Episode Details

Telix Pharmaceuticals (TLX) H1 2026 — H1 2026 (half-year ended June 30, 2026): revenue US$477.4m, UP 22.28%, gross margin 53.44% to 54.54%, and profit after tax of US$38.3m - more than any full year Telix has ever reported. Diluted earnings US$0.1074 a share against a US$0.0447 bar. The ADS rose 2.48% on the reaction session, then fell 8.78% the session after. Telix just earned more in six months than in any full year of its life - and almost all of it arrived in one envelope. A single initial, non-refundable US$40.0m payment from Regeneron covers 94.7% of the US$42.2m Telix added to research spending this half, and is larger than the whole US$38.3m net profit it helped produce. Take that one line out and profit before tax, adjusted EBITDA and operating cash flow ALL cross back below zero. THE CALL: HOLD (3/5, A REAL BUSINESS, A BOUGHT PROFIT, AND A PRICE THAT ALREADY ASSUMES THE TRANSITION WORKS) — base-case value ~$11.1 vs ~$11.33 today. KEY METRICS: - THE SPINE: profit before tax was US$29.2m and contained a US$40.0m Regeneron payment. Without it the half was a US$10.8m pre-tax LOSS. - THE SAME ITEM, THREE WAYS: adjusted EBITDA +146.40% as reported becomes -43.35% without it; operating cash flow of US$23.0m becomes a US$17.0m outflow. - THE SPEND: gross profit rose US$51.7m and operating costs rose US$62.4m - US$1.21 spent per extra dollar of gross profit, so core operating profit fell 93.15% to US$0.8m. - THE SEGMENTS: Precision Medicine earned US$131.9m on US$388.6m of revenue, a 33.94% margin; Therapeutics, Manufacturing Solutions and head office consumed US$120.4m, or 91.32% of it. - THE VALUATION: enterprise value US$4.11bn is 4.29x guided revenue; at 12x EBITDA the price needs a 35.71% group margin against 2.50% delivered. Fair value US$11.10 against US$11.33. What to watch: UP: Pixclara's FDA goal date of September 11, 2026, which would add a third selling product to a Precision Medicine engine already earning a 33.94% segment margin; or gross profit growth moving back ahead of cost growth. DOWN: another half like this one, in which operating costs grow US$62.4m against US$51.7m of extra gross profit; Manufacturing Solutions deteriorating further; or any use of the undrawn at-the-market equity facility. Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.