TherapeuticsMD, Inc. (NASDAQ: TXMD) reported a sharp contraction in profitability for the second quarter of 2026, with earnings per share falling 80% year-over-year to $0.01 from $0.05 in the same period of 2025. The pharmaceutical royalty company’s net income from continuing operations declined to $164 thousand, a drop of $381 thousand or approximately 70% compared to the $545 thousand recorded in Q2 2025. This significant erosion in bottom-line performance highlights the volatility inherent in its asset-light business model, driven by lower license revenues and rising operating expenses.

Total sales for the quarter amounted to $869 thousand, representing an 8.72% decrease from the $952 thousand reported in the corresponding period of 2025. License revenues from continuing operations specifically totaled $864 thousand, down from $952 thousand previously. The decline in top-line inflows was primarily attributable to changes in sales volumes of licensed products, particularly those governed by the Mayne License Agreement. Concurrently, total operating expenses increased modestly to $1,685 thousand, up $38 thousand from the $1,647 thousand reported in Q2 2025, further compressing margins.

| Metric | Q2 2026 | Q2 2025 | Change | | :--- | :--- | :--- | :--- | | Earnings Per Share | $0.01 | $0.05 | -80% | | Net Income (Continuing Ops) | $164 thousand | $545 thousand | -$381 thousand | | Sales / Revenue | $869 thousand | $952 thousand | -$83 thousand | | Operating Expenses | $1,685 thousand | $1,647 thousand | +$38 thousand |

Looking ahead, TherapeuticsMD expects a partial offset to its revenue decline in the upcoming quarter. Following the close of the second quarter, Knight Therapeutics Inc. notified the company that the net sales milestone for IMVEXXY sales for the year ended December 31, 2025, had been achieved. This entitles TherapeuticsMD to a milestone payment of CAD 500 thousand, which is approximately US $364.8 thousand. In accordance with its accounting policies, the company will recognize this milestone revenue in the third quarter of 2026.

The company’s balance sheet remains stable, with cash and cash equivalents totaling $9.2 million as of June 30, 2026. This liquidity position supports the company’s ongoing operational wind-down and strategic review process. Management continues to evaluate various strategic alternatives, including potential acquisitions, mergers, other business combinations, or the sale of assets. However, the company emphasized that there is no assurance of a transaction, successful outcome, or specific timing for any such developments.

What the Numbers Show

The divergence between the slight increase in operating expenses and the notable drop in license revenue underscores the fixed-cost nature of TherapeuticsMD’s current operations. With operating expenses rising by $38 thousand while license revenue fell by $83 thousand, the company’s margin pressure intensified significantly. The upcoming recognition of the CAD 500 thousand milestone payment will provide a one-time boost to third-quarter results, but it does not address the underlying trend of declining recurring royalty income from core licensed products.