Earnings

Oramed's Third-Quarter Profit Falls as Financial Income Drops

The Tip Desk · November 13, 2026 · 4 min read

Third-quarter 2026 revenue was zero, while net income fell to $18.41 million, or $0.44 a share, as financial income dropped to $31.90 million.

Oramed Pharmaceuticals (ORMP), a strategic healthcare operating company, reported zero revenue and net income of $18.41 million, or $0.44 a share, for the three months ended September 30, 2026. Net income was down from $78.16 million, or $1.90 a share, in the three months ended June 30, 2026.

The decline tracked a sharp drop in financial income. Net financial income was $31.90 million, compared with $103.74 million in the prior quarter.

Against the year-ago quarter, the company said the decrease was primarily due to revaluation losses on Scilex of about $5.90 million versus $34.16 million of gains a year earlier, revaluation losses on Lifeward and Hapisga, the latter mainly attributable to the depreciation of the NIS against the U.S. dollar during the quarter, and lower revaluation gains on other marketable securities. Those items were partly offset by about $41.08 million of Alpha Tau revaluation gains and a fee from Scilex for extending the maturity of its notes. Financial income for the period was largely unrealized, the company said, as it primarily reflects changes in the fair value of investments it holds.

Revenue remained zero, matching the June quarter, after full recognition of deferred revenue under the HTIT license agreement in prior periods. Research and development expenses were also zero, after the March 25, 2026 transfer of the POD technology platform to OraTech, following which related costs are charged to OraTech.

General and administrative expenses were $4.10 million, up from $2.77 million in the June quarter. Operating loss was $4.10 million, wider than the $2.77 million operating loss in the June quarter.

Versus the year-ago quarter, the company said the G&A increase was mainly attributable to about $2.64 million of non-cash stock-based compensation and higher salaries, and that from the second quarter of 2026 stock-based compensation for the chief scientific officer and chief operating officer is recorded in general and administrative expenses rather than research and development. The year-over-year increase in operating loss was primarily attributable to higher general and administrative expenses, partially offset by a decrease in research and development expenses.

Other income, net was $487,000. The company said the increase versus the year-ago quarter was primarily due to income under the Clinical Trial Management Agreement with OraTech.

Tax expense was $9.87 million, mainly deferred tax of about $10.59 million related to the revaluation of the Alpha Tau investment, partly offset by a current tax benefit of about $724,000 mainly attributable to the Scilex notes.

Available cash as of September 30, 2026 was approximately $28.93 million, up from approximately $15.25 million as of June 30, 2026. Working capital surplus was approximately $47.93 million. The company said the decline from year-end 2025 was mainly due to reclassifying the Hapisga loan of about $27.94 million to long-term assets after extending its maturity to April 2028, funding of the Lifeward transaction and other loans, conversion of the Lifeward convertible note into the A&R Note, Scilex revaluation losses, operating cash use, and higher income tax payable.

On October 16, 2026, Oramed entered a letter agreement with Scilex extending payment of the Tranche A and Tranche B notes to November 9, 2026, in exchange for a $1.0 million non-refundable extension fee, of which $250,000 was received at signing and $750,000 is payable November 9, 2026. The fee does not reduce the amounts outstanding under the notes.

On November 6, 2026, the company jointly and severally guaranteed 100% of a $9.00 million mortgage loan to MAR Bailey Avenue LLC, stepping down to 25% once the borrower meets a 1.30x debt service coverage ratio. No payment event had occurred as of November 12, 2026.

The company said it believes it will be able to maintain current planned activities and corresponding expenditures for at least the next 12 months based on current cash resources and commitments.