10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

_____________________________________________

FORM 10-Q

_____________________________________________

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_____________ to ________________

Commission file number: 001-36421

__________________________________________

Aurinia Pharmaceuticals Inc.

(Exact Name of Registrant as Specified in its Charter)

__________________________________________

Alberta, Canada
(State or other jurisdiction of incorporation or organization)
#140, 14315 - 118 Avenue Edmonton, Alberta T5L 4S6	98-1231763
(Address of principal executive offices)	(I.R.S. Employer Identification Number)

(250) 744-2487

Registrant’s telephone number, including area code

_____________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  x 

Indicate the number of shares outstanding of each of the registrant's classes of common shares, as of the latest predictable date. As of August 5, 2026, the registrant had 133,051,168 of common shares outstanding.

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of exchange on which registered
Common shares, no par value	AUPH	The Nasdaq Global Market LLC

Table of Contents

		Page
PART I.	FINANCIAL INFORMATION	1
Item 1.	Financial Statements	1
	Condensed Consolidated Balance Sheets as of June 30, 2026 (Unaudited) and December 31, 2025	1
	Condensed Consolidated Statements of Operations and Comprehensive Income for the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited)	2
	Condensed Consolidated Statements of Shareholders’ Equity for the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited)	3
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025 (Unaudited)	5
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21
Item 4.	Controls and Procedures	21
PART II.	OTHER INFORMATION	22
Item 1.	Legal Proceedings	22
Item 1A.	Risk Factors	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3.	Defaults Upon Senior Securities	22
Item 4.	Mine Safety Disclosures	22
Item 5.	Other Information	22
Item 6.	Exhibits	23
	Signatures	24

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

AURINIA PHARMACEUTICALS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

	June 30, 2026		December 31, 2025
	(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$	179,832	$	80,213
Short-term investments	263,291		317,784
Accounts receivable, net	41,138		41,454
Inventory	45,151		45,690
Prepaid expenses and deposits	10,531		5,746
Other current assets	1,381		1,080
Total current assets	541,324		491,967
Deferred tax assets, net	178,935		176,194
Finance right-of-use lease assets	65,152		73,865
Intangible assets, net	3,378		3,761
Operating right-of-use lease assets	1,518		3,596
Property and equipment, net	1,862		2,111
Other noncurrent assets	93		93
Total assets	$	792,262	$	751,587
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1,735	$	3,313
Accrued expenses	64,112		66,621
Finance lease liabilities, current portion	16,479		16,523
Deferred revenue	10,593		3,720
Operating lease liabilities, current portion	1,705		1,067
Other current liabilities	5,269		2,480
Total current liabilities	99,893		93,724
Finance lease liabilities, less current portion	43,943		52,322
Deferred tax benefits	23,128		—
Deferred revenue, less current portion	7,480		12,648
Operating lease liabilities, less current portion	2,009		4,900
Other noncurrent liabilities	945		6,662
Total liabilities	177,398		170,256
Commitments and contingencies (Note 5)
Shareholders' equity
Common shares — no par value, Unlimited shares authorized, 132,907 and 132,323 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	1,117,248		1,120,035
Additional paid-in capital	76,192		111,263
Accumulated other comprehensive loss	(977)		(599)
Accumulated deficit	(577,599)		(649,368)
Total shareholders' equity	614,864		581,331
Total liabilities and shareholders' equity	$	792,262	$	751,587

See accompanying notes.

1

AURINIA PHARMACEUTICALS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Unaudited)

(in thousands, except per share data)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
Revenue
Net product sales	$	79,412	$	66,574	$	152,975	$	126,545
License, collaboration and royalty revenue	3,808		3,434		7,950		5,928
Total revenue	83,220		70,008		160,925		132,473
Operating expenses
Cost of revenue	6,555		7,115		13,060		15,689
Selling, general and administrative	23,508		26,018		45,537		46,357
Research and development	13,050		7,432		20,520		13,175
Restructuring	—		114		—		1,647
Other (income) expense, net	(6,234)		9,246		(5,955)		13,675
Total operating expenses	36,879		49,925		73,162		90,543
Income from operations	46,341		20,083		87,763		41,930
Interest income	3,393		3,190		6,908		6,759
Interest expense	(948)		(1,117)		(1,960)		(2,184)
Net income before income taxes	48,786		22,156		92,711		46,505
Income tax expense	11,372		643		20,942		1,648
Net income	$	37,414	$	21,513	$	71,769	$	44,857
Other comprehensive income:
Unrealized loss on available-for-sale securities	(97)		(80)		(378)		(258)
Comprehensive income	$	37,317	$	21,433	$	71,391	$	44,599
Earnings per share
Basic	$	0.29	$	0.16	$	0.55	$	0.33
Diluted	$	0.28	$	0.16	$	0.53	$	0.32
Shares used in computing earnings per share
Basic	130,081		134,873		131,221		136,878
Diluted	133,530		137,526		135,518		140,193

See accompanying notes.

2

AURINIA PHARMACEUTICALS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)

(in thousands)

	Common Shares
	Shares	Amount		Additional paid-in capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Shareholders' Equity
Balance at December 31, 2025	132,323	$	1,120,035	$	111,263	$	(599)	$	(649,368)	$	581,331
Purchases of common shares under Share Repurchase Plan	(2,522)	(36,819)		—		—		—		(36,819)
Issuance of common shares for equity awards	1,713	14,138		(13,528)		—		—		610
Tax withholding related to net settlement of equity awards	(743)	(10,704)		—		—		—		(10,704)
Share-based compensation	—	—		(866)		—		—		(866)
Unrealized loss on available-for-sale securities, net	—	—		—		(281)		—		(281)
Net income	—	—		—		—		34,355		34,355
Balance at March 31, 2026	130,771	$	1,086,650	$	96,869	$	(880)	$	(615,013)	$	567,626
Purchases of common shares under Share Repurchase Plan	(2,452)	(38,112)		—		—		—		(38,112)
Issuance of common shares for equity awards	4,536	68,163		(23,318)		—		—		44,845
Issuance of common shares under ESPP	53	561		(198)		—		—		363
Tax withholding related to net settlement of equity awards	(1)	(14)		—		—		—		(14)
Share-based compensation	—	—		2,839		—		—		2,839
Unrealized loss on available-for-sale securities, net	—	—		—		(97)		—		(97)
Net income	—	—		—				37,414		37,414
Balance at June 30, 2026	132,907	$	1,117,248	$	76,192	$	(977)	$	(577,599)	$	614,864

3

AURINIA PHARMACEUTICALS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)

(in thousands)

	Common Shares
	Shares	Amount		Additional paid-in capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Shareholders' Equity
Balance at December 31, 2024	140,883	$	1,187,696	$	126,999	$	(647)	$	(936,570)	$	377,478
Purchases of common shares under Share Repurchase Plan	(5,807)	(47,400)		—		—		—		(47,400)
Issuance of common shares for equity awards	2,671	22,966		(22,611)		—		—		355
Share-based compensation	—	—		(3,409)		—		—		(3,409)
Unrealized loss on available-for-sale securities	—	—		—		(178)		—		(178)
Net income	—	—		—		—		23,344		23,344
Balance at March 31, 2025	137,747	$	1,163,262	$	100,979	$	(825)	$	(913,226)	$	350,190
Purchases of common shares under Share Repurchase Plan	(5,352)	(43,362)		—		—		—		(43,362)
Issuance of common shares for equity awards	190	2,062		(863)		—		—		1,199
Issuance of common shares under ESPP	83	620		(219)		—		—		401
Share-based compensation	—	—		5,440		—		—		5,440
Unrealized loss on available-for-sale securities	—	—		—		(80)		—		(80)
Net income	—	—		—		—		21,513		21,513
Balance at June 30, 2025	132,668	$	1,122,582	$	105,337	$	(905)	$	(891,713)	$	335,301

4

AURINIA PHARMACEUTICALS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)

	Six Months Ended June 30,
	2026		2025
Cash flows from operating activities:
Net income	$	71,769	$	44,857
Adjustments to reconcile net income to cash flows from operating activities:
Deferred income tax	20,387		—
Share-based compensation	1,973		2,031
Amortization and depreciation	9,650		9,720
Foreign exchange (gain) loss on revaluation of Monoplant finance lease liability	(977)		9,265
Net amortization of premiums and discounts on investments	(4,200)		(5,219)
Other, net	(2,082)		4,132
Net changes in operating assets and liabilities:
Accounts receivable, net	316		(3,547)
Inventory	539		(7,275)
Prepaid expenses and other current assets	(5,031)		5,106
Other noncurrent operating assets	—		730
Accounts payable	(3,451)		(1,875)
Accrued expenses and other liabilities	(5,031)		(17,136)
Deferred revenue	1,705		5,147
Operating lease liabilities	(441)		(395)
Cash flows from operating activities	85,126		45,541
Cash flows from investing activities:
Proceeds from the sale and maturities of investments	209,000		255,285
Purchases of investments	(150,805)		(237,411)
Net cash and cash equivalents acquired in acquisition of Kezar	5,212		—
Purchases of property, equipment and intangible assets	(39)		(115)
Cash flows from investing activities	63,368		17,759
Cash flows from financing activities:
Purchase of common shares under Share Repurchase Plan	(74,880)		(89,485)
Payments of principal portion of Monoplant finance lease liability	(7,058)		(6,201)
Proceeds from issuance of common shares for equity awards	59,154		10,590
Proceeds from issuance of common shares under ESPP	363		401
Tax withholding payments related to net settlements of equity awards	(26,454)		(9,036)
Cash flows from financing activities	(48,875)		(93,731)
Net increase (decrease) in cash, cash equivalents and restricted cash	99,619		(30,431)
Cash, cash equivalents and restricted cash, beginning of the period	80,213		83,433
Cash, cash equivalents and restricted cash, end of the period	$	179,832	$	53,002
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets:
Cash and cash equivalents	$	179,732	$	52,914
Restricted cash	100		88
Total cash, cash equivalents and restricted cash	$	179,832	$	53,002

5

Supplemental cash flow information:
Cash paid for taxes	$	2,355	$	1,066
Non-cash investing and financing activities:
Accrual of contingent value rights liability in acquisition of Kezar	$	3,700	$	—
Accrual of tax withholding payments related to exercise of stock options	$	1,734	$	—

See accompanying notes.

6

AURINIA PHARMACEUTICALS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.Organization and Description of Business

Aurinia Pharmaceuticals Inc. (“Aurinia” or the “Company”) is a biopharmaceutical company focused on delivering therapies to people living with autoimmune diseases with high unmet medical needs. In January 2021, the Company introduced LUPKYNIS® (voclosporin), the first FDA-approved oral therapy for the treatment of adult patients with active lupus nephritis. Aurinia is also developing aritinercept, a dual inhibitor of B cell-activating factor (“BAFF”) and a proliferation-inducing ligand (“APRIL”) for the potential treatment of autoimmune diseases.

2.Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation, Principles of Consolidation and Use of Estimates

The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures required by U.S. GAAP for annual financial statements have been omitted. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

The accompanying condensed consolidated financial statements include the accounts of Aurinia Pharmaceuticals Inc. and its wholly owned subsidiaries, including Kezar Life Sciences, Inc.’s financial results subsequent to the acquisition closing date of May 11, 2026. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be expected for the full year or any other future periods.

Summary of Significant Accounting Policies and Recent Accounting Pronouncements

The Company’s significant accounting policies and recent accounting pronouncements have not materially changed from those previously described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 except as noted below.

Acquisitions

The Company evaluates business acquisitions to determine whether a transaction should be accounted for as a business combination or an asset acquisition under ASC Topic 805, Business Combinations (“ASC 805”). The Company considers whether substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar assets. If not, the Company evaluates whether the acquired assets include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs.

Asset acquisitions are accounted for using the cost accumulation method, under which the purchase price, including certain transaction costs, is allocated to the assets acquired on a relative fair value basis. Acquired in-process research and development pursuant to an asset acquisition that has no alternative future use is expensed immediately as a component of in-process research and development expense in the condensed consolidated statements of operations.

Contingent payments are evaluated to determine whether they are instruments within the scope of ASC Topic 815, Derivatives and Hedging (“ASC 815”). If so, contingent payments are recorded at fair value on the acquisition date and remeasured to fair value at each reporting date. These changes in fair value are recognized in the condensed consolidated statements of operations. If not, contingent payments are recognized when the amounts are probable and estimable under ASC Topic 450, Contingencies (“ASC 450”).

ASC 740-10-25-49, Acquired Temporary Differences in Certain Purchase Transactions That Are Not Accounted for as Business Combinations (“ASC 740”), provides guidance that addresses the accounting when an asset is acquired outside of a business combination and the tax basis of the asset differs from the amount paid. Any deferred tax assets acquired in an asset acquisition that are realizable are included in the net assets acquired.

7

Under ASC 740, any purchase of future tax benefits from a third party shall be recorded as a deferred credit and shall not result in immediate income statement recognition. The deferred credit shall not be classified as part of deferred tax liabilities or as an offset to deferred tax assets. Therefore, on the acquisition date, the Company recorded $23.1 million of deferred tax assets in noncurrent assets and $23.1 million of deferred tax benefits in noncurrent liabilities on the condensed consolidated balance sheet. The deferred tax benefits will be recognized when the Company has future U.S. taxable income and will reduce income tax expense.

Cash paid related to acquisitions is recorded in cash flows from investing activities net of cash acquired.

Accounting Pronouncements Recently Adopted

In September 2025, the FASB issued ASU 2025-07, Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract (“ASU 2025-07”). ASU 2025-07 expands the scope exception in ASC Topic 815 for certain contracts not traded on an exchange whose settlement is based on the operations or activities of one of the parties to the contract. ASU 2025-07 also clarifies ASC Topic 606 for share-based payments received from a customer in a revenue contract. The Company elected to early adopt ASU 2025-07 on a prospective basis during the three months ended June 30, 2026. The new scope exception in ASC Topic 815 was applied to the evaluation of contingent payments related to the acquisition of Kezar. See Note 8 for the effect on the condensed consolidated financial statements. The new accounting standard related to share-based payments received from a customer in a revenue contract had no impact on our condensed consolidated financial statements.

3.Earnings Per Share

Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding without consideration of potential common shares. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding plus potential common shares. Stock options, performance stock units (“PSUs”), restricted stock units (“RSUs”) and shares issuable under the Company’s Employee Stock Purchase Plan (“ESPP”) are considered potential common shares and are included in the calculation of diluted earnings per share using the treasury stock method when their effect is dilutive. Potential common shares are excluded from the calculation of diluted earnings per share when their effect is anti-dilutive.

For the three months ended June 30, 2026, there were 3.5 million potential dilutive common shares that were included in the calculation of diluted earnings per share, which consists of: (i) 2.6 million stock options; (ii) 0.6 million PSUs; and (iii) 0.3 million RSUs. For the six months ended June 30, 2026, there were 4.3 million potential dilutive common shares that were included in the calculation of diluted earnings per share, which consists of: (i) 2.6 million stock options; (ii) 0.9 million RSUs; and (iii) 0.8 million PSUs. For each of the three and six months ended June 30, 2026, there were 2.7 million of potential common shares that were excluded from the calculation of diluted earnings per share because their effect was anti-dilutive.

For the three months ended June 30, 2025, there were 2.6 million potential dilutive common shares that were included in the calculation of diluted earnings per share, which consists of: (i) 0.5 million stock options; (ii) 0.5 million PSUs; and (iii) 1.6 million RSUs. For the six months ended June 30, 2025, there were 3.3 million potential dilutive common shares that were included in the calculation of diluted earnings per share, which consists of: (i) 0.5 million stock options; (ii) 2.2 million RSUs; and (iii) 0.6 million PSUs. For each of the three and six months ended June 30, 2025, there were 7.5 million of potential common shares that were excluded from the calculation of diluted earnings per share because their effect was anti-dilutive.

8

4.    Balance Sheet Details

Fair Value Measurement

The following table summarizes the financial assets measured at fair value on a recurring basis (in thousands):

	June 30, 2026
	Level 1		Level 2		Level 3		Total
Cash, cash equivalents and restricted cash	$	179,832	$	—	$	—	$	179,832
U.S. treasury bills	—		190,081		—		190,081
U.S. treasury bonds	—		69,345		—		69,345
Commercial paper	—		3,865		—		3,865
Total	$	179,832	$	263,291	$	—	$	443,123

	December 31, 2025
	Level 1		Level 2		Level 3		Total
Cash, cash equivalents and restricted cash	$	80,213	$	—	$	—	$	80,213
U.S. treasury bills	—		255,034		—		255,034
U.S. treasury bonds	—		61,654		—		61,654
Commercial paper	—		1,096		—		1,096
Total	$	80,213	$	317,784	$	—	$	397,997

The fair value of the Company’s investments classified within Level 2 is based upon observable inputs that may include benchmark yield curves, reported trades, issuer spreads, benchmark securities and reference data including market research publications.

The carrying amount and related unrealized gains (losses) by type of investment consisted of the following (in thousands):

	June 30, 2026
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Cash, cash equivalents and restricted cash	$	179,832	$	—	$	—	$	179,832
U.S. treasury bills	190,316		—		(235)		190,081
U.S. treasury bonds	69,402		—		(57)		69,345
Commercial paper	3,865		—		—		3,865
Total cash, cash equivalents, restricted cash and short-term investments	$	443,415	$	—	$	(292)	$	443,123
	December 31, 2025
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Cash, cash equivalents and restricted cash	$	80,213	$	—	$	—	$	80,213
U.S. treasury bills	254,875		159		—		255,034
U.S. treasury bonds	61,608		46		—		61,654
Commercial paper	1,096		—		—		1,096
Total cash, cash equivalents, restricted cash and short-term investments	$	397,792	$	205	$	—	$	397,997

As of June 30, 2026 and December 31, 2025, accrued interest receivable from investments was $1.0 million and $0.7 million, respectively, which was included in other current assets on the condensed consolidated balance sheets. As of June 30, 2026, short-term investments mature at various dates through May 2027. As of June 30, 2026 and December 31, 2025, no allowance for credit losses was recorded.

9

Inventory

Inventory consisted of the following (in thousands):

	June 30, 2026		December 31, 2025
Raw materials	$	658	$	658
Work in process	41,710		44,653
Finished goods	2,783		379
Total inventory	$	45,151	$	45,690

Prepaid Expenses and Deposits

Prepaid expenses and deposits consisted of the following (in thousands):

	June 30, 2026		December 31, 2025
Prepaid manufacturing and other deposits	$	5,590	$	1,742
Other prepaid expenses	4,941		4,004
Total prepaid expenses and deposits	$	10,531	$	5,746

Intangible Assets, Net

Intangible assets, net consisted of the following (in thousands):

	June 30, 2026
	Gross Carrying Value		Accumulated Amortization		Net Carrying Amount
Acquired intellectual property and reacquired right	$	15,126	$	(12,732)	$	2,394
Patents	2,419		(1,435)		984
Internal-use software implementation costs	2,873		(2,873)		—
Total intangible assets, net	$	20,418	$	(17,040)	$	3,378

	December 31, 2025
	Gross Carrying Value		Accumulated Amortization		Net Carrying Amount
Acquired intellectual property and reacquired right	$	15,126	$	(12,334)	$	2,792
Patents	2,380		(1,411)		969
Internal-use software implementation costs	2,873		(2,873)		—
Total intangible assets, net	$	20,379	$	(16,618)	$	3,761

For each of the three months ended June 30, 2026 and 2025, the Company recorded amortization expense of $0.2 million. For each of the six months ended June 30, 2026 and 2025, the Company recorded amortization expense of $0.4 million.

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

	June 30, 2026		December 31, 2025
Leasehold improvements	$	3,243	$	3,243
Furniture	1,155		1,155
Office equipment	631		631
Computer equipment	235		235
Total gross property and equipment	5,264		5,264
Less accumulated depreciation	(3,402)		(3,153)
Property and equipment, net	$	1,862	$	2,111

10

Accrued Expenses

Accrued expenses consisted of the following (in thousands):

	June 30, 2026		December 31, 2025
Accrued sales rebates and fees	$	40,330	$	30,832
Accrued payroll and related expenses	11,842		18,869
Accrued research and development expenses	5,634		6,127
Accrued sales and marketing expenses	1,304		1,648
Accrued corporate and excise taxes	860		2,010
Accrued other expenses	4,142		7,135
Total accrued expenses	$	64,112	$	66,621

5.Commitments and Contingencies

Lease Commitments

Finance Lease

Monoplant

In December 2020, the Company entered into a manufacturing services agreement with Lonza Ltd., Aurinia’s contract manufacturing partner for voclosporin, for the construction of a dedicated manufacturing facility for voclosporin (the “Monoplant”). The construction of the Monoplant began in January 2021 and manufacturing of voclosporin began in late June 2023. The Monoplant is equipped with state-of-the-art manufacturing equipment to provide cost and production efficiency for the manufacturing of voclosporin, while expanding existing capacity and providing supply security to meet future commercial demand. The Company completed a capital expenditure payment program for the Monoplant totaling $23.7 million, which included: (i) a $11.8 million payment in February 2021, which was treated as an upfront lease payment and recorded under other noncurrent assets on the consolidated balance sheets; and (ii) a $11.9 million payment when the facility fulfilled the required operational qualifications, which occurred in late June 2023. The Company has the exclusive right to use the Monoplant through March 31, 2030 by paying a quarterly fixed facility fee of 3.6 million Swiss Francs.

The Monoplant arrangement was determined to be an embedded lease and is accounted for as a finance lease under ASC 842. The lease term is based on the non-cancellable period for which a lessee has the right to use an underlying asset (the “Monoplant Lease”). The Company determined that the Monoplant Lease commencement occurred at the point when the FDA manufacturing validation process began, which occurred on June 26, 2023. At lease inception, the Company recorded a finance right-of-use (“ROU”) lease asset and a corresponding lease liability. As of June 30, 2026, the Monoplant Lease finance ROU lease asset and corresponding lease liability balance were $65.2 million and $60.4 million, respectively.

Operating Lease

Rockville, Maryland

In March 2020, the Company entered into a lease agreement for 30,531 square feet of office space in Rockville, Maryland (the “Rockville Lease”). The Rockville Lease commenced on March 12, 2020 and expires on August 31, 2031. Pursuant to the Rockville Lease, the Company has an option to either terminate the lease early on August 31, 2028, subject to an early termination fee of $1.4 million, or extend the lease for two 5-year periods at the end of the initial 11-year term. The Company has determined that it is reasonably certain that it will exercise the early termination option, which will result in a reduction of approximately $2.3 million of future lease payments net of the early termination fee. Nevertheless, the Company is exploring sublease options for potential savings in excess of the early termination option. The Rockville Lease requires the Company to pay certain taxes, insurance and operating costs relating to the leased premises (“Lease Operating Costs”); however, such costs are not material to the Company’s financial position.

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Future minimum lease payments, excluding Lease Operating Costs, as of June 30, 2026 consisted of the following (in thousands):

	Finance Lease Payments		Operating Lease Payments
Remainder of 2026	$	8,955	$	588
2027	17,911		2,587
2028	17,911		824
2029	17,911		10
2030	4,478		—
Total lease payments	67,166		4,009
Less: imputed interest	(6,744)		(295)
Total	$	60,422	$	3,714

For each of the three months ended June 30, 2026 and 2025, finance lease expense related to the amortization of finance ROU lease assets was $4.4 million. For the six months ended June 30, 2026 and 2025, finance lease expense related to the amortization of finance ROU lease assets was $8.7 million and $8.8 million, respectively. For the three months ended June 30, 2026 and 2025, interest expense on finance lease liabilities was $0.9 million and $1.1 million, respectively. For the six months ended June 30, 2026 and 2025, interest expense on finance lease liabilities was $2.0 million and $2.2 million, respectively.

For the six months ended June 30, 2026 and 2025, cash paid for amounts included in the measurement of finance lease liabilities classified in cash flows from financing activities was $7.1 million and $6.2 million, respectively. For each of the six months ended June 30, 2026 and 2025, cash paid for amounts included in the measurement of finance lease liabilities classified in cash flows from operating activities was $2.3 million.

Manufacturing Commitments

The Company’s manufacturing commitments have not changed in any material manner from those previously described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Contingencies

From time to time, the Company may become subject to claims and litigation arising in the ordinary course of business. The Company is not a party to any material legal proceedings, nor is it aware of any material pending or threatened litigation other than as described in Item 1 of Part II Legal Proceedings.

6.Other Noncurrent Liabilities

In March 2012, the Company entered into arrangements with certain former executive officers, whereby the Company is required to make payments to such former officers based on net revenues of voclosporin for a certain period of time. As of June 30, 2026 and December 31, 2025, the Company recorded other noncurrent liabilities of $0.9 million and $6.7 million, respectively. During the three months ended June 30, 2026, the Company made a one-time payment to fully settle all future obligations under one former officer’s arrangement.

7.License and Collaboration Agreements

In December 2020, the Company entered into a collaboration and licensing agreement with Otsuka to develop and commercialize oral voclosporin in Japan, the European Union (the “E.U.”), the United Kingdom (“U.K.”), Switzerland, Russia, Norway, Belarus, Iceland, Liechtenstein and Ukraine (collectively, the “Otsuka Territories”) in exchange for: (i) a $50 million upfront cash payment; (ii) regulatory and commercial milestone payments; and (iii) royalties ranging from 10% to 20% on net sales in the Otsuka Territories.

In August 2022, the Company entered into a commercial supply agreement with Otsuka to: (i) supply LUPKYNIS inventory to Otsuka at cost plus a margin; and (ii) provide manufacturing and other services, including sharing the capacity of the Monoplant. For the three months ended June 30, 2026 and 2025, the Company recognized $3.8 million and $3.4 million, respectively, of collaboration revenue from manufacturing and other services, which includes sharing capacity of the Monoplant. For the six months ended June 30, 2026 and 2025, the Company recognized $8.0 million and $5.9 million, respectively, of collaboration revenue from manufacturing and other services, which includes sharing capacity of the Monoplant.

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8.Acquisition

On May 11, 2026, Aurinia completed its acquisition of Kezar Life Sciences, Inc. (“Kezar”) for $6.955 in cash per share of Kezar common stock, plus one non-transferable contingent value right (“CVR”), which represents the right to receive: (i) potential payments relating to the ongoing clinical development or disposition of zetomipzomib; (ii) certain proceeds relating to Kezar’s collaboration with Everest Medicines and Kezar’s sale of its Sec61‑based discovery and development program to Enodia Therapeutics; and (iii) 100% of Kezar’s closing net cash in excess of $50 million, net of certain post-closing CVR-related expenses (“Net Cash Excess”).

The Company concluded that the CVRs are contingent liabilities under the scope of ASC Topic 450 and will be recognized when the amounts are probable and estimable. As of June 30, 2026, the Company recorded a CVR liability of $3.7 million related to the Net Cash Excess within other current liabilities in the condensed consolidated balance sheet.

As of May 11, 2026, the total purchase consideration for Kezar was as follows (in thousands):

Cash consideration paid at closing	$	51,599
CVR consideration payable	3,700
Transaction costs	189
Total purchase consideration	$	55,488

The acquisition of Kezar was accounted for as an asset acquisition because the assets acquired did not meet the definition of a business under ASC Topic 805. As such, the Company recognized the assets acquired and liabilities assumed based on the purchase consideration allocated on a relative fair value basis. The value of the acquired IP assets was expensed immediately as a component of in-process research and development expense in the condensed consolidated statements of operations. The deferred tax assets and deferred tax benefits will be offset against future U.S. taxable income.

The following table shows the allocation of the purchase consideration based on the relative fair values of assets acquired and liabilities assumed by the Company on May 11, 2026 (in thousands):

Cash and cash equivalents	$	56,811
Deferred tax assets	23,128
Interest receivable	55
Deferred tax benefits	(23,128)
Accounts payable and accrued expenses	(1,827)
Net assets acquired	55,039
Reconciliation of net assets acquired to total purchase consideration
Acquired in-process research and development	449
Total purchase consideration	$	55,488

9.Shareholders’ Equity

In February 2024, the Company announced that the Board had approved a share repurchase program of up to $150 million of the Company’s common shares (the “Share Repurchase Plan”). In July 2025, the Company announced that the Board approved an increase to the previously announced Share Repurchase Plan of an additional $150 million of the Company’s common shares.

The timing and amount of future repurchase transactions will be determined by the Company based on its evaluation of market conditions, share price, legal requirements, including applicable blackout period restrictions, and other factors. The Company has entered into a Rule 10b5-1 stock repurchase plan for the purpose of establishing a trading plan to purchase the Company’s common shares in a manner intended to satisfy the affirmative defense of Rule 10b5-1(c)(1) under the Securities Exchange Act of 1934, as amended and in accordance with applicable Canadian laws.

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For the three months ended June 30, 2026 and 2025, the Company repurchased 2.5 million and 5.4 million of its common shares for $38.1 million and $43.4 million, respectively, including commissions and excise tax. For the six months ended June 30, 2026 and 2025, the Company repurchased 5.0 million and 11.2 million of its common shares for $74.9 million and $90.8 million, respectively, including commissions and excise tax. The cost of repurchased shares is recorded as a reduction in common shares. Under Alberta law, the common shares were cancelled and not reissued.

Purchases under the Share Repurchase Plan, which to date have totaled 23.3 million of the Company’s common shares for $213.4 million, excluding commissions and excise tax, began on February 21, 2024.

10.Equity Incentive Plans

Stock Options

The activity related to stock options during the six months ended June 30, 2026 consisted of the following:

	June 30, 2026
	Number of shares (in thousands)	Weighted-Average Exercise Price
Outstanding at December 31, 2025	8,992	$	9.95
Granted	3,099	14.62
Exercised/released	(4,591)	9.90
Cancelled/forfeited	(1,656)	11.01
Outstanding at June 30, 2026	5,844	$	12.16

The following weighted-average assumptions were used to estimate the fair value of the options granted during the six months ended June 30, 2026 and 2025:

	Six Months Ended June 30,
	2026			2025
Expected volatility	69		%	78		%
Risk-free interest rate	3.84		%	4.00		%
Expected term (in years)	5.0			5.0
Expected dividend yield	0.0		%	0.0%
Fair value per common share option	$	8.75		$	4.98

Performance Stock Units and Restricted Stock Units

During the six months ended June 30, 2026 and 2025, the Company granted PSUs that vest in 4 tranches upon the Company’s common shares achieving four progressively higher target prices, and each tranche is further subject to a one year service period following target price achievement. During the six months ended June 30, 2026, the Company also granted PSUs that vest in 2 tranches at the 3- and 5-year anniversary date of the grant upon the Company’s common shares achieving specified target prices that represent significant increases from the share price on the date of grant before the respective vesting date. The Company estimated the fair value of each PSU with a market and service condition on the date of grant by using a Monte Carlo simulation (lattice model).

Beginning in 2026, RSUs are no longer being granted. RSUs granted prior to 2026 vest in 3 equal annual installments on the first, second and third anniversary of the grant date. The fair value of RSUs is based on the market price of the Company’s common shares on the date prior to the grant.

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The activity related to PSUs and RSUs for the six months ended June 30, 2026 consisted of the following:

	June 30, 2026
	Number of shares (in thousands)	Weighted-average fair value $
Unvested balance, December 31, 2025	4,021	$	7.27
Granted	4,417	9.10
Vested	(1,659)	7.97
Cancelled/forfeited	(2,081)	7.96
Unvested balance, June 30, 2026	4,698	$	8.44

Share-based Compensation Expense

The classification of share-based compensation expense consisted of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Research and development	$	1,310	$	335	$	1,421	$	428
Selling, general and administrative	1,234		4,877		31		1,364
Capitalized in inventory, net	295		228		521		239
Share-based compensation expense	$	2,839	$	5,440	$	1,973	$	2,031

As of June 30, 2026, total unrecognized share-based compensation expense related to unvested stock options, PSUs, RSUs and ESPP was $35.0 million, which is expected to be recognized over a weighted-average period of 2.1 years.

11.Income Taxes

For the three and six months ended June 30, 2026, the Company recognized an income tax expense of $11.4 million and $20.9 million, respectively, compared to $0.6 million and $1.6 million, respectively, for the same periods of 2025. For the three and six months ended June 30, 2026, the Company’s effective income tax rate was 23.3% and 22.6%, respectively, compared to 2.9% and 3.5% respectively, for the same periods of 2025. The increase in the Company’s income tax expense and effective tax rate in 2026 is primarily the result of the Company’s ability to utilize unrecognized deferred tax assets in 2025. Prior to December 31, 2025, the Company maintained a full valuation allowance against its deferred tax assets. However, during the three months ended December 31, 2025, the Company released its remaining valuation allowance and recognized the full remaining benefit of the Company’s deferred tax assets. Thus, for the three and six months ended June 30, 2026, there are no available unrecognized deferred tax assets to offset income tax expense. For the three and six months ended June 30, 2026, the Company’s effective tax rate is comparable to the statutory rate. The deferred tax benefits resulting from the acquisition of Kezar will be recognized when the Company has future U.S. taxable income and will reduce income tax expense (see Note 8).

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

You should read the following discussion and analysis of our financial condition and results of operations together with our condensed consolidated financial statements and the related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q (the “Quarterly Report”) and our audited financial statements and the related notes and other financial information included in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the U.S. Securities and Exchange Commission on February 26, 2026 (the “Form 10-K”) and with applicable Canadian securities regulatory authorities.

This Quarterly Report contains “forward-looking statements” within the meaning of U.S. federal securities laws and “forward-looking information” within the meaning of Canadian securities laws, and such statements may involve substantial risks and uncertainties. All statements, other than statements of historical facts included in this Quarterly Report, including statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, future expenses, business trends and other information referred to under this section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” are forward-looking statements. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements by terms such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “estimate,” “predict,” “potential,” “plan,” “anticipate,” “target,” “forecast” or the negative of these terms and similar expressions intended to identify forward-looking statements. Forward-looking statements are not historical facts and reflect our current views with respect to future events. Forward-looking statements are also based on assumptions and are subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

We discuss a number of risks, uncertainties and other factors in greater detail under the heading “Risk Factors” in Part I, Item 1A of the Form 10-K as well as in Part II, Item 1A of this Quarterly Report. Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements. Also, these forward-looking statements represent our estimates and assumptions only as of the date of this filing. You should read this discussion completely and with the understanding that our actual future results may be materially different from what we expect. We hereby qualify our forward-looking statements by our cautionary statements. Except as required by law, we assume no obligation to update our forward-looking statements publicly, or to update the reasons that actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Overview

Background

Aurinia is a biopharmaceutical company focused on delivering therapies to people living with autoimmune diseases with high unmet medical needs. In January 2021, the Company introduced LUPKYNIS® (voclosporin), the first FDA-approved oral therapy for the treatment of adult patients with active lupus nephritis. Aurinia is also developing aritinercept, a dual inhibitor of B cell-activating factor (“BAFF”) and a proliferation-inducing ligand (“APRIL”) for the potential treatment of autoimmune diseases.

Recent Development Progress

LUPKYNIS

Aurinia has recently initiated PRESERVE, a Phase 4, multicenter study investigating the combination of LUPKYNIS and belimumab, obinutuzumab or anifrolumab in patients with lupus nephritis. Belimumab is a B cell-activating factor (BAFF) inhibitor indicated for the treatment of both systemic lupus erythematosus (SLE) and lupus nephritis. Obinutuzumab is a CD20-directed cytolytic antibody indicated for the treatment of lupus nephritis. Anifrolumab is a type 1 interferon receptor antagonist indicated for the treatment of SLE. PRESERVE will investigate whether the multi-target approach of combining LUPKYNIS with these biologic agents improves outcomes in patients with lupus nephritis. Planned enrollment is approximately 150 patients across approximately 50 sites in the US. The Study’s primary endpoint is the proportion of patients achieving complete renal response (CRR) at 6 months.

Aritinercept

Aritinercept is a dual inhibitor of B cell-activating factor (BAFF) and a proliferation-inducing ligand (APRIL) for the potential treatment of autoimmune diseases. Aurinia has now initiated clinical development of aritinercept in four potential indications.

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Net Product Sales

For the three and six months ended June 30, 2026, net product sales of LUPKYNIS were $79.4 million and $153.0 million, up 19% and 21%, respectively, from $66.6 million and $126.5 million, respectively, in the same periods of 2025.

Cash Flows from Operating Activities

For the six months ended June 30, 2026, cash flows from operating activities were $85.1 million, up 87% from $45.5 million in the same period of 2025.

Cash Position

As of June 30, 2026, Aurinia had cash, cash equivalents, restricted cash and investments of $443.1 million, compared to $398.0 million at December 31, 2025. For the six months ended June 30, 2026, cash outflows from financing activities were $48.9 million, which included the repurchase of 5.0 million of the Company’s common shares for $74.9 million partially offset by proceeds from issuance of common shares for equity awards, net of tax withholding payments, of $32.7 million.

Results of Operations

Comparison of the Three and Six Months ended June 30, 2026 and 2025

The following table sets forth our results of 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		Change		2026		2025		Change
Revenue
Net product sales	$	79,412	$	66,574	$	12,838	$	152,975	$	126,545	$	26,430
License, collaboration and royalty revenue	3,808		3,434		374		7,950		5,928		2,022
Total revenue	83,220		70,008		13,212		160,925		132,473		28,452
Operating expenses
Cost of revenue	6,555		7,115		(560)		13,060		15,689		(2,629)
Selling, general and administrative	23,508		26,018		(2,510)		45,537		46,357		(820)
Research and development	13,050		7,432		5,618		20,520		13,175		7,345
Restructuring	—		114		(114)		—		1,647		(1,647)
Other (income) expense, net	(6,234)		9,246		(15,480)		(5,955)		13,675		(19,630)
Total operating expenses	36,879		49,925		(13,046)		73,162		90,543		(17,381)
Income from operations	46,341		20,083		26,258		87,763		41,930		45,833
Interest income	3,393		3,190		203		6,908		6,759		149
Interest expense	(948)		(1,117)		169		(1,960)		(2,184)		224
Net income before income taxes	48,786		22,156		26,630		92,711		46,505		46,206
Income tax expense	11,372		643		10,729		20,942		1,648		19,294
Net income	$	37,414	$	21,513	$	15,901	$	71,769	$	44,857	$	26,912

Net Product Sales

Aurinia sells LUPKYNIS to two specialty pharmacies and a specialty distributor in the United States (the “U.S.”), and Aurinia sells LUPKYNIS inventory to its collaboration partner, Otsuka Pharmaceutical Co., Ltd. (“Otsuka”), for the European and Japanese market. The two specialty pharmacies, specialty distributor and Otsuka are considered our customers for accounting purposes.

For the three and six months ended June 30, 2026, net product sales of LUPKYNIS were $79.4 million and $153.0 million, up 19% and 21%, respectively, from $66.6 million and $126.5 million, respectively, for the same periods in 2025. The increase is primarily due to an increase in the number of LUPKYNIS cartons sold to specialty pharmacies, driven by further lupus nephritis market penetration.

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License, Collaboration and Royalty Revenue

License, collaboration and royalty revenue consists of revenue from a collaboration and licensing agreement with Otsuka to develop and commercialize oral voclosporin in voclosporin in Japan, the European Union (the “E.U.”), the United Kingdom (the “U.K.”), Switzerland, Russia, Norway, Belarus, Iceland, Liechtenstein and Ukraine (collectively, the “Otsuka Territories”) in exchange for: (i) a $50 million upfront cash payment; (ii) regulatory and commercial milestone payments; and (iii) royalties ranging from 10% to 20% on net sales in the Otsuka Territories.

License, collaboration and royalty revenue also consists of revenue from a commercial supply agreement with Otsuka to provide manufacturing and other services, including sharing the capacity of a dedicated manufacturing facility at Lonza Ltd. (the “Monoplant”), Aurinia’s contract manufacturing partner for voclosporin.

For the three and six months ended June 30, 2026, license, collaboration, and royalty revenue was $3.8 million and $8.0 million, up 12% and 36%, respectively from $3.4 million and $5.9 million for the same periods in 2025. The increase is primarily due to manufacturing services provided to Otsuka for sharing the capacity of the Monoplant.

Cost of Revenue

Cost of revenue consists primarily of expense associated with: (i) amortization of the finance lease right-of-use asset recognized in connection with the Monoplant; (ii) manufacturing; and (iii) shipping, storage and distribution.

In December 2020, Aurinia entered into a manufacturing services agreement with Lonza Ltd. for the construction of the Monoplant. The construction of the Monoplant began in January 2021 and manufacturing of voclosporin began in late June 2023. The Monoplant is equipped with state-of-the-art manufacturing equipment to provide cost and production efficiency for the manufacturing of voclosporin, while expanding existing capacity and providing supply security to meet future commercial demand. Aurinia pays a quarterly fixed facility fee of 3.6 million Swiss Francs for the exclusive right to use the Monoplant through March 31, 2030.

For the three and six months ended June 30, 2026, cost of revenue was $6.6 million and $13.1 million, respectively, down 7% and 17%, respectively from $7.1 million and $15.7 million, respectively, for the same periods in 2025. The decrease is primarily due to a decrease in sales of LUPKYNIS inventory to Otsuka, which has a low gross margin.

For each of the three and six months ended June 30, 2026, gross margin was 92%, compared to 90% and 88%, respectively, for the same periods in 2025.

Selling, General and Administrative Expense

Selling, general and administrative (“SG&A”) expense consists of personnel and non-personnel expenses to support growing net product sales of LUPKYNIS. Personnel-related expense includes salaries, incentive pay, benefits and share-based compensation for personnel engaged in sales, finance and administrative functions. Non-personnel-related expense includes: (i) selling, patient services, pharmacovigilance, marketing, advertising, travel, sponsorships and trade shows; and (ii) other general and administrative costs, including consulting, legal, patent, insurance, accounting, information technology and facilities.

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The following table summarizes our SG&A 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		Change		2026		2025		Change
Personnel expense:
Salaries, incentive pay and benefits	$	10,468	$	10,004	$	464	$	23,894	$	22,144	$	1,750
Share-based compensation	1,234		4,877		(3,643)		31		1,364		(1,333)
Total personnel expense	11,702		14,881		(3,179)		23,925		23,508		417
Non-personnel expense:
Professional fees and services	7,268		5,854		1,414		12,694		13,142		(448)
Travel, sponsorship and trade shows	1,382		1,873		(491)		2,961		2,717		244
Marketing and advertising	535		848		(313)		862		1,818		(956)
Other	2,621		2,562		59		5,095		5,172		(77)
Total non-personnel expense	11,806		11,137		669		21,612		22,849		(1,237)
Total SG&A expense	$	23,508	$	26,018	$	(2,510)	$	45,537	$	46,357	$	(820)

For the three months ended June 30, 2026, the decrease in SG&A personnel expense was primarily due to: (i) a decrease in the amount of non-cash share-based compensation expense related to the departures of certain former Company officers in March 2026; and (ii) an increase in the amount of non-cash share-based compensation expense that was reversed due to forfeited, unvested equity awards during the three months ended June 30, 2026.

For the six months ended June 30, 2026, the increase in SG&A personnel expense was primarily due to a one-time expense for severance and health care benefits, related to employee departures, including certain former Company officers in March 2026 offset by: (i) a decrease to employee-related costs; and (ii) an increase in the amount of non-cash share-based compensation expense that was reversed due to forfeited, unvested equity awards during the six months ended June 30, 2026.

For the three months ended June 30, 2026, the increase in SG&A non-personnel expense was primarily due to an increase in professional fees and services, partially offset by a decrease to travel-related expenses.

For the six months ended June 30, 2026, the decrease in SG&A non-personnel expense was primarily due to lower marketing and advertising costs and professional fees and services.

We continue to expect our SG&A expense in 2026 to remain substantially consistent with 2025.

Research and Development Expense

Research and development (“R&D”) expense consists of personnel and non-personnel expenses. Personnel-related expense includes salaries, incentive pay, benefits and share-based compensation for personnel engaged in research and development functions. Non-personnel-related expense includes contract research organizations, contract manufacturing organizations and materials used for R&D activities, including development, clinical trials, clinical supply and distribution, and other professional services.

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The following table summarizes our R&D 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		Change		2026		2025		Change
Personnel expense:
Salaries, incentive pay and benefits	$	4,412	$	1,376	$	3,036	$	7,862	$	2,684	$	5,178
Share-based compensation	1,310		335		975		1,421		428		993
Total personnel expense	5,722		1,711		4,011		9,283		3,112		6,171
Non-personnel expense:
Clinical supply and distribution	4,455		3,145		1,310		7,054		5,010		2,044
Contract research organizations and developmental expenses	2,072		2,522		(450)		3,262		4,871		(1,609)
Other	801		54		747		921		182		739
Total non-personnel expense	7,328		5,721		1,607		11,237		10,063		1,174
Total R&D expense	$	13,050	$	7,432	$	5,618	$	20,520	$	13,175	$	7,345

For the three and six months ended June 30, 2026, the increase in R&D personnel-expense was primarily due to an increase in employee-related costs to support development activities.

For the three and six months ended June 30, 2026, the increase in R&D non-personnel expense was primarily as a result of an increase in clinical supply and distribution, partially offset by lower contract research organization and developmental expenses due to timing and support of our development activities.

We expect our R&D expense to increase as we progress our development activities.

Other (Income) Expense, Net

For the three and six months ended June 30, 2026, other (income) expense, net was $(6.2) million and $(6.0) million, respectively, compared to $9.2 million and $13.7 million, respectively, for the same periods in 2025. The change is primarily due to: (i) favorable changes in the foreign exchange remeasurement of the finance lease liability recognized in connection with the Monoplant, which is denominated in Swiss Francs; (ii) reduction in other liabilities from the one-time payment to fully settle all future obligations under one arrangement; and (iii) reduction of an accrual related to shareholder matters.

Income Tax Expense

For the three and six months ended June 30, 2026, income tax expense was $11.4 million and $20.9 million, respectively, compared to $0.6 million and $1.6 million, respectively, for the same periods in 2025. The increase in the Company’s income tax expense in 2026 over the same periods in 2025 is primarily the result of the Company’s ability to utilize unrecognized deferred tax assets in 2025 to reduce the income tax expense. These unrecognized deferred tax assets were recognized in the three months ended December 31, 2025 and were not available to offset income tax expense for the three and six months ended June 30, 2026.

Liquidity and Capital Resources

As of June 30, 2026, Aurinia had cash, cash equivalents, restricted cash and investments of $443.1 million, compared to $398.0 million at December 31, 2025. For the six months ended June 30, 2026, cash flows from operating activities were $85.1 million, up 87% from $45.5 million in the same period of 2025. For the six months ended June 30, 2026, cash outflows from financing activities were $48.9 million, which included the repurchase of 5.0 million of the Company’s common shares for $74.9 million partially offset by proceeds from issuance of common shares for equity awards, net of tax withholding payments, of $32.7 million.

Based on our current operating plans and projections, the Company expects to fund future operations with existing cash or cash flows from operating activities.

The amount and timing of additional future funding needs, if any, will depend on many factors, including the success of our commercialization efforts for LUPKYNIS and our ability to control expenses. If necessary, we intend to raise additional capital through equity or debt financings. We can provide no assurance that additional financing will be available to us on favorable terms, or at all.

20

Critical Accounting Estimates

There have been no material changes to our critical accounting policies and significant judgments and estimates as described in our Annual Report on Form 10-K for the year ended December 31, 2025.

Off‑Balance Sheet Arrangements

During the periods presented, we did not have, nor do we currently have, any off‑balance sheet arrangements as such term is defined in Item 303(a)(4)(ii) of Regulation S-K under the Securities Act.

Contractual Obligations

There have been no material changes outside the ordinary course of business to our contractual obligations and commitments as described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025.

Item 3. Quantitative and Qualitative Disclosures About Market Risks.

There have been no material changes to our quantitative and qualitative disclosures about market risks as described in our Annual Report on Form 10-K for the year ended December 31, 2025.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Our principal executive officer and principal financial officer, after evaluating the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of June 30, 2026, have concluded that, based on such evaluation, our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC, and is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the most recent quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

21

PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we may be involved in various claims and legal proceedings relating to claims arising out of our operations. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

There are no material developments to report in respect of the legal proceedings described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Item 1A. Risk Factors.

Under Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, we identified important factors that could affect our financial performance and could cause our actual results for future periods to differ materially from our anticipated results or other expectations, including those expressed in any forward-looking statements made in this Quarterly Report. There has been no material change in our risk factors subsequent to the filing of our prior reports referenced above. However, the risks described in our reports are not the only risks we face. Additional risks and uncertainties that we currently deem to be immaterial or not currently known to us, as well as other risks reported from time to time in our reports to the SEC, also could cause our actual results to differ materially from our anticipated results or other expectations.

Item 2. Unregistered Purchases or Sales of Equity Securities and Use of Proceeds.

In February 2024, the Board approved a share repurchase program of up to $150 million of the Company’s common shares (“Share Repurchase Plan”). In July 2025, the Company announced that the Board had approved an increase to the previously announced Share Repurchase Plan of an additional $150 million of the Company’s common shares. Purchases under the Share Repurchase Plan, which to date have totaled 23.3 million of its common shares for $213.4 million, began on February 21, 2024. The timing and amount of future repurchase transactions will be determined by the Company based on its evaluation of market conditions, share price, legal requirements, including applicable blackout period restrictions, and other factors. Under Alberta law, the repurchased common shares are cancelled and not reissued.

The following table summarizes the common share activity of our repurchased shares under the Share Repurchase Plan for the three months ended June 30, 2026.

Period	Total number of shares purchased	Average price paid per share in $	Total number of shares purchased as part of publicly announced program	Approximate dollar value of shares that may yet be purchased under program (in thousands)(1)
4/1/2026-4/30/2026	1,977,966	$15.84	1,977,966	$93,978
5/1/2026-5/31/2026	473,651	$15.50	473,651	$86,634
6/1/2026-6/30/2026	—	—	—	$86,634
Total	2,451,617		2,451,617

(1)Does not include broker commissions.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

None.

Item 5. Other Information.

None.

22

Item 6. Exhibits.

The following exhibits are filed as part of this report:

Exhibit Number	Description
3.1	Articles of Amalgamation, as amended, as currently in effect (filed as Exhibit 3.1 to the Company's Annual Report on Form 10-K with the SEC on February 24, 2021 and incorporated herein by reference)
3.2	Amended and Restated By-Law No. 2 amended as of May 15, 2025 (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the SEC on May 15, 2025 and incorporated herein by reference)
31.1*	Certification of Principal Executive Officer pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Principal Financial Officer pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH*	Inline XBRL Taxonomy Extension Schema Document
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*

Filed herewith.

**

Furnished herewith. Exhibits 32.1 and 32.2 are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall such exhibit be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise specifically stated in such filing.

23

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		AURINIA PHARMACEUTICALS INC.
August 5, 2026	By:	/s/ Kevin Tang
		Kevin Tang
		Chief Executive Officer and Chair of the Board (Principal Executive Officer)
August 5, 2026	By:	/s/ Michael Hearne
		Michael Hearne
		Chief Financial Officer (Principal Financial and Accounting Officer)

24

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO EXCHANGE RULES 13a-14(a) AND 15d-14(a), AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Kevin Tang, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Aurinia Pharmaceuticals Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 5, 2026	By:	/s/ Kevin Tang
			Kevin Tang
			Chief Executive Officer
			(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO RULES 13a-14(a) AND 15d-14(a),

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael Hearne, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Aurinia Pharmaceuticals Inc..;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 5, 2026	By:	/s/ Michael Hearne
			Michael Hearne
			Chief Financial Officer
			(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Aurinia Pharmaceuticals Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2026 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kevin Tang, Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, that:

1.The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date:	August 5, 2026	By:	/s/ Kevin Tang
			Kevin Tang
			Chief Executive Officer
			(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Aurinia Pharmaceuticals Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2026 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael Hearne, Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, that:

1.The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date:	August 5, 2026	By:	/s/ Michael Hearne
			Michael Hearne
			Chief Financial Officer
			(Principal Financial and Accounting Officer)

XML

COVER - shares	6 Months Ended
	Jun. 30, 2026	Aug. 05, 2026
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2026
Document Transition Report	false
Entity File Number	001-36421
Entity Registrant Name	Aurinia Pharmaceuticals Inc.
Entity Incorporation, State or Country Code	Z4
Entity Address, Address Line One	#140, 14315 - 118 Avenue
Entity Address, City or Town	Edmonton
Entity Address, State or Province	AB
Entity Address, Postal Zip Code	T5L 4S6
Entity Tax Identification Number	98-1231763
City Area Code	(250)
Local Phone Number	744-2487
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		133,051,168
Title of 12(b) Security	Common shares, no par value
Trading Symbol	AUPH
Security Exchange Name	NASDAQ
Amendment Flag	false
Document Fiscal Year Focus	2026
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001600620
Current Fiscal Year End Date	--12-31

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash, cash equivalents and restricted cash	$ 179,832	$ 80,213
Short-term investments	263,291	317,784
Accounts receivable, net	41,138	41,454
Inventory	45,151	45,690
Prepaid expenses and deposits	10,531	5,746
Other current assets	1,381	1,080
Total current assets	541,324	491,967
Deferred tax assets, net	178,935	176,194
Finance right-of-use lease assets	65,152	73,865
Intangible assets, net	3,378	3,761
Operating right-of-use lease assets	1,518	3,596
Property and equipment, net	1,862	2,111
Other noncurrent assets	93	93
Total assets	792,262	751,587
Current liabilities:
Accounts payable	1,735	3,313
Accrued expenses	64,112	66,621
Finance lease liabilities, current portion	16,479	16,523
Deferred revenue	10,593	3,720
Operating lease liabilities, current portion	1,705	1,067
Other current liabilities	5,269	2,480
Total current liabilities	99,893	93,724
Finance lease liabilities, less current portion	43,943	52,322
Deferred tax benefits	23,128	0
Deferred revenue, less current portion	7,480	12,648
Operating lease liabilities, less current portion	2,009	4,900
Other noncurrent liabilities	945	6,662
Total liabilities	177,398	170,256
Commitments and contingencies (Note 5)
Shareholders' equity
Common shares — no par value, Unlimited shares authorized, 132,907 and 132,323 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	1,117,248	1,120,035
Additional paid-in capital	76,192	111,263
Accumulated other comprehensive loss	(977)	(599)
Accumulated deficit	(577,599)	(649,368)
Total shareholders' equity	614,864	581,331
Total liabilities and shareholders' equity	$ 792,262	$ 751,587

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2026	Dec. 31, 2025
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 0	$ 0
Common Stock, Shares Authorized, Unlimited [Fixed List]	Unlimited	Unlimited
Common stock, issued (in shares)	132,907	132,323
Common stock, outstanding (in shares)	132,907	132,323

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue
Total revenue	$ 83,220	$ 70,008	$ 160,925	$ 132,473
Operating expenses
Cost of revenue	6,555	7,115	13,060	15,689
Selling, general and administrative	23,508	26,018	45,537	46,357
Research and development	13,050	7,432	20,520	13,175
Restructuring	0	114	0	1,647
Other (income) expense, net	(6,234)	9,246	(5,955)	13,675
Total operating expenses	36,879	49,925	73,162	90,543
Income from operations	46,341	20,083	87,763	41,930
Interest income	3,393	3,190	6,908	6,759
Interest expense	(948)	(1,117)	(1,960)	(2,184)
Net income before income taxes	48,786	22,156	92,711	46,505
Income tax expense	11,372	643	20,942	1,648
Net income	37,414	21,513	71,769	44,857
Other comprehensive income:
Unrealized loss on available-for-sale securities	(97)	(80)	(378)	(258)
Comprehensive income	$ 37,317	$ 21,433	$ 71,391	$ 44,599
Earnings per share
Basic (in usd per share)	$ 0.29	$ 0.16	$ 0.55	$ 0.33
Diluted (in usd per share)	$ 0.28	$ 0.16	$ 0.53	$ 0.32
Shares used in computing earnings per share
Basic (in shares)	130,081	134,873	131,221	136,878
Diluted (in shares)	133,530	137,526	135,518	140,193
Share-based compensation expense	$ 2,839	$ 5,440	$ 1,973	$ 2,031
Net product sales
Revenue
Total revenue	79,412	66,574	152,975	126,545
License, collaboration and royalty revenue
Revenue
Total revenue	$ 3,808	$ 3,434	$ 7,950	$ 5,928

XML

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Shares	Additional paid-in capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2024		140,883
Beginning balance at Dec. 31, 2024	$ 377,478	$ 1,187,696	$ 126,999	$ (647)	$ (936,570)
Increase (Decrease) in Stockholders' Equity
Purchases of common shares under Share Repurchase Plan (in shares)		(5,807)
Purchases of common shares under Share Repurchase Plan	(47,400)	$ (47,400)
Issuance of common shares under Equity Incentive Plan (in shares)		2,671
Issuance of common shares for equity awards	355	$ 22,966	(22,611)
Share-based compensation	(3,409)		(3,409)
Unrealized loss on available-for-sale securities, net	(178)			(178)
Net income	23,344				23,344
Ending balance (in shares) at Mar. 31, 2025		137,747
Ending balance at Mar. 31, 2025	350,190	$ 1,163,262	100,979	(825)	(913,226)
Beginning balance (in shares) at Dec. 31, 2024		140,883
Beginning balance at Dec. 31, 2024	377,478	$ 1,187,696	126,999	(647)	(936,570)
Increase (Decrease) in Stockholders' Equity
Net income	44,857
Ending balance (in shares) at Jun. 30, 2025		132,668
Ending balance at Jun. 30, 2025	335,301	$ 1,122,582	105,337	(905)	(891,713)
Beginning balance (in shares) at Mar. 31, 2025		137,747
Beginning balance at Mar. 31, 2025	350,190	$ 1,163,262	100,979	(825)	(913,226)
Increase (Decrease) in Stockholders' Equity
Purchases of common shares under Share Repurchase Plan (in shares)		(5,352)
Purchases of common shares under Share Repurchase Plan	(43,362)	$ (43,362)
Issuance of common shares under Equity Incentive Plan (in shares)		190
Issuance of common shares for equity awards	1,199	$ 2,062	(863)
Issuance of common shares under ESPP (in shares)		83
Issuance of common shares under ESPP	401	$ 620	(219)
Share-based compensation	5,440		5,440
Unrealized loss on available-for-sale securities, net	(80)			(80)
Net income	21,513				21,513
Ending balance (in shares) at Jun. 30, 2025		132,668
Ending balance at Jun. 30, 2025	$ 335,301	$ 1,122,582	105,337	(905)	(891,713)
Beginning balance (in shares) at Dec. 31, 2025	132,323	132,323
Beginning balance at Dec. 31, 2025	$ 581,331	$ 1,120,035	111,263	(599)	(649,368)
Increase (Decrease) in Stockholders' Equity
Purchases of common shares under Share Repurchase Plan (in shares)		(2,522)
Purchases of common shares under Share Repurchase Plan	(36,819)	$ (36,819)
Issuance of common shares under Equity Incentive Plan (in shares)		1,713
Issuance of common shares for equity awards	610	$ 14,138	(13,528)
Tax withholding related to net settlement of equity awards (in shares)		(743)
Tax withholding related to net settlement of equity awards	(10,704)	$ (10,704)
Share-based compensation	(866)		(866)
Unrealized loss on available-for-sale securities, net	(281)			(281)
Net income	34,355				34,355
Ending balance (in shares) at Mar. 31, 2026		130,771
Ending balance at Mar. 31, 2026	$ 567,626	$ 1,086,650	96,869	(880)	(615,013)
Beginning balance (in shares) at Dec. 31, 2025	132,323	132,323
Beginning balance at Dec. 31, 2025	$ 581,331	$ 1,120,035	111,263	(599)	(649,368)
Increase (Decrease) in Stockholders' Equity
Issuance of common shares under Equity Incentive Plan (in shares)	4,591
Net income	$ 71,769
Ending balance (in shares) at Jun. 30, 2026	132,907	132,907
Ending balance at Jun. 30, 2026	$ 614,864	$ 1,117,248	76,192	(977)	(577,599)
Beginning balance (in shares) at Mar. 31, 2026		130,771
Beginning balance at Mar. 31, 2026	567,626	$ 1,086,650	96,869	(880)	(615,013)
Increase (Decrease) in Stockholders' Equity
Purchases of common shares under Share Repurchase Plan (in shares)		(2,452)
Purchases of common shares under Share Repurchase Plan	(38,112)	$ (38,112)
Issuance of common shares under Equity Incentive Plan (in shares)		4,536
Issuance of common shares for equity awards	44,845	$ 68,163	(23,318)
Issuance of common shares under ESPP (in shares)		53
Issuance of common shares under ESPP	363	$ 561	(198)
Tax withholding related to net settlement of equity awards (in shares)		(1)
Tax withholding related to net settlement of equity awards	(14)	$ (14)
Share-based compensation	2,839		2,839
Unrealized loss on available-for-sale securities, net	(97)			(97)
Net income	$ 37,414				37,414
Ending balance (in shares) at Jun. 30, 2026	132,907	132,907
Ending balance at Jun. 30, 2026	$ 614,864	$ 1,117,248	$ 76,192	$ (977)	$ (577,599)

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 71,769	$ 44,857
Adjustments to reconcile net income to cash flows from operating activities:
Deferred income tax	20,387	0
Share-based compensation	1,973	2,031
Amortization and depreciation	9,650	9,720
Foreign exchange (gain) loss on revaluation of Monoplant finance lease liability	(977)	9,265
Net amortization of premiums and discounts on investments	(4,200)	(5,219)
Other, net	(2,082)	4,132
Net changes in operating assets and liabilities:
Accounts receivable, net	316	(3,547)
Inventory	539	(7,275)
Prepaid expenses and other current assets	(5,031)	5,106
Other noncurrent operating assets	0	730
Accounts payable	(3,451)	(1,875)
Accrued expenses and other liabilities	(5,031)	(17,136)
Deferred revenue	1,705	5,147
Operating lease liabilities	(441)	(395)
Cash flows from operating activities	85,126	45,541
Cash flows from investing activities:
Proceeds from the sale and maturities of investments	209,000	255,285
Purchases of investments	(150,805)	(237,411)
Net cash and cash equivalents acquired in acquisition of Kezar	5,212	0
Purchases of property, equipment and intangible assets	(39)	(115)
Cash flows from investing activities	63,368	17,759
Cash flows from financing activities:
Purchase of common shares under Share Repurchase Plan	(74,880)	(89,485)
Payments of principal portion of Monoplant finance lease liability	(7,058)	(6,201)
Proceeds from issuance of common shares for equity awards	59,154	10,590
Proceeds from issuance of common shares under ESPP	363	401
Tax withholding payments related to net settlements of equity awards	(26,454)	(9,036)
Cash flows from financing activities	(48,875)	(93,731)
Net increase (decrease) in cash, cash equivalents and restricted cash	99,619	(30,431)
Cash, cash equivalents and restricted cash, beginning of the period	80,213	83,433
Cash, cash equivalents and restricted cash, end of the period	179,832	53,002
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets:
Cash and cash equivalents	179,732	52,914
Restricted cash	100	88
Total cash, cash equivalents and restricted cash	179,832	53,002
Supplemental cash flow information:
Cash paid for taxes	2,355	1,066
Non-cash investing and financing activities:
Accrual of contingent value rights liability in acquisition of Kezar	3,700	0
Accrual of tax withholding payments related to exercise of stock options	$ 1,734	$ 0

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Organization and Description of Business

6 Months Ended

Jun. 30, 2026

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of Business

Organization and Description of Business

Aurinia Pharmaceuticals Inc. (“Aurinia” or the “Company”) is a biopharmaceutical company focused on delivering therapies to people living with autoimmune diseases with high unmet medical needs. In January 2021, the Company introduced LUPKYNIS® (voclosporin), the first FDA-approved oral therapy for the treatment of adult patients with active lupus nephritis. Aurinia is also developing aritinercept, a dual inhibitor of B cell-activating factor (“BAFF”) and a proliferation-inducing ligand (“APRIL”) for the potential treatment of autoimmune diseases.

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Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2026

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation, Principles of Consolidation and Use of Estimates

The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures required by U.S. GAAP for annual financial statements have been omitted. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

The accompanying condensed consolidated financial statements include the accounts of Aurinia Pharmaceuticals Inc. and its wholly owned subsidiaries, including Kezar Life Sciences, Inc.’s financial results subsequent to the acquisition closing date of May 11, 2026. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be expected for the full year or any other future periods.

Summary of Significant Accounting Policies and Recent Accounting Pronouncements

The Company’s significant accounting policies and recent accounting pronouncements have not materially changed from those previously described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 except as noted below.

Acquisitions

The Company evaluates business acquisitions to determine whether a transaction should be accounted for as a business combination or an asset acquisition under ASC Topic 805, Business Combinations (“ASC 805”). The Company considers whether substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar assets. If not, the Company evaluates whether the acquired assets include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs.

Asset acquisitions are accounted for using the cost accumulation method, under which the purchase price, including certain transaction costs, is allocated to the assets acquired on a relative fair value basis. Acquired in-process research and development pursuant to an asset acquisition that has no alternative future use is expensed immediately as a component of in-process research and development expense in the condensed consolidated statements of operations.

Contingent payments are evaluated to determine whether they are instruments within the scope of ASC Topic 815, Derivatives and Hedging (“ASC 815”). If so, contingent payments are recorded at fair value on the acquisition date and remeasured to fair value at each reporting date. These changes in fair value are recognized in the condensed consolidated statements of operations. If not, contingent payments are recognized when the amounts are probable and estimable under ASC Topic 450, Contingencies (“ASC 450”).

ASC 740-10-25-49, Acquired Temporary Differences in Certain Purchase Transactions That Are Not Accounted for as Business Combinations (“ASC 740”), provides guidance that addresses the accounting when an asset is acquired outside of a business combination and the tax basis of the asset differs from the amount paid. Any deferred tax assets acquired in an asset acquisition that are realizable are included in the net assets acquired.

Under ASC 740, any purchase of future tax benefits from a third party shall be recorded as a deferred credit and shall not result in immediate income statement recognition. The deferred credit shall not be classified as part of deferred tax liabilities or as an offset to deferred tax assets. Therefore, on the acquisition date, the Company recorded $23.1 million of deferred tax assets in noncurrent assets and $23.1 million of deferred tax benefits in noncurrent liabilities on the condensed consolidated balance sheet. The deferred tax benefits will be recognized when the Company has future U.S. taxable income and will reduce income tax expense.

Cash paid related to acquisitions is recorded in cash flows from investing activities net of cash acquired.

Accounting Pronouncements Recently Adopted

In September 2025, the FASB issued ASU 2025-07, Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract (“ASU 2025-07”). ASU 2025-07 expands the scope exception in ASC Topic 815 for certain contracts not traded on an exchange whose settlement is based on the operations or activities of one of the parties to the contract. ASU 2025-07 also clarifies ASC Topic 606 for share-based payments received from a customer in a revenue contract. The Company elected to early adopt ASU 2025-07 on a prospective basis during the three months ended June 30, 2026. The new scope exception in ASC Topic 815 was applied to the evaluation of contingent payments related to the acquisition of Kezar. See Note 8 for the effect on the condensed consolidated financial statements. The new accounting standard related to share-based payments received from a customer in a revenue contract had no impact on our condensed consolidated financial statements.

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Earnings Per Share

6 Months Ended

Jun. 30, 2026

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding without consideration of potential common shares. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding plus potential common shares. Stock options, performance stock units (“PSUs”), restricted stock units (“RSUs”) and shares issuable under the Company’s Employee Stock Purchase Plan (“ESPP”) are considered potential common shares and are included in the calculation of diluted earnings per share using the treasury stock method when their effect is dilutive. Potential common shares are excluded from the calculation of diluted earnings per share when their effect is anti-dilutive.

For the three months ended June 30, 2026, there were 3.5 million potential dilutive common shares that were included in the calculation of diluted earnings per share, which consists of: (i) 2.6 million stock options; (ii) 0.6 million PSUs; and (iii) 0.3 million RSUs. For the six months ended June 30, 2026, there were 4.3 million potential dilutive common shares that were included in the calculation of diluted earnings per share, which consists of: (i) 2.6 million stock options; (ii) 0.9 million RSUs; and (iii) 0.8 million PSUs. For each of the three and six months ended June 30, 2026, there were 2.7 million of potential common shares that were excluded from the calculation of diluted earnings per share because their effect was anti-dilutive.

For the three months ended June 30, 2025, there were 2.6 million potential dilutive common shares that were included in the calculation of diluted earnings per share, which consists of: (i) 0.5 million stock options; (ii) 0.5 million PSUs; and (iii) 1.6 million RSUs. For the six months ended June 30, 2025, there were 3.3 million potential dilutive common shares that were included in the calculation of diluted earnings per share, which consists of: (i) 0.5 million stock options; (ii) 2.2 million RSUs; and (iii) 0.6 million PSUs. For each of the three and six months ended June 30, 2025, there were 7.5 million of potential common shares that were excluded from the calculation of diluted earnings per share because their effect was anti-dilutive.

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Balance Sheet Details

6 Months Ended

Jun. 30, 2026

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Details

Balance Sheet Details

Fair Value Measurement

The following table summarizes the financial assets measured at fair value on a recurring basis (in thousands):

	June 30, 2026
	Level 1		Level 2		Level 3		Total
Cash, cash equivalents and restricted cash	$	179,832	$	—	$	—	$	179,832
U.S. treasury bills	—		190,081		—		190,081
U.S. treasury bonds	—		69,345		—		69,345
Commercial paper	—		3,865		—		3,865
Total	$	179,832	$	263,291	$	—	$	443,123

	December 31, 2025
	Level 1		Level 2		Level 3		Total
Cash, cash equivalents and restricted cash	$	80,213	$	—	$	—	$	80,213
U.S. treasury bills	—		255,034		—		255,034
U.S. treasury bonds	—		61,654		—		61,654
Commercial paper	—		1,096		—		1,096
Total	$	80,213	$	317,784	$	—	$	397,997

The fair value of the Company’s investments classified within Level 2 is based upon observable inputs that may include benchmark yield curves, reported trades, issuer spreads, benchmark securities and reference data including market research publications.

The carrying amount and related unrealized gains (losses) by type of investment consisted of the following (in thousands):

	June 30, 2026
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Cash, cash equivalents and restricted cash	$	179,832	$	—	$	—	$	179,832
U.S. treasury bills	190,316		—		(235)		190,081
U.S. treasury bonds	69,402		—		(57)		69,345
Commercial paper	3,865		—		—		3,865
Total cash, cash equivalents, restricted cash and short-term investments	$	443,415	$	—	$	(292)	$	443,123
	December 31, 2025
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Cash, cash equivalents and restricted cash	$	80,213	$	—	$	—	$	80,213
U.S. treasury bills	254,875		159		—		255,034
U.S. treasury bonds	61,608		46		—		61,654
Commercial paper	1,096		—		—		1,096
Total cash, cash equivalents, restricted cash and short-term investments	$	397,792	$	205	$	—	$	397,997

As of June 30, 2026 and December 31, 2025, accrued interest receivable from investments was $1.0 million and $0.7 million, respectively, which was included in other current assets on the condensed consolidated balance sheets. As of June 30, 2026, short-term investments mature at various dates through May 2027. As of June 30, 2026 and December 31, 2025, no allowance for credit losses was recorded.

Inventory

Inventory consisted of the following (in thousands):

	June 30, 2026		December 31, 2025
Raw materials	$	658	$	658
Work in process	41,710		44,653
Finished goods	2,783		379
Total inventory	$	45,151	$	45,690

Prepaid Expenses and Deposits

Prepaid expenses and deposits consisted of the following (in thousands):

	June 30, 2026		December 31, 2025
Prepaid manufacturing and other deposits	$	5,590	$	1,742
Other prepaid expenses	4,941		4,004
Total prepaid expenses and deposits	$	10,531	$	5,746

Intangible Assets, Net

Intangible assets, net consisted of the following (in thousands):

	June 30, 2026
	Gross Carrying Value		Accumulated Amortization		Net Carrying Amount
Acquired intellectual property and reacquired right	$	15,126	$	(12,732)	$	2,394
Patents	2,419		(1,435)		984
Internal-use software implementation costs	2,873		(2,873)		—
Total intangible assets, net	$	20,418	$	(17,040)	$	3,378

	December 31, 2025
	Gross Carrying Value		Accumulated Amortization		Net Carrying Amount
Acquired intellectual property and reacquired right	$	15,126	$	(12,334)	$	2,792
Patents	2,380		(1,411)		969
Internal-use software implementation costs	2,873		(2,873)		—
Total intangible assets, net	$	20,379	$	(16,618)	$	3,761

For each of the three months ended June 30, 2026 and 2025, the Company recorded amortization expense of $0.2 million. For each of the six months ended June 30, 2026 and 2025, the Company recorded amortization expense of $0.4 million.

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

	June 30, 2026		December 31, 2025
Leasehold improvements	$	3,243	$	3,243
Furniture	1,155		1,155
Office equipment	631		631
Computer equipment	235		235
Total gross property and equipment	5,264		5,264
Less accumulated depreciation	(3,402)		(3,153)
Property and equipment, net	$	1,862	$	2,111

Accrued Expenses

Accrued expenses consisted of the following (in thousands):

	June 30, 2026		December 31, 2025
Accrued sales rebates and fees	$	40,330	$	30,832
Accrued payroll and related expenses	11,842		18,869
Accrued research and development expenses	5,634		6,127
Accrued sales and marketing expenses	1,304		1,648
Accrued corporate and excise taxes	860		2,010
Accrued other expenses	4,142		7,135
Total accrued expenses	$	64,112	$	66,621

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2026

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Lease Commitments

Finance Lease

Monoplant

In December 2020, the Company entered into a manufacturing services agreement with Lonza Ltd., Aurinia’s contract manufacturing partner for voclosporin, for the construction of a dedicated manufacturing facility for voclosporin (the “Monoplant”). The construction of the Monoplant began in January 2021 and manufacturing of voclosporin began in late June 2023. The Monoplant is equipped with state-of-the-art manufacturing equipment to provide cost and production efficiency for the manufacturing of voclosporin, while expanding existing capacity and providing supply security to meet future commercial demand. The Company completed a capital expenditure payment program for the Monoplant totaling $23.7 million, which included: (i) a $11.8 million payment in February 2021, which was treated as an upfront lease payment and recorded under other noncurrent assets on the consolidated balance sheets; and (ii) a $11.9 million payment when the facility fulfilled the required operational qualifications, which occurred in late June 2023. The Company has the exclusive right to use the Monoplant through March 31, 2030 by paying a quarterly fixed facility fee of 3.6 million Swiss Francs.

The Monoplant arrangement was determined to be an embedded lease and is accounted for as a finance lease under ASC 842. The lease term is based on the non-cancellable period for which a lessee has the right to use an underlying asset (the “Monoplant Lease”). The Company determined that the Monoplant Lease commencement occurred at the point when the FDA manufacturing validation process began, which occurred on June 26, 2023. At lease inception, the Company recorded a finance right-of-use (“ROU”) lease asset and a corresponding lease liability. As of June 30, 2026, the Monoplant Lease finance ROU lease asset and corresponding lease liability balance were $65.2 million and $60.4 million, respectively.

Operating Lease

Rockville, Maryland

In March 2020, the Company entered into a lease agreement for 30,531 square feet of office space in Rockville, Maryland (the “Rockville Lease”). The Rockville Lease commenced on March 12, 2020 and expires on August 31, 2031. Pursuant to the Rockville Lease, the Company has an option to either terminate the lease early on August 31, 2028, subject to an early termination fee of $1.4 million, or extend the lease for two 5-year periods at the end of the initial 11-year term. The Company has determined that it is reasonably certain that it will exercise the early termination option, which will result in a reduction of approximately $2.3 million of future lease payments net of the early termination fee. Nevertheless, the Company is exploring sublease options for potential savings in excess of the early termination option. The Rockville Lease requires the Company to pay certain taxes, insurance and operating costs relating to the leased premises (“Lease Operating Costs”); however, such costs are not material to the Company’s financial position.

Future minimum lease payments, excluding Lease Operating Costs, as of June 30, 2026 consisted of the following (in thousands):

	Finance Lease Payments		Operating Lease Payments
Remainder of 2026	$	8,955	$	588
2027	17,911		2,587
2028	17,911		824
2029	17,911		10
2030	4,478		—
Total lease payments	67,166		4,009
Less: imputed interest	(6,744)		(295)
Total	$	60,422	$	3,714

For each of the three months ended June 30, 2026 and 2025, finance lease expense related to the amortization of finance ROU lease assets was $4.4 million. For the six months ended June 30, 2026 and 2025, finance lease expense related to the amortization of finance ROU lease assets was $8.7 million and $8.8 million, respectively. For the three months ended June 30, 2026 and 2025, interest expense on finance lease liabilities was $0.9 million and $1.1 million, respectively. For the six months ended June 30, 2026 and 2025, interest expense on finance lease liabilities was $2.0 million and $2.2 million, respectively.

For the six months ended June 30, 2026 and 2025, cash paid for amounts included in the measurement of finance lease liabilities classified in cash flows from financing activities was $7.1 million and $6.2 million, respectively. For each of the six months ended June 30, 2026 and 2025, cash paid for amounts included in the measurement of finance lease liabilities classified in cash flows from operating activities was $2.3 million.

Manufacturing Commitments

The Company’s manufacturing commitments have not changed in any material manner from those previously described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Contingencies

From time to time, the Company may become subject to claims and litigation arising in the ordinary course of business. The Company is not a party to any material legal proceedings, nor is it aware of any material pending or threatened litigation other than as described in Item 1 of Part II Legal Proceedings.

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Other Non-current Liabilities

6 Months Ended

Jun. 30, 2026

Payables and Accruals [Abstract]

Other Non-current Liabilities

Other Noncurrent Liabilities

In March 2012, the Company entered into arrangements with certain former executive officers, whereby the Company is required to make payments to such former officers based on net revenues of voclosporin for a certain period of time. As of June 30, 2026 and December 31, 2025, the Company recorded other noncurrent liabilities of $0.9 million and $6.7 million, respectively. During the three months ended June 30, 2026, the Company made a one-time payment to fully settle all future obligations under one former officer’s arrangement.

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License and Collaboration Agreements

6 Months Ended

Jun. 30, 2026

Revenue from Contract with Customer [Abstract]

License and Collaboration Agreements

License and Collaboration Agreements

In December 2020, the Company entered into a collaboration and licensing agreement with Otsuka to develop and commercialize oral voclosporin in Japan, the European Union (the “E.U.”), the United Kingdom (“U.K.”), Switzerland, Russia, Norway, Belarus, Iceland, Liechtenstein and Ukraine (collectively, the “Otsuka Territories”) in exchange for: (i) a $50 million upfront cash payment; (ii) regulatory and commercial milestone payments; and (iii) royalties ranging from 10% to 20% on net sales in the Otsuka Territories.

In August 2022, the Company entered into a commercial supply agreement with Otsuka to: (i) supply LUPKYNIS inventory to Otsuka at cost plus a margin; and (ii) provide manufacturing and other services, including sharing the capacity of the Monoplant. For the three months ended June 30, 2026 and 2025, the Company recognized $3.8 million and $3.4 million, respectively, of collaboration revenue from manufacturing and other services, which includes sharing capacity of the Monoplant. For the six months ended June 30, 2026 and 2025, the Company recognized $8.0 million and $5.9 million, respectively, of collaboration revenue from manufacturing and other services, which includes sharing capacity of the Monoplant.

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Acquisition

6 Months Ended

Jun. 30, 2026

Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]

Acquisition

Acquisition

On May 11, 2026, Aurinia completed its acquisition of Kezar Life Sciences, Inc. (“Kezar”) for $6.955 in cash per share of Kezar common stock, plus one non-transferable contingent value right (“CVR”), which represents the right to receive: (i) potential payments relating to the ongoing clinical development or disposition of zetomipzomib; (ii) certain proceeds relating to Kezar’s collaboration with Everest Medicines and Kezar’s sale of its Sec61‑based discovery and development program to Enodia Therapeutics; and (iii) 100% of Kezar’s closing net cash in excess of $50 million, net of certain post-closing CVR-related expenses (“Net Cash Excess”).

The Company concluded that the CVRs are contingent liabilities under the scope of ASC Topic 450 and will be recognized when the amounts are probable and estimable. As of June 30, 2026, the Company recorded a CVR liability of $3.7 million related to the Net Cash Excess within other current liabilities in the condensed consolidated balance sheet.

As of May 11, 2026, the total purchase consideration for Kezar was as follows (in thousands):

Cash consideration paid at closing	$	51,599
CVR consideration payable	3,700
Transaction costs	189
Total purchase consideration	$	55,488

The acquisition of Kezar was accounted for as an asset acquisition because the assets acquired did not meet the definition of a business under ASC Topic 805. As such, the Company recognized the assets acquired and liabilities assumed based on the purchase consideration allocated on a relative fair value basis. The value of the acquired IP assets was expensed immediately as a component of in-process research and development expense in the condensed consolidated statements of operations. The deferred tax assets and deferred tax benefits will be offset against future U.S. taxable income.

The following table shows the allocation of the purchase consideration based on the relative fair values of assets acquired and liabilities assumed by the Company on May 11, 2026 (in thousands):

Cash and cash equivalents	$	56,811
Deferred tax assets	23,128
Interest receivable	55
Deferred tax benefits	(23,128)
Accounts payable and accrued expenses	(1,827)
Net assets acquired	55,039
Reconciliation of net assets acquired to total purchase consideration
Acquired in-process research and development	449
Total purchase consideration	$	55,488

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Shareholder's Equity

6 Months Ended

Jun. 30, 2026

Equity [Abstract]

Shareholder's Equity

Shareholders’ Equity

In February 2024, the Company announced that the Board had approved a share repurchase program of up to $150 million of the Company’s common shares (the “Share Repurchase Plan”). In July 2025, the Company announced that the Board approved an increase to the previously announced Share Repurchase Plan of an additional $150 million of the Company’s common shares.

The timing and amount of future repurchase transactions will be determined by the Company based on its evaluation of market conditions, share price, legal requirements, including applicable blackout period restrictions, and other factors. The Company has entered into a Rule 10b5-1 stock repurchase plan for the purpose of establishing a trading plan to purchase the Company’s common shares in a manner intended to satisfy the affirmative defense of Rule 10b5-1(c)(1) under the Securities Exchange Act of 1934, as amended and in accordance with applicable Canadian laws.

For the three months ended June 30, 2026 and 2025, the Company repurchased 2.5 million and 5.4 million of its common shares for $38.1 million and $43.4 million, respectively, including commissions and excise tax. For the six months ended June 30, 2026 and 2025, the Company repurchased 5.0 million and 11.2 million of its common shares for $74.9 million and $90.8 million, respectively, including commissions and excise tax. The cost of repurchased shares is recorded as a reduction in common shares. Under Alberta law, the common shares were cancelled and not reissued.

Purchases under the Share Repurchase Plan, which to date have totaled 23.3 million of the Company’s common shares for $213.4 million, excluding commissions and excise tax, began on February 21, 2024.

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Equity Incentive Plans

6 Months Ended

Jun. 30, 2026

Share-Based Payment Arrangement [Abstract]

Equity Incentive Plans

Equity Incentive Plans

Stock Options

The activity related to stock options during the six months ended June 30, 2026 consisted of the following:

	June 30, 2026
	Number of shares (in thousands)	Weighted-Average Exercise Price
Outstanding at December 31, 2025	8,992	$	9.95
Granted	3,099	14.62
Exercised/released	(4,591)	9.90
Cancelled/forfeited	(1,656)	11.01
Outstanding at June 30, 2026	5,844	$	12.16

The following weighted-average assumptions were used to estimate the fair value of the options granted during the six months ended June 30, 2026 and 2025:

	Six Months Ended June 30,
	2026			2025
Expected volatility	69		%	78		%
Risk-free interest rate	3.84		%	4.00		%
Expected term (in years)	5.0			5.0
Expected dividend yield	0.0		%	0.0%
Fair value per common share option	$	8.75		$	4.98

Performance Stock Units and Restricted Stock Units

During the six months ended June 30, 2026 and 2025, the Company granted PSUs that vest in 4 tranches upon the Company’s common shares achieving four progressively higher target prices, and each tranche is further subject to a one year service period following target price achievement. During the six months ended June 30, 2026, the Company also granted PSUs that vest in 2 tranches at the 3- and 5-year anniversary date of the grant upon the Company’s common shares achieving specified target prices that represent significant increases from the share price on the date of grant before the respective vesting date. The Company estimated the fair value of each PSU with a market and service condition on the date of grant by using a Monte Carlo simulation (lattice model).

Beginning in 2026, RSUs are no longer being granted. RSUs granted prior to 2026 vest in 3 equal annual installments on the first, second and third anniversary of the grant date. The fair value of RSUs is based on the market price of the Company’s common shares on the date prior to the grant.

The activity related to PSUs and RSUs for the six months ended June 30, 2026 consisted of the following:

	June 30, 2026
	Number of shares (in thousands)	Weighted-average fair value $
Unvested balance, December 31, 2025	4,021	$	7.27
Granted	4,417	9.10
Vested	(1,659)	7.97
Cancelled/forfeited	(2,081)	7.96
Unvested balance, June 30, 2026	4,698	$	8.44

Share-based Compensation Expense

The classification of share-based compensation expense consisted of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Research and development	$	1,310	$	335	$	1,421	$	428
Selling, general and administrative	1,234		4,877		31		1,364
Capitalized in inventory, net	295		228		521		239
Share-based compensation expense	$	2,839	$	5,440	$	1,973	$	2,031

As of June 30, 2026, total unrecognized share-based compensation expense related to unvested stock options, PSUs, RSUs and ESPP was $35.0 million, which is expected to be recognized over a weighted-average period of 2.1 years.

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Income Taxes

6 Months Ended

Jun. 30, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

For the three and six months ended June 30, 2026, the Company recognized an income tax expense of $11.4 million and $20.9 million, respectively, compared to $0.6 million and $1.6 million, respectively, for the same periods of 2025. For the three and six months ended June 30, 2026, the Company’s effective income tax rate was 23.3% and 22.6%, respectively, compared to 2.9% and 3.5% respectively, for the same periods of 2025. The increase in the Company’s income tax expense and effective tax rate in 2026 is primarily the result of the Company’s ability to utilize unrecognized deferred tax assets in 2025. Prior to December 31, 2025, the Company maintained a full valuation allowance against its deferred tax assets. However, during the three months ended December 31, 2025, the Company released its remaining valuation allowance and recognized the full remaining benefit of the Company’s deferred tax assets. Thus, for the three and six months ended June 30, 2026, there are no available unrecognized deferred tax assets to offset income tax expense. For the three and six months ended June 30, 2026, the Company’s effective tax rate is comparable to the statutory rate. The deferred tax benefits resulting from the acquisition of Kezar will be recognized when the Company has future U.S. taxable income and will reduce income tax expense (see Note 8).

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Subsequent Events	6 Months Ended
	Jun. 30, 2026
Subsequent Events [Abstract]
Subsequent Events	[Subsequent Events]

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Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2026
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2026

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation, Principles of Consolidation and Use of Estimates

The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures required by U.S. GAAP for annual financial statements have been omitted. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

The accompanying condensed consolidated financial statements include the accounts of Aurinia Pharmaceuticals Inc. and its wholly owned subsidiaries, including Kezar Life Sciences, Inc.’s financial results subsequent to the acquisition closing date of May 11, 2026. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be expected for the full year or any other future periods.

Principles of Consolidation

Basis of Presentation, Principles of Consolidation and Use of Estimates

The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures required by U.S. GAAP for annual financial statements have been omitted. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

The accompanying condensed consolidated financial statements include the accounts of Aurinia Pharmaceuticals Inc. and its wholly owned subsidiaries, including Kezar Life Sciences, Inc.’s financial results subsequent to the acquisition closing date of May 11, 2026. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be expected for the full year or any other future periods.

Acquisitions

Acquisitions

The Company evaluates business acquisitions to determine whether a transaction should be accounted for as a business combination or an asset acquisition under ASC Topic 805, Business Combinations (“ASC 805”). The Company considers whether substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar assets. If not, the Company evaluates whether the acquired assets include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs.

Asset acquisitions are accounted for using the cost accumulation method, under which the purchase price, including certain transaction costs, is allocated to the assets acquired on a relative fair value basis. Acquired in-process research and development pursuant to an asset acquisition that has no alternative future use is expensed immediately as a component of in-process research and development expense in the condensed consolidated statements of operations.

Contingent payments are evaluated to determine whether they are instruments within the scope of ASC Topic 815, Derivatives and Hedging (“ASC 815”). If so, contingent payments are recorded at fair value on the acquisition date and remeasured to fair value at each reporting date. These changes in fair value are recognized in the condensed consolidated statements of operations. If not, contingent payments are recognized when the amounts are probable and estimable under ASC Topic 450, Contingencies (“ASC 450”).

ASC 740-10-25-49, Acquired Temporary Differences in Certain Purchase Transactions That Are Not Accounted for as Business Combinations (“ASC 740”), provides guidance that addresses the accounting when an asset is acquired outside of a business combination and the tax basis of the asset differs from the amount paid. Any deferred tax assets acquired in an asset acquisition that are realizable are included in the net assets acquired.

Under ASC 740, any purchase of future tax benefits from a third party shall be recorded as a deferred credit and shall not result in immediate income statement recognition. The deferred credit shall not be classified as part of deferred tax liabilities or as an offset to deferred tax assets. Therefore, on the acquisition date, the Company recorded $23.1 million of deferred tax assets in noncurrent assets and $23.1 million of deferred tax benefits in noncurrent liabilities on the condensed consolidated balance sheet. The deferred tax benefits will be recognized when the Company has future U.S. taxable income and will reduce income tax expense.

Cash paid related to acquisitions is recorded in cash flows from investing activities net of cash acquired.

Accounting Pronouncements Recently Adopted

Accounting Pronouncements Recently Adopted

In September 2025, the FASB issued ASU 2025-07, Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract (“ASU 2025-07”). ASU 2025-07 expands the scope exception in ASC Topic 815 for certain contracts not traded on an exchange whose settlement is based on the operations or activities of one of the parties to the contract. ASU 2025-07 also clarifies ASC Topic 606 for share-based payments received from a customer in a revenue contract. The Company elected to early adopt ASU 2025-07 on a prospective basis during the three months ended June 30, 2026. The new scope exception in ASC Topic 815 was applied to the evaluation of contingent payments related to the acquisition of Kezar. See Note 8 for the effect on the condensed consolidated financial statements. The new accounting standard related to share-based payments received from a customer in a revenue contract had no impact on our condensed consolidated financial statements.

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Balance Sheet Details (Tables)

6 Months Ended

Jun. 30, 2026

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Financial Assets Measured at Fair Value on a Recurring Basis

The following table summarizes the financial assets measured at fair value on a recurring basis (in thousands):

	June 30, 2026
	Level 1		Level 2		Level 3		Total
Cash, cash equivalents and restricted cash	$	179,832	$	—	$	—	$	179,832
U.S. treasury bills	—		190,081		—		190,081
U.S. treasury bonds	—		69,345		—		69,345
Commercial paper	—		3,865		—		3,865
Total	$	179,832	$	263,291	$	—	$	443,123

	December 31, 2025
	Level 1		Level 2		Level 3		Total
Cash, cash equivalents and restricted cash	$	80,213	$	—	$	—	$	80,213
U.S. treasury bills	—		255,034		—		255,034
U.S. treasury bonds	—		61,654		—		61,654
Commercial paper	—		1,096		—		1,096
Total	$	80,213	$	317,784	$	—	$	397,997

Schedule of Carrying Amount and Related Unrealized Gains (Losses)

The carrying amount and related unrealized gains (losses) by type of investment consisted of the following (in thousands):

	June 30, 2026
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Cash, cash equivalents and restricted cash	$	179,832	$	—	$	—	$	179,832
U.S. treasury bills	190,316		—		(235)		190,081
U.S. treasury bonds	69,402		—		(57)		69,345
Commercial paper	3,865		—		—		3,865
Total cash, cash equivalents, restricted cash and short-term investments	$	443,415	$	—	$	(292)	$	443,123
	December 31, 2025
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Cash, cash equivalents and restricted cash	$	80,213	$	—	$	—	$	80,213
U.S. treasury bills	254,875		159		—		255,034
U.S. treasury bonds	61,608		46		—		61,654
Commercial paper	1,096		—		—		1,096
Total cash, cash equivalents, restricted cash and short-term investments	$	397,792	$	205	$	—	$	397,997

Schedule of Inventory, Net

Inventory consisted of the following (in thousands):

	June 30, 2026		December 31, 2025
Raw materials	$	658	$	658
Work in process	41,710		44,653
Finished goods	2,783		379
Total inventory	$	45,151	$	45,690

Schedule of Prepaid Expenses and Deposits

Prepaid expenses and deposits consisted of the following (in thousands):

	June 30, 2026		December 31, 2025
Prepaid manufacturing and other deposits	$	5,590	$	1,742
Other prepaid expenses	4,941		4,004
Total prepaid expenses and deposits	$	10,531	$	5,746

Schedule of Intangible Assets, Net

Intangible assets, net consisted of the following (in thousands):

	June 30, 2026
	Gross Carrying Value		Accumulated Amortization		Net Carrying Amount
Acquired intellectual property and reacquired right	$	15,126	$	(12,732)	$	2,394
Patents	2,419		(1,435)		984
Internal-use software implementation costs	2,873		(2,873)		—
Total intangible assets, net	$	20,418	$	(17,040)	$	3,378

	December 31, 2025
	Gross Carrying Value		Accumulated Amortization		Net Carrying Amount
Acquired intellectual property and reacquired right	$	15,126	$	(12,334)	$	2,792
Patents	2,380		(1,411)		969
Internal-use software implementation costs	2,873		(2,873)		—
Total intangible assets, net	$	20,379	$	(16,618)	$	3,761

Schedule of Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

	June 30, 2026		December 31, 2025
Leasehold improvements	$	3,243	$	3,243
Furniture	1,155		1,155
Office equipment	631		631
Computer equipment	235		235
Total gross property and equipment	5,264		5,264
Less accumulated depreciation	(3,402)		(3,153)
Property and equipment, net	$	1,862	$	2,111

Schedule of Accrued Expenses

Accrued expenses consisted of the following (in thousands):

	June 30, 2026		December 31, 2025
Accrued sales rebates and fees	$	40,330	$	30,832
Accrued payroll and related expenses	11,842		18,869
Accrued research and development expenses	5,634		6,127
Accrued sales and marketing expenses	1,304		1,648
Accrued corporate and excise taxes	860		2,010
Accrued other expenses	4,142		7,135
Total accrued expenses	$	64,112	$	66,621

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Commitment and Contingencies (Tables)

6 Months Ended

Jun. 30, 2026

Commitments and Contingencies Disclosure [Abstract]

Schedule of Maturities of Lease Liabilities

Future minimum lease payments, excluding Lease Operating Costs, as of June 30, 2026 consisted of the following (in thousands):

	Finance Lease Payments		Operating Lease Payments
Remainder of 2026	$	8,955	$	588
2027	17,911		2,587
2028	17,911		824
2029	17,911		10
2030	4,478		—
Total lease payments	67,166		4,009
Less: imputed interest	(6,744)		(295)
Total	$	60,422	$	3,714

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Acquisition (Tables)

6 Months Ended

Jun. 30, 2026

Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]

Asset Acquisition

As of May 11, 2026, the total purchase consideration for Kezar was as follows (in thousands):

Cash consideration paid at closing	$	51,599
CVR consideration payable	3,700
Transaction costs	189
Total purchase consideration	$	55,488

Schedule Of Purchase Price Allocation For Asset Acquisition

The following table shows the allocation of the purchase consideration based on the relative fair values of assets acquired and liabilities assumed by the Company on May 11, 2026 (in thousands):

Cash and cash equivalents	$	56,811
Deferred tax assets	23,128
Interest receivable	55
Deferred tax benefits	(23,128)
Accounts payable and accrued expenses	(1,827)
Net assets acquired	55,039
Reconciliation of net assets acquired to total purchase consideration
Acquired in-process research and development	449
Total purchase consideration	$	55,488

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Equity Incentive Plans (Tables)

6 Months Ended

Jun. 30, 2026

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Options

The activity related to stock options during the six months ended June 30, 2026 consisted of the following:

	June 30, 2026
	Number of shares (in thousands)	Weighted-Average Exercise Price
Outstanding at December 31, 2025	8,992	$	9.95
Granted	3,099	14.62
Exercised/released	(4,591)	9.90
Cancelled/forfeited	(1,656)	11.01
Outstanding at June 30, 2026	5,844	$	12.16

Schedule of Estimated Fair Value of Stock Option

The following weighted-average assumptions were used to estimate the fair value of the options granted during the six months ended June 30, 2026 and 2025:

	Six Months Ended June 30,
	2026			2025
Expected volatility	69		%	78		%
Risk-free interest rate	3.84		%	4.00		%
Expected term (in years)	5.0			5.0
Expected dividend yield	0.0		%	0.0%
Fair value per common share option	$	8.75		$	4.98

Schedule of Performance Awards and Restricted Stock Units Activity

The activity related to PSUs and RSUs for the six months ended June 30, 2026 consisted of the following:

	June 30, 2026
	Number of shares (in thousands)	Weighted-average fair value $
Unvested balance, December 31, 2025	4,021	$	7.27
Granted	4,417	9.10
Vested	(1,659)	7.97
Cancelled/forfeited	(2,081)	7.96
Unvested balance, June 30, 2026	4,698	$	8.44

Schedule of Share-based Compensation Expense

The classification of share-based compensation expense consisted of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Research and development	$	1,310	$	335	$	1,421	$	428
Selling, general and administrative	1,234		4,877		31		1,364
Capitalized in inventory, net	295		228		521		239
Share-based compensation expense	$	2,839	$	5,440	$	1,973	$	2,031

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Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Jun. 30, 2026	May 11, 2026	Dec. 31, 2025
Accounting Policies [Abstract]
Deferred tax assets, net	$ 178,935	$ 23,100	$ 176,194
Deferred tax benefits		$ 23,100

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Earnings Per Share (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Potential dilutive common shares that were included in the calculation of diluted earnings per share (in shares)	3.5	2.6	4.3	3.3
Antidilutive securities excluded from computation of earnings (loss) per share (in shares)	2.7	7.5	2.7	7.5
Stock Options
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Potential dilutive common shares that were included in the calculation of diluted earnings per share (in shares)	2.6	0.5	2.6	0.5
Performance Awards
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Potential dilutive common shares that were included in the calculation of diluted earnings per share (in shares)	0.6	0.5	0.8	0.6
Restricted Stock Units (RSUs)
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Potential dilutive common shares that were included in the calculation of diluted earnings per share (in shares)	0.3	1.6	0.9	2.2

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Balance Sheet Details - Schedule of Financial Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total	$ 443,123	$ 397,997
U.S. treasury bills
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-Sale	190,081	255,034
U.S. treasury bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-Sale	69,345	61,654
Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-Sale	3,865	1,096
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total	179,832	80,213
Level 1 | U.S. treasury bills
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-Sale	0	0
Level 1 | U.S. treasury bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-Sale	0	0
Level 1 | Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-Sale	0	0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total	263,291	317,784
Level 2 | U.S. treasury bills
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-Sale	190,081	255,034
Level 2 | U.S. treasury bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-Sale	69,345	61,654
Level 2 | Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-Sale	3,865	1,096
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total	0	0
Level 3 | U.S. treasury bills
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-Sale	0	0
Level 3 | U.S. treasury bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-Sale	0	0
Level 3 | Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Available-for-Sale	0	0
Cash, cash equivalents and restricted cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash, cash equivalents and restricted cash	179,832	80,213
Cash, cash equivalents and restricted cash | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash, cash equivalents and restricted cash	179,832	80,213
Cash, cash equivalents and restricted cash | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash, cash equivalents and restricted cash	0	0
Cash, cash equivalents and restricted cash | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash, cash equivalents and restricted cash	$ 0	$ 0

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Balance Sheet Details - Schedule of Carrying Amount and Related Unrealized Gains (Losses) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2026	Dec. 31, 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amortized Cost	$ 443,415	$ 397,792
Unrealized Gains	0	205
Unrealized Losses	(292)	0
Total cash, cash equivalents, restricted cash and short-term investments	443,123	397,997
Cash, cash equivalents and restricted cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amortized Cost	179,832	80,213
Unrealized Gains	0	0
Unrealized Losses	0	0
Estimated Fair Value	179,832	80,213
U.S. treasury bills
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amortized Cost	190,316	254,875
Unrealized Gains	0	159
Unrealized Losses	(235)	0
Estimated Fair Value	190,081	255,034
U.S. treasury bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amortized Cost	69,402	61,608
Unrealized Gains	0	46
Unrealized Losses	(57)	0
Estimated Fair Value	69,345	61,654
Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amortized Cost	3,865	1,096
Unrealized Gains	0	0
Unrealized Losses	0	0
Estimated Fair Value	$ 3,865	$ 1,096

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Balance Sheet Details - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025	Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued interest receivable	$ 1.0		$ 1.0		$ 0.7
Amortization of intangible assets	$ 0.2	$ 0.2	$ 0.4	$ 0.4

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Balance Sheet Details - Schedule of Inventory, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 658	$ 658
Work in process	41,710	44,653
Finished goods	2,783	379
Total inventory	$ 45,151	$ 45,690

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Balance Sheet Details - Schedule of Prepaid Expenses and Deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid manufacturing and other deposits	$ 5,590	$ 1,742
Other prepaid expenses	4,941	4,004
Total prepaid expenses and deposits	$ 10,531	$ 5,746

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Balance Sheet Details - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Intangible Asset, Finite-Lived [Line Items]
Gross Carrying Value	$ 20,418	$ 20,379
Accumulated Amortization	(17,040)	(16,618)
Net Carrying Amount	3,378	3,761
Acquired intellectual property and reacquired right
Intangible Asset, Finite-Lived [Line Items]
Gross Carrying Value	15,126	15,126
Accumulated Amortization	(12,732)	(12,334)
Net Carrying Amount	2,394	2,792
Patents
Intangible Asset, Finite-Lived [Line Items]
Gross Carrying Value	2,419	2,380
Accumulated Amortization	(1,435)	(1,411)
Net Carrying Amount	984	969
Internal-use software implementation costs
Intangible Asset, Finite-Lived [Line Items]
Gross Carrying Value	2,873	2,873
Accumulated Amortization	(2,873)	(2,873)
Net Carrying Amount	$ 0	$ 0

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Balance Sheet Details - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Property, Plant, and Equipment [Line Items]
Total gross property and equipment	$ 5,264	$ 5,264
Less accumulated depreciation	(3,402)	(3,153)
Property and equipment, net	1,862	2,111
Leasehold improvements
Property, Plant, and Equipment [Line Items]
Total gross property and equipment	3,243	3,243
Furniture
Property, Plant, and Equipment [Line Items]
Total gross property and equipment	1,155	1,155
Office equipment
Property, Plant, and Equipment [Line Items]
Total gross property and equipment	631	631
Computer equipment
Property, Plant, and Equipment [Line Items]
Total gross property and equipment	$ 235	$ 235

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Balance Sheet Details - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued sales rebates and fees	$ 40,330	$ 30,832
Accrued payroll and related expenses	11,842	18,869
Accrued research and development expenses	5,634	6,127
Accrued sales and marketing expenses	1,304	1,648
Accrued corporate and excise taxes	860	2,010
Accrued other expenses	4,142	7,135
Total accrued expenses	$ 64,112	$ 66,621

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Commitment and Contingencies - Narrative (Details) $ in Thousands, SFr in Millions		1 Months Ended		3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($)	Feb. 28, 2021 USD ($)	Jan. 31, 2021 USD ($)	Jun. 30, 2026 USD ($)	Jun. 30, 2025 USD ($)	Jun. 30, 2026 USD ($)	Jun. 30, 2025 USD ($)	Jun. 30, 2026 CHF (SFr)	Dec. 31, 2025 USD ($)	Mar. 31, 2020 ft² extension_option
Long-term Purchase Commitment [Line Items]
Finance lease payments						$ 7,058	$ 6,201
Finance right-of-use lease assets				$ 65,152		65,152			$ 73,865
Finance lease, liability				60,422		60,422
Finance lease, interest payment						2,300	2,300
Visp, Switzerland
Long-term Purchase Commitment [Line Items]
Payments for capital improvements			$ 23,700
Finance lease payments	$ 11,900	$ 11,800
Quarterly periodic payment amount | SFr								SFr 3.6
Finance right-of-use lease assets				65,200		65,200
Finance lease, liability				60,400		60,400
Finance lease, right-of-use asset, amortization				4,400	$ 4,400	8,700	8,800
Interest expense				900	$ 1,100	2,000	$ 2,200
Rockville, Maryland
Long-term Purchase Commitment [Line Items]
Area of property (in square feet) | ft²										30,531
Lease termination fee				1,400		1,400
Number of extension options | extension_option										2
Lease extension term (in years)										5 years
Lease term (in years)										11 years
Reduction in future lease payments				$ 2,300		$ 2,300

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Commitment and Contingencies - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands	Jun. 30, 2026 USD ($)
Finance Lease Payments
Remainder of 2026	$ 8,955
2027	17,911
2028	17,911
2029	17,911
2030	4,478
Total lease payments	67,166
Less: imputed interest	(6,744)
Total	60,422
Operating Lease Payments
Remainder of 2026	588
2027	2,587
2028	824
2029	10
2030	0
Total lease payments	4,009
Less: imputed interest	(295)
Total	$ 3,714

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Other Non-current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Payables and Accruals [Abstract]
Other non-current liabilities	$ 945	$ 6,662

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License and Collaboration Agreements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025	Dec. 31, 2020
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Revenues	$ 83,220	$ 70,008	$ 160,925	$ 132,473
Otuska | License Agreement Terms
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Upfront cash payment					$ 50,000
Otuska | License Agreement Terms | Service Revenue
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Revenues	$ 3,800	$ 3,400	$ 8,000	$ 5,900
Otuska | License Agreement Terms | Minimum
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Tiered royalty percentages on future sales (as a percent)					10.00%
Otuska | License Agreement Terms | Maximum
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Tiered royalty percentages on future sales (as a percent)					20.00%

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Acquisition - Narrative (Details) - Kezar Life Sciences, Inc. - USD ($) $ / shares in Units, $ in Millions	Jun. 30, 2026	May 11, 2026
Asset Acquisition [Line Items]
Cash paid per acquiree share (in dollars per share)		$ 6.955
Net cash acquired, threshold percentage		100.00%
Net cash acquired, threshold amount		$ 50.0
Contingent consideration, liability	$ 3.7

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Acquisition - Schedule of Total Purchase consideration (Details) - Kezar Life Sciences, Inc. $ in Thousands	May 11, 2026 USD ($)
Asset Acquisition [Line Items]
Cash consideration paid at closing	$ 51,599
CVR consideration payable	3,700
Transaction costs	189
Consideration transferred	$ 55,488

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Acquisition - Schedule of Assets Acquired and Liabilities Assumed (Details) - Kezar Life Sciences, Inc. $ in Thousands	May 11, 2026 USD ($)
Asset Acquisition [Line Items]
Cash and cash equivalents	$ 56,811
Deferred tax assets	23,128
Interest receivable	55
Deferred tax benefits	(23,128)
Accounts payable and accrued expenses	(1,827)
Net assets acquired	55,039
Acquired in-process research and development	449
Total purchase consideration	$ 55,488

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Shareholder's Equity (Details) - USD ($) shares in Millions, $ in Millions	1 Months Ended		3 Months Ended		6 Months Ended
	Jul. 31, 2025	Feb. 29, 2024	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Share Repurchase Program [Line Items]
Stock repurchased during period, (in shares)			2.5	5.4	5.0	11.2
Stock repurchased during period, value			$ 38.1	$ 43.4	$ 74.9	$ 90.8
Share Repurchase Plan | Common Shares
Share Repurchase Program [Line Items]
Stock repurchased during period, (in shares)	150.0	150.0			23.3
Stock repurchased during period, value					$ 213.4

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Equity Incentive Plans - Schedule of Stock Options (Details) shares in Thousands	6 Months Ended
	Jun. 30, 2026 $ / shares shares	Dec. 31, 2025 $ / shares
Number of shares (in thousands)
Beginning balance (in shares) | shares	8,992
Granted (in shares) | shares	3,099
Exercised/released (in shares) | shares	(4,591)
Cancelled/forfeited (in shares) | shares	(1,656)
Ending balance (in shares) | shares	5,844
Weighted-Average Exercise Price
Beginning balance (in usd per share) | $ / shares	$ 12.16	$ 9.95
Granted (in usd per share) | $ / shares	14.62
Exercised/released (in usd per share) | $ / shares	9.90
Cancelled/forfeited (in usd per share) | $ / shares	11.01
Ending balance (in usd per share) | $ / shares	$ 12.16

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Equity Incentive Plans - Schedule of Estimated Fair Value of Stock Option (Details) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Share-Based Payment Arrangement [Abstract]
Expected volatility	69.00%	78.00%
Risk-free interest rate	3.84%	4.00%
Expected term (in years)	5 years	5 years
Expected dividend yield	$ 0.000	$ 0.000
Fair value per common share option (in usd per share)	$ 8.75	$ 4.98

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Equity Incentive Plans - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2026 USD ($) segment tranche	Jun. 30, 2025 tranche segment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense | $	$ 35.0
Unrecognized share-based compensation expense weighted average recognition period (in years)	2 years 1 month 6 days
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches granted performance that vest	4	4
Achievement obtained, tranche service period following achievement (in years)	1 year	1 year
Share-Based Compensation Arrangement by Share-Based Payment Award, Number Of Target Prices | segment	4	4
Performance Awards And Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches granted performance that vest	2
Performance Awards And Restricted Stock Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Achievement obtained, tranche grant period following achievement (in years)	3 years
Performance Awards And Restricted Stock Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Achievement obtained, tranche grant period following achievement (in years)	5 years

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Equity Incentive Plans - Schedule of Performance Awards and Restricted Stock Units Activity (Details) - Performance Awards And Restricted Stock Units shares in Thousands	6 Months Ended
	Jun. 30, 2026 $ / shares shares
Number of shares (in thousands)
Unvested beginning balance (in shares) | shares	4,021
Granted (in shares) | shares	4,417
Vested (in shares) | shares	(1,659)
Cancelled/forfeited (in shares) | shares	(2,081)
Unvested ending balance (in shares) | shares	4,698
Weighted-average fair value $
Unvested beginning balance (in usd per share) | $ / shares	$ 7.27
Granted (in usd per share) | $ / shares	9.10
Vested (in usd per share) | $ / shares	7.97
Cancelled/forfeited (in usd per share) | $ / shares	7.96
Unvested ending balance (in usd per share) | $ / shares	$ 8.44

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Equity Incentive Plans - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 2,839	$ 5,440	$ 1,973	$ 2,031
Income Statement Location [Axis]: us-gaap:GeneralAndAdministrativeExpense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	1,234	4,877	31	1,364
Income Statement Location [Axis]: us-gaap:OtherOperatingIncomeExpenseNet
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	295	228	521	239
Income Statement Location [Axis]: us-gaap:ResearchAndDevelopmentExpense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 1,310	$ 335	$ 1,421	$ 428

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Tax Disclosure [Abstract]
Income tax expense	$ 11,372	$ 643	$ 20,942	$ 1,648
Income tax rate	23.30%	2.90%	22.60%	3.50%