Liquidia Corporation (LQDA) Earnings

Management highlights

### Commercial Launch Performance of Utrepia * As of July 31, 2026, Utrepia has ~5,900 unique patient prescriptions, over 5,000 patients initiated on therapy, and more than 1,100 prescribing physicians, with 30% of these physicians having prescribed Utrepia to five or more patients. * The total inhaled prostacyclin market grew 6% quarter-over-quarter to $607 million in Q2 2026, while oral, infused, and competing inhaled formulations saw flat to declining usage. Utrepia is capturing the majority of new patient starts in the inhaled tryprosinil market. * Utrepia's success is attributed to its differentiated inhaled dry powder delivery, which delivers better tolerability that enables higher dosing, driving greater efficacy and durable clinical benefit, a relationship demonstrated in its 24-week ASSENT study. ### Pipeline Progress * L606, a twice-daily follow-on candidate to the four-times-daily Utrepia, has demonstrated broad dose titration with low adverse event burden, including the lowest reported cough incidence in any inhaled prostacyclin study, and maintains peak clinical benefit across the full dosing interval. * Between Utrepia and L606, Liquidia has 10 clinical studies either ongoing or planned to launch within the next 12 months across multiple indications. * The Phase 3 RESPIRE trial for L606 is already enrolling patients and is on track to meet its timeline. A new study of Utrepia in progressive pulmonary fibrosis (PPF) and idiopathic pulmonary fibrosis (IPF) is planned to initiate in H1 2027. ### Financial Performance * Liquidia has delivered four consecutive quarters of increasing profitability, swinging from a net loss in Q2 2025 to positive net income in Q2 2026. * Q2 2026 net income reached ~$74.7 million, and non-GAAP adjusted EBITDA was ~$96.3 million. * Cash and cash equivalents grew by $61.4 million quarter-over-quarter to $284.2 million, and has increased by nearly $93.5 million since the start of 2026, demonstrating operating leverage.

Guidance

• Liquidia maintains its prior guidance of exceeding $1 billion in net revenue for Utrepia in 2027, based on the continued linear trajectory of new patient starts and commercial growth. • R&D expense is expected to double in H2 2026 compared to H1 2026, and will increase again in 2027 to support pipeline expansion and multiple new and ongoing clinical studies. • SG&A expense will increase as commercial operations scale, with most expense components moving proportionally with Utrepia revenue growth, to support the expanded sales force launched in June 2026 and additional patient support services.

Segment performance

Liquidia only has one approved commercial product, Utrepia, which contributed 100% of the firm's net product revenue in Q2 2026. Net product sales of Utrepia were $170.4 million, representing a 31% quarter-over-quarter increase, and Utrepia's sales have more than tripled over the prior three quarters. As of Q2 2026, Utrepia captures approximately 30% of the total inhaled prostacyclin market, and Utrepia's quarterly growth alone exceeded the total growth of the entire inhaled prostacyclin category this quarter.

Risks & headwinds

• All forward-looking statements regarding clinical trial results, future revenue, and product performance are subject to inherent risks and uncertainties that could cause actual results to differ materially, as detailed in Liquidia's SEC filings. • There is uncertainty around the outcome of the ongoing 327 patent litigation; a ruling against Liquidia could result in outcomes ranging from royalty obligations to an injunction that blocks product commercialization. No updated timeline for the decision is available beyond an expectation that a ruling could come at any time, and management has not changed its assessment of the range of potential outcomes. • Cross-study comparisons of L606 to competing candidates have inherent limitations due to differences in patient populations, baseline patient characteristics, and background standard of care, so efficacy comparisons cannot be confirmed until L606's Phase 3 trial is completed.

Analyst Q&A

• Q: What efficacy signal is needed for the REWARM-Reynolds study to move to registrational development, what is the rationale for the low-dose arm, and what clinical advantage does L606 have over other long-acting inhaled prostacyclin candidates, and how will Phase 3 validate this? /

  A: The REWARM study evaluates Utrepia in systemic sclerosis-associated Raynaud's phenomenon, a condition with no FDA-approved therapies, where existing off-label prostacyclins are limited by poor tolerability. The study compares low versus maximally titrated Utrepia doses to assess tolerability and clinical response to inform Phase 3 design; management expects a similar dosing profile to PAH/PHLD will ultimately be used. For L606, management's core paradigm is tolerability enables higher achievable dosing, which drives better efficacy. Cross-trial data shows a much higher share of L606 patients reach equivalent or higher doses compared to competitor TPIP, supporting that L606's tolerability advantage will translate to better clinical outcomes in Phase 3.

• Q: What is the balance of the expanded sales force between deepening existing prescriber relationships and expanding the prescriber base, what is the current state of payer coverage, and what is the update on the 327 trial litigation outcome timing and range of outcomes? /

  A: The sales expansion creates opportunity for both deepening engagement with current prescribers at PAH/PHLD centers and expanding reach into community settings where many undiagnosed patients reside. Payer coverage is currently at parity with competitors, with broad availability, so growth is now driven by product choice rather than access barriers. For the 327 patent litigation, the range of potential outcomes remains unchanged, from unimpeded continued commercialization if Liquidia prevails, to royalty arrangements or a potential injunction if ruled against. No internal visibility into the judge's process exists, but management expects a decision any day based on typical timelines for the court, and remains confident in its legal position.

• Q: Utrepia's new patient acceleration is currently mid-single digit quarter-over-quarter; what is the expected growth trajectory for the remainder of the year and long term? /

  A: Utrepia has maintained a steady linear trajectory of new referrals and patient starts since launch 14 months prior. The expanded sales force and new patient support investments are expected to maintain this current trajectory, which supports management's confidence in hitting over $1 billion in 2027 net revenue.

• Q: Is Utrepia growth mostly from category expansion or switching from competitors, what is the level of new patient contribution from patients with comorbid IPF, and what is patient adherence like for early Utrepia patients? /

  A: Both switching from competitors (other inhaled brands, oral and parenteral prostacyclins) and category expansion are occurring. Growth is primarily driven by prescribers now choosing Utrepia as the first-line prostacyclin over competing products, and the total inhaled prostacyclin market is expanding driven by Utrepia's launch. Comorbid IPF is not yet driving meaningful on-label market expansion, though future expansion is expected. Discontinuation rates from intolerance are lower than competitors because of Utrepia's better tolerability, with most intolerance-related discontinuations occurring within 1-3 months of initiation. Overall attrition includes expected patient mortality due to the life-threatening nature of the underlying disease, and there are no concerning adherence or discontinuation trends to date.