auph-20250930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

_____________________________________________

FORM 10-Q

_____________________________________________


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_____________ to ________________

Commission file number: 001-36421

__________________________________________

Aurinia Pharmaceuticals Inc.

(Exact Name of Registrant as Specified in its Charter)

__________________________________________


Alberta, Canada
(State or other jurisdiction of incorporation or organization)
#140, 14315 - 118 Avenue Edmonton, Alberta T5L 4S6			98-1231763
(Address of principal executive offices)			(I.R.S. Employer Identification Number)

(250) 744-2487

Registrant’s telephone number, including area code

_____________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

Indicate the number of shares outstanding of each of the registrant's classes of common shares, as of the latest predictable date. As of November 3, 2025, the registrant had 131,840,559 of common shares outstanding.

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of exchange on which registered
Common shares, no par value	AUPH	The Nasdaq Global Market LLC

Table of Contents

Page

PART I.

FINANCIAL INFORMATION

Item 1.

Financial Statements

Condensed Consolidated Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024

Condensed Consolidated Statements of Operations and Comprehensive Income for the Three and Nine Months Ended September 30, 2025 and 2024 (unaudited)

Condensed Consolidated Statements of Shareholders’ Equity for the Three and Nine Months Ended September 30, 2025 and 2024 (unaudited)

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 (unaudited)

Notes to Condensed Consolidated Financial Statements (unaudited)

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Item 4.

Controls and Procedures

Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.

Defaults Upon Senior Securities

Item 4.

Mine Safety Disclosures

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

AURINIA PHARMACEUTICALS INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)


	September 30, 2025		December 31, 2024
	(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$	73,189	$	83,433
Short-term investments	278,619		275,043
Accounts receivable, net	30,728		36,544
Inventory, net	44,793		39,228
Prepaid expenses and deposits	11,107		11,219
Other current assets	301		1,129
Total current assets	438,737		446,596
Finance right-of-use lease assets	78,813		92,072
Intangible assets, net	3,901		4,355
Operating right-of-use lease assets	3,718		4,068
Property and equipment, net	2,266		2,731
Other noncurrent assets	93		823
Total assets	$	527,528	$	550,645

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	2,214	$	5,187
Accrued expenses	49,536		64,971
Finance lease liabilities, current portion	16,309		14,046
Deferred revenue	4,602		11,002
Operating lease liabilities, current portion	1,057		1,026
Other current liabilities	2,502		1,531
Total current liabilities	76,220		97,763
Finance lease liabilities, less current portion	55,727		58,554
Deferred revenue, less current portion	12,249		1,699
Deferred compensation and other noncurrent liabilities	12,442		9,408
Operating lease liabilities, less current portion	5,119		5,743
Total liabilities	161,757		173,167
Commitments and contingencies (Note 5)
Shareholders' equity
Common shares - no par value, unlimited shares authorized, 131,841 and 140,883 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively	1,116,797		1,187,696
Additional paid-in capital	109,885		126,999
Accumulated other comprehensive loss	(749)		(647)
Accumulated deficit	(860,162)		(936,570)
Total shareholders' equity	365,771		377,478
Total liabilities and shareholders' equity	$	527,528	$	550,645

See accompanying notes.

AURINIA PHARMACEUTICALS INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Unaudited)

(in thousands, except per share data)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Revenue
Net product sales	$	70,627	$	55,503	$	197,172	$	158,604
License, collaboration and royalty revenue	2,841		12,268		8,769		16,662
Total revenue	73,468		67,771		205,941		175,266
Operating expenses
Cost of revenue	8,177		6,035		23,866		22,696
Selling, general and administrative	26,182		42,367		72,539		134,996
Research and development	8,435		3,047		21,610		12,678
Restructuring	—		—		1,647		7,755
Other expense, net	929		4,574		14,604		159
Total operating expenses	43,723		56,023		134,266		178,284
Income (loss) from operations	29,745		11,748		71,675		(3,018)
Interest income	3,316		4,267		10,075		12,982
Interest expense	(1,099)		(1,208)		(3,283)		(3,689)
Net income before income taxes	31,962		14,807		78,467		6,275
Income tax expense	411		457		2,059		1,952
Net income	$	31,551	$	14,350	$	76,408	$	4,323
Other comprehensive income:
Unrealized gain (loss) on available-for-sale securities	156		474		(102)		345
Comprehensive income	$	31,707	$	14,824	$	76,306	$	4,668

Earnings per share
Basic	$	0.24	$	0.10	$	0.57	$	0.03
Diluted	$	0.23	$	0.10	$	0.55	$	0.03

Shares used in computing earnings per share
Basic	131,808		143,051		135,163		143,353
Diluted	136,008		145,651		138,959		145,010

See accompanying notes.

AURINIA PHARMACEUTICALS INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)

(in thousands)



	Common Shares
	Shares	Amount		Additional paid-in capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Shareholders' Equity
Balance at December 31, 2024	140,883	$	1,187,696	$	126,999	$	(647)	$	(936,570)	$	377,478
Purchases of common shares under Share Repurchase Plan	(5,807)	(47,400)		—		—		—		(47,400)
Issuance of common shares from exercise of stock options and vesting of RSUs and performance awards	2,671	22,966		(22,611)		—		—		355
Share-based compensation	—	—		(3,409)		—		—		(3,409)
Unrealized loss on available-for-sale securities	—	—		—		(178)		—		(178)
Net income	—	—		—		—		23,344		23,344
Balance at March 31, 2025	137,747	$	1,163,262	$	100,979	$	(825)	$	(913,226)	$	350,190
Purchases of common shares under Share Repurchase Plan	(5,352)	(43,362)		—		—		—		(43,362)
Issuance of common shares from exercise of stock options and vesting of RSUs	190	2,062		(863)		—		—		1,199
Issuance of common shares under ESPP	83	620		(219)		—		—		401
Share-based compensation	—	—		5,440		—		—		5,440
Unrealized loss on available-for-sale securities	—	—		—		(80)		—		(80)
Net income	—	—		—		—		21,513		21,513
Balance at June 30, 2025	132,668	$	1,122,582	$	105,337	$	(905)	$	(891,713)	$	335,301
Purchases of common shares under Share Repurchase Plan	(1,090)	(8,785)		—		—		—		(8,785)
Issuance of common shares from exercise of stock options and vesting of RSUs	263	3,000		(1,371)		—		—		1,629
Share-based compensation	—	—		5,919		—		—		5,919
Unrealized gain on available-sale-securities	—	—		—		156		—		156
Net income	—	—		—		—		31,551		31,551
Balance at September 30, 2025	131,841	$	1,116,797	$	109,885	$	(749)	$	(860,162)	$	365,771

See accompanying notes.

AURINIA PHARMACEUTICALS INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)

(in thousands)



	Common Shares
	Shares	Amount		Additional paid in capital		Accumulated Other Comprehensive (Loss) Income		Accumulated Deficit		Total Shareholders' Equity
Balance at December 31, 2023	143,833	$	1,200,218	$	120,788	$	(730)	$	(942,322)	$	377,954
Purchases of common shares under Share Repurchase Plan	(2,374)	(13,370)		—		—		—		(13,370)
Issuance of common shares from exercise of stock options and vesting of RSUs	2,231	21,134		(21,106)		—		—		28
Share-based compensation	—	—		5,737		—		—		5,737
Unrealized loss on available-for-sale securities	—	—		—		(124)				(124)
Net loss	—	—		—		—		$	(10,749)	(10,749)
Balance at March 31, 2024	143,690	$	1,207,982	$	105,419	$	(854)	$	(953,071)	$	359,476
Purchases of common shares under Share Repurchase Plan	(1,050)	(5,249)		—		—		—		(5,249)
Issuance of common shares from exercise of stock options and vesting of RSUs	192	1,773		(1,390)		—		—		383
Issuance of common shares under ESPP	152	1,048		(345)		—		—		703
Shared-based compensation	—	—		8,586		—		—		8,586
Unrealized loss on available-for-sale securities	—	—		—		(5)		—		(5)
Net income	—	—		—		—		722		722
Balance at June 30, 2024	142,984	$	1,205,554	$	112,270	$	(859)	$	(952,349)	$	364,616
Issuance of common shares from exercise of stock options and vesting of RSUs	125	1,059		(824)		—		—		235
Shared-based compensation	—	—		8,327		—		—		8,327
Unrealized gain on available-for-sale securities	—	—		—		474		—		474
Net income	—	—		—		—		14,350		14,350
Balance at September 30, 2024	143,109	$	1,206,613	$	119,773	$	(385)	$	(937,999)	$	388,002

See accompanying notes.

AURINIA PHARMACEUTICALS INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)


	Nine Months Ended September 30,
	2025		2024
Cash flows from operating activities:
Net income	$	76,408	$	4,323
Adjustments to reconcile net income to cash flows from operating activities:
Share-based compensation	7,950		22,650
Amortization and depreciation	14,585		14,583
Foreign exchange loss (gain) on revaluation of Monoplant finance lease liability	9,318		(718)
Net amortization of premiums and discounts on investments	(7,844)		(9,752)
Other, net	4,852		220
Net changes in operating assets and liabilities:
Accounts receivable, net	5,816		(12,394)
Inventory, net	(5,565)		991
Prepaid expenses and other current assets	940		(6,001)
Other noncurrent operating assets	730		(12)
Accounts payable	(2,973)		4,551
Accrued expenses and other liabilities	(17,777)		(4,139)
Deferred revenue	4,150		522
Lease liabilities	(600)		(550)
Cash flows from operating activities	89,990		14,274
Cash flows from investing activities:
Proceeds from the sale and maturities of investments	348,785		461,448
Purchases of investments	(344,618)		(461,140)
Purchases of property, equipment and intangible assets	(180)		(225)
Upfront lease payment	—		(44)
Cash flows from investing activities	3,987		39
Cash flows from financing activities:
Repurchase of common shares	(98,156)		(18,435)
Principal portion of finance lease payments	(9,649)		(8,959)
Proceeds from issuance of common shares from exercise of stock options and vesting of RSUs and performance awards	12,583		6,537
Proceeds from issuance of common shares under ESPP	401		703
Taxes paid related to net settlement of exercises of stock options and vesting of RSUs and performance awards	(9,400)		(5,892)
Cash flows from financing activities	(104,221)		(26,046)
Net decrease in cash, cash equivalents and restricted cash	(10,244)		(11,733)
Cash, cash equivalents and restricted cash, beginning of the period	83,433		48,875
Cash, cash equivalents and restricted cash, end of the period	$	73,189	$	37,142
Supplemental cash flow information:
Cash paid for taxes	$	(3,092)	$	(1,459)
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets
Cash and cash equivalents	$	72,889	$	36,630
Restricted cash	300		512
Total cash, cash equivalents and restricted cash	$	73,189	$