KamadaKMDA

Key highlights

• Profit and revenue growth: Total revenue grew 23% to $54.9 million this quarter compared to a year ago, driven by higher demand for specialty products like the rabies treatment KEDRAB. This growth helped boost net income by 26% to $9.3 million, showing that the company is becoming more profitable as it reaches a larger scale.
• New plasma supply deal: The company signed a new three-year agreement worth approximately $50 million to supply plasma to a large pharmaceutical partner. Sales from this deal are expected to begin in the final three months of 2026 and will help use the capacity of the company's newer collection centers.
• Operating cash flow surge: Cash generated from operations more than doubled to $18.1 million for the quarter, up from $8.0 million during the same period last year. This strong cash flow helps the business fund its own growth and supported a $14.4 million dividend payment made to shareholders earlier this year.
• Diversified growth strategy: Sales from distributed products, which are drugs made by other companies that Kamada sells in certain regions, grew 14% to $7.2 million this quarter. This segment is expanding into new markets across the Middle East and North Africa through several new distribution agreements.
• Annual financial guidance affirmed: Management expects full year revenue to land between $200 million and $205 million, while adjusted EBITDA, a measure of core operational profit, is expected to be between $50 million and $53 million. These targets represent roughly 12% revenue growth and 23% profit growth compared to last year's results.

Our take: This was a standout quarter that proved the business can grow its profits much faster than its sales. The jump in operating cash flow to $18.1 million is the most impressive detail, as it gives the company the flexibility to hunt for new acquisitions while still paying dividends. These results firmly support the long term growth case.