Financial Analysis

"12. Commitments and Contingencies Legal Proceedings and Contingencies The Company records accruals for loss contingencies associated with legal matters when it is probable that a liability will be incurred and the amount of the loss can be reasonably estimated. Certain ongoing legal proceedings or threats of legal proceedings to which the Company is a party, but in which the Company believes the possibility of an adverse impact is remote, are not discussed in this Note. Dental Allegations The Company has been named as a defendant in numerous lawsuits alleging that SUBOXONE Film was defectively designed and caused dental injury, and that the Company failed to properly warn of the risks of such injuries. The plaintiffs generally seek compensatory damages, as well as punitive damages and attorneys fees and costs. Plaintiffs and potential plaintiffs related to these lawsuits generally can be grouped as follows: As of April 28, 2026 approximately 1,900 cases naming approximately 25,000 plaintiffs have been consolidated in multi-district litigation in the Northern District of Ohio. See In Re Suboxone (Buprenorphine/Naloxone) Film Products Liability Litigation , MDL No. 3092 (N.D. Oh.) (the ""Dental MDL""). Dental MDL Schedule A Plaintiffs: one complaint filed in the Dental MDL on June 14, 2024 attached a schedule of nearly 10,000 plaintiffs (the Schedule A Plaintiffs). The parties negotiated a tolling agreement for the Schedule A Plaintiffs that would permit plaintiffs counsel add …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"11. Stock-Based Payments The Company operates three equity-settled executive and employee stock plans and two other employee plans. For stock-based payment awards, the fair value at the grant date is calculated using appropriate pricing models. The programs and related accounting are described in "" Item 8. Financial StatementsNote 15. Stock-Based Payments of our Annual Report on Form 10-K for the year ended December 31, 2025. Three Months Ended March 31, 2026 2025 Compensation expense related to stock-based payments $ 9 $ 6 Indivior Long-Term Incentive Plan (LTIP) A summary of the service-based restricted stock awards and performance-based stock awards activity under the LTIP for the three months ended March 31, 2026 is presented below (values in thousands): Outstanding Service-Based Restricted Stock Awards Outstanding Performance-Based Stock Awards December 31, 2025 2,114 4,968 Granted 1,170 323 Issued (104) (638) Canceled/forfeited/adjusted (264) (679) March 31, 2026 2,916 3,974 The weighted average fair value per share of the service-based restricted stock awards granted was $33.46 for the three months ended March 31, 2026, based on the fair market value at the date of grant. The total fair value of restricted stock awards issued was $9 million for the three months ended March 31, 2026. The weighted average fair value per share of the performance-based stock awards granted per award was $53.87 for the three months ended March 31, 2026, calculated using the weighted avera …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

9. Financial Instruments and Fair Value Measurements Financial instruments include cash and cash equivalents, accounts receivable, accounts payable, debt, investments in corporate debt securities and investments in equity securities. The carrying value of these financial instruments, excluding debt instruments and the Companys investments in corporate debt and equity securities, approximates fair value because of the short-term nature of these instruments. The following three levels of inputs are used to measure fair value: Level 1 Quoted prices in active markets for identical assets and liabilities. Level 2 Significant other observable inputs. Level 3 Significant unobservable inputs. The Companys only financial instruments which are measured at fair value on a recurring basis are equity securities. The fair value of equity securities is based on quoted market prices (Level 1 inputs) on the measurement date. The fair value of equity securities at March 31, 2026 and December 31, 2025 were nil and nil, respectively. The fair value of corporate debt securities at March 31, 2026 and December 31, 2025 were $27 million and $28 million, respectively. The fair value of corporate debt securities held at amortized cost was calculated based on quoted market prices which would be classified as Level 1 in the fair value hierarchy above. At March 31, 2026, the Company's debt securities were held by a separate cell of an insurance company as part of an agreement to fund insurance coverage. …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

3. Income Tax Indivior is subject to taxation in several different jurisdictions. The Company's tax provision for each period presented was calculated using a forecasted annual tax rate, adjusted for discrete items occurring during the applicable period to arrive at an effective tax rate. The effective income tax rates for the relevant periods are calculated as follows: Three Months Ended March 31, 2026 Total income (loss) before income taxes $ 115 Total income tax expense (benefit) $ 26 Total effective tax rate 23 % On January 26, 2026, the Company completed a redomiciliation to the United States, which resulted in a change in the applicable federal statutory income tax rate from 25% to 21%. Our income tax rate for the three months ended March 31, 2026 of 23% differs from the U.S. federal statutory rate of 21%, primarily driven by a U.K. global minimum top-up tax, disallowed expenses, and a write-off of U.K. Net Operating Losses, partially offset by U.K. innovation deductions. Three Months Ended March 31, 2025 Total income (loss) before income taxes $ 59 Total income tax expense (benefit) $ 11 Total effective tax rate 19 % Our income tax rate for the three months ended March 31, 2025 at 19%, differs from the U.K. federal statutory rate of 25%, due primarily to U.K. innovation deductions and intragroup financing transactions, partially offset by a U.K. Global minimum top-up tax and stock-based compensation shortfall tax expense. We are subject to income taxation in many juris …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

7. Accrued Litigation Settlement Expenses March 31, 2026 December 31, 2025 Current Non current Total Current Non current Total Accrued litigation settlement expenses Opioid litigation 14 41 55 28 52 80 Other 14 14 Total accrued litigation settlement expenses $ 14 $ 41 $ 55 $ 42 $ 52 $ 94 Opioid litigation The accrual of $55 million at March 31, 2026 reflects the present value of the agreed amount in a settlement between Indivior, the plaintiffs' executive committee and certain state attorneys general covering certain opioid litigation (including cases in the Opioid MDL) brought by municipalities and tribes, as well as a separate settlement with the State and subdivisions of Maryland. During the three months ended March 31, 2026, payments totaling $26 million were made under the Opioid MDL settlement agreement related to obligations for 2025 and 2026. Other The final installment of $8 million related to an indemnity settlement with Reckitt Benckiser was paid in the three months ended March 31, 2026. The Company has no remaining obligations related to this matter. See Note 12. Commitments and Contingencies for additional information on legal matters. …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

"8. Debt Convertible Senior Notes Due 2031 On March 17, 2026, the Company completed an offering of $500 million aggregate principal amount of 0.625% Convertible Senior Notes due 2031 (the ""Notes""), which included an option to purchase up to an additional $50 million aggregate principal amount of the Notes granted to the initial purchasers, which was exercised in full (the ""Convertible Notes Offering""). The Notes were offered at par and will mature on March 15, 2031, unless earlier converted, redeemed, or repurchased. Net proceeds to the Company were approximately $486 million, after deducting initial purchasers' discounts, commissions, and estimated offering expenses of approximately $14 million. The Notes are senior, unsecured obligations of the Company, ranking equally in right of payment with all existing and future senior, unsecured indebtedness. The Notes are structurally subordinated to all indebtedness and other liabilities of the Company's subsidiaries. The Notes bear interest at 0.625% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, commencing September 15, 2026. Interest expense related to the Notes is included in interest expense in the consolidated statement of operations. Holders may convert their Notes at their option prior to the close of business on December 15, 2030, only upon satisfaction of one or more of the following conditions: (1) during any calendar quarter commencing after June 30, 2026, if the last reported …

LongTermDebtTextBlock · excerpt; the full note is in the filing

ASU 2025-05: Measurement of Credit Losses for Accounts Receivable and Contract Assets Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets was issued in July 2025 and allows entities to elect a practical expedient that assumes that the current conditions as of the balance sheet date do not change for the remaining life of the asset. ASU No. 2025-05 is effective for annual and interim periods beginning after December 15, 2025. The Company adopted ASU 2025-05 effective January 1, 2026, during the interim period ended March 31, 2026, and applied the guidance on a prospective basis. The adoption of ASU 2025-05 did not have a material impact on the Companys condensed consolidated financial statements. ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract refines the scope of derivative accounting under Topic 815 by introducing a new scope exception for certain contracts or embedded features that are not exchange traded and have underlyings based on the operations or activities specific to one of the parties to the contract. In addition, the ASU clarifies that share-based noncash consideration received from a customer in exchange for goods or services is initially accounted for under Topic 606, Revenue from Contracts with Customers, unle …

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13. Restructuring The following table summarizes restructuring activity related to major initiatives as part of Phase I of the Indivior Action Agenda Generate Momentum for the three months ended March 31, 2026: Contract termination and related expenses, and impairment of long-lived assets Severance, legal, consulting, and other corporate initiative transition costs Total Balance at December 31, 2025 $ 18 $ 36 $ 54 Charges and other 7 2 9 Payments (8) (15) (23) Balance at March 31, 2026 $ 17 $ 23 $ 40 Cumulative restructuring charges incurred since the inception of the program were $136 million as of March 31, 2026, of which $9 million was recognized during the three months ended March 31, 2026.$7 million of restructuring charges were recognized within research and development expenses and consisted of the impairment of long-lived assets, including $4 million primarily related to the impairment of lease right-of-use assets and $3 million of Property, plant and equipment impairment charges. The remaining $2 million of restructuring charges were recognized within selling, general and administrative expenses and primarily related to severance, legal, consulting, and other corporate initiative transition costs. No additional costs are expected to be incurred. Outstanding liabilities related to restructuring activities are expected to be settled within the next twelve months. …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

2. Segment, Geographic and Other Revenue Information The Company operates in a single operating and reportable segment for all periods presented and the CEO has been identified as the chief operating decision maker (the CODM). The CEO reviews the Company's financial information on a consolidated basis for purposes of allocating resources and evaluating performance. The CODM uses income from operations to measure the profitability of the segment. These amounts are reported on the Condensed Consolidated Statements of Operations. The measure of segment assets is reported on the Condensed Consolidated Balance Sheets as total consolidated assets. Effective in the first quarter of 2026, the Company updated the presentation of segment operating expenses provided to the CODM. Amounts previously reported separately as Sales and Marketing and General and Administrative expenses are now presented on a combined basis as Selling, General and Administrative expenses. This change reflects how segment information is currently reviewed by the CODM. Prior-period segment information has been recast to conform to the current-period presentation. The financial data provided to the CODM is as follows: Three Months Ended March 31, 2026 2025 US: SUBLOCADE* $ 218 $ 163 Sublingual & other 50 54 PERSERIS 1 5 4 Total U.S. 272 222 Rest of World 45 44 Net revenue 317 266 Cost of sales 40 44 Gross profit 277 221 Operating expenses: Selling, general and administrative 124 133 Research and development 16 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing