v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company has three reportable segments: Affordable Medicines, Specialty, and AvKARE. Beginning in the third quarter of 2026, the results of Kashiv are included within the Affordable Medicines segment for segment reporting purposes. Refer to Note 2. Acquisition for additional information.
Chief Operating Decision Makers
The Company’s Co-Chief Executive Officers are the Company’s chief operating decision makers (“CODMs”). The CODMs evaluate the financial performance of the Company based upon segment operating income (loss). Items below operating income (loss) are not reported by segment, since they are excluded from the measure of segment profitability reviewed by the
Company’s CODMs. Additionally, general and administrative expenses, certain selling expenses, certain litigation settlements, acquisition costs, and non-operating income and expenses are included in “Corporate and Other.” The Company does not report balance sheet information by segment since it is not reviewed by the Company’s CODMs.
The tables below present segment information reconciled to total Company financial results, with segment operating income or loss, including gross profit less direct selling expenses, research and development expenses, and other operating expenses to the extent specifically identified by segment (in thousands):
Three Months Ended September 30, 2026
Affordable Medicines (1)
SpecialtyAvKARECorporate
and Other		Total
Company
Net revenue$547,109 $150,262 $165,313 $— $862,684 
Cost of goods sold352,331 46,212 130,023 — 528,566 
Gross profit194,778 104,050 35,290 — 334,118 
Selling, general and administrative32,097 36,969 A17,919 52,660 139,645 
Research and development63,418 B4,956 B— — 68,374 
Intellectual property legal development expenses2,138 55 — — 2,193 
Acquisition and integration costs— — — 22,320 22,320 
Restructuring and other charges891 — — 45 936 
Change in fair value of contingent consideration(6,000)— — — (6,000)
Charges for property losses and associated expenses5,334 35 — — 5,369 
Charges (credit) related to legal matters, net
5,500 1,000 — (3)6,497 
Other operating income(631)— — — (631)
Operating income (loss)$92,031 $61,035 $17,371 $(75,022)$95,415 
Nine Months Ended September 30, 2026
Affordable Medicines (1)
SpecialtyAvKARECorporate
and Other		Total
Company
Net revenue$1,460,259 $432,822 $488,319 $— $2,381,400 
Cost of goods sold867,459 137,497 387,705 — 1,392,661 
Gross profit592,800 295,325 100,614 — 988,739 
Selling, general and administrative115,782 111,755 A51,512 148,178 427,227 
Research and development129,727 B16,047 B— — 145,774 
Intellectual property legal development expenses5,633 189 — — 5,822 
Acquisition and integration costs— — — 35,073 35,073 
Restructuring and other charges891 347 — 902 2,140 
Change in fair value of contingent consideration(6,000)— — — (6,000)
Charges for property losses and associated expenses5,334 35 — — 5,369 
Charges (credit) related to legal matters, net
14,251 1,000 — (3)15,248 
Other operating income(8,870)— — — (8,870)
Operating income (loss)$336,052 $165,952 $49,102 $(184,150)$366,956 
Three Months Ended September 30, 2025
Affordable Medicines (1)
SpecialtyAvKARE Corporate
and Other		Total
Company
Net revenue$460,741 $125,240 $198,532 $— $784,513 
Cost of goods sold280,463 73,808 156,268 — 510,539 
Gross profit180,278 51,432 42,264 — 273,974 
Selling, general and administrative37,173 33,580 A15,234 51,828 137,815 
Research and development55,124 B8,228 B— — 63,352 
Intellectual property legal development expenses2,378 59 — — 2,437 
Restructuring and other charges90 — — 53 143 
Other operating income(117)— — — (117)
Operating income (loss)$85,630 $9,565 $27,030 $(51,881)$70,344 
Nine Months Ended September 30, 2025
Affordable Medicines (1)
SpecialtyAvKARE Corporate
and Other		Total
Company
Net revenue$1,308,874 $361,580 $533,987 $— $2,204,441 
Cost of goods sold775,742 182,686 429,895 — 1,388,323 
Gross profit533,132 178,894 104,092 — 816,118 
Selling, general and administrative105,114 94,872 A46,007 134,376 380,369 
Research and development128,003 B23,353 B— — 151,356 
Intellectual property legal development expenses6,069 152 — — 6,221 
Restructuring and other charges773 471 — 494 1,738 
Credit related to legal matters, net(390)— — — (390)
Other operating income(5,239)— — — (5,239)
Operating income (loss)$298,802 $60,046 $58,085 $(134,870)$282,063 
(1)Revenue, cost of goods sold, and gross profit from the sale of Amneal products by AvKARE were included in Affordable Medicines.
Significant Expense Categories Provided to the Chief Operating Decision Makers
Selling, General and Administrative Expenses - Specialty Segment
A.The CODMs review certain selling, general and administrative expenses (“SG&A”) for the Specialty segment and, separately, on a departmental basis. The CODMs review SG&A for the Affordable Medicines and AvKARE segments in total. SG&A for the Specialty segment was comprised of the following (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Employee compensation and benefits$13,315 $10,972 $38,188 $32,635 
Product marketing10,231 11,273 32,039 29,168 
Commercial operations and salesforce12,951 9,769 38,326 29,347 
Other (1)
472 1,566 3,202 3,722 
Total$36,969 $33,580 $111,755 $94,872 
(1)Other includes professional fees and other expenses not presented to the CODMs.
Research and Development Expenses - Affordable Medicines and Specialty Segments
B.Research and development expenses for the Affordable Medicines and Specialty segments were comprised of the following (in thousands):
Three Months Ended September 30,
20262025
Affordable MedicinesSpecialtyAffordable MedicinesSpecialty
Employee compensation and benefits$12,343 $1,658 $13,905 $1,089 
Materials and supplies6,944 842 6,230 1,358 
Product development and studies (1)
127 1,715 673 2,823 
In-licensing and upfront milestones— — 22,500 — 
Facilities costs1,654 45 1,755 409 
Regulatory fees704 — 2,317 — 
Kashiv R&D expenses (2)
19,421 — — — 
Other (3)
22,225 696 7,744 2,549 
Total$63,418 $4,956 $55,124 $8,228 
Nine Months Ended September 30,
20262025
Affordable MedicinesSpecialtyAffordable MedicinesSpecialty
Employee compensation and benefits$37,382 $4,303 $42,139 $3,908 
Materials and supplies24,555 1,924 22,865 2,011 
Product development and studies (1)
963 7,108 1,360 7,513 
In-licensing and upfront milestones4,000 — 29,100 3,000 
Facilities costs4,623 110 5,182 1,894 
Regulatory fees4,432 — 4,834 — 
Kashiv R&D expenses (2)
19,421 — — — 
Other (3)
34,351 2,602 22,523 5,027 
Total$129,727 $16,047 $128,003 $23,353 
(1)For the three and nine months ended September 30, 2026, the Affordable Medicines segment included recognition of deferred income and reimbursable R&D services of $1.0 million and $2.7 million, respectively, as reductions to product development and studies expense for services performed under the license agreement with Orion Corporation. For the three and nine months ended September 30, 2025, the Affordable Medicines segment included recognition of deferred income and reimbursable R&D services of $1.3 million and $3.8 million, respectively, as reductions to product development and studies expense for services performed under the license agreement with Orion Corporation. Refer to Note 4. Alliance and Collaboration.
(2)Kashiv’s R&D expenses were provided to the CODMs in total following the Kashiv Acquisition in the third quarter of 2026 and primarily consist of employee compensation and benefits, materials and supplies, product development and studies, and facilities costs.
(3)For the Affordable Medicines segment, other includes repairs and maintenance, outside testing, professional fees, equipment calibration and other expenses not presented to the CODMs. For the Specialty segment, other includes outside testing, professional fees and other expenses not presented to the CODMs.