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Kiniksa reported Q3 FY2026 revenue of $286.0 million, above the consensus estimate of $259.5 million. Quarterly earnings of $0.56 per share also exceeded the consensus estimate of $0.32 per share.
The company reported revenue of $180.9 million a year earlier. Its filing attributed the increase in ARCALYST sales primarily to more patients on therapy. Diluted earnings per share rose from $0.23 in the year-ago quarter to $0.56.
Kiniksa’s gross margin rose to 90.3% from 88.8%, while its operating margin rose to 19.0% from 13.3%. The filing said collaboration expenses increased primarily with ARCALYST revenue, while selling, general and administrative costs rose with headcount and promotional spending.
Free cash flow was $47.4 million, compared with $33.0 million a year earlier. Kiniksa reported $568.8 million in cash, cash equivalents and short-term investments, and no debt, at September 30, 2026.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $286.0 million | $180.9 million | 58.1% |
| Diluted EPS | $0.56 | $0.23 | 142.4% |
| Gross margin | 90.3% | 88.8% | 1.5 percentage points |
| Operating margin | 19.0% | 13.3% | 5.7 percentage points |
| Free cash flow | $47.4 million | $33.0 million | 43.5% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Revenue | $286.0 million | $259.5 million | Beat by 10.2% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
CEO Sanj K. Patel said ARCALYST reached 23% of the estimated annual population of 14,000 patients with multiple recurrences of pericarditis by the end of Q3. He said prescribing had broadened across the approximately 40,000 patients with recurrent pericarditis each year.
Asked about prescribing, President and COO Ross Moat said Kiniksa had around 5,450 total ARCALYST prescribers for recurrent pericarditis at quarter-end, up around 450 from the previous quarter. Around 30% were repeat prescribers, he said. Moat said the company does not share some data externally, but cited prescriber growth as a driver of the increase in patients.
Patel said patient identification initiatives and the targeted Heart’s Home consumer campaign had contributed to awareness among patients and physicians. Moat said the company’s direct-to-consumer and field-team spending was targeted to the rare-disease market. He also cited dissemination of clinical guidance and refined field-team targeting as factors in prescribing growth.
CFO Mark Ragosa said operating expenses rose as higher ARCALYST revenue increased cost of goods sold and collaboration expenses. He also attributed the increase to KPL-387 development and investment in ARCALYST commercialization. Ragosa said the company’s full-year research and development expense range includes fourth-quarter KPL-387 pre-commercial manufacturing costs.
On development, Patel said the pivotal Phase III KPL-387 study was enrolling and dosing patients, with data expected in the second half of 2027. He said the company was on track for a Phase I trial of KPL-1161 by the end of 2026. Asked about that program, Chief Medical Officer John Paolini said its potential for quarterly dosing could apply to chronic or lifelong diseases.
Guidance
Kiniksa raised its 2026 ARCALYST net product revenue guidance to between $1.045 billion and $1.050 billion, from its previous range of between $980 million and $995 million. CEO Sanj K. Patel announced the revised range on the earnings call.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Operating expenses, Sg&a | FY2026 | $270.0 million–$280.0 million | — | New |
| Research and development | FY2026 | $160.0 million–$170.0 million | — | New |
| Revenue, Arcalyst | FY2026 | $1.0 billion–$1.1 billion | — | New |
| Operating expenses, Sga | FY2026 | $270.0 million–$280.0 million | — | New |