Alpha Cognition Inc. (ACOG) Q2 2026 Earnings: Revenue $6.1M (+267.6%)
ACOG — Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop
ZUNVEYL sales nearly quadrupled to $6.0M and rose 72% on Q1, but Alpha Cognition still spent about $13.5M a quarter to run the business; the narrower $8.8M net loss owes more to a smaller warrant charge than to the launch, with $41.4M of cash left.
Revenue
$6.1M
+267.6% YoY
Net income
-$8.8M
-33.4% YoY
Diluted EPS
$-0.40
-51.2% YoY
Operating margin
-127.3%
This period vs a year ago
Same period last year
This period
Revenue▲+267.6%
≈$1.7M
$6.1M
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Alpha Cognition's Alzheimer's drug ZUNVEYL brought in $6.0 million of net product sales in the second quarter of 2026, almost four times the $1.6 million of a year earlier and 72% more than the $3.5 million of the first quarter. ZUNVEYL launched in March 2025, so this was its fifth full quarter on the market. The company still lost money: an operating loss of $7.8 million and a net loss of $8.8 million, or $0.40 per share, against a $13.2 million net loss ($0.82 per share) a year ago. The smaller net loss comes mostly from accounting items. Spending on the sales force and on R&D kept rising, and cash fell from $66.0 million at the start of the year to $41.4 million at June 30.
At a glance
$6.04 million of ZUNVEYL sales, up 283% year on year. The 10-Q credits prescription volume, which was up 251%, plus a list-price increase from $749.00 to $869.36 per monthly bottle that lifted gross sales by 14%. More patients account for most of the growth. The price increase adds a smaller share.
93.6% gross margin. Each bottle costs very little to make: cost of product sales was $277,466 on $6.04 million of product sales. The losses come from selling, administrative and R&D costs, which totalled $13.5 million in the quarter.
$41.4 million of cash, down $24.7 million in six months. $18.7 million went to running the business and $5.9 million was a one-time payment to buy out a royalty. Management says the cash covers at least the next 12 months, and the company has not yet drawn on its share-sale facility.
What moved in the quarter
Metric
Q2 2026
Q2 2025
YoY Change
Total revenue
$6.09M
$1.66M
+267.6%
ZUNVEYL net product sales
$6.04M
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$1.58M
+283.2%
Gross margin
93.6%
87.7%
+5.9 pts
Gross-to-net deductions (% of gross sales)
24.4%
21.1%
+3.3 pts
Research & development
$2.01M
$0.41M
+394.6%
Selling, general & administrative
$11.45M
$9.49M
+20.6%
Operating loss
-$7.76M
-$8.45M
Loss 8.2% smaller
Operating margin
-127.3%
-509.6%
+382.3 pts
Net loss
-$8.79M
-$13.20M
Loss 33.4% smaller
Diluted EPS
-$0.40
-$0.82
Loss per share 51.2% smaller
Cash and cash equivalents (period-end)
$41.4M
$66.0M (Dec 31, 2025)
-$24.7M in six months
Operating margin is operating profit or loss divided by revenue. A figure of -127% means the company spent about $2.27 in costs for every $1 of revenue. A year earlier it spent about $6.10. Gross-to-net deductions are the rebates, discounts and fees that separate a drug's list price from the price the company actually receives.
Revenue. The 10-Q says growth was "primarily attributable to higher prescription volume resulting from increased utilization of ZUNVEYL," with volume up 251%. ZUNVEYL is sold mainly into nursing homes and long-term-care pharmacies, and the company targets the largest nursing homes that specialise in Alzheimer's patients. Rising discounts offset part of the growth. Deductions grew from $418,902 to $1,931,799 and rose from 21.1% to 24.4% of gross sales. The company names four causes: higher distribution fees, Medicare Part D Manufacturer Discount Program obligations, government rebates, and chargebacks from more contracted accounts. Because most ZUNVEYL patients are elderly and covered by Medicare, the discount rate is likely to keep rising as volume grows. Licensing revenue from the company's China partner CMSI was only $51,468.
Costs. Selling, general and administrative expense rose $1.95 million, or 21%. Within that, employee costs rose $2.5 million because the company hired more sales representatives, marketing and commercial operations rose $1.4 million (including a speaker programme for doctors), and FDA user fees added about $337,000. Stock-based compensation, a non-cash cost, fell $2.7 million. That drop came from an accounting reclassification of Canadian-dollar options and from how 2025 awards vest, not from a real cut. R&D rose almost fivefold to $2.0 million, which the company attributes to work on a "dissolvable tablet and clinical studies." This is the sublingual version for patients who have trouble swallowing.
What the headline numbers hide
Operating cost growth is understated. The operating loss narrowed by only $0.69 million. SG&A would have grown by roughly $4.6 million, not $1.95 million, without the $2.7 million drop in stock compensation, so on that basis the operating loss would have widened. Costs are still rising roughly in step with sales.
Most of the smaller net loss comes from a non-cash item. The company carries warrants as a liability and marks them to market each quarter. A higher share price increases that liability and books a loss. The warrant loss was $1.41 million this quarter against $5.17 million a year ago. That $3.76 million difference accounts for most of the $4.41 million improvement in net loss and has nothing to do with selling ZUNVEYL.
Loss per share improved partly because there are more shares. Weighted diluted shares rose from 16.0 million to 21.8 million (+36%), mainly from the October 2025 offering of about $40 million gross at $6.25 per share. The net loss shrank 33%, while loss per share shrank 51%. The gap between those two figures is dilution: existing shareholders own a smaller slice of the company.
Cash burn is higher than the income statement shows. Six-month operating cash outflow was $18.7 million against a $15.3 million net loss. The difference came from paying down $2.7 million of payables and accruals and from building $1.3 million of inventory and $1.2 million of receivables. Receivables (+29% since December) and inventory (+25%) grew much more slowly than sales, so the build-up is not a warning sign.
The first-half comparison flatters the prior year. Six-month revenue was up 110% to $9.63 million. That growth rate is held down by a one-time $2.40 million license payment in early 2025 for transferring intellectual property to CMSI. Product sales alone rose 396%, from $1.92 million to $9.55 million.
A one-off payment removes a future cost. On April 10, 2026 the company paid €5.21 million ($6.06 million) to Galantos Pharma to end all current and future royalties on ZUNVEYL's underlying technology. $5.91 million of that was recorded as an intangible asset amortised over 18 years, about $0.33 million a year. The payment lowered cash this half-year, but every future bottle now carries no royalty, which should keep gross margin in the low 90s.
A small inconsistency in the filing. The MD&A text says total revenue rose "$4,435,287, or 283%." $4.44 million on a $1.66 million base is 268%. The 283% figure belongs to product sales only. The dollar figures reconcile.
Takeaway: ZUNVEYL's growth is real: volume more than tripled, sales rose 72% from the previous quarter, and each bottle carries a gross margin above 90%. But the business is still spending about $13.5 million a quarter to produce $6 million of sales. The $4.4 million improvement in net loss comes mostly from a smaller non-cash warrant charge, not from the launch paying for itself.
Outlook: launch pace against cash
Management gives no numerical guidance. It says only that ZUNVEYL revenue "will continue to grow over the year as the Company expands its sales force," and that cost of product sales will rise with volume. On cash, the company says existing funds will cover operations, ZUNVEYL commercialisation and pre-clinical work "through at least the next 12 months." It also says it may raise more money through equity, partnerships or debt.
Our read
In our rough arithmetic, not a company figure, the first half's $18.7 million operating cash outflow (about $9.3 million a quarter) against $41.4 million of cash gives roughly four to five quarters of runway at the current burn rate. That improves only if sales growth outpaces hiring. The at-the-market share-sale facility with H.C. Wainwright, set up in August 2025, has not been used, but it is available. Investors should assume some further dilution unless sales keep compounding at the recent pace.
Three things to watch in the Q3 10-Q, expected around mid-November:
Sequential product sales. Q1 to Q2 growth was 72%. A similar rate would put the company much closer to covering its operating costs.
The gross-to-net deduction rate. A move from 24% toward 30% would absorb a large part of the benefit from the price increase.
Any capital raise or partnership deal, and what it means for the share count.
This report covers the three months ended June 30, 2026, from the company's Form 10-Q filed August 13, 2026.