Travere Therapeutics, Inc. 10-Q

Item 1. Financial Statements TRAVERE THERAPEUTICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except par value and share amounts) June 30, 2026 December 31, 2025 Assets (unaudited) Current assets: Cash and cash equivalents $ 117,735 $ 93,035 Marketable debt securities, at fair value 371,442 229,761 Accounts receivable, net 80,636 80,134 Inventory 7,835 5,875 Prepaid expenses and other current assets 37,493 28,760 Total current assets 615,141 437,565 Long-term inventory 32,214 30,280 Property and equipment, net 3,231 4,022 Operating lease right of use assets 8,745 10,576 Intangible assets, net 131,518 113,868 Other assets 8,511 8,880 Total assets $ 799,360 $ 605,191 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 7,495 $ 24,800 Accrued expenses 136,267 126,035 Operating lease liabilities, current portion 6,163 5,875 Other current liabilities 2,100 3,194 Total current liabilities 152,025 159,904 Convertible debt 602,781 311,724 Operating lease liabilities, less current portion 7,961 11,134 Other non-current liabilities 12,071 7,601 Total liabilities 774,838 490,363 Commitments and Contingencies (See Note 13) Stockholders' Equity: Preferred stock $ 0.0001 par value; 20,000,000 shares authorized; no shares issued and outstanding as of June 30, 2026 and December 31, 2025 — — Common stock $ 0.0001 par value; 200,000,000 shares authorized; 94,174,767 and 90,922,868 issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 9 9 Additional paid-in capital 1,570,242 1,588,721 Accumulated deficit ( 1,544,612 ) ( 1,472,713 ) Accumulated other comprehensive loss ( 1,117 ) ( 1,189 ) Total stockholders' equity 24,522 114,828 Total liabilities and stockholders' equity $ 799,360 $ 605,191 The accompanying notes are an integral part of these consolidated financial statements. 4 Table of Contents TRAVERE THERAPEUTICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited, in thousands, except share and per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net product sales $ 161,352 $ 94,842 $ 285,844 $ 170,702 License and collaboration revenue 8,232 19,607 10,938 25,478 Total revenue 169,584 114,449 296,782 196,180 Operating expenses: Cost of goods sold 2,174 1,521 4,123 6,201 Research and development 60,283 49,362 117,377 96,251 Selling, general and administrative 96,112 62,581 176,366 122,995 Royalty expense 7,061 13,635 31,877 26,060 Total operating expenses 165,630 127,099 329,743 251,507 Operating income (loss) 3,954 ( 12,650 ) ( 32,961 ) ( 55,327 ) Other (expense) income, net: Interest income 3,356 3,287 5,939 7,083 Interest expense ( 2,134 ) ( 2,846 ) ( 4,434 ) ( 5,702 ) Other (expense) income, net ( 169 ) ( 526 ) ( 259 ) 24 Inducement expense ( 40,008 ) — ( 40,008 ) — Total other (expense) income, net ( 38,955 ) ( 85 ) ( 38,762 ) 1,405 Loss from continuing operations before income tax ( 35,001 ) ( 12,735 ) ( 71,723 ) ( 53,922 ) Income tax benefit (provision) on continuing operations 204 ( 20 ) 324 ( 59 ) Loss from continuing operations, net of tax ( 34,797 ) ( 12,755 ) ( 71,399 ) ( 53,981 ) Loss from discontinued operations, net of tax — — ( 500 ) — Net loss $ ( 34,797 ) $ ( 12,755 ) $ ( 71,899 ) $ ( 53,981 ) Per share data Basic and diluted: Net loss per common share $ ( 0.37 ) $ ( 0.14 ) $ ( 0.78 ) $ ( 0.61 ) Weighted average common shares outstanding 93,479,416 88,945,624 92,678,588 88,652,428 Comprehensive loss: Net loss $ ( 34,797 ) $ ( 12,755 ) $ ( 71,899 ) $ ( 53,981 ) Foreign currency translation gain (loss) 470 268 917 ( 418 ) Unrealized loss on marketable debt securities ( 525 ) ( 237 ) ( 845 ) ( 314 ) Comprehensive loss $ ( 34,852 ) $ ( 12,724 ) $ ( 71,827 ) $ ( 54,713 ) The accompanying notes are an integral part of these consolidated financial statements. 5 Table of Contents TRAVERE THERAPEUTICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited, in thousands, except share amounts) Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 Common Stock Additional Paid in Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders' Equity Common Stock Additional Paid in Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders' Equity Shares Amount Shares Amount Balance - March 31 92,403,744 $ 9 $ 1,609,596 $ ( 1,062 ) $ ( 1,509,815 ) $ 98,728 88,787,429 $ 9 $ 1,522,050 $ ( 843 ) $ ( 1,488,393 ) $ 32,823 Share based compensation — — 21,318 — — 21,318 — — 10,331 — — 10,331 Issuance of common stock under the equity incentive plan and proceeds from exercise 1,692,241 — 27,841 — — 27,841 194,567 — 463 — — 463 Employee stock purchase program purchase and expense 78,782 — 2,827 — — 2,827 120,351 — 1,854 — — 1,854 Induced conversion on 2029 Notes — — ( 91,340 ) — — ( 91,340 ) — — — — — — Foreign currency translation adjustments — — — 470 — 470 — — — 268 — 268 Unrealized loss on marketable debt securities — — — ( 525 ) — ( 525 ) — — — ( 237 ) — ( 237 ) Net loss — — — — ( 34,797 ) ( 34,797 ) — — — — ( 12,755 ) ( 12,755 ) Balance - June 30 94,174,767 $ 9 $ 1,570,242 $ ( 1,117 ) $ ( 1,544,612 ) $ 24,522 89,102,347 $ 9 $ 1,534,698 $ ( 812 ) $ ( 1,501,148 ) $ 32,747 The accompanying notes are an integral part of these consolidated financial statements. 6 Table of Contents TRAVERE THERAPEUTICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited, in thousands, except share amounts ) Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 Common Stock Additional Paid in Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders' Equity Common Stock Additional Paid in Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders' Equity Shares Amount Shares Amount Balance - December 31 90,922,868 $ 9 $ 1,588,721 $ ( 1,189 ) $ ( 1,472,713 ) $ 114,828 87,452,835 $ 9 $ 1,506,315 $ ( 80 ) $ ( 1,447,167 ) $ 59,077 Share based compensation — — 37,008 — — 37,008 — — 21,509 — — 21,509 Issuance of common stock under the equity incentive plan and proceeds from exercise 3,173,117 — 32,570 — — 32,570 1,529,161 — 4,706 — — 4,706 Employee stock purchase program purchase and expense 78,782 — 3,283 — — 3,283 120,351 — 2,168 — — 2,168 Induced conversion on 2029 Notes — — ( 91,340 ) — ( 91,340 ) — — — — — — Foreign currency translation adjustments — — — 917 — 917 — — — ( 418 ) — ( 418 ) Unrealized loss on marketable debt securities — — — ( 845 ) — ( 845 ) — — — ( 314 ) — ( 314 ) Net loss — — — — ( 71,899 ) ( 71,899 ) — — — — ( 53,981 ) ( 53,981 ) Balance - June 30 94,174,767 $ 9 $ 1,570,242 $ ( 1,117 ) $ ( 1,544,612 ) $ 24,522 89,102,347 $ 9 $ 1,534,698 $ ( 812 ) $ ( 1,501,148 ) $ 32,747 7 Table of Contents TRAVERE THERAPEUTICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands) For the Six Months Ended June 30, 2026 2025 Cash Flows From Operating Activities: Net loss $ ( 71,899 ) $ ( 53,981 ) Net loss from discontinued operations ( 500 ) — Net loss from continuing operations ( 71,399 ) ( 53,981 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 29,446 26,818 Share based compensation 37,934 22,141 Foreign currency remeasurement impact 950 ( 2,165 ) Inducement expense 40,008 — Other ( 2,614 ) ( 693 ) Changes in operating assets and liabilities: Accounts receivable ( 583 ) ( 11,486 ) Inventory ( 3,450 ) 3,645 Prepaid expenses and other current and non-current assets ( 9,457 ) ( 6,777 ) Accounts payable ( 17,211 ) ( 5,223 ) Accrued expenses 9,194 ( 8,200 ) Deferred revenue — ( 2,815 ) Other current and non-current liabilities 4,887 1,525 Net cash provided by (used in) operating activities 17,705 ( 37,211 ) Cash Flows From Investing Activities: Proceeds from the sale and maturity of marketable debt securities 85,149 134,553 Purchase of marketable debt securities ( 226,638 ) ( 64,371 ) Purchase of intangible assets ( 43,249 ) ( 23,870 ) Other — ( 172 ) Net cash (used in) provided by investing activities ( 184,738 ) 46,140 Cash Flows From Financing Activities: Payment of guaranteed minimum royalty ( 1,050 ) ( 1,050 ) Proceeds from issuance of 2032 convertible senior notes 525,000 — Payment of debt issuance costs ( 16,270 ) — Repurchase of 2029 convertible senior notes including premium ( 350,885 ) — Proceeds from exercise of stock options 32,570 4,706 Proceeds from issuances under the employee stock purchase plan 2,356 1,537 Net cash provided by financing activities 191,721 5,193 Effect of exchange rate changes on cash 12 2,497 Net increase in cash and cash equivalents 24,700 16,619 Cash and cash equivalents, beginning of year 93,035 58,535 Cash and cash equivalents, end of period $ 117,735 $ 75,154 The accompanying notes are an integral part of these consolidated financial statements. 8 Table of Contents TRAVERE THERAPEUTICS, INC. AND SUBSIDIARIES NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. DESCRIPTION OF BUSINESS Organization and Description of Business Travere Therapeutics, Inc. (“we”, “our”, “us”, “Travere” and the “Company”) refers to Travere Therapeutics, Inc., a Delaware corporation, as well as its subsidiaries. Travere is a fully integrated biopharmaceutical company headquartered in San Diego, California focused on identifying, developing and delivering life-changing therapies to people living with rare kidney and metabolic diseases. The Company regularly evaluates and, where appropriate, acts on opportunities to expand its product pipeline and approved products through licenses and acquisitions of products in areas that will serve rare disease patients with serious unmet medical need and that the Company believes offer attractive growth characteristics. Approved Products: FILSPARI® (sparsentan) Treatment of IgAN In September 2024, the FDA granted full approval of FILSPARI® (sparsentan) to slow kidney function decline in adults with primary Immunoglobulin A nephropathy ("IgAN") who are at risk of disease progression. FILSPARI had previously been granted accelerated approval in February 2023 based on the surrogate marker of proteinuria. Full approval was based on positive long-term confirmatory results from the PROTECT Study demonstrating that FILSPARI significantly slowed kidney function decline over two years compared to irbesartan. FILSPARI is the only oral, once-daily, non-immunosuppressive medication that directly targets glomerular injury in the kidney by blocking two critical pathways of IgAN disease progression (endothelin-1 and angiotensin II). Treatment of FSGS On April 13, 2026, the FDA granted full (traditional) approval of FILSPARI (sparsentan) to reduce proteinuria in adult and pediatric patients aged 8 years and older with focal segmental glomerulosclerosis (“FSGS”) without nephrotic syndrome. In the Phase 3 DUPLEX Study patients treated with FILSPARI in the overall study population experienced a significant reduction in proteinuria compared to those treated with maximum labeled dose irbesartan. FILSPARI is the first and only medicine approved by the FDA for the treatment of FSGS. License and Collaboration Agreements In September 2021, the Company entered into a license and collaboration agreement (the "CSL Vifor License Agreement") with Vifor (International) Ltd. ("CSL Vifor"). In April 2024, the Company and CSL Vifor announced that the European Commission had granted conditional marketing authorization (“CMA”) for FILSPARI (sparsentan) for the treatment of adults with primary IgAN with a urine protein excretion ≥1.0 g/day (or urine protein-to-creatinine ratio ("UPCR") ≥0.75 g/g), and in April 2025, the Company and CSL Vifor announced that the European Commission had converted the CMA into a standard marketing authorization (“MA”) for FILSPARI for the treatment of adults with primary IgAN with a urine protein excretion ≥1.0 g/day (or UPCR ≥0.75 g/g). The MA is granted for all member states of the European Union, as well as in Iceland, Liechtenstein and Norway. In January 2024, the Company entered into an exclusive licensing agreement with Renalys Pharma, Inc. ("Renalys"), to bring sparsentan for the treatment of IgAN to patients in Japan and other countries in Asia. In December 2024, Renalys announced that sparsentan received Orphan Drug Designation from the Japanese Ministry of Health, Labour and Welfare for the indication of primary IgA nephropathy in November 2024. In the fourth quarter of 2025, Renalys announced positive topline results from its Phase 3 study of sparsentan in Japanese patients with IgAN. Renalys has also announced that it has reached an agreement with the Pharmaceuticals and Medical Devices Agency ("PMDA") regarding development plans for two other Phase 3 clinical trials of sparsentan, one investigating the use of sparsentan in focal segmental glomerulosclerosis ("FSGS") and the other in Alport syndrome, in Japan. In the fourth quarter of 2025, Renalys was acquired by and merged into Chugai Pharmaceutical Co., Ltd. (“Chugai”). Through the acquisition, Chugai gained exclusive rights to develop and commercialize sparsentan in Japan, South Korea, and Taiwan. As a minority shareholder in Renalys, Travere received $ 10.2 million at the closing of the transaction in the fourth quarter of 2025, and Travere is also eligible to receive multiple milestones according to the progress of sparsentan regulatory approval, and consideration linked to sparsentan's net sales in the applicable territory. Under the terms of the licensing agreement, Chugai is responsible for development, regulatory matters, and commercialization in the licensed territories. Thiola® and Thiola EC® (tiopronin tablets) Thiola® and Thiola EC® (tiopronin tablets) are approved in the United States for the prevention of cystine (kidney) stone formation in patients with severe homozygous cystinuria. Clinical-Stage Programs: Pegtibatinase Pegtibatinas e is a novel investigational human enzyme replacement candidate being evaluated for the treatment of classical homocystinuria ("HCU"). Pegtibatinase has been granted Rare Pediatric Disease, Fast Track and Breakthrough Therapy designations by the FDA, as well as orphan drug designation in the United States and European Union. In May 2023, the Company announced positive topline results from cohort 6 in the Phase 1/2 COMPOSE Study. In December 2023, the Company initiated the pivotal Phase 3 HARMONY Study to support the potential approval of pegtibatinase for the treatment of classical HCU. The HARMONY Study is a global, randomized, multi-center, double-blind, placebo-controlled Phase 3 clinical trial designed to evaluate the efficacy 9 Table of Contents and safety of pegtibatinase as a novel treatment to reduce total homocysteine ("tHcy") levels. In the beginning of 2024, the first patients were dosed in the HARMONY Study. In September 2024, the Company announced a voluntary pause of enrollment in the Phase 3 HARMONY Study. The voluntary enrollment pause was enacted following the Company's determination that the desired drug substance profile was not achieved in the initial scale-up process, and it enabled the Company to address necessary process improvements in manufacturing scale-up to support initial commercial scale manufacturing as well as full enrollment in the HARMONY Study. Following process improvements, the Company restarted enrollment activities in the first quarter of 2026 and dosed the first new patient following study restart in April 2026. The Company acquired pegtibatinase as part of the November 2020 acquisition of Orphan Technologies Limited. NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 19, 2026. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions for Form 10-Q and the rules and regulations of the SEC. Accordingly, since they are interim statements, the accompanying consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements, but reflect all adjustments consisting of normal, recurring adjustments, that are necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented. Interim results are not necessarily indicative of the results that may be expected for any future periods. The December 31, 2025 balance sheet information was derived from the audited financial statements as of that date. Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current period presentation. The Company revised the presentation of amortization expense of certain royalty and milestone payments associated with license agreements acquired in prior asset acquisitions that were accounted for under the asset accumulation method. Historically, the royalty amortization expense was included within selling, general and administrative expenses in the consolidated statements of operations. Beginning in the current year, the Company presents these amounts separately as royalty expense to better reflect the nature of these costs as consideration payable to licensors based on sales of licensed products and regulatory milestone payments. As a result of this change in presentation, $ 13.6 million and $ 26.1 million of amortization expense previously included within selling, general and administrative expenses has been reclassified to royalty expense for the three and six months ended June 30, 2025, respectively. This reclassification had no impact on total operating expenses, loss from operations, net loss, net loss per share, or cash flows for any period presented. A summary of the significant accounting policies applied in the preparation of the accompanying consolidated financial statements follows: Principles of Consolidation The unaudited consolidated financial statements represent the consolidation of the accounts of the Company, its subsidiaries and variable interest entities for which the Company has been determined to be the primary beneficiary, in conformity with GAAP. All intercompany accounts and transactions have been eliminated in consolidation. See Note 6 for further discussion of variable interest entities (“VIE”) that the Company consolidates. Revenue Recognition The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only recognizes revenue from contracts when it is probable that the entity will collect substantially all the consideration it is entitled to in exchange for the goods or services it transfers to the customer. See Note 3 and Note 4 for further discussion. Payments received under collaboration and licensing agreements may include non-refundable fees at the inception of the arrangements, milestone payments for specific achievements and royalties on the sale of products. At the inception of arrangements that include milestone payments, the Company uses judgment to evaluate whether the milestones are probable of being achieved and estimates the amount to include in the transaction price utilizing the most likely amount method. If it is probable that a significant revenue reversal will not occur, the estimated amount is included in the transaction price. Milestone payments that are not within the Company or the licensee’s control, such as regulatory approvals, are considered to be constrained due to a high degree of uncertainty and are not included in the transaction price until such uncertainty is resolved. At the end of each reporting period, the Company re-evaluates the probability of achievement of development milestones and any related constraint and adjusts the estimate of the overall transaction price, if necessary. The Company recognizes aggregate sales-based milestones and royalty payments from product sales of which the license is deemed to be the predominant item to which the royalties relate, at the later of when the related sales occur or when the performance obligation has been satisfied. Revenue from collaboration and licensing agreements may also include sales of inventory, at cost plus a margin, which is recorded in license and collaboration revenue. The Company utilizes significant judgment to develop estimates of the stand-alone selling price for each distinct performance obligation based upon the relative stand-alone selling price. Variable consideration that relates specifically to the Company’s efforts to satisfy specific performance obligations is allocated entirely to those performance obligations. The stand-alone selling price for license-related performance obligations requires judgment in developing assumptions to project probability-weighted cash flows based upon estimates of forecasted revenues, clinical and regulatory timelines and discount rates. The stand-alone selling price for clinical development performance obligations is based on forecasted expected costs of satisfying a performance obligation plus an appropriate margin. 10 Table of Contents If the licenses to intellectual property are determined to be distinct from the other performance obligations identified in the arrangement and have stand-alone functionality, the Company recognizes revenues from non-refundable, upfront fees allocated to the license when the license is transferred to the licensee and the licensee is able to benefit from the license. For licenses that are not distinct from other promises, the Company applies judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, upfront fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the related revenue recognition accordingly. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. Revenue is recorded proportionally as costs are incurred. The Company generally utilizes the cost-to-cost method of progress because it best measures the transfer of control to the customer which occurs as the Company incurs costs. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. The Company uses judgment to estimate the total costs expected to complete the clinical development performance obligations, which include subcontractor costs, labor, materials, other direct costs and an allocation of indirect costs. The Company evaluates these cost estimates and the progress each reporting period and adjusts the measure of progress, if necessary. Cost of goods sold Cost of goods sold includes the cost of inventory sold, third party manufacturing and supply chain costs, product shipping and handling costs, and provisions for excess and obsolete inventory. Cost of goods sold also includes the cost of goods sold under the Company's license and collaboration agreements, which currently consists of the sale of active pharmaceutical ingredients ("APIs") to the Company's collaboration partners, at cost or at cost plus a margin. The following table summarizes cost of goods sold for the three and six months ended June 30, 2026 and 2025 ( in thousands ): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Cost of goods sold - product sales $ 2,174 $ 1,521 $ 4,123 $ 2,775 Cost of goods sold - license and collaboration — — — 3,426 Total cost of goods sold $ 2,174 $ 1,521 $ 4,123 $ 6,201 Capitalization of Inventory Costs Prior to the regulatory approval of the Company's drug candidates, the Company incurs expenses for the manufacture of drug product supplies to support clinical development that could potentially be available to support the commercial launch of those drugs. The Company capitalizes inventory costs associated with its products after regulatory approval, when, based on management’s judgment, future commercialization is considered probable and the future economic benefit is expected to be realized. Until the date at which regulatory approval has been received, costs related to the production of inventory are recorded as research and development expenses as incurred. Any eventual sale of previously expensed ("zero-cost") inventories may impact future margins, for any periods in which those inventories are sold. Prior to the February 2023 FDA accelerated approval of FILSPARI (sparsentan) in IgAN, the Company expensed the production of APIs purchased to support the commercial launch of FILSPARI, in research and development expenses. For the three and six months ended June 30, 2025 sales of FILSPARI primarily consisted of zero-cost inventories. The Company began capitalizing inventory costs associated with FILSPARI following the February 2023 accelerated approval. Research and Development Expenses Research and development includes expenses related to sparsentan, pegtibatinase, and the Company's other pipeline programs. The Company expenses all research and development costs as they are incurred. The Company's research and development costs are composed of salaries and bonuses, benefits, non-cash share-based compensation, license fees, milestones under license agreements, costs paid to third-party contractors to perform research, conduct clinical trials and develop drug materials and delivery methods, costs to manufacture drug product supplies to support clinical development, and associated overhead expenses and facilities costs. The Company charges direct internal and external program costs to the respective development programs. The Company also incurs indirect costs that are not allocated to specific programs because such costs benefit multiple development programs and allow us to increase our pharmaceutical development capabilities. These consist of internal shared resources related to the development and maintenance of systems and processes applicable to all of our programs. Nonrefundable advance payments for goods and services to be received in the future for use in research and development activities are recorded as prepaid expenses. The prepaid amounts are expensed as the related goods are delivered or the services are performed, or when it is no longer expected that the goods will be delivered or the services rendered. Clinical Trial Expenses The Company records expenses in connection with its clinical trials under contracts with contract research organizations ("CROs") that support conducting and managing clinical trials, as well as contract manufacturing organizations ("CMOs") for the manufacture of drug product supplies to support clinical development. The financial terms and activities of these agreements vary from contract to contract and may result in uneven expense levels. Generally, these agreements set forth activities that drive the recording of expenses such as start-up, initiation activities, enrollment, treatment of patients, or the completion of other clinical trial activities, and in the case of CMOs, costs associated with the production of drug product supplied and the procurement of raw materials to be consumed in the manufacturing process. Expenses related to clinical trials are accrued based on our estimates of the progress of services performed, including actual level of patient enrollment, completion of patient studies and progress of the clinical trials or the delivery of goods. Other incidental costs related to patient enrollment or treatment are 11 Table of Contents accrued when reasonably certain. If the amounts we are obligated to pay under our clinical trial agreements are modified (for instance, as a result of changes in the clinical trial protocol or scope of work to be performed), the Company adjusts its estimates accordingly on a prospective basis. Revisions to the Company's contractual payment obligations are charged to expense in the period in which the facts that give rise to the revision become reasonably certain. The Company currently has three Phase 3 clinical trials in process that are in varying stages of activity, with ongoing non-clinical support trials. As such, clinical trial expenses will vary depending on all the factors set forth above and may fluctuate significantly from quarter to quarter and year to year. Earnings (Loss) Per Share The Company calculates basic earnings per share by dividing net income/(loss) by the weighted average number of shares outstanding during the period. The Company's diluted earnings/(loss) per share computation includes the effect, if any, of shares that would be issuable upon the exercise of outstanding stock options, convertible debt and RSUs using the treasury stock method. The treasury stock method reduces the number of shares issuable by the shares assumed to be purchased by the Company from the resulting proceeds at the average market price during the year, when such amounts are dilutive to the earnings/(loss) per share calculation. As the Company has reported net losses for all periods presented, all potentially dilutive securities are antidilutive and, accordingly, basic net loss per share equals diluted net loss per share. In accordance with ASC 260, Earnings per Share , if a company had a discontinued operation, the company uses income from continuing operations, adjusted for preferred dividend and similar adjustments, as its control number to determine whether potential common shares are dilutive. Intangible Assets with Cost Accumulation Model In 2014, the Company entered into a license agreement with Mission Pharmacal ("Mission") in which the Company obtained the exclusive right to license the trademark of Thiola ("Mission License Agreement"). The acquisition of the Thiola license qualified as an asset acquisition under the principles of ASC 805, Business Combinations ("ASC 805") in effect at the time of acquisition. The license agreement requires the Company to make royalty payments based on net sales of Thiola. The liability for royalties in excess of the annual contractual minimum is recognized in the period in which the royalties become probable and estimable, which is typically in the period corresponding with the respective sales. The Company records an offsetting increase to the cost basis of the intangible asset under the cost accumulation model ("Thiola Intangible"). The additional cost basis is subsequently amortized over the remaining estimated useful life of the license agreement. Consistent with all prior periods since Thiola was acquired, the Company has not accrued any liability for future royalties in excess of the annual contractual minimum at June 30, 2026 as such royalties are not yet probable and estimable. In 2012, the Company entered into an agreement with Ligand Pharmaceuticals, Inc. (“Ligand”) for a worldwide sublicense to develop, manufacture and commercialize sparsentan (the “Ligand License Agreement”). The acquisition of the Ligand License Agreement qualified as an asset acquisition under the principles of ASC 805 in effect at the time of acquisition. The license agreement requires the Company to make royalty payments based on net sales of FILSPARI (sparsentan) and milestone payments. The liabilities for royalties and milestone payments are recognized in the period in which they become probable and estimable, which is typically in the period corresponding with the respective sales or achievement of the milestone. The Company records an offsetting increase to the cost basis of the intangible asset under the cost accumulation model following the approval of FILSPARI. The additional cost basis is subsequently amortized over the remaining estimated useful life. Royalty expense includes amortization of royalties and milestones paid that are capitalized to the intangible asset under the asset accumulation model as well as royalties expensed after the estimated useful life of the license agreement has been reached. The following table summarizes royalty expense for the three and six months ended June 30, 2026 and 2025 ( in thousands ): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Amortization of intangibles - royalties and milestones $ 3,839 $ 13,635 $ 28,655 $ 26,060 Royalties expensed 3,222 — 3,222 — Total royalty expense $ 7,061 $ 13,635 $ 31,877 $ 26,060 Royalties and milestones capitalized $ 25,351 $ 15,088 $ 46,423 $ 27,173 Variable Interest Entity The Company reviews each investment and collaboration agreement to determine if it has a variable interest in the entity. In assessing whether the Company has a variable interest in the entity as a whole, the Company considers and makes judgments regarding the purpose and design of the entity, the value of the licensed assets to the entity, the value of the entity’s total assets and the significant activities of the entity. If the Company has a variable interest in the entity as a whole, the Company assesses whether or not the Company is a primary beneficiary of that VIE, based on a number of factors, including: (i) which party has the power to direct the activities that most significantly affect the VIE’s economic performance, (ii) the parties’ contractual rights and responsibilities pursuant to the collaboration agreement, and (iii) which party has the obligation to absorb losses of or the right to receive benefits from the VIE that could be significant to the VIE. If the Company determines that it is the primary beneficiary of a VIE at the onset of the collaboration, the collaboration is treated as a business combination and the Company consolidates the financial statements of the VIE into the Company’s consolidated financial statements. On a quarterly basis, the Company evaluates whether it continues to be the primary beneficiary of the consolidated VIE. If the Company determines that it is no longer the primary beneficiary of a consolidated VIE, it deconsolidates the VIE in the period in which the determination is made. Assets and liabilities recorded as a result of consolidating the financial results of the VIE into the Company’s Consolidated Balance Sheets do not represent additional assets that could be used to satisfy claims against the Company’s general assets or liabilities for which creditors have recourse to the Company’s general assets. 12 Table of Contents Discontinued Operations Discontinued operations is presented when there is a disposal of a component or a group of components that in the Company's judgment represents a strategic shift that will have a major effect on the Company's operations and financial results. Results of operations directly related to discontinued operations are aggregated into a single line item in the Consolidated Statements of Operations and Comprehensive Loss for all periods presented. See Note 18 for further discussion. Recently Adopted Accounting Pronouncements In July 2025, the FASB issued ASU No. 2025-05—Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This ASU added a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset when estimating expected credit losses for current accounts receivable and current contract assets. The guidance is effective for annual periods beginning after December 15, 2025, including interim periods within those years. The Company adopted this standard effective January 1, 2026. The adoption did not have a material impact on the Company’s consolidated financial statements. In November 2024, the FASB issued ASU No. 2024-04, Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debts Instruments. This ASU clarifies the requirements for determining whether to account for certain early settlements of convertible debt instruments as induced conversions or extinguishments. The guidance is effective for fiscal years beginning after December 15, 2025, including interim periods within those years. The Company adopted this standard effective January 1, 2026 on a prospective basis. See Note 10 for further discussion of accounting for convertible debt transactions during 2026. Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standard setting bodies. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position or results of operations upon adoption. In September 2025, the FASB issued Accounting Standards Update ("ASU") No. 2025-06—Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This ASU removed the language around project stages that was used to assess when costs could be capitalized for an internal-use software. The update also requires internal-use software to be disclosed under the ASC 360 Property, Plant, and Equipment guidance. The guidance is effective for annual periods beginning after December 15, 2027. The Company is currently assessing the impact of this standard on the Company’s accounting policies and the financial statements. In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Recognition Disclosures. This ASU will require entities to provide enhanced disclosures related to certain expense categories included in income statement captions. The ASU aims to increase transparency and provide investors with more detailed information about the nature of expenses reported on the face of the income statement. The new standard does not change the requirements for the presentation of expenses on the face of the income statement. Under this ASU, entities are required to disaggregate, in a tabular format, expense captions presented on the face of the income statement — excluding earnings or losses from equity method investments — if they include any of the following expense categories: purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depreciation or depletion. For any remaining items within each relevant expense caption, entities must provide a qualitative description of the nature of those expenses. The new ASU is effective, as clarified by ASU No. 2025-01, for annual reporting periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this standard on the related disclosures. NOTE 3. REVENUE RECOGNITION Product Sales, Net Product sales consist of FILSPARI and tiopronin products (Thiola and Thiola EC). The Company sells its products to specialty pharmacies and through direct-to-patient distributors worldwide, with the United States representing over 99 % of the Company's net product sales. The Company sells FILSPARI to two direct-to-patient specialty pharmacies in the United States. The Company sells its tiopronin products to patients and pharmacies, with distribution facilitated through a single direct-to-patient distributor. Revenues from product sales are recognized in satisfaction of a single performance obligation when the customer obtains control of the Company’s product. For FILSPARI, sales are recognized upon delivery of the product to the specialty pharmacies. The Company receives payments from its FILSPARI sales based on terms that are generally 30 days from shipment of the product to the specialty pharmacy. For the Company's tiopronin products, product sales are recognized upon delivery to the patient. The Company receives payments from sales of its tiopronin products, primarily through third party payers, based on terms that generally are within 30 days of delivery of product to the patient. Contracts do not contain significant financing components based on the typical period of time between performance of services and collection of consideration. Deductions from Revenue Revenues from product sales are recorded at the net sales price, which includes provisions resulting from discounts, rebates and co-pay assistance that are offered to customers, payers and other indirect customers relating to the Company’s sales of its products. These provisions are based on the estimates of the amounts earned or to be claimed on the related sales. These amounts are treated as variable consideration, estimated and recognized as a reduction of the transaction price at the time of the sale, using the most likely amount method, and are classified as a reduction of accounts receivable (if the amount is payable to a customer) or as a current liability (if the amount is payable to a party other than a customer). The Company includes these estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized for such transactions will not occur. Where 13 Table of Contents appropriate, these reserves take into consideration the Company’s historical experience, current contractual and statutory requirements and specific known market events and trends. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the contract. If actual results in the future vary from the Company’s provisions, the Company will adjust the estimate, which would affect net product revenue and earnings in the period such variances become known. For the six months ended June 30, 2026 and 2025, adjustments to net product revenue related to performance obligations satisfied in previous periods were $ 1.0 million and $ 1.3 million, respectively. Government Rebates: The Company calculates the rebates that it will be obligated to provide to government programs and deducts these estimated amounts from its gross product sales at the time the revenues are recognized. Allowances for government rebates and discounts are established based on an estimated allocation of payers and the government-mandated discounts applicable to government-funded programs. Rebate discounts are included in accrued expenses in the accompanying Consolidated Balance Sheets. Commercial Rebates: The Company calculates the rebates it incurs according to any contracts with certain commercial payers and deducts these amounts from its gross product sales at the time the revenues are recognized. Allowances for commercial rebates are established based on actual payer information, which is reasonably estimated at the time of delivery for applicable products. Rebate discounts are included in accrued expenses in the accompanying Consolidated Balance Sheets. Prompt Pay Discounts: The Company offers discounts to certain customers for prompt payments. The Company accrues for the calculated prompt pay discount based on the gross amount of each invoice for those customers at the time of sale. Other Fees: The Company pays service fees to certain customers based on a contractually fixed percentage of the wholesale acquisition cost ("WAC") and fees for data. Other fees are recorded as an offset to revenue based on contractual terms at the time revenue from the sale is recognized. Product Returns: Consistent with industry practice, the Company offers its customers a limited right to return product purchased directly from the Company, which is principally based upon the product’s expiration date. Historically, returns have been immaterial. Co-pay Assistance : The Company offers a co-pay assistance program, which is intended to provide financial assistance to qualified commercially insured patients with prescription drug co-payments required by payers. The calculation of the accrual for co-pay assistance is based on an estimate of claims and the estimated cost per claim associated with product that has been recognized as revenue. The following table summarizes net product sales for the three and six months ended June 30, 2026 and 2025 ( in thousands ): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 FILSPARI $ 141,078 $ 71,887 $ 246,230 $ 127,768 Tiopronin products 20,274 22,955 39,614 42,934 Total net product sales $ 161,352 $ 94,842 $ 285,844 $ 170,702 NOTE 4. COLLABORATION AND LICENSE AGREEMENTS License Agreement with CSL Vifor In September 2021, the Company entered into the CSL Vifor License Agreement, pursuant to which the Company granted an exclusive license to CSL Vifor for the commercialization of FILSPARI in Europe, Australia and New Zealand. In June 2025, the CSL Vifor License Agreement was amended in order to expand the license to cover additional countries the ("CSL Vifor Licensed Territories") and to provide that the license rights to each additional country will revert to the Company if CSL Vifor does not take certain specified actions within specified timelines with respect to such country. CSL Vifor also has first right of negotiation to expand the licensed territories into Canada and/or Mexico. Under the terms of the CSL Vifor License Agreement, the Company received an upfront payment of $ 55.0 million and will be eligible for up to $ 135.0 million in aggregate regulatory and market access related milestone payments and up to $ 655.0 million in aggregate sales-based milestone payments for a total potential value of up to $ 845.0 million. The Company is also entitled to receive tiered double-digit royalties of up to 40 percent of annual net sales of FILSPARI in the CSL Vifor Licensed Territories. Under the License Agreement, CSL Vifor is responsible for all commercialization activities in the CSL Vifor Licensed Territories. The Company remains responsible for the worldwide clinical development of sparsentan through regulatory approval as defined. Development costs for any post regulatory approval development activities, subject to approval by both parties, will be borne by the Company and CSL Vifor as defined, respectively. The CSL Vifor License Agreement will remain in effect, unless terminated earlier, until the expiration of all royalty terms for FILSPARI in the CSL Vifor Licensed Territories. Each party has the right to terminate the CSL Vifor License Agreement for the other party’s uncured material breach, insolvency or if the time required for performance under the CSL Vifor License Agreement by the other party is extended due to a force majeure event that continues for six months or more. The Company assessed the CSL Vifor License Agreement and determined that it meets both criteria to be considered a collaborative agreement within the Scope of ASC 808, Collaborative Arrangements which are active participation by both parties and exposures to significant risks and rewards dependent on the commercial success of the activities. Both parties participate on joint steering and other committees overseeing the collaboration activities. Also, both parties are exposed to significant risks and rewards based on the economic outcomes of regulatory approvals and commercialization of sparsentan. The Company determined the initial transaction price under the CSL Vifor License Agreement totaled $ 55.0 million, consisting of the fixed non-refundable upfront payment. The variable regulatory and access related milestones were considered variable consideration and excluded from the transaction price given the substantial uncertainty at inception related to their achievement, based on the most likely amount method. Sales-based milestone payments and royalties on net sales were excluded from the transaction price and are recognized at the later of when the related sales occur or when the performance 14 Table of Contents obligation to which the sales-based milestone or royalty has been allocated has been satisfied. The Company re-evaluates the transaction price for each reporting period and as uncertainties are resolved. The Company concluded that CSL Vifor represented a customer and applied relevant guidance from ASC 606 to evaluate the accounting under the CSL Vifor License Agreement. In accordance with this guidance, the Company concluded at inception that the promise to grant the license is distinct from the promise to provide clinical development services resulting in two performance obligations. As a result, the Company allocated $ 12.0 million of the transaction price, based on the performance obligations' relative standalone selling prices, to the license, which was recognized in full in 2021. The remaining $ 43.0 million of the transaction price was allocated to the clinical development activities and recorded as deferred revenue, which was recognized over the development period based upon the ratio of costs incurred to date to the total estimated costs through June 30, 2025. For the three and six months ended June 30, 2025, the Company achieved a regulatory milestone in the amount of $ 17.5 million as a result of the European Commission granting standard MA approval. This milestone was included in the transaction price under the most likely amount method and recognized in full. For the three months ended June 30, 2026 and 2025, the Company recognized $ 3.2 million and $ 19.6 million, respectively, in license and collaboration revenue associated with the CSL Vifor License Agreement. For the six months ended June 30, 2026 and 2025, the Company recognized $ 5.9 million and $ 25.5 million, respectively, in license and collaboration revenue associated with the CSL Vifor License Agreement. Licensing Agreement with Chugai In January 2024, the Company entered into an exclusive licensing agreement ("Chugai License Agreement") with Renalys, pursuant to which, the Company granted an exclusive license to Renalys (which has since been merged with and into Chugai) for the development and commercialization of sparsentan in Japan and other specified Asian countries. Under the terms of the Chugai License Agreement, the Company received a non-refundable upfront payment and will be eligible to receive up to $ 120.0 million in aggregate regulatory, development and sales-based milestones. The Company is also entitled to receive tiered double-digit to mid-20 percent royalties of annual net sales of sparsentan in the licensed territories. In addition, the Company received an option to purchase shares of common stock of Renalys (“Option Agreement”), which it exercised in January 2024. The Company also had the option to purchase all equity securities of Renalys at any time prior to the top-line results of the Phase 3 trial in Japan (“Buyout Right”). Under the Chugai License Agreement, Chugai is responsible for all development and commercialization activities in the licensed territories. The Company will retain all rights to sparsentan in the United States and rest of world outside of the licensed territories and the CSL Vifor Licensed Territories, provided that CSL Vifor has a right of negotiation to expand the licensed territories into Canada and/or Mexico. The Chugai License Agreement will remain in effect, unless terminated earlier, until the expiration of all royalty terms for sparsentan in the licensed territories. Each party has the right to terminate the Chugai License Agreement for the other party’s uncured material breach or insolvency, or if the time required for performance under the Chugai License Agreement by the other party is extended due to a force majeure event that continues for nine months or more. Chugai may terminate the Chugai License Agreement for any reason upon prior written notice to the Company. The Company may terminate the Chugai License Agreement, in whole or with respect to Japan or South Korea if Chugai abandons development of all licensed products in the applicable country (or both countries) prior to the first commercial sale. The Company assessed the Chugai License Agreement and determined that it meets both criteria to be considered a collaborative agreement within the Scope of ASC 808, Collaborative Arrangements which are active participation by both parties and exposures to significant risks and rewards dependent on the commercial success of the activities. Both parties participate on a joint steering committee overseeing the development and commercial activities. Also, both parties are exposed to significant risks and rewards based on the economic outcomes of regulatory approvals and commercialization of sparsentan. The Company determined the transaction price under the Chugai License Agreement totaled $ 8.3 million, consisting of the fixed non-refundable upfront payment, milestone payment and estimated fair value of the Option Agreement. The variable development-related milestones were excluded from the transaction price given the substantial uncertainty related to their achievement under the most likely amount method. Sales-based milestone payments and royalties on net sales were excluded from the initial transaction price and will be recognized at the later of when the related sales occur or when the performance obligation to which the sales-based milestone or royalty has been allocated has been satisfied. The Company concluded that Chugai represents a customer and applied relevant guidance from ASC 606 to evaluate the accounting under the Chugai License Agreement. In accordance with this guidance, the Company concluded that the promise to grant the license is distinct, resulting in one performance obligation as the license has stand-alone functionally at contract inception. The Buyout Right precluded transferring control of the license to Renalys under ASC 606 and the Company’s option to repurchase the common stock at a price greater than the original license premium results in accounting for the Chugai License Agreement as a financing arrangement. The transaction price was recorded in other current liabilities as a result of the Buyout Right. During the year ended December 31, 2025, the Buyout Right was relinquished, and the Company recognized the Renalys deferred revenue balance of $ 9.3 million in license and collaboration revenue. See Note 6 for further discussion of VIEs. For the three and six months ended June 30, 2026, the Company recognized a $ 5.0 million regulatory milestone associated with the Chugai License Agreement. NOTE 5. MARKETABLE DEBT SECURITIES The Company's marketable debt securities as of June 30, 2026 and December 31, 2025 were composed of available-for-sale commercial paper and corporate and government debt securities and municipal bonds. The primary objective of the Company’s investment portfolio is to preserve capital and liquidity while enhancing overall returns. The Company’s investment policy limits interest-bearing security investments to certain types of instruments issued by institutions with primarily investment grade credit ratings and places restrictions on maturities and concentration by asset class and issuer. 15 Table of Contents Marketable debt securities consisted of the following ( in thousands ): June 30, 2026 December 31, 2025 Marketable debt securities: Commercial paper $ 64,258 $ 62,988 Corporate debt securities 271,194 151,777 Securities of government sponsored entities 19,868 9,993 Municipal bonds 16,122 5,003 Total available-for-sale marketable debt securities $ 371,442 $ 229,761 The following is a summary of short-term marketable debt securities classified as available-for-sale as of June 30, 2026 ( in thousands ): Remaining Contractual Maturity (in years) Amortized Cost Unrealized Gains Unrealized Losses Aggregate Estimated Fair Value Marketable debt securities: Commercial paper Less than 1 $ 64,341 $ — $ ( 83 ) $ 64,258 Corporate debt securities Less than 1 101,851 — ( 154 ) 101,697 Securities of government-sponsored entities Less than 1 10,000 — ( 45 ) 9,955 Total maturity less than 1 year 176,192 — ( 282 ) 175,910 Corporate debt securities 1 to 2 169,997 29 ( 529 ) 169,497 Securities of government-sponsored entities 1 to 2 9,933 — ( 20 ) 9,913 Municipal bonds 1 to 2 16,179 — ( 57 ) 16,122 Total maturity 1 to 2 years 196,109 29 ( 606 ) 195,532 Total available-for-sale marketable debt securities $ 372,301 $ 29 $ ( 888 ) $ 371,442 The following is a summary of short-term marketable debt securities classified as available-for-sale as of December 31, 2025 ( in thousands ): Remaining Contractual Maturity (in years) Amortized Cost Unrealized Gains Unrealized Losses Aggregate Estimated Fair Value Marketable debt securities: Commercial paper Less than 1 $ 62,974 $ 20 $ ( 6 ) $ 62,988 Corporate debt securities Less than 1 77,414 12 ( 33 ) 77,393 Municipal bonds Less than 1 5,000 3 — 5,003 Total maturity less than 1 year 145,388 35 ( 39 ) 145,384 Corporate debt securities 1 to 2 74,389 69 ( 74 ) 74,384 Securities of government-sponsored entities 1 to 2 10,000 — ( 7 ) 9,993 Total maturity 1 to 2 years 84,389 69 ( 81 ) 84,377 Total available-for-sale marketable debt securities $ 229,777 $ 104 $ ( 120 ) $ 229,761 For the three and six months ended June 30, 2026 and 2025, realized gains and losses on marketable debt securities were immaterial. As of June 30, 2026 and December 31, 2025, the accrued interest receivable related to the Company's marketable debt securities was $ 2.3 million and $ 1.3 million, respectively, and was recorded in prepaid expenses and other current assets on the Consolidated Balance Sheets. The Company reviews the available-for-sale marketable debt securities for declines in fair value below the cost basis each quarter. For any security whose fair value is below its amortized cost basis, the Company first evaluates whether it intends to sell the impaired security, or will otherwise be more likely than not required to sell the security before recovery. If either are true, the amortized cost basis of the security is written down to its fair value at the reporting date. If neither circumstance holds true, the Company assesses whether any portion of the unrealized loss is a result of a credit loss. Any amount deemed to be attributable to credit loss is recognized in the income statement, with the amount of the loss limited to the difference between fair value and amortized cost and recorded as an allowance for credit losses. The portion of the unrealized loss related to factors other than credit losses is recognized in other comprehensive income (loss). 16 Table of Contents The following is a summary of available-for-sale marketable debt securities in an unrealized loss position with no credit losses aggregated by investment category and length of time those individual securities have been in a continuous unrealized loss position reported as of June 30, 2026 ( in thousands ): Less Than 12 Months 12 Months or Greater Total Description of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Commercial paper $ 60,116 $ 83 $ — $ — $ 60,116 $ 83 Corporate debt securities 266,227 683 — — 266,227 683 Securities of government-sponsored entities 19,868 65 — — 19,868 65 Municipal bonds 16,122 57 — — 16,122 57 Total $ 362,333 $ 888 $ — $ — $ 362,333 $ 888 The following is a summary of available-for-sale marketable debt securities in an unrealized loss position with no credit losses aggregated by investment category and length of time those individual securities have been in a continuous unrealized loss position reported as of December 31, 2025 ( in thousands ): Less Than 12 Months 12 Months or Greater Total Description of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Commercial paper $ 12,317 $ 6 $ — $ — $ 12,317 $ 6 Corporate debt securities 118,443 107 — — 118,443 107 Securities of government-sponsored entities 9,993 7 — — 9,993 7 Total $ 140,753 $ 120 $ — $ — $ 140,753 $ 120 As of June 30, 2026 and December 31, 2025, the amortized cost of the available-for-sale marketable debt securities in an unrealized loss position was $ 363.2 million and $ 140.9 million, respectively. As of June 30, 2026 and December 31, 2025, the Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis. The increase in unrealized losses for the six months ended June 30, 2026 was primarily due to fluctuations in short-term interest rates. The Company does not believe the unrealized losses incurred during the period are due to credit-related factors. The credit ratings of the securities held remain of the highest quality. Moreover, the Company continues to receive payments of interest and principal as they become due, and our expectation is that those payments will continue to be received timely. Factors unknown to us at this time may cause actual results to differ and require adjustments to the Company’s estimates and assumptions in the future. NOTE 6. VARIABLE INTEREST ENTITIES Licensing Agreement with Chugai In January 2024, the Chugai License Agreement between the Company and Renalys (which has since been acquired by and merged into Chugai) came into effect and the Company exercised its option to purchase shares of common stock of Renalys. The Company determined that Renalys was a VIE as they could require additional funding to support development and commercial activities. The Company had variable interests in Renalys, including an equity interest, Buyout Right and performance-related payments under the Chugai License Agreement that absorb variability from the performance of Renalys. In order to determine the primary beneficiary of Renalys, the Company evaluated its variable interest to identify if the Company had the power to direct the activities that most significantly impact the economic performance. Based upon the capital structure, governing documents and overall business operations, the Company determined that it was not the primary beneficiary as it did not have the power to direct the activities that most significantly impact the economic performance of Renalys and did not have an obligation to absorb losses. During the year ended December 31, 2025, the Buyout Right was relinquished and the Company recognized the deferred revenue balance of $ 9.3 million in license and collaboration revenue. In the fourth quarter of 2025, Renalys was acquired by and merged into Chugai. The Company sold its equity interest in Renalys to Chugai as part of the acquisition. NOTE 7. LEASES As of June 30, 2026, the Company had an operating lease with Kilroy Realty, L.P. (the "Landlord") for office space located in San Diego, California, which was entered into in April 2019 and subsequently amended in May 2020. Coinciding with the Company's ability to direct the use of the office space, which occurred in phases over 2020, and utilizing a discount rate equal to the Company's estimated incremental borrowing rate, the Company established right-of-use assets totaling $ 34.6 million and lease liabilities totaling $ 34.5 million. The total right-of-use asset and lease liability at measurement were each offset by lease incentives associated with tenant improvement allowances totaling $ 7.9 million. The initial term of the office lease ends in August 2028, and the Landlord has granted the Company an option to extend the term of the lease by a period of five years . At lease inception, it was not reasonably certain that the Company will extend the term of the lease and therefore the renewal period has been 17 Table of Contents excluded from the aforementioned right-of-use asset and lease liability measurements. The measurement of the lease term occurs from the February 2021 occupancy date of the office space. In November 2024, the Company entered into a sublease for a portion of the premises. The term of the sublease runs from January 2025 through August 2028. The Company’s sublease arrangement has been classified as an operating lease with sublease income recognized on a straight-line basis over the term of the sublease arrangement. To measure the Company’s periodic sublease income, the Company elected to use a practical expedient under ASC 842 to aggregate non-lease components with the related lease components because (i) the timing and pattern of transfer for the non-lease components and the related lease components are the same and (ii) the lease components, if accounted for separately, would be classified as an operating lease. The following is a schedule of the future minimum rental commitments for the Company's operating lease reconciled to the lease liability and right-of-use asset as of June 30, 2026 ( in thousands ): June 30, 2026 2026 (remaining) $ 3,398 2027 6,978 2028 4,782 2029 and thereafter — Total undiscounted future minimum payments 15,158 Present value discount ( 1,034 ) Total lease liability 14,124 Unamortized lease incentives ( 2,063 ) Cash payments in excess of straight-line lease expense ( 3,316 ) Total right-of-use asset $ 8,745 The weighted-average remaining lease term and weighted-average discount rate of the Company's operating leases are as follows: June 30, 2026 December 31, 2025 Weighted-average remaining lease term in years 2.2 2.7 Weighted-average discount rate 6.48 % 6.48 % For the three and six months ended June 30, 2026, the Company recorded $ 1.1 million and $ 2.2 million in expense related to operating leases, including amortized tenant improvement allowances. For the three and six months ended June 30, 2025, the Company recorded $ 1.1 million and $ 2.2 million in expense related to operating leases, including amortized tenant improvement allowances. NOTE 8. FAIR VALUE MEASUREMENTS The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 – Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; and Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The valuation techniques used to measure the fair value of the Company’s debt securities and all other financial instruments, all of which have counter-parties with high credit ratings, were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. Based on the fair value hierarchy, the Company classified marketable debt securities within Level 2. Financial instruments with carrying values approximating fair value include cash and cash equivalents, accounts receivable, and accounts payable, due to their short-term nature. As of June 30, 2026 and December 31, 2025, the fair value of the Company's 2.25 % Convertible Senior Notes due 2029 was $ 180.5 million and $ 448.3 million, respectively. As of June 30, 2026 the fair value of the Company's 0.50 % Convertible Senior Notes due 2032 was $ 618.9 million. The fair values were estimated utilizing market quotations and are considered Level 2. 18 Table of Contents The following table presents the Company’s assets, measured and recognized at fair value on a recurring basis, classified under the appropriate level of the fair value hierarchy as of June 30, 2026 ( in thousands ): As of June 30, 2026 Total carrying and estimated fair value Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Cash and cash equivalents $ 117,735 $ 117,735 $ — $ — Marketable debt securities, available-for-sale 371,442 — 371,442 — Total $ 489,177 $ 117,735 $ 371,442 $ — The following table presents the Company’s assets, measured and recognized at fair value on a recurring basis, classified under the appropriate level of the fair value hierarchy as of December 31, 2025 ( in thousands ): As of December 31, 2025 Total carrying and estimated fair value Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Cash and cash equivalents $ 93,035 $ 93,035 $ — $ — Marketable debt securities, available-for-sale 229,761 — 229,761 — Total $ 322,796 $ 93,035 $ 229,761 $ — NOTE 9. INTANGIBLE ASSETS Ligand License Agreement In 2012, the Company entered into the Ligand License Agreement for a worldwide sublicense to develop, manufacture and commercialize FILSPARI. As consideration for the license, the Company is required to make substantial payments upon the achievement of certain milestones, totaling up to $ 114.1 million. Through June 30, 2026 the Company has capitalized $ 48.7 million for contractual milestones achieved under the Ligand License Agreement. Pursuant to the Ligand License Agreement, the Company is obligated to pay to Ligand (and Bristol-Myers Squibb Company) an escalating royalty between 15 % and 17 % of net sales of FILSPARI and any other products containing FILSPARI or related compounds, with payments due quarterly. The Company began incurring costs associated with such royalties following the February 2023 approval of FILSPARI for IgAN. For the three and six months ended June 30, 2026, the Company capitalized royalties owed on net sales of FILSPARI to intangible assets of $ 25.4 million and $ 43.4 million, respectively and $ 11.4 million and $ 20.3 million for the three and six months ended June 30, 2025, respectively. The cost of historical milestones paid and royalty payments are being amortized to royalty expense on a straight-line basis through the estimated useful life. Mission License Agreement In 2014, the Company entered into the Mission License Agreement, pursuant to which it obtained an exclusive, royalty-bearing license to market, sell and commercialize Thiola (tiopronin) in the United States and Canada, and a non-exclusive license to use know-how relating to Thiola to the extent necessary to market Thiola. Under the terms of the Mission License Agreement, as subsequently amended, which runs through May 2029, the Company is obligated to pay Mission the greater of $ 2.1 million, representing the guaranteed minimum royalty, or 20 % of its Thiola net sales generated globally during each calendar year. The Company capitalized a total of $ 188.4 million related to the Thiola intangible asset. For the three and six months ended June 30, 2025, the Company capitalized royalties owed on net sales of Thiola to intangible assets of $ 3.7 million and $ 6.9 million, respectively. The cost of the milestone payments and royalty payments were fully amortized to royalty expense on a straight-line basis through March 31, 2026. During the second quarter of 2026, the Company began expensing royalty payments during the period incurred. The following table sets forth amortizable intangible assets as of June 30, 2026 and December 31, 2025 ( in thousands ): June 30, 2026 December 31, 2025 Finite-lived intangible assets $ 339,737 $ 293,467 Less: accumulated amortization ( 208,972 ) ( 180,352 ) Net carrying value $ 130,765 $ 113,115 Amortization expense for the three and six months ended June 30, 2026 was $ 3.8 million and $ 28.7 million, respectively and $ 13.6 million and $ 26.1 million, for the three and six months ended June 30, 2025, respectively, and is recorded in royalty expense. 19 Table of Contents NOTE 10. CONVERTIBLE DEBT The composition of the Company’s convertible senior notes are as follows ( in thousands ): June 30, 2026 December 31, 2025 0.50 % convertible senior notes due 2032 $ 525,000 $ — 2.25 % convertible senior notes due 2029 94,875 316,250 Unamortized debt issuance costs - 0.50 % convertible senior notes due 2032 ( 15,906 ) — Unamortized debt issuance costs - 2.25 % convertible senior notes due 2029 ( 1,188 ) ( 4,526 ) Total convertible senior notes, net of unamortized debt issuance costs $ 602,781 $ 311,724 Convertible Senior Notes Due 2032 On May 11, 2026, the Company completed a registered underwritten public offering of $ 525.0 million aggregate principal amount of 0.50 % Convertible Senior Notes due 2032 (“2032 Notes”), which includes $ 50.0 million aggregate principal amount of 2032 Notes sold pursuant to the full exercise of the underwriters’ over-allotment option. The Company issued the 2032 Notes under an indenture, dated as of May 11, 2026, as supplemented by the first supplemental indenture, dated as of May 11, 2026 (collectively, the “2032 Indenture”). The Company received net proceeds from the issuance of the 2032 Notes of $ 509.3 million, after deducting commissions and offering expenses of $ 16.3 million. The 2032 Notes will mature on May 15, 2032, unless earlier repurchased, redeemed, or converted. The 2032 Notes are senior unsecured obligations of the Company and bear interest at an annual rate of 0.50 %, payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2026. At June 30, 2026, accrued interest on the 2032 Notes of $ 0.4 million is included in accrued expenses in the accompanying Consolidated Balance Sheets. The 2032 Notes comprise the Company’s senior, unsecured obligations and are (i) equal in right of payment with the Company’s existing and future senior, unsecured indebtedness, including the 2029 Notes; (ii) senior in right of payment to the Company’s existing and future indebtedness that is expressly subordinated to the 2032 Notes; (iii) effectively subordinated to the Company’s existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, of the Company's subsidiaries. Holders may convert their 2032 Notes at their option only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2026 (and only during such calendar quarter), if the last reported sale price per share of the Company’s common stock for each of at least 20 trading days, whether or not consecutive, during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter exceeds 130 % of the conversion price on the applicable trading day; (2) during the five consecutive business days immediately after any 10 consecutive trading day period (such 10 consecutive trading day period, the “measurement period”) if the trading price per $1,000 principal amount of 2032 Notes for each trading day of the measurement period was less than 98 % of the product of the last reported sale price per share of the Company’s common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions of the Company’s common stock; (4) if the Company calls the 2032 Notes for redemption; and (5) at any time from, and including, February 17, 2032 until the close of business on the second scheduled trading day immediately before the maturity date. The Company will settle conversions by paying or delivering, as applicable, cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock, at the Company’s election, based on the applicable conversion rate. The initial conversion rate for the 2032 Notes is 15.4078 shares of the Company’s common stock per $1,000 principal amount of 2032 Notes, which represents an initial conversion price of approximately $ 64.90 per share. If a “make-whole fundamental change” (as defined in the 2032 Indenture) occurs, then the Company will, in certain circumstances, increase the conversion rate for a specified period of time. The 2032 Notes will be redeemable, in whole or in part at the Company’s option at any time, and from time to time, on or after May 21, 2029 and, in the case of any partial redemption, on or before the 30 th scheduled trading day before the maturity date, at a cash redemption price equal to the principal amount of the 2032 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date but only if the last reported sale price per share of the Company’s common stock exceeds 130 % of the conversion price on (1) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (2) the trading day immediately before the date the Company sends such notice. However, the Company may not redeem less than all of the outstanding 2032 Notes unless at least $ 75.0 million aggregate principal amount of 2032 Notes are outstanding and not called for redemption as of the time the Company sends the related redemption notice. In addition, calling any 2032 Note for redemption will constitute a make-whole fundamental change with respect to that 2032 Note, in which case the conversion rate applicable to the conversion of that 2032 Note will be increased in certain circumstances if it is converted after it is called for redemption. If a fundamental change (as defined in the 2032 Indenture) occurs, then, except as described in the 2032 Indenture, holders may require the Company to repurchase their 2032 Notes at a cash repurchase price equal to the principal amount of the 2032 Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. The Company incurred approximately $ 16.3 million of debt issuance costs relating to the issuance of the 2032 Notes, which were recorded as a reduction to the 2032 Notes on the Consolidated Balance Sheets. The debt issuance costs are being amortized and recognized as additional interest expense over the expected life of the 2032 Notes using the effective interest method. The Company determined the expected life of the debt is equal to the six-year term of the 2032 Notes. The effective interest rate on the 2032 Notes is 1.0 %. Convertible Senior Notes Due 2029 On March 11, 2022, the Company completed a registered underwritten public offering of $ 316.3 million aggregate principal amount of 2.25 % Convertible Senior Notes due 2029 (“2029 Notes”), which includes $ 41.3 million aggregate principal amount of 2029 Notes sold pursuant to the full exercise of the underwriters’ option to purchase additional 2029 Notes. The Company issued the 2029 Notes under an indenture, dated as of September 10, 2018, as 20 Table of Contents supplemented by the second supplemental indenture, dated as of March 11, 2022 (collectively, the “2029 Indenture”). The Company received net proceeds from the issuance of the 2029 Notes of $ 306.4 million, after deducting commissions and offering expenses of $ 9.9 million. The 2029 Notes will mature on March 1, 2029, unless earlier repurchased, redeemed, or converted. The 2029 Notes are senior unsecured obligations of the Company and bear interest at an annual rate of 2.25 %, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2022. At June 30, 2026, accrued interest on the 2029 Notes of $ 0.7 million is included in accrued expenses in the accompanying Consolidated Balance Sheets. The 2029 Notes comprise the Company’s senior, unsecured obligations and are (i) equal in right of payment with the Company’s existing and future senior, unsecured indebtedness, including the 2032 Notes; (ii) senior in right of payment to the Company’s existing and future indebtedness that is expressly subordinated to the 2029 Notes; (iii) effectively subordinated to the Company’s existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, of the Company's subsidiaries. Holders may convert their 2029 Notes at their option only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2022 (and only during such calendar quarter), if the last reported sale price per share of the Company’s common stock for each of at least 20 trading days, whether or not consecutive, during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter exceeds 130 % of the conversion price on the applicable trading day; (2) during the five consecutive business days immediately after any 10 consecutive trading day period (such 10 consecutive trading day period, the “measurement period”) if the trading price per $1,000 principal amount of 2029 Notes for each trading day of the measurement period was less than 98 % of the product of the last reported sale price per share of the Company’s common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions of the Company’s common stock; (4) if the Company calls the 2029 Notes for redemption; and (5) at any time from, and including, December 1, 2028 until the close of business on the scheduled trading day immediately before the maturity date. The Company will settle conversions by paying or delivering, as applicable, cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock, at the Company’s election, based on the applicable conversion rate. The initial conversion rate for the 2029 Notes is 31.3740 shares of the Company’s common stock per $1,000 principal amount of 2029 Notes, which represents an initial conversion price of approximately $ 31.87 per share. If a “make-whole fundamental change” (as defined in the 2029 Indenture) occurs, then the Company will, in certain circumstances, increase the conversion rate for a specified period of time. The 2029 Notes will be redeemable, in whole or in part at the Company’s option at any time, and from time to time, on or after March 2, 2026 and, in the case of any partial redemption, on or before the 40 th scheduled trading day before the maturity date, at a cash redemption price equal to the principal amount of the 2029 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date but only if the last reported sale price per share of the Company’s common stock exceeds 130 % of the conversion price on (1) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (2) the trading day immediately before the date the Company sends such notice. However, the Company may not redeem less than all of the outstanding 2029 Notes unless at least $ 100.0 million aggregate principal amount of 2029 Notes are outstanding and not called for redemption as of the time the Company sends the related redemption notice. In addition, calling any 2029 Note for redemption will constitute a make-whole fundamental change with respect to that 2029 Note, in which case the conversion rate applicable to the conversion of that 2029 Note will be increased in certain circumstances if it is converted after it is called for redemption. If a fundamental change (as defined in the 2029 Indenture) occurs, then, except as described in the 2029 Indenture, holders may require the Company to repurchase their 2029 Notes at a cash repurchase price equal to the principal amount of the 2029 Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. The Company incurred approximately $ 9.9 million of debt issuance costs relating to the issuance of the 2029 Notes, which were recorded as a reduction to the 2029 Notes on the Consolidated Balance Sheets. The debt issuance costs are being amortized and recognized as additional interest expense over the expected life of the 2029 Notes using the effective interest method. The Company determined the expected life of the debt is equal to the seven-year term of the 2029 Notes. The effective interest rate on the 2029 Notes is 2.74 %. On May 11, 2026, the Company completed its repurchase of $ 221.4 million aggregate principal amount of 2029 Notes for cash, including accrued and unpaid interest, for a total of $ 350.9 million. The Company evaluated the transaction in accordance with amended accounting guidance under ASU 2024-04 and accounted for the repurchase as an induced conversion. As a result of the repurchase, the Company recognized inducement expense of $ 40.0 million, which was recorded as other expense in the Consolidated Statements of Operations for the three and six months ended June 30, 2026. The inducement expense primarily represents the difference between the if-converted value of the 2029 Notes and the fair value of the 2029 Notes at the time that the debt repurchase terms were accepted by noteholders. The remaining $ 91.3 million of the premium, which represents the difference between the if-converted value and carrying value of the repurchased 2029 Notes and $ 2.8 million unamortized debt issuance costs related to the repurchased 2029 Notes were accounted for as reductions to additional paid-in capital in the Consolidated Balance Sheet. After giving effect to the repurchase, the total remaining principal amount outstanding under the 2029 Notes as of June 30, 2026 was $ 94.9 million. The 2029 Notes and 2032 Notes are accounted for in accordance with ASC 470-20, Debt with conversion and Other Options (“ASC 470-20”) and ASC 815-40, Contracts in Entity’s Own Equity (“ASC 815-40”). Under ASC 815-40, to qualify for equity classification (or nonbifurcation, if embedded) the instrument (or embedded feature) must be both (1) indexed to the issuer’s stock and (2) meet the requirements of equity classification guidance. Based upon the Company’s analysis, it was determined that the 2029 Notes and 2032 Notes do not contain embedded features requiring recognition as derivatives and bifurcation, and therefore are measured at amortized cost and recorded as liabilities on the Consolidated Balance Sheets. The 2029 Notes and 2032 Notes do not contain any financial or operating covenants or any restrictions on the payment of dividends, the issuance of other indebtedness or the issuance or repurchase of securities by the Company. There were no events of default for the 2029 Notes or 2032 Notes at June 30, 2026. The 2029 Notes and 2032 Notes are classified as long-term convertible debt on the Company's Consolidated Balance Sheets at June 30, 2026. 21 Table of Contents Convertible Senior Notes Due 2025 On September 10, 2018, the Company completed a registered underwritten public offering of $ 276.0 million aggregate principal amount of 2.50 % Convertible Senior Notes due 2025 ("2025 Notes"), and entered into a base indenture and supplemental indenture agreement (collectively, the "2025 Indenture") with respect to the 2025 Notes. The net proceeds from the issuance of the 2025 Notes were approximately $ 267.2 million, after deducting commissions and the offering expenses of $ 8.8 million payable by the Company. On March 11, 2022, the Company completed its repurchase of $ 207.1 million aggregate principal amount of 2025 Notes for cash, including accrued and unpaid interest, for a total of $ 213.8 million. After giving effect to the repurchase, the total remaining principal amount outstanding under the 2025 Notes was $ 68.9 million. On September 15, 2025, the 2025 Notes matured and the Company repaid the remaining principal amount outstanding of $ 68.9 million plus accrued interest. Interest Expense The following table sets forth total interest expense recognized related to the 2025, 2029 and 2032 Notes ( in thousands ): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Contractual interest expense $ 1,438 $ 2,210 $ 3,217 $ 4,419 Amortization of debt issuance costs 541 433 895 866 Total interest expense $ 1,979 $ 2,643 $ 4,112 $ 5,285 Total interest expense recognized for the three and six months ended June 30, 2026 was $ 2.1 million and $ 4.4 million, respectively, and $ 2.8 million and $ 5.7 million for the three and six months ended June 30, 2025, respectively. NOTE 11. ACCRUED EXPENSES Accrued expenses at June 30, 2026 and December 31, 2025 consisted of the following ( in thousands ): June 30, 2026 December 31, 2025 Sales discounts, rebates, and allowances $ 42,885 $ 30,595 Accrued royalties 27,598 22,703 Compensation related costs 25,791 41,515 Research and development 16,644 16,027 Selling, general and administrative 15,898 9,818 Miscellaneous accrued expenses 7,451 5,377 Total accrued expenses $ 136,267 $ 126,035 NOTE 12. NET INCOME (LOSS) PER COMMON SHARE Basic and diluted net income (loss) per common share is calculated by dividing net loss applicable to common stockholders by the weighted-average number of common shares outstanding during the period. In accordance with ASC 260, Earnings per Share , if a company had a discontinued operation, the company uses income from continuing operations, adjusted for preferred dividend and similar adjustments, as its control number to determine whether potential common shares are dilutive. The Company’s potentially dilutive shares, which include outstanding stock options, restricted stock units, and shares issuable upon conversion of the 2025 Notes, repaid in September 2025, 2029 Notes and 2032 Notes, are considered to be common stock equivalents. For the periods that the Company has reported net losses, all potentially dilutive securities are anti-dilutive and, accordingly, basic net loss per share equals diluted net loss per share. 22 Table of Contents Basic and diluted net loss per share is calculated as follows ( in thousands, except share and per share amounts ): Three Months Ended June 30, 2026 2025 Shares Net Loss EPS Shares Net Loss EPS Continuing operations 93,479,416 $ ( 34,797 ) $ ( 0.37 ) 88,945,624 $ ( 12,755 ) $ ( 0.14 ) Discontinued operations 93,479,416 — — 88,945,624 — — Basic and diluted loss per share 93,479,416 $ ( 34,797 ) $ ( 0.37 ) 88,945,624 $ ( 12,755 ) $ ( 0.14 ) Six Months Ended June 30, 2026 2025 Shares Net Loss EPS Shares Net Loss EPS Continuing operations 92,678,588 $ ( 71,399 ) $ ( 0.77 ) 88,652,428 $ ( 53,981 ) $ ( 0.61 ) Discontinued operations 92,678,588 ( 500 ) ( 0.01 ) 88,652,428 — — Basic and diluted loss per share 92,678,588 $ ( 71,899 ) $ ( 0.78 ) 88,652,428 $ ( 53,981 ) $ ( 0.61 ) The following common stock equivalents have been excluded because they were anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Convertible debt 10,562,989 11,697,953 10,244,279 11,697,953 Options 8,421,761 10,183,913 8,661,342 10,055,221 Restricted stock units 5,508,579 4,440,005 5,488,743 4,294,325 Total anti-dilutive shares 24,493,329 26,321,871 24,394,364 26,047,499 NOTE 13. COMMITMENTS AND CONTINGENCIES Commitments Certain of the Company's contractual arrangements with CMOs require binding forecasts or commitments to purchase minimum amounts for the manufacture of drug product supply, which may be material to the Company's financial statements. Contingencies In November 2020, the Company completed the acquisition of Orphan Technologies Limited (“Orphan”), including Orphan’s rare metabolic disorder drug pegtibatinase. The Company acquired Orphan by purchasing all of the outstanding shares. Under the stock purchase agreement, the Company has also agreed to make contingent cash payments up to an aggregate of $ 427.0 million based on the achievement of certain development, regulatory and commercialization events as set forth in the Agreement, as well as additional tiered mid-single digit royalty payments based upon future net sales of any pegtibatinase products in the U.S. and Europe, subject to certain reductions as set forth in the Agreement, and a contingent payment in the event a pediatric rare disease voucher for any pegtibatinase product is granted. Through June 30, 2026, the Company has paid $ 65.2 million for contractual milestones achieved under the stock purchase agreement. In accordance with ASC 450, Contingencies , contingent cash payments will be accrued for when it is probable that a liability has been incurred and the amount can be reasonably estimated. As of June 30, 2026, no contingent cash payments have been accrued. Legal Proceedings From time to time in the normal course of business, the Company is subject to various legal matters such as threatened or pending claims or litigation. Although the results of claims and litigation cannot be predicted with certainty, the Company does not believe it is a party to any claim or litigation in which the outcome, if determined adversely to it, would individually or in the aggregate be reasonably expected to have a material adverse effect on its results of operations or financial condition. 23 Table of Contents NOTE 14. SHARE-BASED COMPENSATION Stock Options The following table summarizes stock option activity during the six months ended June 30, 2026: Weighted Average Shares Underlying Options Exercise Price Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2025 8,241,429 $ 19.91 5.89 $ 150,796 Granted 1,353,230 $ 33.97 Exercised ( 1,575,054 ) $ 20.68 $ 32,560 Forfeited/canceled ( 73,441 ) $ 22.15 Outstanding at June 30, 2026 7,946,164 $ 22.13 6.55 $ 275,548 Vested and expected to vest at June 30, 2026 7,946,164 $ 22.13 6.55 $ 275,548 Exercisable at June 30, 2026 5,156,156 $ 20.56 5.32 $ 186,921 At June 30, 2026, unamortized stock compensation for stock options was $ 40.2 million, with a remaining weighted-average recognition period of 2.7 years. Restricted Stock Units Service Based Restricted Stock Units The following table summarizes the Company’s service based restricted stock unit activity during the six months ended June 30, 2026: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Unvested at December 31, 2025 4,567,367 $ 18.02 Granted 2,326,360 $ 33.50 Vested ( 1,368,563 ) $ 18.21 Forfeited/canceled ( 180,880 ) $ 22.79 Unvested at June 30, 2026 5,344,284 $ 24.55 At June 30, 2026, unamortized stock compensation for service based restricted stock units was $ 108.0 million, with a remaining weighted-average recognition period of 2.5 years. Performance Based Restricted Stock Units The following table summarizes the Company’s performance based restricted stock unit activity during the six months ended June 30, 2026: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Unvested at December 31, 2025 233,604 $ 16.35 Granted 215,730 $ 24.94 Vested ( 229,500 ) 17.77 Forfeited/canceled — — Unvested at June 30, 2026 219,834 $ 23.30 At June 30, 2026, unamortized stock compensation for performance based restricted stock units was $ 1.6 million, with a remaining weighted-average recognition period of 1.3 years. Share-Based Compensation The following table sets forth share-based compensation for continuing operations for the three and six months ended June 30, 2026 and 2025 ( in thousands ): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Research and development $ 6,873 $ 3,990 $ 12,431 $ 8,716 Selling, general and administrative 14,915 6,659 25,503 13,425 Total share-based compensation $ 21,788 $ 10,649 $ 37,934 $ 22,141 24 Table of Contents NOTE 15. INVENTORY Inventory consisted of the following at June 30, 2026 and December 31, 2025 ( in thousands ): June 30, 2026 December 31, 2025 Raw materials $ 22,768 $ 24,169 Work in process 7,891 2,348 Finished goods 9,390 9,638 Total inventory $ 40,049 $ 36,155 Classified as: Current inventory $ 7,835 $ 5,875 Long-term inventory 32,214 30,280 Total inventory $ 40,049 $ 36,155 The balance classified as long-term inventory consists of raw materials, work in process and finished goods for both Thiola and FILSPARI as of June 30, 2026 and December 31, 2025. The Company maintains levels of these inventories beyond a one-year production plan to limit exposure to potential supply disruption. NOTE 16. ACCOUNTS RECEIVABLE Accounts receivable, net of reserves for prompt pay discounts and expected credit losses, was $ 80.6 million and $ 80.1 million at June 30, 2026 and December 31, 2025, respectively. The accounts receivable balance as of December 31, 2025 includes the $ 25.0 million milestone payment due from Mirum, received in April 2026. See Note 18 for further discussion. The total reserves for both periods were immaterial. The Company's evaluation and accounting for credit losses for the current period included an assessment of our aged trade receivables balances and their underlying credit risk characteristics. Our evaluation of past events, current conditions, and reasonable and supportable forecasts about the future resulted in an expectation of immaterial credit losses. NOTE 17. EQUITY OFFERINGS At-the-Market Equity Offering In October 2024, the Company filed a prospectus supplement to the prospectus included in its registration statement on Form S-3 (File No. 333-281194), pursuant to which the Company may offer and sell, from time to time through Jefferies LLC, as agent ("Jefferies"), up to $ 100.0 million of common stock pursuant to an Amended and Restated Open Market Sale Agreement ("ATM Agreement") with Jefferies. As of June 30, 2026, the Company has no t sold any shares under the ATM Agreement. NOTE 18. DIVESTITURES Discontinued Operations Sale of Bile Acid Product Portfolio In August 2023, the Company closed the sale of its bile acid business to Mirum Pharmaceuticals, Inc. (“Mirum”) pursuant to the terms of an asset purchase agreement dated July 16, 2023 (the "Purchase Agreement"). The Company is eligible to receive up to $ 235.0 million upon the achievement of certain milestones based on specified amounts of annual net sales (tiered from $ 125.0 million to $ 500.0 million) of Chenodal and Cholbam (also known as Kolbam, and together with Chenodal, the "Products"). The Company will recognize the contingent consideration receivable in earnings when the target annual sales for the milestones are met and the contingency is resolved. Mirum achieved the first such milestone based on its annual net sales in 2025, and Travere recognized a milestone of $ 25.0 million for the year ended December 31, 2025 in discontinued operations. The $ 25.0 million is included in accounts receivable as of December 31, 2025 and payment was received in April 2026. Loss from discontinued operations for the three and six months ended June 30, 2026 was zero and $ 0.5 million, respectively and zero for both the three and six months ended June 30, 2025. 25 Table of Contents NOTE 19. SEGMENT INFORMATION The Company operates in one business segment focused on identifying, developing and delivering life-changing therapies to people living with rare kidney and metabolic diseases. The determination of a single business segment is consistent with the consolidated financial information regularly provided to the Company’s chief operating decision maker (“CODM”), who is the President and Chief Executive Officer. The CODM uses net loss to monitor budget versus actual results in assessing segment performance and the allocation of resources. The Company’s CODM also utilizes the Company’s long-range plan as a strategic tool to allocate resources according to the Company’s strategic objectives. Long-lived assets located outside the U.S. were immaterial as of both June 30, 2026 and December 31, 2025. The measure of segment assets is reported on the Consolidated Balance Sheets as total assets. The accounting policies of the segment are the same as those described in Note 2, Summary of Significant Accounting Policies. See Note 3 for further discussion of net product sales and Note 4 for discussion of license and collaboration revenues. The following table presents reportable segment loss, including significant expenses regularly provided to the CODM, attributable to the Company’s reportable segment for the three and six months ended June 30, 2026 and 2025 ( in thousands ): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue $ 169,584 $ 114,449 $ 296,782 $ 196,180 Less: Cost of goods sold 2,174 1,521 4,123 6,201 Research and development: External research and development 31,215 27,461 58,943 49,816 Internal personnel costs 23,962 18,215 48,487 38,317 Other research and development 5,106 3,686 9,947 8,118 Total research and development 60,283 49,362 117,377 96,251 Selling, general and administrative 96,112 62,581 176,366 122,995 Royalty expense 7,061 13,635 31,877 26,060 Total other (expense) income, net ( 38,955 ) ( 85 ) ( 38,762 ) 1,405 Income tax benefit (provision) 204 ( 20 ) 324 ( 59 ) Loss from discontinued operations, net of tax — — ( 500 ) — Net loss $ ( 34,797 ) $ ( 12,755 ) $ ( 71,899 ) $ ( 53,981 ) NOTE 20. SUBSEQUENT EVENTS In June 2026, the Company entered into a license and collaboration agreement with Everest Medicines (Singapore) Pte. Ltd. ("Everest"), granting the Company an exclusive license to develop, manufacture and commercialize civorebrutinib, an investigational oral, covalent reversible Bruton's tyrosine kinase ("BTK") inhibitor, and products containing civorebrutinib (“Products”) for any and all prophylactic, diagnostic and therapeutic uses and treatment of diseases and disorders in all countries outside of China and certain countries in East and Southeast Asia (the "Territory"). The agreement became effective in July 2026 following the satisfaction of customary closing conditions. Under the terms of the agreement, the Company paid Everest an upfront payment of $ 112.5 million in July 2026. Pursuant to the agreement, Everest is eligible to receive up to $ 1.03 billion in additional development, regulatory and commercial milestone payments, as well as tiered royalties on net sales of Products in the Territory. The Company and Everest have agreed to collaborate on global clinical development, including sharing development costs for global clinical trials. Except for certain global development activities, the Company is responsible for development and commercialization of civorebrutinib in the Territory, while Everest retains responsibility for its territory. 26 Table of Contents