical outcomes and regulatory review.
Beyond anito-cel, Gilead is also acquiring Arcellx’s D-Domain CAR platform, which has generated proprietary target-binding domains designed to improve specificity and binding affinity. The platform may support future CAR T-cell programs, bispecific constructs and in vivo cell therapy approaches, further strengthening Gilead’s oncology pipeline.
Management indicated that, upon FDA approval of anito-cel, the proposed transaction is expected to be accretive to earnings per share in 2028 and thereafter.
For investors, the acquisition highlights a broader trend in large-cap biotech capital deployment. Established companies are increasingly seeking full ownership of late-stage oncology assets to simplify economics, reduce long-term partnership obligations and consolidate strategic control ahead of potential commercialization milestones.
Cell therapy remains one of the most capital-intensive areas of oncology, requiring specialized manufacturing, logistics and commercial infrastructure. Gilead’s move signals confidence in both the asset and its ability to integrate development and commercialization within its existing cell therapy platform.
The next key inflection point will be the FDA’s review decision later this year, which will shape the commercial trajectory of anito-cel and the long-term impact of the acquisition.
Cocrystal Pharma, Inc. is a clinical-stage biotechnology company discovering and developing novel antiviral therapeutics that target the replication process of influenza viruses, coronaviruses (including SARS-CoV-2), hepatitis C viruses and noroviruses. Cocrystal employs unique structure-based technologies and Nobel Prize-winning expertise to create first- and best-in-class antiviral drugs. For further information about Cocrystal, please visit www.cocrystalpharma.com.
Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
CDI-988 Data Selected For Presentation At ICAR. Cocrystal announced that it has been selected to present data from its Phase 1 clinical trial and updates from the ongoing Phase 1b challenge study testing CDI-988 against norovirus infection at the 38th International Conference on Antiviral Research, to be held April 27 to May 1 in Prague, Czech Republic. We see the presentation at this important conference as recognition of the potential of CDI-988 for an indication that has serious medical and economic consequences.
Phase 1 and 1b Data Expected. We expect Dr. Sam Lee, President and Co-CEO, to present initial Phase 1 safety and tolerability data. Previously announced data from the single ascending dose (SAD) and multiple ascending dose (MAD) study showed safety and tolerability across all dose cohorts tested. Additional data from the ongoing Phase 1b norovirus challenge study testing CDI-988 as both a prophylactic and therapeutic may also be included.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Hims & Hers Health, Inc. has announced a definitive agreement to acquire Eucalyptus in a transaction valued at up to $1.15 billion, marking one of the most significant global expansion moves in the consumer telehealth sector to date. The deal positions Hims & Hers to accelerate its ambition of becoming the leading global consumer health platform, extending its reach well beyond the United States.
Under the terms of the agreement, approximately $240 million will be paid in cash at closing, with the remaining consideration structured as deferred payments and performance-based earnouts through early 2029. The company has emphasized that the transaction is designed to preserve balance sheet flexibility, with most of the funding expected to come from existing cash reserves and future U.S. operating cash flows. The acquisition is subject to regulatory approvals and is anticipated to close in mid-2026.
The strategic logic behind the transaction is straightforward: scale, infrastructure, and international expertise. Eucalyptus operates a portfolio of digital health brands across Australia, the United Kingdom, Germany, Japan, and Canada, and has served more than 775,000 customers. With an annual revenue run-rate exceeding $450 million and triple-digit year-over-year ARR growth throughout 2025, Eucalyptus brings both growth momentum and operational discipline to the combined platform.
For Hims & Hers, whose U.S. platform has built a reputation for direct-to-consumer access to personalized treatments across areas such as mental health, dermatology, sexual health, and weight management, the deal creates a ready-made international footprint. Rather than entering new markets from scratch, the company gains regulatory expertise, localized clinical infrastructure, and established consumer brands in key geographies.
Chief Executive Officer Andrew Dudum framed the acquisition as the next logical step in the company’s evolution, emphasizing that while healthcare challenges are universal, solutions must be tailored regionally. By integrating Eucalyptus’ local operating model with Hims & Hers’ technology platform and brand infrastructure, the company aims to expand access to personalized care globally while maintaining clinical quality and compliance standards.
Eucalyptus’ credibility adds weight to the expansion strategy. The company has facilitated nearly two million consultations and has published more than 20 peer-reviewed studies examining patient outcomes and adherence. It is also the first Australian telehealth provider accredited by the Australian Council on Healthcare Standards, underscoring its regulatory and clinical rigor.
Leadership continuity appears central to the integration plan. Eucalyptus CEO Tim Doyle will join Hims & Hers as Senior Vice President of International, overseeing global operations outside the U.S. His experience scaling digital healthcare businesses across multiple regulatory environments is expected to be instrumental as the company pushes deeper into Europe and Asia-Pacific markets.
From a competitive standpoint, the acquisition strengthens Hims & Hers’ position as pharmaceutical manufacturers, biotech firms, and diagnostic companies increasingly seek scalable digital distribution partners. The combined entity will offer capabilities ranging from online pharmacy fulfillment to concierge-style telehealth services, broadening its appeal across therapeutic categories.
If successfully executed, the deal could establish category leadership in Australia and meaningfully expand market share in the UK and Germany within the next two years. More broadly, it signals that consumer-centric digital health platforms are entering a new phase of consolidation and global ambition.
For investors and industry observers alike, this transaction is less about short-term expansion and more about building infrastructure for long-term dominance in global consumer healthcare.
Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.
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PrimeC Demonstrates Survival Benefit and 65% Mortality Risk Reduction. NeuroSense announced a Post-Phase 2b Analysis of its trial testing PrimeC in ALS. New data shows PrimeC patients had an additional 14 months (about 70%) survival with 65% reduction in risk of death. These improvements in overall survival correlate with previous Phase 2b Paradigm data that showed improvements in several endpoints of function, biomarkers, and survival.
New Data Shows Continued Improvement In Survival. The newly released data show the PrimeC treated patients had a median survival benefit of 36.3 months compared with 21.4 months for the group that received placebo then PrimeC during the extension study. This improvement of about 14.9 months was a benefit of 70% in survival. The Hazard Ratio (HR, the probability of an event occurring) reduced risk of death by 65% (p=0.0037).
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Weight-loss drugs have moved from niche medical treatments to mainstream consumer products. Television commercials, celebrity endorsements, and telehealth platforms have helped propel GLP-1–based therapies into the public consciousness — and into millions of medicine cabinets.
But as demand has surged, so have tensions across the healthcare, regulatory, and investment landscape.
That tension came sharply into focus today after Hims & Hers Health, Inc. (HIMS) shares fell more than 20% following news that Novo Nordisk has filed a lawsuit seeking to permanently block Hims from selling compounded versions of drugs that allegedly infringe on Novo’s patents — including versions tied to Wegovy, its blockbuster obesity treatment.
The dispute highlights a broader reckoning underway in the fast-growing — and fast-changing — obesity drug market.
A Market Built on Demand — and a Regulatory Loophole
GLP-1 drugs such as Wegovy (Novo Nordisk) and Zepbound/Mounjaro (Eli Lilly) have reshaped expectations around medical weight loss. Unprecedented demand led analysts to project a global obesity drug market of $150 billion to $200 billion by the early 2030s.
But demand quickly ran into supply constraints, high prices, and limited insurance coverage. That gap created an opening for compounded versions of GLP-1 drugs — products mixed by pharmacies and prescribed on a case-by-case basis under the Federal Food, Drug, and Cosmetic Act.
Under U.S. law, compounding is permitted in limited circumstances, such as:
When a patient cannot tolerate an ingredient in a branded drug
When a specific dosage or formulation is medically necessary
When an FDA-approved drug is in short supply
Novo has estimated that as many as 1.5 million Americans are currently using compounded GLP-1 drugs.
Telehealth companies like Hims moved aggressively into this space, marketing lower-cost alternatives to branded therapies — often directly to cash-pay consumers.
Novo vs. Hims: From Tension to Litigation
Novo Nordisk’s lawsuit represents a major escalation.
The company is asking the court to:
Permanently ban Hims from selling compounded versions of its drugs
Recover damages for alleged patent infringement
Novo argues that Hims’ compounded products contain semaglutide, the active ingredient in Wegovy, which is protected by U.S. patents through 2032. Importantly, Novo has stated that semaglutide is no longer in short supply in the U.S. — undermining one of the key legal justifications for compounding.
Hims, for its part, has argued that its products are legal because they are “personalized” in dosage. The company had planned to offer an oral obesity pill for as little as $49 for the first month, roughly $100 less than Novo’s approved Wegovy pill.
However, the pressure intensified last week when:
Hims said it would stop offering its newly launched obesity pill copycat
The FDA announced it planned to take legal action against Hims
Federal regulators said they would restrict access to GLP-1 ingredients used in non-approved compounded drugs
The FDA indicated it may refer the matter to the Department of Justice over potential violations of federal law
In a public statement, Hims called Novo’s lawsuit “a blatant attack by a Danish company on millions of Americans who rely on compounded medications for access to personalized care,” accusing Big Pharma of weaponizing the U.S. judicial system to limit consumer choice.
FDA Scrutiny Raises the Stakes
The FDA has made clear it is increasingly concerned about the quality, safety, and legality of compounded GLP-1 products.
Unlike branded drugs:
Compounded drugs are not FDA-approved
They have not undergone clinical trials to demonstrate efficacy
Oversight is more fragmented
According to legal experts, potential FDA enforcement actions could include:
Warning letters
Court injunctions (with DOJ involvement)
Administrative seizure of products
Novo and Eli Lilly have both taken aggressive steps over the past two years to crack down on compounding pharmacies and marketers. Novo has reportedly filed around 130 lawsuits related to deceptive marketing practices and consumer fraud, while Lilly has pursued similar actions tied to tirzepatide, its active ingredient.
Investors Reassess the Obesity Drug Opportunity
Beyond the immediate legal headlines, the episode underscores a broader shift in how Wall Street views the obesity drug market.
While demand remains strong, expectations around pricing power and long-term market size are being recalibrated:
Forecasts for the global obesity market have fallen roughly 30%, to around $100 billion by 2030
The once-common $150 billion target has been pushed out to 2035 by some analysts
Jefferies recently cut its peak market estimate by 20%, projecting a peak of $80 billion
As Jefferies analyst Michael Leuchten put it: “That $150 billion pie is gone, even if you’re very bullish on volumes.”
Competition is intensifying as well. Novo and Lilly remain the dominant players, but falling U.S. prices, the expected entry of new drugs, and eventual generic competition are reshaping the outlook — particularly in the cash-pay consumer segment.
What This Means Going Forward
For consumers, the crackdown on compounding could limit access to lower-cost alternatives — at least in the near term.
For telehealth companies, the legal and regulatory risks around drug development and distribution are becoming harder to ignore.
And for investors, the GLP-1 market is entering a new phase: one where growth remains substantial, but margins, market share, and timelines are far less certain than they appeared just a year ago.
The obesity drug boom is real. But as the fight between Novo Nordisk, Hims, the FDA, and regulators shows, the path forward will be shaped as much by courts and policymakers as by science and demand.
Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
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Fiscal Q2 results. SelectQuote reported fiscal Q2 revenue of $537.1 million, above our $520.0 million estimate, driven by stronger-than-expected Senior performance. Adj. EBITDA of $84.7 million exceeded our $82.0 million forecast, reflecting near-record 39% adj. EBITDA margins in Senior that more than offset pharmacy reimbursement pressure.
Medicare Advantage headwinds. Management cited pressure from a large national carrier’s decision to reduce strategic marketing spend across all channels. We believe this reflects a deliberate effort to moderate enrollment growth and protect plan profitability following above-trend member additions, rather than any deterioration in underlying demand.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Second Quarter of Fiscal Year 2026 – Consolidated Earnings Highlights
Revenue of $537.1 million
Net income of $69.3 million
Adjusted EBITDA* of $84.7 million
Fiscal Year 2026 Guidance Ranges:
Revenue expected in a range of $1.61 billion to $1.71 billion
Adjusted EBITDA* expected in a range of $90 million to $100 million
Second Quarter Fiscal Year 2026 – Segment Highlights
Senior
Revenue of $261.5 million
Adjusted EBITDA of $102.5 million
Approved Medicare Advantage policies of 257,279
Healthcare Services
Revenue of $230.7 million
Adjusted EBITDA of $0.8 million
113,483 SelectRx members
Life
Revenue of $43.6 million
Adjusted EBITDA of $5.6 million
OVERLAND PARK, Kan.–(BUSINESS WIRE)– SelectQuote, Inc. (NYSE: SLQT) reported consolidated revenue for the second quarter of fiscal year 2026 of $537.1 million compared to consolidated revenue for the second quarter of fiscal year 2025 of $481.1 million. Consolidated net income for the second quarter of fiscal year 2026 was $69.3 million compared to consolidated net income for the second quarter of fiscal year 2025 of $53.2 million. Finally, consolidated Adjusted EBITDA* for the second quarter of fiscal year 2026 was $84.7 million compared to consolidated Adjusted EBITDA* for the second quarter of fiscal year 2025 of $87.5 million.
Tim Danker, SelectQuote Chief Executive Officer, “This year’s AEP again highlighted the strength and consistency of SelectQuote’s operating model. Despite continued volatility in Medicare Advantage benefit structures, our team delivered another season of high‑quality execution, with strong agent productivity and marketing efficiency driving 39% Adjusted EBITDA* margins for our Senior business. At the same time, our rapidly growing Healthcare Services segment, led by SelectRx, continues to provide meaningful clinical value for members and attractive long‑term economics for our platform. The combination of improved medication adherence, lower waste, and better patient outcomes reinforces SelectRx as an increasingly important driver of value creation for the company and broader pharmacy ecosystem.
Our revised fiscal 2026 guidance reflects two discrete, partner‑driven headwinds: a national carrier’s decision to constrain additional MA policy volume by curtailing strategic marketing spend across all channels, and the previously communicated PBM reimbursement changes. Neither impact related to our internal performance, which remained strong. While these developments are frustrating, they do not alter our conviction in the long‑term earnings power of SelectQuote’s comprehensive healthcare platform.
What continues to give us confidence is the consistency of our underlying operational execution. Regardless of the market backdrop, our teams have demonstrated the ability to drive efficiency, deliver value for partners and beneficiaries, and maintain strong margin discipline. Coupled with our improved balance sheet flexibility, we believe this operational consistency positions SelectQuote to deliver meaningful cash‑flow generation for shareholders in the quarters and years ahead.”
* See “Non-GAAP Financial Measures” below.
Segment Results
We currently have three reportable segments: 1) Senior, 2) Healthcare Services and 3) Life. The performance measures of the segments include total revenue and adjusted EBITDA. Costs of commissions and other services revenue, cost of goods sold-pharmacy revenue, marketing and advertising, selling, general, and administrative, and technical development operating expenses that are directly attributable to a segment are reported within the applicable segment. Indirect costs of revenue, marketing and advertising, selling, general, and administrative, and technical development operating expenses are allocated to each segment based on varying metrics such as headcount.
Senior
Financial Results
The following table provides the financial results for the Senior segment for the periods presented:
Operating Metrics
Submitted Policies
Submitted policies are counted when an individual completes an application with our licensed agent and provides authorization to the agent to submit the application to the insurance carrier partner. The applicant may have additional actions to take before the application will be reviewed by the insurance carrier.
The following table shows the number of submitted policies for the periods presented:
Approved Policies
Approved policies represents the number of submitted policies that were approved by our insurance carrier partners for the identified product during the indicated period. Not all approved policies will go in force.
The following table shows the number of approved policies for the periods presented:
Lifetime Value of Commissions per Approved Policy
Lifetime value of commissions per approved policy represents commissions estimated to be collected over the estimated life of an approved policy based on multiple factors, including but not limited to, contracted commission rates, carrier mix and expected policy persistency with applied constraints. The lifetime value of commissions per approved policy is equal to the sum of the commission revenue due upon the initial sale of a policy, and when applicable, an estimate of future renewal commissions.
The following table shows the lifetime value of commissions per approved policy for the periods presented:
Healthcare Services
Financial Results
The following table provides the financial results for the Healthcare Services segment for the periods presented:
Operating Metrics
Members
The total number of SelectRx members represents the amount of active customers to which an order has been shipped and the prescriptions per day represents the total average prescriptions shipped per business day. These two metrics are the primary drivers of revenue for Healthcare Services.
The following table shows the total number of SelectRx members as of the periods presented:
The total number of SelectRx members increased by 17% as of December 31, 2025, compared to December 31, 2024, due to our strategy to grow SelectRx membership.
The following table shows the average prescriptions shipped per day for the periods presented:
Combined Senior and Healthcare Services – Consumer Per Unit Economics
Combined Senior and Healthcare Services consumer per unit economics represents total MA and MS commissions; other product commissions; other revenues, including revenues from Healthcare Services; and operating expenses associated with Senior and Healthcare Services, each shown per number of approved MA and MS policies over a given time period. Management assesses the business on a per-unit basis to help ensure that the revenue opportunity associated with a successful policy sale is attractive relative to the marketing acquisition cost. Because not all acquired leads result in a successful policy sale, all per-policy metrics are based on approved policies, which is the measure that triggers revenue recognition.
The MA and MS commission per MA/MS policy represents the LTV for policies sold in the period. Other commission per MA/MS policy represents the LTV for other products sold in the period, including DVH prescription drug plan, and other products, which management views as additional commission revenue on our agents’ core function of MA/MS policy sales. Pharmacy revenue per MA/MS policy represents revenue from SelectRx, and other revenue per MA/MS policy represents revenue from Population Health, production bonuses, marketing development funds, lead generation revenue, and adjustments from the Company’s reassessment of its cohorts’ transaction prices. Total operating expenses per MA/MS policy represents all of the operating expenses within Senior and Healthcare Services. The revenue to customer acquisition cost (“CAC”) multiple represents total revenue as a multiple of total marketing acquisition cost, which represents the direct costs of acquiring leads. These costs are included in marketing and advertising expense within the total operating expenses per MA/MS policy.
The following table shows combined Senior and Healthcare Services consumer per unit economics for the periods presented. Based on the seasonality of Senior and the fluctuations between quarters, we believe that the most relevant view of per unit economics is on a rolling 12-month basis. All per MA/MS policy metrics below are based on the sum of approved MA/MS policies, as both products have similar commission profiles.
Total revenue per MA/MS policy increased 23% for the twelve months ended December 31, 2025, compared to the twelve months ended December 31, 2024, primarily due to the increase in pharmacy revenue. Total operating expenses per MA/MS policy increased 31% for the twelve months ended December 31, 2025, compared to the twelve months ended December 31, 2024, driven by an increase in cost of goods sold-pharmacy revenue for Healthcare Services due to the growth of the business.
Life
Financial Results
The following table provides the financial results for the Life segment for the periods presented:
Operating Metrics
Life premium represents the total premium value for all policies that were approved by the relevant insurance carrier partner and for which the policy document was sent to the policyholder and payment information was received by the relevant insurance carrier partner during the indicated period. Because our commissions are earned based on a percentage of total premium, total premium volume for a given period is the key driver of revenue for our Life segment.
The following table shows term and final expense premiums for the periods presented:
Earnings Conference Call
SelectQuote, Inc. will host a conference call with the investment community on February 5, 2025 beginning at 8:00 a.m. ET. To register for this conference call, please use this link: https://events.q4inc.com/analyst/199368355?pwd=c0a3KINj. After registering, a confirmation will be sent via email, including dial-in details and unique conference call codes for entry. Registration is open through the live call, but to ensure you are connected for the full call we suggest registering at least 10 minutes before the start of the call. The event will also be webcasted live via our investor relations website https://ir.selectquote.com/investor-home/default.aspx.
Non-GAAP Financial Measures
This release includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. To supplement our financial statements presented in accordance with GAAP and to provide investors with additional information regarding our GAAP financial results, we have presented in this release Adjusted EBITDA, which, when presented on a consolidated basis, is a non-GAAP financial measure. This non-GAAP financial measure is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to any similarly titled measure presented by other companies. We define Adjusted EBITDA as net income (loss) plus interest expense, income taxes, depreciation and amortization, changes in fair value of warrant liabilities, and certain add-backs for non-cash or non-recurring expenses, including restructuring and share-based compensation expenses. The most directly comparable GAAP measure is net income (loss). We monitor and have presented in this release Adjusted EBITDA because it is a key measure used by our management and Board of Directors to understand and evaluate our operating performance, establish budgets, and develop operational goals for managing our business. In particular, we believe that excluding the impact of these expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core operating performance.
A reconciliation of the differences between Adjusted EBITDA and its most directly comparable GAAP measure, net income (loss), is presented below on page 15. The Company is unable to provide a quantitative reconciliation of forward-looking Adjusted EBITDA to its most directly comparable GAAP measure without unreasonable effort because it is not possible to predict certain information included in the calculation of such GAAP measure, including the fair value of outstanding warrants to purchase shares of the Company’s common stock. The unavailable information could have a significant impact on the Company’s GAAP financial results.
Forward Looking Statements
This release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: our reliance on a limited number of insurance carrier partners and any potential termination of those relationships or failure to develop new relationships; existing and future laws and regulations affecting the health insurance market; changes in health insurance products offered by our insurance carrier partners and the health insurance market generally; insurance carriers offering products and services directly to consumers; changes to commissions paid by insurance carriers and underwriting practices; competition with brokers, exclusively online brokers and carriers who opt to sell policies directly to consumers; competition from government-run health insurance exchanges; developments in the U.S. health insurance system; our dependence on revenue from carriers in our senior segment and downturns in the senior health as well as life, automotive and home insurance industries; our ability to develop new offerings and penetrate new vertical markets; risks from third-party products; failure to enroll individuals during the Medicare annual enrollment period; our ability to attract, integrate and retain qualified personnel; our dependence on lead providers and ability to compete for leads; failure to obtain and/or convert sales leads to actual sales of insurance policies; access to data from consumers and insurance carriers; accuracy of information provided from and to consumers during the insurance shopping process; cost-effective advertisement through internet search engines; ability to contact consumers and market products by telephone; global economic conditions, including inflation; disruption to operations as a result of future acquisitions; significant estimates and assumptions in the preparation of our financial statements; impairment of goodwill; potential litigation and other legal proceedings or inquiries; our existing and future indebtedness; our ability to maintain compliance with our debt covenants; access to additional capital; failure to protect our intellectual property and our brand; fluctuations in our financial results caused by seasonality; accuracy and timeliness of commissions reports from insurance carriers; timing of insurance carriers’ approval and payment practices; factors that impact our estimate of the constrained lifetime value of commissions per policyholder; changes in accounting rules, tax legislation and other legislation; disruptions or failures of our technological infrastructure and platform; failure to maintain relationships with third-party service providers; cybersecurity breaches or other attacks involving our systems or those of our insurance carrier partners or third-party service providers; our ability to protect consumer information and other data; failure to market and sell Medicare plans effectively or in compliance with laws; and other factors related to our pharmacy business, including manufacturing or supply chain disruptions, access to and demand for prescription drugs, changes in reimbursement rates under our contracts with pharmacy benefit managers, and regulatory changes or other industry developments that may affect our pharmacy operations. For a further discussion of these and other risk factors that could impact our future results and performance, see the section entitled “Risk Factors” in the most recent Annual Report on Form 10-K (the “Annual Report”) and subsequent periodic reports filed by us with the Securities and Exchange Commission. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
About SelectQuote:
Founded in 1985, SelectQuote (NYSE: SLQT) pioneered the model of providing unbiased comparisons from multiple, highly-rated insurance companies, allowing consumers to choose the policy and terms that best meet their unique needs. Two foundational pillars underpin SelectQuote’s success: a strong force of highly-trained and skilled agents who provide a consultative needs analysis for every consumer, and proprietary technology that sources and routes high-quality leads. Today, the Company operates an ecosystem offering high touchpoints for consumers across insurance, pharmacy, and virtual care.
With an ecosystem offering engagement points for consumers across insurance, Medicare, pharmacy, and value-based care, the company now has three core business lines: SelectQuote Senior, SelectQuote Healthcare Services, and SelectQuote Life. SelectQuote Senior serves the needs of a demographic that sees around 10,000 people turn 65 each day with a range of Medicare Advantage and Medicare Supplement plans. SelectQuote Healthcare Services is comprised of the SelectRx Pharmacy, a Patient-Centered Pharmacy Home™ (PCPH) accredited pharmacy, SelectPatient Management, a provider of chronic care management services, and Healthcare Select which proactively connects consumers with a wide breadth of healthcare services supporting their needs.
Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Phase 1b Data For Second Year After Transplantation Presented. Eledon presented data from its Phase 1b trial at the American Society of Transplant Surgeons (ASTS) meeting in January 2026. The presentation included data from 8 patients that had reached 24 months after transplantation, compared with 12 patients evaluated 12 months after transplantation presented in August 2025. These new data show a continued improvement in kidney function during the second year.
New Data Show Durability With Improvements. The 24-month data shows eGFR in tegoprubart patients continued to improve during months 12 to 24 after transplantation. The eGFR levels were restored to normal levels within 1 month after transplantation and were maintained for up to 2 years. Although this is a small number of patients, we see the result as consistent with prior data and our expectations for organ survival.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Unicycive Announced FDA Acceptance Of The NDA. Unicycive announced FDA acceptance of its resubmission of the New Drug Application (NDA) for OLC (oxylanthanum citrate). The resubmitted application has been classified as a Class II complete response, with a six-month review period. June 29, 2026 is the new PDUFA date, the statutory date for the application to be answered. This is consistent with our expected timeframe for OLC approval and launch.
We See NDA Acceptance As A Significant Milestone. In June 2025, an FDA manufacturing inspection found compliance deficiencies at the facility of a contract manufacturer. This stopped the NDA approval process just weeks before the PDUFA (Prescription Drug User Fee Act) date of June 28, 2025. The review of the preclinical, clinical, safety, and manufacturing data had been completed. We believe this will result in prompt approval.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
