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    DCTH
    Earnings call· Jun 2026(Q2 FY26)

    DELCATH SYSTEMS Q2 FY26 earnings call DCTH

    Aug 6, 2026 Source

    Executive summary

    Delcath Systems Q2 FY26 — Strong Revenue Growth and Raised Full-Year Outlook

    The company delivered strong Q2 FY26 results, driven by significant HIPPSADO kit revenue growth and strategic expansion of its treatment center network. Management raised full-year revenue guidance, reflecting robust first-half performance and tempered seasonality expectations. While clinical trial enrollment faced initial challenges, the company is actively addressing these to advance its liver-directed platform into new indications.

    Highlights

    6
    • HIPPSADO kit revenue reached $27.2 million, up 21% over Q2 2025.

    • Total revenue was $29.1 million, an increase from $24.2 million in Q2 2025.

    • Full-year revenue guidance was raised to $104 million to $108 million, reflecting at least 28% volume growth.

    • Activated two new treatment centers, bringing the total to 31, with a target of 37 by year-end.

    • Gross margin for the quarter was 90%, up from 86% in Q2 2025.

    • Ended the quarter with $95.9 million in cash and investments.

    Concerns

    5
    • Adjusted EBITDA for Q2 2026 was $7.6 million, down from $9.8 million in Q2 2025.

    • Clinical trial enrollment for colorectal and breast cancer studies has been slower than expected.

    • 340B pricing, introduced in July 2025, reduced effective ASP from $185,000 to $170,000-$173,000 per kit.

    • Research and development expense increased to $10.4 million from $6.9 million in the prior year quarter.

    • Selling, general and administrative expense increased to $13.4 million from $11.4 million in the prior year quarter.

    Guidance & targets

    7
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $104 million to $108 million
    high materiality
    High
    Full-year 2026 HEPs Auto Kit Volume Growth
    at least 28% growth
    medium materiality
    High
    Full-year 2026 Gross Margin
    between 86% to 89%
    medium materiality
    Medium
    Full-year 2026 Adjusted EBITDA
    positive
    high materiality
    High
    New Treatment Centers Activated
    approximately six additional centers
    medium materiality
    High
    Pre-IND Meetings with FDA
    later this year
    medium materiality
    High
    Metastatic Colorectal Cancer Trial Interim Readout
    sometime late next year
    high materiality
    Medium

    Operational metrics

    15
    HEP-SATO kit revenue
    $27.2 millionup 21% over Q2 2025
    Q2 FY26

    Primary driver of revenue growth.

    HEP-SATO volume growth
    30%vs Q2 2025
    Q2 FY26

    Higher than revenue growth due to 340B pricing impact.

    HEP-SATO sequential volume growth
    17%over Q1 FY26
    Q2 FY26

    Reflects strong quarter-over-quarter growth.

    ChemoSAT revenue
    $2 million
    Q2 FY26

    Component of total revenue.

    Gross margin
    90%compared to 86% in Q2 2025
    Q2 FY26

    Above original full-year guidance.

    Research and development expense
    $10.4 millioncompared to $6.9 million in Q2 2025
    Q2 FY26

    Driven by continued investment in clinical organization and ongoing phase two trials.

    Selling, general and administrative expense
    $13.4 millioncompared to $11.4 million in Q2 2025
    Q2 FY26

    Reflects investment into continued commercial expansion and increasing marketing activities.

    Adjusted EBITDA
    $7.6 millioncompared to $9.8 million in Q2 2025
    Q2 FY26

    Non-GAAP measure.

    Cash and investments balance
    $95.9 million
    Q2 FY26

    Balance at the end of the quarter.

    Cash provided by operations
    $5.7 million
    Q2 FY26

    Operating cash flow for the quarter.

    Share buyback program
    $25 million$9 million purchased to date
    ongoing

    Company's approved share repurchase program.

    New patient starts per site per month
    approximately 0.5
    Q2 FY26

    Sustained healthy flow of new patients into existing sites.

    Addressable patient population
    approximately 6,000 to 10,000
    annually

    Patients with liver-dominant metastatic colorectal cancer in the third-line setting.

    Addressable patient population
    similar sized
    annually

    Similar to metastatic colorectal cancer (6,000-10,000 U.S. patients annually) for HER2 negative metastatic breast cancer.

    Effective ASP per HEP-SATO kit
    $170,000 to $173,000down from $185,000
    FY26

    Impact of 340B pricing introduced in July 2025.

    Industry KPIs

    8
    MetricValueDetails
    System utilizationapproximately 0.5patients
    Pricing realized price$170,000-$173,000USD
    Procedure volume growth30%%
    FCF conversion leverage guidancepositive
    Installed base system placements31centers
    Segment franchise organic growth21%%
    Indicated addressable patient population6,000 to 10,000patients
    Pivotal trial clinical evidence milestonesInterim readout expected late next year

    Risks & headwinds

    4
    Impact of 340B pricing on ASPSince July 2025 (ongoing)

    Reduced effective ASP from $185,000 to $170,000-$173,000 per kit.

    Mitigation: Focus on volume growth (30% volume growth offset 21% revenue growth).

    Clinical trial enrollment challengesOngoing

    Enrollment 'definitely lower than our expectations' for colorectal and breast cancer trials.

    Mitigation: Adding sites, specialized training, streamlined onboarding, addressing challenges in coordinating IR and oncology teams.

    Seasonal slowdown in Q3/Q4Q3 and Q4

    Historically led to reduced treatment capacity due to single REM-certified treatment teams.

    Mitigation: Training backup teams at centers, including high-volume sites, to ease constraints.

    Increased operating expensesQ2 FY26

    R&D expense up to $10.4M from $6.9M YoY; SG&A up to $13.4M from $11.4M YoY.

    Mitigation: Investments are for continued clinical development and commercial expansion, expected to drive future growth and profitability (positive adjusted EBITDA guided for FY26).

    What to watch in Q3 FY26

    4

    New treatment center activations

    by year end
    Current31 active centers
    Target37 active centers

    Why it matters

    Expansion of the treatment network is crucial for increasing patient access and driving future revenue growth.

    We remain on track to activate approximately six additional centers by year end, which would bring us to 37 active centers.

    Q&A highlights

    5

    How are referral network efforts progressing, especially outreach to medical oncologists for new patient starts? Update on training second treatment teams to mitigate summer seasonality.

    Gerard Michel explained that about a third of the referral network is static within existing institutions, but the larger challenge is finding 'just-in-time' referrals for doctors who see only one patient. They are using claims data and investigating more frequently refreshed data. Regarding seasonality, several centers, including high-volume ones, now have backup teams, covering a meaningful percentage of volume, though not yet everywhere desired.

    Right now we're using claims data that lags, but we generally know patients who've been recently diagnosed... We'd like to do better than that. We're investigating use of other forms of data that are refreshed more frequently.

    asked by Mary Thibault · answered by Gerard Michel

    2 min read6 chapters

    Detailed Narrative

    01

    Commercial Execution and Center Expansion

    The company reported strong commercial execution for metastatic uveal melanoma, with HIPPSADO kit revenue up 21% year-over-year despite the introduction of 340B pricing. They activated two new treatment centers in Q2, bringing the total to 31, and are on track to reach 37 by year-end. The focus is on high-quality centers, with approximately 80% of active sites holding NCI comprehensive designation and 41% of all NCI comprehensive care centers now part of their network.

    02

    New Patient Starts and Seasonality Mitigation

    New patient starts remained solid, averaging approximately 0.5 new patients per site per month, generating volume for the second half of the year. To mitigate prior year's seasonality, the company has worked with centers to train backup treatment teams, particularly at high-volume sites, which is expected to ease📎 capacity constraints previously caused by staff absences.

    03

    Clinical Evidence and Combination Therapy

    Data from the Chopin trial, published in The Lancet of Oncology, continues to accelerate broader adoption of combination approaches. An abstract presented at ASCO described an ongoing Phase 2 study of Hepzato followed by Keventfust in HLA-A2 positive metastatic uveal melanoma patients, aiming to move Hepzato to a co-first-line setting.

    04

    Pipeline Expansion into Other Liver-Dominant Cancers

    Delcath is confident in Hepzato's potential in other liver-dominant cancers. A retrospective analysis presented at ESMO Breast Cancer showed 9 of 15 heavily pretreated metastatic breast cancer patients with liver-dominant disease achieved a hepatic partial response with percutaneous hepatic perfusion.

    05

    Sponsored Clinical Trials Progress

    In the sponsored Phase 2 trial for metastatic colorectal cancer, 13 centers are actively screening, with recruitment improving as sites were added and training streamlined. The first patient was recently dosed in the HER2 negative metastatic breast cancer trial at the European Institute of Oncology in Milan, with additional sites activating. The company estimates a similar addressable population for both indications (6,000-10,000 US patients annually for third-line colorectal cancer).

    06

    Strategic Indication Selection and Trial Challenges

    The initial selection of colorectal and breast cancer for trials was driven by physician interest and the significant liver dominance in CRC, despite the third-line CRC setting not being the largest population. Enrollment has been slower than anticipated due to challenges in educating and coordinating clinical trial teams, particularly integrating IR teams with oncology teams for this novel procedure. The company is actively addressing these issues.

    AI-generated summary of the company’s earnings call. Not investment advice.