Results

ANI Pharmaceuticals Inc.

05/08/2026 | Press release | Distributed by Public on 05/08/2026 04:58

Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
The following Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the condensed consolidated financial statements (unaudited) and the accompanying notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q, the audited consolidated financial statements and the accompanying notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the "2025 Form 10-K"), as well as the information contained under Management's Discussion and Analysis of Financial Condition and Results of Operations and "Risk Factors" contained in the 2025 Form 10-K, and Part II, Item 1A "Risk Factors" of this Quarterly Report on Form 10-Q, and other information provided from time to time in our other filings with the SEC. This discussion contains forward-looking statements, based on current expectations and related to future events and our future financial performance, that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many important factors, including those set forth under "Risk Factors" in our 2025 Form 10-K and this Quarterly Report on Form 10-Q.
EXECUTIVE OVERVIEW
ANI Pharmaceuticals is a diversified bio-pharmaceutical company. The Company's mission is "Serving Patients, Improving Lives" by developing, manufacturing, and commercializing therapeutics through its Rare Disease, Generics, and Brands businesses.
On September 16, 2024, the Company acquired Alimera. In connection with the Merger, the Company added a growing and durable franchise, ILUVIEN (fluocinolone acetonide intravitreal implant) 0.19 mg, which has received marketing authorization and reimbursement in the United States ("U.S.") and 24 countries for the treatment of diabetic macular edema ("DME") and YUTIQ (fluocinolone acetonide intravitreal implant) 0.18 mg, available in the U.S. for the treatment of non-infectious uveitis affecting the posterior segment of the eye ("NIU-PS"). Subsequent to the acquisition of Alimera, we expanded the label for ILUVIEN to include an indication for chronic NIU-PS in addition to its then-current indication in DME in the U.S.
The Company owns and operates three pharmaceutical manufacturing facilities, which include two facilities in Baudette, Minnesota, and one in East Windsor, New Jersey, which collectively are capable of producing oral solid dose products, as well as semi-solids, liquids and topicals, controlled substances, and potent products that must be manufactured in a fully-contained environment.
Strategy
Our objective is to build a sustainable and growing biopharmaceutical company serving patients in need and creating long-term value for our investors. Our overall strategy is enabled by an empowered, collaborative, and purposeful team with high performance-orientation that seeks to deliver on our purpose of "Serving Patients, Improving Lives."
Our strategy is driven by the following key growth drivers:
Building a Successful Rare Disease and Brands Segment
We spend significant time, effort and resources in expanding our Rare Disease and Brands segment which consists of our Rare Disease and Brands portfolio of products.
We acquired the NDAs for Purified Cortrophin® Gel (Repository Corticotropin Injection USP) ("Cortrophin Gel") and Cortrophin-ZincTM in January 2016 and executed long-term supply agreements with a supplier of our primary raw material for corticotrophin API, a supplier of corticotrophin API with whom we have advanced the manufacture of commercial scale batches of API, and a Cortrophin Gel fill/finish contract manufacturer. On October 29, 2021, the U.S. Food and Drug Administration ("FDA") approved the Company's Supplemental New Drug Application ("sNDA") for Cortrophin Gel for the treatment of certain chronic autoimmune disorders, including acute exacerbations of multiple sclerosis ("MS") and rheumatoid arthritis ("RA"), in addition to excess urinary protein due to nephrotic syndrome. Cortrophin Gel is an adrenocorticotropic hormone ("ACTH"), also known as purified corticotropin. On January 24, 2022, we announced the commercial launch of Cortrophin Gel in the U.S. as our foundational Rare Disease asset.
On February 28, 2025, the FDA approved a prefilled syringe format for Cortrophin Gel. This new presentation became available in 40 USP units/0.5 mL and 80 USP units/mL single-dose options through Cortrophin Gel's established specialty pharmacy network during the second quarter of 2025. The prefilled syringe reduces administration steps for patients using Cortrophin Gel, which remains available in 5 mL and 1 mL vials.
During 2026, we are building a dedicated sales organization focused on acute gouty arthritis flares, an indication unique to Cortrophin Gel within the ACTH class. Our dedicated sales force will focus on the appropriate patient population through podiatry and primary care physicians, while our existing sales organization will continue to focus on appropriate acute gouty arthritis flare patients seen by rheumatologists and nephrologists.
In September 2024, we acquired ILUVIEN and YUTIQ (together, the "Retina Franchise") in connection with the acquisition of Alimera. The acquisition of Alimera strengthened our Rare Disease business and expanded our footprint beyond the U.S. through Alimera's direct marketing operations in Germany, the United Kingdom ("UK"), Portugal, and Ireland, as well as its partnerships in Europe, Asia, and the Middle East. We believe that the Retina Franchise is durable with high barriers to genericization and a clear role for patients in need of alternative therapeutic options. Importantly, the addition of Alimera expanded the reach of the ophthalmology sales team and we believe there will be significant overlap between high potential prescribers of Cortrophin Gel and the Retina Franchise.
As noted above, during March 2025, the FDA approved an expanded label for ILUVIEN (fluocinolone acetonide intravitreal implant) to include an indication for the treatment of chronic NIU-PS in addition to the then-current indication of DME. During the second quarter of 2025, we transitioned promotional efforts in the U.S. from YUTIQ to ILUVIEN with its combined label of DME and NIU-PS.
We plan to continue to expand our Rare Disease business, through a combination of organic growth and acquisitions. While we execute against our strategic initiatives that we believe will result in long-term, sustainable growth and value to our stockholders, we continue to evaluate potential acquisitions and other strategic transactions of businesses that we believe complement our existing portfolio, infrastructure and capabilities or provide us with the opportunity to expand our existing capabilities.
The Brands portion of the Rare Disease and Brands segment is comprised of various branded products. We have grown our Brands portfolio of products through acquisitions. We have acquired the NDAs for and market Atacand, Atacand HCT, Arimidex, Casodex, Inderal LA, Inderal XL, InnoPran XL, Inzirqo, Lithobid, Oxistat, Vancocin, and Veregen. We are innovating in our go-to-market strategy through creative partnerships and a sales force for these products.
Strengthening Our Generics and Other Segment
We plan to strengthen our Generics and Other segment through continued investment in our research and development capabilities and increased focus on niche opportunities. We have grown our Generics business through a combination of market share gains on existing products and new product launches. We have also successfully acquired numerous ANDAs through business and asset acquisitions. Our most recent business acquisition in the Generics and Other segment was the acquisition of Novitium Pharma LLC ("Novitium") in 2021, which included Novitium's portfolio of commercial and pipeline generic products, manufacturing and development facilities and expert workforce. The Novitium acquisition significantly increased our generic pharmaceutical research and development and manufacturing capabilities. We have begun to increase our focus on niche lower competition opportunities such as injectables, paragraph IV ("PIV"), and competitive generic therapy ("CGT") designation filings.
Additionally, we plan to continue to seek opportunities to enhance our capabilities through strategic partnerships and acquisitions of assets and businesses.
We consider a variety of criteria in determining which products to develop. These criteria include:
•Formulation Complexity. Our development and manufacturing capabilities enable us to manufacture pharmaceuticals that are differentiated and include high potency, modified release, combination, and hormonal products. This ability to manufacture a variety of differentiated products is a competitive strength that we intend to leverage in selecting products to develop and commercialize.
•Market Size and Patient Need. When determining whether to develop or acquire an individual product, we review the current and expected market size and competitive environment for that product. We endeavor to pursue products with sufficient market size to enable us to enter the market with a strong likelihood of serving patients in need and thus being able to price our products both competitively and at a profit.
•Profit Potential. In determining the potential profit of a product, we forecast our anticipated market share, pricing, competitive environment and the estimated cost to manufacture the products.
•Manufacturing. We generally seek to develop and manufacture products at our own manufacturing plants to ensure quality control of our products, supply chain reliability and to more closely control the economic inputs and outputs of our products.
•Competition. When determining whether to develop or acquire a product, we research existing and expected competition. We seek to develop products for which we can obtain sufficient market share and may decline to develop a product if we anticipate significant competition. Our manufacturing facilities provide a means of entering niche markets, such as hormone therapies, in which fewer generic companies typically compete.
Products
A complete list of our generic and branded pharmaceutical products and descriptions is posted on our website, www.anipharmaceuticals.com. Information on, or accessible through, our website is not a part of, and is not incorporated into, this report or any other SEC filing.
GENERAL
Impacts to our first quarter 2026 and 2025 results of operations, including to net revenues, operating expenses, interest and other expense, net, and income taxes are described below.
The following table summarizes our results of operations for the periods indicated:
Three Months Ended March 31,
(in thousands) 2026 2025
Net Revenues $ 237,462 $ 197,122
Operating Expenses
Cost of sales (excluding depreciation and amortization) 93,582 73,037
Research and development 10,600 10,564
Selling, general, and administrative 73,655 76,528
Depreciation and amortization 20,919 22,891
Contingent consideration fair value adjustment (182) (12,092)
Operating income 38,888 26,194
Unrealized gain (loss) on investment in equity securities 5,753 (921)
Interest expense, net (3,769) (5,484)
Other (expense) income, net (651) 198
Income Before Income Tax Expense 40,221 19,987
Income tax expense 10,729 4,306
Net Income $ 29,492 $ 15,681
The following table sets forth, for the periods indicated, items in our unaudited condensed consolidated statements of operations as a percentage of net revenues:
Three Months Ended March 31,
2026 2025
Net Revenues 100 % 100 %
Operating Expenses
Cost of sales (excluding depreciation and amortization) 39.4 % 37.1 %
Research and development 4.5 % 5.4 %
Selling, general, and administrative 31.0 % 38.8 %
Depreciation and amortization 8.8 % 11.6 %
Contingent consideration fair value adjustment (0.1) % (6.1) %
Operating income 16.4 % 13.3 %
Unrealized gain (loss) on investment in equity securities 2.4 % (0.5) %
Interest expense, net (1.6) % (2.8) %
Other (expense) income, net (0.3) % 0.1 %
Income Before Income Tax Expense 16.9 % 10.1 %
Income tax expense 4.5 % 2.2 %
Net Income 12.4 % 8.0 %
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025
Net Revenue
Three Months Ended March 31,
(in thousands) 2026 2025 Change % Change
Rare Disease and Brands
Cortrophin Gel $ 75,119 $ 52,850 $ 22,269 42.1 %
ILUVIEN and YUTIQ (1)
19,255 16,109 3,146 19.5 %
Rare Disease total net revenues $ 94,374 $ 68,959 $ 25,415 36.9 %
Brands 12,328 25,123 (12,795) (50.9) %
Brand royalties and other revenues 21,540 - 21,540 100.0 %
Rare Disease and Brands total net revenues $ 128,242 $ 94,082 $ 34,160 36.3 %
Generics and Other
Generic pharmaceutical products 105,402 98,678 6,724 6.8 %
Other generic revenues 3,818 4,362 (544) (12.5) %
Generics and Other total net revenues $ 109,220 $ 103,040 $ 6,180 6.0 %
Total net revenues $ 237,462 $ 197,122 $ 40,340 20.5 %
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(1)There were no sales of YUTIQ in Q1 2026 as the Company transitioned promotional efforts in the U.S. from YUTIQ to ILUVIEN, which has a combined label of DME and NIU-PS during the second quarter of 2025.
We derive substantially all of our revenues from sales of our Rare Disease, Brands and Generics portfolios of pharmaceutical products, as well as from other sources of revenue such as milestones, royalties on net sales of certain products, and other pharmaceutical services. Essentially all of our Generics products face competition from other generic products, as do many of our Brands products, and we expect them to continue to face competition from generic products in the future. The primary means of competition among generic manufacturers are pricing, contract terms, service levels, and reliability. Increased competition generally results in decreased average selling prices of generic and brands products over time. In addition, due to strategic partnerships between wholesalers and pharmacy chains, we have experienced, and expect to continue to experience, increases in net sales to the wholesalers, with corresponding decreases in net sales to the pharmacy chains.
Net revenues for the three months ended March 31, 2026 were $237.5 million compared to $197.1 million for the same period in 2025, an increase of 20.5%, primarily as a result of the following:
•Net revenues from Rare Disease and Brands, which includes our rare disease and brands portfolios of pharmaceutical products, royalties, and other revenues were $128.2 million during the three months ended March 31, 2026, an increase of $34.2 million, compared to $94.1 million for the same period in 2025.
•Net revenues for Rare Disease pharmaceutical products were $94.4 million during the three months ended March 31, 2026, an increase of $25.4 million from $69.0 million for the same period in 2025. This increase was driven by increased volume of Cortrophin Gel from overall ACTH market growth and market share gains. The increase in sales for ILUVIEN was driven by the continued execution of commercial and patient access initiatives established during 2025.
•Net revenues for Brands portfolio of pharmaceutical products were $12.3 million during the three months ended March 31, 2026, a decrease of $12.8 million compared to $25.1 million for the same period in 2025, driven by a net decrease in demand for certain products during the first quarter.
•Net revenues for Brand royalties and other revenues during the three months ended March 31, 2026, includes a $15.0 million upfront payment and associated royalties of approximately $6.5 million, related to the Harmony Agreement.
•Net revenues from Generics and Other, which includes our generic pharmaceutical products, sales of contract manufactured products, royalties on contract manufactured products, and other pharmaceutical services, were $109.2 million during the three months ended March 31, 2026, an increase of 6.0% compared to $103.0 million for the same period in 2025, primarily a result of the following:
•Generic pharmaceutical products net revenues were $105.4 million during the three months ended March 31, 2026, an increase of $6.7 million over the prior year. This increase was driven by a partnered product launched in the third quarter of 2025, and increased volumes from the benefit of new product launches during 2026. From a product perspective, in addition to the partnered product cited above, the increase was principally driven by revenues from year over year increases in products such as Vancomycin and MAS ER, among others.
•Other generic revenues were essentially flat for the three months ended March 31, 2026 compared to the same period in 2025.
Cost of Sales (Excluding Depreciation and Amortization)
Three Months Ended March 31,
(in thousands) 2026 2025 Change % Change
Cost of sales (excluding depreciation and amortization) $ 93,582 $ 73,037 $ 20,545 28.1 %
Cost of sales consists of direct labor, including manufacturing and packaging, active and inactive pharmaceutical ingredients, freight costs, packaging components, royalties payable, and profit-sharing arrangements. Cost of sales does not include depreciation and amortization expense, which is reported as a separate component of operating expenses on our unaudited condensed consolidated statements of operations.
For the three months ended March 31, 2026, cost of sales increased to $93.6 million from $73.0 million for the same period in 2025, an increase of $20.5 million, or 28.1%. The increase is primarily due to significant net growth in sales volumes of pharmaceutical products and significant growth of royalty bearing products, including Cortrophin Gel, and other products in our portfolio.
Cost of sales, as a percentage of net revenues, increased to 39.4% from 37.1% for the three months ended March 31, 2026, compared to the same period in 2025, primarily due to a shift in product mix year over year and an increase in sales of products that bear a royalty payable, and the non-recurrence of prior year sales from Prucalopride. These effects were somewhat tempered by the the initial revenue recognized under the Harmony Agreement.
During the three months ended March 31, 2026, approximately 33% of our raw material inventory purchases were from one domestic supplier. During the three months ended March 31, 2025, approximately 22% of our raw material inventory purchases were from one domestic supplier.
Other Operating Expenses, net
Three Months Ended March 31,
(in thousands) 2026 2025 Change % Change
Research and development $ 10,600 $ 10,564 $ 36 0.3 %
Selling, general, and administrative 73,655 76,528 (2,873) (3.8) %
Depreciation and amortization 20,919 22,891 (1,972) (8.6) %
Contingent consideration fair value adjustment (182) (12,092) 11,910 (98.5) %
Total other operating expenses, net $ 104,992 $ 97,891 $ 7,101 7.3 %
For the three months ended March 31, 2026, total other operating expenses, net increased to $105.0 million from $97.9 million for the same period in 2025, an increase of $7.1 million, or 7.3%, primarily as a result of the following factors:
•Research and development expenses were essentially flat for the three months ended March 31, 2026 compared to the same period in 2025.
•Selling, general, and administrative expenses decreased from $76.5 million to $73.7 million, a decrease of approximately $2.9 million, and includes a litigation settlement received of $9.0 million and a decrease of approximately $1.5 million in transaction and integration costs related to the Alimera acquisition, offset by increased investment in Rare Disease sales and marketing infrastructure, including the initial marketing and recruitment expense related to our expansion of the Rare Disease team which is targeting opportunities in acute gouty arthritis, and an overall increase in activities to support the growth of our business, compared to the same period in 2025.
•Depreciation and amortization expense was $20.9 million for the three months ended March 31, 2026, compared to $22.9 million for the same period in 2025, a decrease of approximately $2.0 million, primarily related to certain definite lived intangibles that have been fully amortized during 2025.
•We recognized a net gain of approximately $0.2 million for the three months ended March 31, 2026 related to changes in our contingent consideration liabilities, which are measured at fair value. The net gain resulted from the adjustment of future forecasted cash flows and includes: (1) a $0.4 million reduction related to the Alimera contingent value rights; and (2) a $0.2 million increase in contingent consideration related to the Novitium acquisition.
Other Income (Expense), net
Three Months Ended March 31,
(in thousands) 2026 2025 Change % Change
Unrealized gain (loss) on investment in equity securities $ 5,753 $ (921) $ 6,674 (724.6) %
Interest expense, net (3,769) (5,484) 1,715 (31.3) %
Other (expense) income, net (651) 198 (849) (428.8) %
Total other income (expense), net $ 1,333 $ (6,207) $ 7,540 (121.5) %
For the three months ended March 31, 2026, we recognized total other income, net of $1.3 million as compared to total other expense, net of $6.2 million for the same period in 2025.
•We recorded an unrealized gain on investment in equity securities of approximately $5.8 million for the three months ended March 31, 2026, compared to an unrealized loss of approximately $0.9 million in the same period in 2025, which is based on the mark to market fair value of equity securities held in CG Oncology as of the balance sheet date.
•Interest expense, net for the three months ended March 31, 2026 consists primarily of coupon interest expense on borrowings under our outstanding debt and amortization of deferred financings costs on these debt instruments, interest income earned on our bank balances, and interest earned on our interest rate swap. Interest income earned on our bank balances increased approximately $1.3 million and interest expense related to our outstanding debt decreased approximately $0.6 million, resulting in an increase of interest income of approximately $1.9 million. This impact was partially offset by a decrease of interest earned on our interest rate swap of approximately $0.2 million, compared to same period in the prior year.
•Other (expense) income, net, for the three months ended March 31, 2026 and 2025 consists primarily of unrealized foreign exchange gains and losses related to our Alimera UK subsidiary.
Income Tax Expense
Three Months Ended March 31,
(in thousands) 2026 2025 Change % Change
Income tax expense $ 10,729 $ 4,306 $ 6,423 149.2 %
Income tax expense consists of current and deferred components, which include changes in our deferred tax assets, our deferred tax liabilities, and our valuation allowance. See Note 12 "Income Taxes" in the notes to the unaudited condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information.
For the three months ended March 31, 2026, our income tax expense was approximately $10.7 million. Our effective tax rate of 26.7% of pre-tax income for the current year was determined based on our pre-tax income, statutory tax rates and the tax impacts of certain discrete items for the three months ended March 31, 2026, which impact our income tax expense in the period in which they occur. The effective tax rate differed from the federal statutory rate of 21% primarily due to state taxes and disallowed officers compensation partially offset by excess tax benefits recognized upon settlement of stock-based compensation.
For the three months ended March 31, 2025, our income tax expense was approximately $4.3 million. Our effective tax rate was 21.5% of pre-tax income reported in the period, as well as the net effect of certain discrete items for the three months ended March 31, 2025 which impact our income tax expense in the period in which they occur. Discrete items are primarily related to excess tax benefits recognized upon settlement of stock-based compensation awards.
LIQUIDITY AND CAPITAL RESOURCES
Our primary source of liquidity is cash generated from operations, available cash on hand, and borrowings under our Term Loan and Convertible Notes as discussed and defined in Note 4 "2024 Credit Agreement" and Note 5 "2.25% Convertible Senior Notes" in the notes to the unaudited condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.
On August 13, 2024, we entered into the 2024 Credit Agreement with JPMorgan Chase Bank, N.A., and other financial institutions, which provides for aggregate principal commitments consisting of (i) a senior secured term loan facility in an aggregate principal amount of $325.0 million, and (ii) a senior secured revolving credit facility in an aggregate commitment amount of $75.0 million, which may be used for revolving credit loans, swingline loans and letters of credit (the "TLA Revolver" and together with the TLA, the "2024 Credit Facility"). As of March 31, 2026, the outstanding principal under our 2024 Credit Agreement was approximately $308.8 million, with $74.9 million remaining available for borrowing under the TLA Revolver. We also maintain an interest rate swap with a notional value of $139.4 million at an effective fixed rate of 2.313% to manage SOFR-based variable interest rate exposure on a portion of the borrowings under the 2024 Credit Agreement.
On August 13, 2024, the Company completed an offering of $316.25 million aggregate principal amount of Notes. The Notes are due September 1, 2029, unless earlier repurchased, redeemed, or converted. The Notes accrue interest at a rate of 2.25% per annum, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2025.
Our primary contractual obligations over the next twelve months consist of quarterly principal payments and monthly interest on the 2024 Credit Facility and semi-annual interest payments on the Notes, as discussed in Note 4 "2024 Credit Agreement" and Note 5 "2.25% Convertible Senior Notes" in the notes to the unaudited condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.
As of March 31, 2026 and December 31, 2025, we had $311.2 million and $285.6 million, respectively, in unrestricted cash and cash equivalents. The majority of our cash balances are held in interest bearing and non-interest bearing accounts in U.S.-based financial institutions that are guaranteed by the Federal Deposit Insurance Corporation ("FDIC") up to $250 thousand. The majority of our cash balances are in excess of FDIC coverage, which we consider to be a normal business risk. In addition, we have cash and cash equivalents held in international bank accounts that are denominated in various foreign currencies, specifically in Canada, the United Kingdom, Germany, Ireland, Portugal, and India.
We are focused on expanding our business and product pipeline through acquisitions of products and companies as well as internal research and development. We are continually evaluating potential asset acquisitions and business combinations. To finance such acquisitions, we might raise additional equity capital, incur additional debt, or both.
We believe that our financial resources, consisting of current working capital, anticipated future operating revenue and corresponding collections from customers, and available borrowings under the 2024 Credit Facility, and our Notes, will be sufficient to enable us to meet our working capital requirements and debt obligations for at least the next 12 months from the date of filing of this report, and for the foreseeable future thereafter. If our assumptions underlying estimated revenue and expenses are wrong, or if our cash requirements change materially as a result of shifts in our business or strategy, we could require additional financing. If we are not able to maintain profitability in future years or are not able to continue to generate cash from operations as anticipated and additional capital is needed to support operations, we may be unable to obtain such financing, or obtain it on favorable terms, in which case we may be required to curtail development of new products, limit expansion of operations, or accept financing terms that are not as attractive as desired.
Discussion of Cash Flows
The following table summarizes the net cash and cash equivalents (used in) provided by operating activities, investing activities, and financing activities for the periods indicated:
Three Months Ended March 31,
(in thousands) 2026 2025
Operating Activities $ 58,375 $ 34,991
Investing Activities $ (11,324) $ (19,846)
Financing Activities $ (21,616) $ (9,906)
Net Cash Provided by Operations
Net cash provided by operating activities was $58.4 million for the three months ended March 31, 2026, compared to net cash provided by operating activities of $35.0 million during the same period in 2025, an increase of $23.4 million. The increase in cash provided by operating activities primarily resulted from our net income of $29.5 million adjusted for non-cash items, and an increase in our working capital accounts driven by the growth of our business.
Net Cash Used in Investing Activities
Net cash used in investing activities for the three months ended March 31, 2026 was $11.3 million, which includes the acquisition of intangible assets of approximately $5.3 million and capital expenditures of approximately $6.1 million. Net cash used in investing activities for the three months ended March 31, 2025 was $19.8 million, which includes the payment for the exercise of the SWK Buy-Out Option of approximately $17.3 million and capital expenditures of approximately $2.5 million.
Net Cash Used in Financing Activities
Net cash used in financing activities for the three months ended March 31, 2026 was $21.6 million, resulting from $19.8 million of treasury stock purchases for restricted stock vests and principal payments on our 2024 Credit Facility of $4.1 million, offset by proceeds received from stock option exercises and ESPP purchases of approximately $2.2 million. Net cash used in financing activities for the three months ended March 31, 2025 was $9.9 million, resulting from $10.0 million of treasury stock purchases for restricted stock vests and a principal payment on our 2024 Credit Facility of $2.0 million, offset by proceeds received from stock option exercises and ESPP purchases.
CRITICAL ACCOUNTING ESTIMATES
There have been no material changes to our critical accounting policies and estimates as disclosed in Part II, Item 8. Consolidated Financial Statements, Note 1, "Description of Business and Summary of Significant Accounting Policies" in our 2025 Form 10-K.
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