First Quarter Performance: Revenue Up 17%, Gross Margin Improves Significantly to 80% Biofrontera Inc recently released its first quarter 2026 financial results. The data shows the company's product revenue reached $10.1 million for the quarter, a 17% year-over-year increase. This growth was primarily driven by an approximately 16% rise in Ameluz unit sales and the effect of a price increase implemented in the fourth quarter of 2025. In terms of profitability, the gross margin improved substantially to approximately 80%, up from 62% in the same period last year. This enhancement is attributed to a new royalty structure implemented following a strategic transaction in October 2025. Under the new agreement, the company pays Biofrontera AG a royalty of 12% to 15% of net sales, replacing the previous transfer pricing model of 25% to 35%. The company reaffirmed its full-year 2026 gross margin target of 80% to 85%. Cash Flow Shows Significant Improvement, Targeting Full-Year Breakeven The company's net cash used in operating activities for the quarter was only $70,000, a significant improvement from the $4.1 million net cash outflow in the prior-year period. Adjusted EBITDA was a loss of $3.6 million, which also narrowed from a loss of $4.4 million in the same quarter last year. Management reiterated the company's goal to achieve cash flow breakeven in 2026, driven by both revenue growth and cost control. As of March 31, 2026, the company held cash and cash equivalents of approximately $6.3 million. Clinical Progress: sBCC Review Nears Final Stage The company has made important regulatory progress. The supplemental New Drug Application for Ameluz for the treatment of superficial basal cell carcinoma has been accepted by the FDA, with a Prescription Drug User Fee Act target date of September 28, 2026. If approved, Ameluz would become the first photodynamic therapy drug approved in the United States for treating cancer. Additionally, positive results were reported from a Phase III clinical trial for actinic keratosis on the extremities, neck, and trunk. The company plans to submit a supplemental New Drug Application for this indication in the third quarter of 2026. CEO Hermann Luebbert stated that the first full quarter of results under the new cost structure validates that the business model transformation is progressing as expected, and the company is steadily advancing toward its goal of achieving cash flow breakeven in 2026.