CORCEPT THERAPEUTICS INC

1. Basis of Presentation and Summary of Significant Accounting Policies

Description of Business

Corcept Therapeutics Incorporated (collectively, “Corcept,” the “Company,” “we,” “us,” and “our”) is a commercial-stage biopharmaceutical company engaged in the discovery and development of medications to treat severe endocrinologic, oncologic, metabolic and neurologic disorders by modulating the effects of the hormone cortisol. In 2012, the United States Food and Drug Administration (“FDA”) approved Korlym® (“mifepristone”) 300 mg tablets, as a once-daily oral medication for the treatment of hyperglycemia secondary to hypercortisolism in adult patients with endogenous Cushing’s syndrome who have type 2 diabetes mellitus or glucose intolerance and have failed surgery or are not candidates for surgery. In June 2024, we made an authorized generic version of Korlym available. In March 2026, the FDA approved Lifyorli™ (relacorilant) in combination with the chemotherapy medication nab-paclitaxel as a treatment for patients with platinum-resistant epithelial ovarian, fallopian tube, or primary peritoneal cancer who have received one to three prior systemic treatment regimens, at least one of which included bevacizumab. In April 2026, we began selling and distributing Lifyorli in the United States. We have discovered and patented five structurally distinct series of selective cortisol modulators, consisting of more than 1,000 compounds. We are developing compounds from these series as potential treatments for a broad range of serious disorders.

We were incorporated in the State of Delaware in May 1998. Our headquarters is located in Redwood City, California.

Basis of Presentation

We have prepared the following in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X: (i) condensed consolidated balance sheet as of June 30, 2026 and (ii) condensed consolidated statements of income, comprehensive income, cash flows and stockholders’ equity for the three- and six-month periods ended June 30, 2026 and 2025. These do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation (which in the applicable periods consist only of normal, recurring adjustments) have been included. Operating results for the three- and six-month periods ended June 30, 2026 are not necessarily indicative of the results for the remainder of 2026 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2025 included in our Annual Report on Form 10-K. The December 31, 2025 balance sheet was derived from audited financial statements at that date.

Segment Reporting

Based on the way we organize our business, make decisions, allocate resources and assess performance, we have determined that Corcept has a single reportable segment – the discovery, development and commercialization of pharmaceutical products. Our Chief Executive Officer, Joseph K. Belanoff, M.D., is the Chief Operating Decision Maker (“CODM”), with ultimate responsibility for its activities and performance. He bases his decisions as CODM on regular reviews of our consolidated balance sheets (including cash and cash equivalents, investments and liabilities), statements of income (including revenue, expense and net income), statements of cash flows, and regular reviews of expenses that are consistent with those disclosed in our consolidated statements of income.

Net Product Revenue

We sell Korlym and our authorized generic version of Korlym (our “Hypercortisolism Products”) and Lifyorli (collectively with our Hypercortisolism Products, our “Products”) in the United States through specialty pharmacies and specialty distributors. We sell our Products directly to patients through specialty pharmacies and hospitals and other purchasers through specialty distributors. We recognize revenue for sales directly to patients at the time the patient receives the medication. We recognize revenue from sales to specialty distributors at the time the specialty distributor receives the medication.

To determine revenue from the sale of our Products, we (i) identify our contract with each customer; (ii) identify the obligations of Corcept under the contract; (iii) determine the transaction price; (iv) allocate the transaction price to our performance obligation under the contracts, which is to deliver the Products to the customers; and (v) recognize revenue once our Products have been delivered and control has transferred to the customer. We recognize revenue provided we deem it probable that we will collect the payment due to us.

Confirmation of coverage by private or government insurance or by a third-party charity is a prerequisite for selling our Products to a patient through the specialty pharmacy channel.

To determine net product revenue, we deduct from gross sales the cost of our patient co-pay assistance programs and our estimates of government chargebacks and rebates, prompt-payment discounts, distribution and administrative fees, voucher assistance and reserves for expected returns, as applicable to each product and channel. We record these estimates at the time we recognize revenue and update them as new information becomes available. Our estimates take into account our understanding of the range of possible outcomes. If results differ from our estimates, we adjust our estimates, which changes our net product revenue and earnings. We report any changes in the period they become known, even if they concern transactions occurring in prior periods.

Government Rebates: Our Products are eligible for purchase by, or qualify for reimbursement from, Medicaid, Medicare and other government programs that are eligible for rebates on the price they pay for our Products. To determine the appropriate amount to reserve against these rebates, we identify or estimate Products sold to specialty distributors and patients covered by government-funded programs, apply the applicable government discount to these sales, then estimate utilization of such programs by government payors. We (i) deduct this reserve from revenue in the period to which the rebates relate and (ii) include in accrued expenses on our condensed consolidated balance sheet current or long-term liabilities of an equal amount.

Chargebacks: Although we sell our Hypercortisolism Products to the specialty distributor at full price, some of the government entities to which the specialty distributor sells receive a negotiated price. The specialty distributor recovers the full amount of any related price differences by reducing its payment to us (this reduction is called a “chargeback”). Chargebacks sometimes relate to our Hypercortisolism Products purchased by the specialty distributor in prior periods. We deduct from our revenue in each period chargebacks claimed by the specialty distributor for our Hypercortisolism Products it purchased in that period. We also create a reserve for chargebacks we estimate the specialty distributor will claim in future periods against Hypercortisolism Products it purchased in the current period but has not yet resold. We determine the amount of this reserve based on our experience with chargebacks and our understanding of the specialty distributor’s customers and business practices. We deduct this reserve from revenue and include in accrued expenses on our consolidated balance sheet a current liability of an equal amount. To date, chargebacks for our Hypercortisolism Products have not been material. For Lifyorli, hospitals, clinics, government purchasers and other eligible entities may purchase Lifyorli at contractually or statutorily negotiated prices. We estimate these related chargebacks based on applicable contractual or statutory requirements, expected utilization, claims activity and available product-specific or other informative data. These estimates are recorded as reductions in revenue for the period in which the related revenue is recognized, with a corresponding liability included in accrued expenses.

Discounts, Distribution Fees, Patient Assistance Programs and Charitable Support: We provide prompt-payment discounts and in some cases pay distribution, administrative, data or other fees in connection with the distribution of our Products, particularly those sold through specialty distributors. We also offer financial assistance to eligible patients whose insurance policies have high deductibles or co-payments. We determine the assistance we provide each patient by applying our program guidelines to that patient’s financial position and the patient’s insurance policy’s co-payment and deductible requirements. We deduct any fees we pay or patient assistance we provide from gross revenue. We provide prompt-payment discounts and pay distribution and administrative fees in connection with sales of Lifyorli. We also provide copay and voucher assistance to eligible commercially-insured patients. We record these amounts as reductions in revenue based on contractual terms, expected payment behavior, actual and expected claims activity and other available information.

For our Hypercortisolism Products, we donate cash to charities that help patients with financial need pay for treatment, including treatment of Cushing’s syndrome. We do not include payments from these charities in revenue, but record our donations as a deduction to selling, general and administrative expenses. We also provide our Hypercortisolism Products at no cost to eligible patients through patient assistance, replacement or starter programs. We do not recognize revenue for free product dispensed under these programs and record the cost of these products as selling, general and administrative expenses.

We also provide Lifyorli at no cost to eligible patients through patient assistance and starter drug programs. We do not recognize revenue for free product dispensed under these programs and record the cost of these products as selling, general and administrative expenses.

Sales Returns: Federal law prohibits the return of Products sold to patients through the specialty pharmacies. Sales to our specialty distributor are subject to return under our returned goods policy. We deduct the amount of Products we estimate each distributor will return from each period’s gross revenue. We base our estimates on quantitative and qualitative information including, but not limited to, that distributor’s historical return rates, the amount of Products held by that distributor and projected demand. To date, returns have not been material.

There have been no other material changes or additions to the significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2025.

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2024-03, which requires additional information about certain expense categories in the notes to financial statements. This ASU is effective for public companies with annual periods beginning after December 15, 2026, with early adoption permitted. We plan to adopt this guidance for the fiscal year ending December 31, 2027. We are evaluating the effects adoption of this guidance will have on the condensed consolidated financial statements.

In September 2025, the FASB issued ASU No. 2025-06, which improves the accounting for internal software by eliminating the concept of development stages and requiring capitalization of software costs once management has authorized and committed funding for the project and it is probable the project will be completed and placed in service as intended. This ASU is effective for public companies with annual periods beginning after December 15, 2027, with early adoption permitted. We plan to adopt this guidance for the fiscal year ending December 31, 2028. We are evaluating the effects adoption of this guidance will have on the condensed consolidated financial statements.

In December 2025, the FASB issued ASU No. 2025-11, which amends ASC 270, Interim Reporting (“ASC 270”) to clarify the scope, form, and content of interim financial statements and centralizes interim disclosure requirements within ASC 270. This ASU introduces a new interim disclosure principle requiring entities to disclose material events and changes occurring since the last annual reporting period and clarifies the preparation and presentation of condensed interim financial information. This ASU is effective for public companies for interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. We are evaluating the effects adoption of this guidance will have on the condensed consolidated financial statements.

Although there were several other new accounting pronouncements issued by the FASB during the three and six months ended June 30, 2026, we do not believe any of them had or will have a material impact on the condensed consolidated financial statements.

2. Composition of Certain Balance Sheet Items

Inventory

We have purchased and hold significant quantities of active pharmaceutical ingredient (“API”) for our Products, which are included in raw materials and work in progress inventory. We classify inventory we do not expect to utilize within 12 months of the balance sheet date as “strategic inventory,” a non-current asset.

Prior to receiving regulatory approval, we record the cost of manufacturing our product candidates as research and development expense at the time it is incurred. We capitalize manufacturing costs incurred after regulatory approval as inventory.

Prepaid expenses and other current assets

Accrued and other liabilities

3. Available-for-Sale Marketable Securities and Fair Value Measurements

The available-for-sale securities in our condensed consolidated balance sheets are as follows:

The following table presents our available-for-sale securities grouped by asset type:

We estimate the fair value of marketable securities classified as Level 1 using quoted market prices obtained from a commercial pricing service for these or identical investments. We estimate the fair value of marketable securities classified as Level 2 using inputs that may include benchmark yields, reported trades, broker/dealer quotes and issuer spreads.

We periodically review our debt securities to determine if any of our investments is impaired due to the issuer’s poor credit or other reasons. If the fair value of our investment is less than our amortized cost, we evaluate quantitative and subjective factors – including, but not limited to, the nature of the security, changes in credit ratings and analyst reports concerning the security’s issuer and industry, and interest rate fluctuations and general market conditions – to determine whether an allowance for credit losses is appropriate.

None of our investments, including those with unrealized losses, are impaired. Unrealized losses on our investments are due to interest rate fluctuations. It is unlikely that we will sell any investments with significant unrealized losses before recovery of their amortized cost basis, which may be at maturity. Accordingly, we have not recorded an allowance for credit losses for these investments.

We classified accrued interest on our marketable securities of $4.5 million and $4.1 million as of June 30, 2026 and December 31, 2025, respectively, as prepaid expenses and other current assets on our condensed consolidated balance sheets.

As of June 30, 2026, all of our long-term marketable securities had original maturities of no more than 25 months and all of our marketable securities classified as short-term have maturities of less thanone year. The weighted-average maturity of our short-term and long-term marketable securities wasten months. As of June 30, 2026, our long-term marketable securities had remaining maturities between 13 months and 24 months. None of our marketable securities changed from one fair value hierarchy to another during the three and six months ended June 30, 2026.

4. Commitments and Contingencies

In March 2026, to ensure we have sufficient API to meet future demand for Korlym and our authorized generic version of Korlym, we committed to purchase an additional 1,450 kilograms of API for a total price of $10.2 million.

There have been no other material changes in our obligations under contractual agreements described in our Annual Report on Form 10-K for the year ended December 31, 2025.

In the ordinary course of business, we may be subject to legal claims and regulatory actions that could have a material adverse effect on our business or financial position. We assess our potential liability in such situations by analyzing potential outcomes under various litigation, regulatory and settlement strategies. If we determine a loss is probable and its amount can be reasonably estimated, we accrue an amount equal to the estimated loss.

To date, we have recordedno losses andno provision for a loss contingency with respect to any matter. For further information about our ongoing legal matters, see Part II, Item 1, Legal Proceedings.

5. Leases

In April 2024, we entered into asix-year sublease (the “Sublease”) with Zuora, Inc. for office space located at 101 Redwood Shores Parkway, Redwood City, California, effective from July 1, 2024. The leased property became our new headquarters effective August 1, 2024. The portion of the premises subject to the Sublease is 50,632 rentable square feet. The Sublease commenced on June 1, 2024 due to early access rights and will end on June 30, 2030. We are obligated to pay a base rent of an average of $1.5 million annually over the term of the lease. As a result of the agreement, we recorded a right-of-use asset and corresponding lease liability related to the leased property based on the present value of future lease payments.

In December 2025, we exercised an expansion option (the “Expansion Sublease”) with Zuora, Inc. for additional office space located at 101 Redwood Shores Parkway, Redwood City, California. The portion of the premises subject to the Expansion Sublease is 40,884 rentable square feet. The Expansion Sublease commenced in the first quarter of 2026 and will end on the same date as the Sublease, June 30, 2030. We are obligated to pay an additional base rent of an average of $1.0 million annually over the term of the lease. As a result of the Expansion Sublease, we recorded a right-of-use asset and corresponding lease liability related to the leased property based on the present value of future lease payments.

As the operating leases for our facilities do not provide sufficient information to determine the implicit borrowing rate, we calculated the present value of remaining lease payments using a discount rate equal to the interest rate we would pay on a collateralized loan with monthly payments and a term equal to the remaining term of our lease. Operating lease right-of-use assets also include any rent paid prior to the commencement date, less any lease incentives received. We recognize operating lease payments as expenses using the straight-line method over the term of the lease.

Operating lease expense for the three and six months ended June 30, 2026 was $1.0 million and $1.7 million, respectively, which include variable lease costs of $0.4 million and $0.7 million, respectively, primarily related to common area maintenance and other administrative expenses. In the comparable periods in 2025, operating lease expense was $0.6 million and $1.3 million, respectively, which include variable lease costs of $0.2 million and $0.6 million, respectively.

Supplemental information related to operating leases was as follows (in thousands, except weighted average amounts):

As of June 30, 2026, future minimum lease payments under non-cancelable operating leases were as follows (in thousands):

6. Stock-Based Compensation

The following table summarizes our stock-based compensation by financial statement classification:

7. Net Income Per Share

We compute our basic and diluted net income per share in conformity with the two-class method because Restricted Stock Awards (“RSAs”) include voting and dividend rights and are therefore participating shares. Under the two-class method, net income is determined by allocating net income between common stock and unvested RSAs. We compute basic net income per share by dividing our net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period. We compute diluted net income per share by dividing our net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, including potentially dilutive stock options and unvested Restricted Stock Units (“RSUs”), less unvested RSAs. We use the treasury stock method to determine the number of dilutive shares of common stock resulting from stock options and unvested RSUs.

The following table shows the computation of net income per share for each period:

We excluded from the computation of diluted net income per share, on a weighted-average basis,3.0 million and 4.8 million stock options and RSUs outstanding during the three and six months ended June 30, 2026, respectively, and 2.7 million and 2.0 million stock options outstanding during the three and six months ended June 30, 2025, respectively, because including them would have been anti-dilutive.

8. Income Taxes

We recorded an income tax expense of $2.9 million and a tax benefit of $10.0 million for the three and six months ended June 30, 2026, respectively, as compared to an income tax benefit of $3.5 million and $14.4 million for the comparable periods in 2025. The increase in income tax expense during the three months ended June 30, 2026 and decrease in income tax benefit during the six months ended June 30, 2026 were primarily due to a decrease in stock compensation deductions in 2026 as compared to the comparable periods in 2025.

Our effective tax rate differs from the federal statutory rate due to state income taxes and the non-deductible portion of our stock-based compensation, which increased our tax expense, offset by research and development credits and the excess tax deduction arising from the exercise of employee stock options, which reduced our taxable income.

During the three and six months ended June 30, 2026, unrecognized tax benefits decreased by $0.7 million and increased by less than $0.1 million, respectively.

Each quarter, we assess the likelihood that we will generate sufficient taxable income to use our federal and state deferred tax assets. Except for the valuation allowances that offset the value of our California net deferred tax assets, we have determined that it is more likely than not we will realize the benefit related to all other deferred tax assets. To the extent we increase a valuation allowance, we will include an expense in the Condensed Consolidated Statement of Income in the period in which such determination is made.

9. Revenue

The following table presents a summary of total product revenue, net by product: