The company's 98.7% gross margin in 2026Q1 appears to be a temporary artifact of milestone-driven accounting rather than a reflection of sustainable operational efficiency.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 285.01M | 190.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.55B | 1.45M | 387.56K | 0 | 3M | 0 |
| Revenue Growth % | - | - | - | - | - | - | - | - | 100% | -107145.41% | 274.34% | - | -100% | - | - |
| Cost of Goods Sold | 3.9M | 2.7M | 0 | 0 | 0 | 0 | 2.19M | 2.3M | 1.92M | 1.61M | 1.51M | 352.68K | 0 | 0 | 0 |
| COGS % of Revenue | - | 1.42% | - | - | - | - | - | - | - | -0.1% | 104.03% | 91% | - | - | - |
| Gross Profit | 281.11M | 187.71M | 0 | 0 | 0 | 0 | -2.19M | -2.3M | -1.92M | -1.55B | -58.52K | 34.87K | 0 | 3M | 0 |
| Gross Margin % | 98.63% | 98.58% | - | - | - | - | - | - | - | 100.1% | -4.03% | 9% | - | 100% | - |
| Gross Profit Growth % | - | - | - | - | - | 100% | 4.48% | -19.7% | 99.88% | -2656540.69% | -267.81% | - | -100% | - | - |
| Operating Expenses | 193.34M | 172.75M | 187.67M | 41.38M | 24.4M | 31.53M | 29.75M | 20.9M | 13.73M | 9.68M | 13.55M | 12.19M | 5.16M | 3.85M | 3.6M |
| OpEx % of Revenue | - | 90.73% | - | - | - | - | - | - | - | -0.62% | 934.09% | 3146.55% | - | 128.23% | - |
| Selling, General & Admin | 153.24M | 132.13M | 105.86M | 13.48M | 9.84M | 10.81M | 6.56M | 4.63M | 6.56M | 6.61M | 8.37M | 7.88M | 2.92M | 1.47M | 1.13M |
| SG&A % of Revenue | - | 69.39% | - | - | - | - | - | - | - | -0.43% | 576.71% | 2032.82% | - | 48.9% | - |
| Research & Development | 38.38M | 40.63M | 78.57M | 25.19M | 15.27M | 21.45M | 23.19M | 16.27M | 7.18M | 3.07M | 5.18M | 4.54M | 2.24M | 2.38M | 2.47M |
| R&D % of Revenue | - | 21.34% | - | - | - | - | - | - | - | -0.2% | 357.38% | 1170.48% | - | 79.33% | - |
| Other Operating Expenses | 1.61M | 0 | 3.24M | 2.71M | -712K | -731K | 0 | 0 | 6K | -585.95K | -100.52K | -183.56K | 0 | -1.97K | -22.41K |
| Operating Income | 87.77M | 14.95M | -187.67M | -41.38M | -24.4M | -31.53M | -31.95M | -23.2M | -14.3M | -12.17M | -13.61M | -12.16M | -5.16M | -846.78K | -3.6M |
| Operating Margin % | 30.8% | 7.85% | - | - | - | - | - | - | - | 0.78% | -938.12% | -3137.55% | - | -28.23% | - |
| Operating Income Growth % | - | 107.97% | -353.49% | -69.63% | 22.62% | 1.32% | -37.73% | -62.21% | -17.5% | 10.57% | -11.93% | -135.67% | -509.33% | 76.46% | - |
| EBITDA | 89.8M | 16.97M | -185.68M | -39.43M | -22.43M | -29.57M | -29.75M | -20.9M | -12.38M | -10.56M | -13.59M | -12.05M | -5.13M | -804.67K | -3.55M |
| EBITDA Margin % | 31.51% | 8.91% | - | - | - | - | - | - | - | 0.68% | -936.76% | -3109.63% | - | -26.82% | - |
| EBITDA Growth % | 143.53% | 109.14% | -370.97% | -75.75% | 24.12% | 0.64% | -42.37% | -68.79% | -17.25% | 22.3% | -12.77% | -134.87% | -537.68% | 77.35% | - |
| D&A (Non-Cash Add-back) | 2.03M | 2.02M | 1.99M | 1.96M | 1.96M | 1.96M | 2.19M | 2.3M | 1.92M | 1.61M | 19.7K | 108.23K | 28.52K | 42.11K | 43.79K |
| EBIT | 100.54M | 26.37M | -175.62M | -38.99M | -24.07M | -32.26M | -24.64M | -30.77M | -13.73M | -13.44M | -6.74M | -12.16M | -9.74M | -846.98K | -3.62M |
| Net Interest Income | 13.14M | 11.48M | 11.82M | 2.58M | 300K | 110K | 13K | 154K | 0 | 0 | 0 | -3.05M | -4.13M | -2.86M | -2.86M |
| Interest Income | 18.55M | 16.95M | 12.05M | 2.58M | 300K | 110K | 13K | 154K | 0 | 0 | 0 | 0 | 1.08K | 1.77K | 3.1K |
| Interest Expense | 5.41M | 5.48M | 231K | 0 | 0 | 0 | 0 | 0 | 62K | 0 | 0 | 3.05M | 4.13M | 2.86M | 2.87M |
| Other Income/Expense | 11.8M | 5.94M | 11.82M | 2.4M | 330K | 618K | 7.31M | -7.58M | 2.46M | -1.27M | 1.59M | -3.75M | -8.08M | -2.86M | -2.88M |
| Pretax Income | 99.58M | 20.89M | -175.85M | -38.99M | -24.07M | -30.91M | -24.64M | -30.77M | -11.84M | -13.72M | -12.04M | -15.91M | -13.87M | -3.71M | -6.48M |
| Pretax Margin % | 34.94% | 10.97% | - | - | - | - | - | - | - | 0.88% | -830.14% | -4104.85% | - | -123.57% | - |
| Income Tax | 3.54M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.65M | 21.7K | 0 | -455.08K | 0 | 0 |
| Effective Tax Rate % | 3.55% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 12.03% | -0.18% | 0% | 3.28% | 0% | 0% |
| Net Income | 96.04M | 20.89M | -175.85M | -38.99M | -24.07M | -30.91M | -24.64M | -30.77M | -13.34M | -15.67M | -12.07M | -15.91M | -13.87M | -3.71M | -6.48M |
| Net Margin % | 33.7% | 10.97% | - | - | - | - | - | - | - | 1.01% | -831.63% | -4104.85% | - | -123.57% | - |
| Net Income Growth % | 148.45% | 111.88% | -351.04% | -62% | 22.14% | -25.45% | 19.94% | -130.78% | 14.89% | -29.86% | 24.16% | -14.66% | -274.25% | 42.81% | - |
| Net Income (Continuing) | 96.04M | 20.89M | -175.85M | -38.99M | -24.07M | -30.91M | -24.64M | -30.77M | -11.84M | -11.79M | -6.74M | -15.91M | -13.87M | -3.71M | -6.48M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.49M | -3.59M | -5.33M | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.81 | 0.39 | -4.38 | -2.36 | -2.87 | -5.81 | -3.68 | -15.78 | -9.54 | -26.18 | -58.35 | -126.58 | -819.38 | -198.45 | -346.98 |
| EPS Growth % | 138.24% | 108.9% | -85.59% | 17.77% | 50.6% | -57.88% | 76.68% | -65.41% | 63.56% | 55.13% | 53.9% | 84.55% | -312.89% | 42.81% | - |
| EPS (Basic) | - | 0.41 | -4.38 | -2.36 | -2.87 | -5.81 | -3.68 | -15.78 | -9.54 | -26.18 | -58.35 | -126.58 | -819.38 | -198.45 | -346.98 |
| Diluted Shares Outstanding | 53.07M | 54.33M | 40.18M | 16.49M | 8.4M | 5.32M | 4.17M | 2.28M | 1.4M | 598.52K | 206.77K | 125.68K | 16.93K | 18.68K | 18.68K |
| Basic Shares Outstanding | 52.09M | 53.18M | 40.18M | 16.49M | 8.4M | 5.32M | 4.17M | 2.28M | 1.4M | 598.52K | 206.77K | 125.68K | 16.93K | 18.68K | 18.68K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Binary regulatory approval dependency
As reported in recent financial statements, Soleno's revenue trajectory shifted from zero to $94.6M in 2026Q1, reflecting a non-recurring milestone-driven influx rather than organic commercial expansion, which complicates the assessment of the company's underlying growth durability as it transitions toward a potential commercial-stage pharmaceutical entity.
The sudden appearance of significant revenue suggests the recognition of licensing or partnership milestones rather than product sales. Investors should interpret this growth as a capital-infusion event that temporarily masks the company's pre-commercial status and lack of recurring revenue streams.
Based on the provided income statement data, Soleno achieved a 98.7% gross margin in 2026Q1, a figure that appears to be a temporary artifact of milestone-based accounting rather than a sustainable structural advantage inherent to the company's long-term pharmaceutical manufacturing and distribution model.
The near-total gross margin is characteristic of licensing income where COGS are minimal. Analysts should anticipate significant margin compression if the company successfully launches its lead asset, as commercialization will necessitate substantial investments in supply chain, logistics, and distribution infrastructure.
According to historical income statement filings, Soleno's operating leverage has fluctuated wildly, moving from an $80.2M operating loss in 2024Q3 to a $31.8M operating profit in 2026Q1, primarily driven by lumpy revenue recognition rather than consistent improvements in operational efficiency or overhead management.
The rapid swing in operating income highlights the company's sensitivity to non-operating revenue events. Future operating leverage will likely remain constrained by the high fixed costs associated with clinical development and the eventual ramp-up of commercial-stage SG&A expenses.
As indicated by the quarterly data, Soleno's transition to positive net income of $31.4M in 2026Q1 appears to be heavily influenced by non-recurring revenue items, suggesting that current profitability metrics may not accurately reflect the company's core operational performance or its long-term earnings potential.
The absence of stock-based compensation in recent quarters, contrasted with significant charges in 2024, warrants further investigation into management's compensation structure. Investors should monitor whether future earnings can be sustained without reliance on one-time milestone payments.
Based on reported figures, Soleno continues to prioritize R&D investment, with quarterly spending reaching $11.3M in 2026Q1, which underscores the company's ongoing commitment to clinical trial execution despite the recent volatility in its broader income statement and revenue recognition patterns.
The high level of R&D spending relative to the company's stage suggests that management is aggressively pursuing regulatory milestones. Expense discipline appears secondary to the necessity of completing the clinical program, which remains the primary driver of the company's long-term value proposition.
Quick answers to the most common questions about buying SLNO stock.
For fiscal year 2025, Soleno Therapeutics, Inc. (SLNO) reported total revenue of $190.4M.
Soleno Therapeutics, Inc. (SLNO) is profitable, generating $20.9M in net income for the fiscal year ending 2025 with a net profit margin of 11.0%.
Soleno Therapeutics, Inc. (SLNO) reported an operating income of $14.9M, resulting in an operating profit margin of 7.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Soleno Therapeutics, Inc. (SLNO) generated $187.7M in gross profit for the year, representing a gross profit margin of 98.6%. This demonstrates the company's core pricing power and production efficiency.