Phathom Posts Second Straight Quarter of Operating Cash Flow

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter net revenue reached $84.7 million, up 71% from a year earlier, as the company kept 2026 guidance at $310 million to $325 million.

Phathom Pharmaceuticals (PHAT), a biopharmaceutical company focused on gastrointestinal treatments, reported third-quarter net revenues of $84.7 million, up 71% from $49.5 million a year earlier, and said it generated positive operating cash flow for the second consecutive quarter.

Sequential growth slowed. Second-quarter revenue of $74.3 million had risen 88% year over year and 27% sequentially. The company attributed the third-quarter increase to continued growth from execution of its commercial strategy.

About 380,000 VOQUEZNA prescriptions were filled in the third quarter, including approximately 248,000 covered prescriptions and 132,000 cash-pay prescriptions. Covered volume accounted for about 65% of the quarter and increased approximately 19% sequentially; cash-pay volume increased approximately 6%. Total prescriptions filled since launch passed 2 million through October 16, 2026, after the first million had taken just over two years. At the end of the quarter, Phathom introduced a BlinkRx copay offering under which eligible commercially insured patients may pay as little as $0.

GAAP net loss narrowed to $13.9 million, or $0.16 a share, from $30.0 million, or $0.41 a share, a year earlier. Non-GAAP adjusted results swung to $3.0 million of income, or $0.04 a share, from an $11.2 million adjusted net loss, or $0.15 a share.

Operating expenses were $66.4 million, including $5.9 million of stock-based compensation versus $9.3 million a year earlier. Non-GAAP operating expenses excluding stock-based compensation were $60.5 million. Selling, general and administrative expenses were $57.7 million, which the company said was primarily due to higher promotional and personnel-related expenses. Research and development expenses were $8.7 million, primarily from higher clinical development and regulatory costs.

Cash and cash equivalents were $184.6 million as of September 30, 2026, an increase of $2.1 million versus June 30. Phathom said it continues to believe cash on hand plus anticipated future cash from operations will be sufficient to invest in the business and satisfy outstanding debt without additional financing.

On September 29, 2026, the company initiated pHalcon-NERD-302, a registrational Phase 3 study of VOQUEZNA for as-needed use in non-erosive GERD. The first subject had been dosed and sites were enrolling across the United States. Topline results are expected in the first quarter 2028. The second-quarter release had only planned initiation, with first-subject enrollment expected in the fourth quarter of 2026. Phathom said that if successful, the program could support a potential label expansion.

The company also expects to report topline results during the fourth quarter 2026 for the 12-week blinded treatment portion of its Phase 2 pHalcon-EoE-201 trial in eosinophilic esophagitis.

On October 26, 2026, the U.S. District Court for the District of Columbia granted Phathom’s motion to intervene in litigation filed by BDR Pharmaceuticals against the FDA regarding VOQUEZNA’s regulatory exclusivity. On October 23, 2026, the FDA opened a public comment docket, with comments due November 23, 2026. Phathom said it believes the FDA correctly recognized 10 years of NCE exclusivity for VOQUEZNA tablets through May 3, 2032, and that it intends to defend those exclusivities.

Phathom is maintaining full-year 2026 guidance of $310 million to $325 million of net revenue, a 55% to 59% gross-to-net discount, about 80% gross margin, and $235 million to $245 million of non-GAAP operating expenses excluding stock-based compensation.