Financial Analysis

NOTE 12 COMMITMENTS AND CONTINGENCIES On December 29, 2022, the Israel Tax Authority (the ITA) issued an assessment against our subsidiary, OPKO Biologics in the amount of approximately $ 246 million (including interest) related to uncertain tax positions involving income recognition in connection with an examination of foreign tax returns for the 2014 through 2020 tax years. We recognize that local tax law is inherently complex, and the local taxing authorities may not agree with certain tax positions taken. We have appealed this assessment, as we believe, other than for uncertain tax positions for which we have reserved, the issues are without technical merit. The matter is currently before the courts. While the trial has concluded, there are certain other procedural matters under Israeli law that must occur before a judgment is rendered. We intend to continue to exhaust all judicial remedies to resolve the matter, as necessary, which has been a lengthy process. There can be no assurance that this matter will be resolved in our favor, and an adverse outcome, or any future tax examinations involving similar assertions, could have a material adverse effect on our financial condition, results of operations and cash flows. The Company and BioReference entered into (i) a settlement agreement (the Settlement Agreement), effective July 14, 2022, with the United States of America, acting through the United States Department of Justice and on behalf of the Office of Inspector Genera …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 7 DEBT As of June 30, 2026 and December 31, 2025, our debt consisted of the following: June 30, December 31, (In thousands) 2026 2025 2044 Royalty Financing $ 246,854 $ 246,433 2029 Convertible Notes 89,807 84,970 2033 Senior Notes 50 50 Chilean and Spanish lines of credit 9,646 8,515 Current portion of notes payable 912 1,736 Long term portion of notes payable 1,781 2,262 Total $ 349,050 $ 343,966 Balance sheet captions Long term portion of convertible notes $ 89,857 $ 85,020 Current portion of lines of credit and notes payable 10,558 10,251 Long Term notes payable included in long-term liabilities 248,635 248,695 Total $ 349,050 $ 343,966 2044 Royalty Financing Purchase Agreement On July 17, 2024, the Company completed a private offering of $ 250 million aggregate principal amount of senior secured royalty notes (the 2044 Royalty Financing Notes), pursuant to a note purchase agreement dated July 17, 2024, by and among the Company, certain purchasers from time to time party thereto, the Companys wholly owned subsidiaries OPKO Biologics (OBL) and EirGen as guarantors (OBL and EirGen collectively, the 2044 Royalty Financing Guarantors), and HCR Injection SPV, LLC, as agent. The 2044 Royalty Financing Notes mature on July 17, 2044 and bear interest at the three-month Secured Overnight Financing Rate (""SOFR"") subject to a 4.0 % per annum floor, plus 7.5 % per annum. Interest is payable on the 2044 Royalty Financing Notes on a quarterly basis determined by profit share pa …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The composition of revenue from services by payor for the six months ended June 30, 2026 and 2025 was as follows: Three months ended June 30, (In thousands) 2026 2025 Healthcare insurers $ 49,990 $ 58,478 Government payers 9,169 17,102 Client payers 13,132 23,168 Patients 2,258 2,353 Total $ 74,549 $ 101,101

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NOTE 9 FAIR VALUE MEASUREMENTS We record fair values at an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement determined based on assumptions that market participants would use in pricing an asset or liability. We utilize a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers are: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. As of June 30, 2026, our financial assets measured at fair value included equity securities, forward foreign currency exchange contracts for inventory purchases (refer to Note 10), options related to our BioCardia investment and consulting agreement (recorded at fair value), and restricted cash collateralized by money market funds, the latter being measured at fair value as a Level 1 financial instrument. Our financial assets and liabilities measured at fair value on a recurring basis are as follows: Fair value measurements as of June 30, 2026 Quoted prices in active Significant markets for other Significant identical observable unobservable assets …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Accounting standards yet to be adopted. In November 2024, the Financial Accounting Standards Board (""FASB"") issued ASU 2024-03, Income Statement (Subtopic 220-40): Disaggregation of Income Statement Expenses is effective prospectively to financial statements issued for reporting period after the effective date or retrospectively to any or all prior periods presented in the financial statements, for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures. Recently adopted accounting standards . In November 2024, the FASB issued ASU 2024-04, Debt (Subtopic 470-20): Debt with Conversion and Other Options. (ASU 2024-04) clarifies the assessment of whether a transaction should be accounted for as an induced conversion or extinguishment of convertible debt when changes are made to conversion features as part of an offer to settle the instrument. ASU 2024-04 is effective for reporting periods beginning after December 15, 2025, and interim periods within those annual reporting periods. Early adoption is permitted for entities that have adopted ASU 2020-06. We adopted ASU 2024-04 prospectively effective January 1, 2025. The adoption of ASU 2024-04 did not have a material impact on our Condensed Consolidated Financial Statements. In December 2023, the FASB …

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NOTE 11 RELATED PARTY TRANSACTIONS We lease office space from Frost Real Estate Holdings, LLC (Frost Holdings) in Miami, Florida, where our principal executive offices are located. Effective August 1, 2024, we entered into an amendment to our lease agreement with Frost Holdings to decrease the lease space from approximately 29,500 square feet to approximately 26,328 square feet of space. The amended lease provides for payments of approximately $ 91 thousand per month in the first year increasing annually to $ 103 thousand per month in the fifth year, plus applicable sales tax. The rent is inclusive of operating expenses, property taxes and parking. In January 2024, in connection with the closing of the offering of the 2029 Convertible Notes, we issued and sold approximately $ 71.1 million aggregate principal amount of the 2029 Convertible Affiliate Notes to the Affiliate Purchasers, in exchange for $ 55.0 million aggregate principal amount of the 2023 Convertible Notes, together with approximately $ 16.1 million accrued but unpaid interest thereon, held by such Affiliate Purchasers. See Note 7 for additional information. Dr. Frost, an Affiliate Purchaser, subsequently purchased 2029 Convertible Notes on the open market in September 2024. The Company owns approximately 6 % of Pharmsynthez, and Pharmsynthez is the largest and controlling shareholder of Xenetic, in which the Company has a 3 % ownership interest. We hold investments in Zebra (ownership 29 % ), Niagen ( 0.04 % ), …

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NOTE 13 REVENUE RECOGNITION We generate revenues from services, products and intellectual property as follows: Revenue from services Revenue for laboratory services is recognized at the time test results are reported, which approximates when services are provided and the performance obligations are satisfied. Services are provided to patients covered by various third-party payor programs including various managed care organizations, as well as the Medicare and Medicaid programs. Billings for services are included in revenue net of allowances for contractual discounts, allowances for differences between the amounts billed and estimated program payment amounts, and implicit price concessions provided to uninsured patients which are all elements of variable consideration. The following are descriptions of our payors for laboratory services: Healthcare Insurers. Reimbursements from healthcare insurers are based on negotiated fee-for-service schedules. Revenues consist of amounts billed, net of contractual allowances for differences between amounts billed and the estimated consideration we expect to receive from such payors, which considers historical denial and collection experience and the terms of our contractual arrangements. Adjustments to the allowances, based on actual receipts from the third-party payors, are recorded upon settlement. Government Payors. Reimbursements from government payors are based on fee-for-service schedules set by governmental authorities, including t …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

NOTE 15 SEGMENTS We manage our operations in two reportable segments - pharmaceutical and diagnostics. The following is a brief description of our reportable segments and a description of business activities conducted by our corporate operations. Pharmaceutical this segment consists of our operations in Chile, Mexico, Ireland, Israel, Spain, Brazil, and Uruguay, Rayaldee product sales, NGENLA royalty and profit-sharing sales, and our pharmaceutical research and development. Diagnostics this segment primarily consists of clinical laboratory operations through BioReference and our point-of-care operations. To provide greater transparency into the factors affecting segment profitability, the Company discloses significant expense categories for each reportable segment in the tables below. Our CODM is Phillip Frost, M.D., our Chairman and Chief Executive Officer. Dr. Frost reviews our operating results and operating plans and makes resource allocation decisions on a Company-wide or aggregate basis. Our CODM may discuss and review financial information at the Pharmaceutical and Diagnostic operating segment level. The CODM uses segment information to evaluate segment profitability, monitor trends, identify risks and opportunities, allocate resources (such as capital expenditures and R&D funding), and set strategic priorities (including new product development and market expansion). These expenses, along with segment revenue, are used to calculate gross margin, a key profitabilit …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation . The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. (GAAP) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of only normal recurring adjustments or adjustments otherwise disclosed herein) considered necessary to present fairly the Companys results of operations, financial position and cash flows have been made. The results of operations and cash flows for the six months ended June 30, 2026 are not necessarily indicative of the results of operations and cash flows that may be reported for the remainder of 2026 or any other future periods. The unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 . Principles of consolidation . The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of OPKO Health, Inc. and our wholly owned subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. Use of estimates . The preparation of financial stat …

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NOTE 17 SUBSEQUENT EVENTS We have evaluated all subsequent events and transactions that occurred after the date of our June 30, 2026. Condensed Consolidated Balance Sheet through the date these financial statements were issued. There were no material subsequent events that required recognition or additional disclosure in these Condensed Consolidated Financial Statements.

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