Keros Therapeutics Reports Recent Business Highlights and Third Quarter 2026 Financial Results
Keros Therapeutics, Inc. (KROS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Keros Therapeutics Reports Recent Business Highlights and Third Quarter 2026 Financial Results • First patient dosed in Phase 2 clinical trial of rinvatercept in patients with Duchenne muscular dystrophy in September 2026 • Nominated KER-206, a novel ligand trap desi
How this was made
The 30-second read
Why it matters
The earnings release flips a prior loss to profit and introduces a pivotal clinical event, likely prompting short‑term buying interest.
Market read
First‑time earnings and trial data provide fresh material for traders; potential upside for KROS and related biotech peers.
What to watch
License revenue is tied to Takeda partnership; any renegotiation could affect future cash flow.
Keros Therapeutics Reports Recent Business Highlights and Third Quarter 2026 Financial Results
Third-quarter net income was $14.2 million versus a net loss of $7.3 million, supported primarily by Takeda license revenue, while research and development expenses increased and cash and cash equivalents were $259.5 million as of September 30, 2026.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three months ended September 30, 2026 Service and other revenueGAAP | $9K | – | – |
| Three months ended September 30, 2026 License revenueGAAP | $40M | – | – |
| Three months ended September 30, 2026 Total revenueGAAP | $40.01M | – | – |
| Three months ended September 30, 2026 Research and development expensesGAAP | −$20.49M | – | increase of $1.0 million |
| Three months ended September 30, 2026 General and administrative expensesGAAP | −$6.7M | – | decrease of $3.4 million |
| Three months ended September 30, 2026 Total operating expensesGAAP | −$27.19M | – | – |
| Three months ended September 30, 2026 Income (loss) from operationsGAAP | $12.82M | – | – |
| Three months ended September 30, 2026 Interest income, netGAAP | $55K | – | – |
| Three months ended September 30, 2026 Dividend incomeGAAP | $2.22M | – | – |
| Three months ended September 30, 2026 Other expense, netGAAP | −$168K | – | – |
| Three months ended September 30, 2026 Total other income, netGAAP | $2.11M | – | – |
| Three months ended September 30, 2026 Income (loss) before income taxesGAAP | $14.93M | – | – |
| Three months ended September 30, 2026 Income tax (provision) benefitGAAP | −$772K | – | – |
| Three months ended September 30, 2026 Net income (loss)GAAP | $14.15M | – | increase of approximately $21.4 million |
| Three months ended September 30, 2026 Net income (loss) attributable to common stockholders, basic and dilutedGAAP | $14.15M | – | – |
| Three months ended September 30, 2026 Weighted-average shares of common stock outstanding, basicGAAP | 19,886,097 | – | – |
| Three months ended September 30, 2026 Weighted-average shares of common stock outstanding, dilutedGAAP | 20,341,140 | – | – |
| Three months ended September 30, 2026 Net income (loss) per share of common stock, basicGAAP | $ 0.71 | – | – |
| Three months ended September 30, 2026 Net income (loss) per share of common stock, dilutedGAAP | $ 0.70 | – | – |
| Nine months ended September 30, 2026 Service and other revenueGAAP | $376K | – | – |
| Nine months ended September 30, 2026 License revenueGAAP | $40M | – | – |
| Nine months ended September 30, 2026 Total revenueGAAP | $40.38M | – | – |
| Nine months ended September 30, 2026 Research and development expensesGAAP | −$58.92M | – | – |
| Nine months ended September 30, 2026 General and administrative expensesGAAP | −$25.45M | – | – |
| Nine months ended September 30, 2026 Total operating expensesGAAP | −$84.37M | – | – |
| Nine months ended September 30, 2026 Income (loss) from operationsGAAP | −$44.00M | – | – |
| Nine months ended September 30, 2026 Interest income, netGAAP | $55K | – | – |
| Nine months ended September 30, 2026 Dividend incomeGAAP | $6.84M | – | – |
| Nine months ended September 30, 2026 Other expense, netGAAP | −$394K | – | – |
| Nine months ended September 30, 2026 Total other income, netGAAP | $6.50M | – | – |
| Nine months ended September 30, 2026 Income (loss) before income taxesGAAP | −$37.49M | – | – |
| Nine months ended September 30, 2026 Income tax (provision) benefitGAAP | −$772K | – | – |
| Nine months ended September 30, 2026 Net income (loss)GAAP | −$38.27M | – | – |
| Nine months ended September 30, 2026 Net income (loss) attributable to common stockholders, basic and dilutedGAAP | −$38.27M | – | – |
| Nine months ended September 30, 2026 Weighted-average shares of common stock outstanding, basicGAAP | 19,773,047 | – | – |
| Nine months ended September 30, 2026 Weighted-average shares of common stock outstanding, dilutedGAAP | 19,773,047 | – | – |
| Nine months ended September 30, 2026 Net income (loss) per share of common stock, basicGAAP | $ (1.94) | – | – |
| Nine months ended September 30, 2026 Net income (loss) per share of common stock, dilutedGAAP | $ (1.94) | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Into the second half of 2028 outlook
- NoteCash and cash equivalents as of September 30, 2026 are expected to enable Keros to fund its operating expenses and capital expenditure requirements into the second half of 2028.
- NoteKeros expects to announce initial data from the Phase 2 trial of rinvatercept in patients with DMD in the first half of 2027.
What drove it
- The increase of approximately $21.4 million in third-quarter net income was primarily due to revenue recognized in 2026 related to Keros' license agreement with Takeda.
- The $1.0 million increase in third-quarter research and development expenses was primarily due to additional research and development efforts supporting advancement of Keros' pipeline, partially offset by decreased elritercept-related research and development expenses as activities transitioned to Takeda during 2025.
- The $3.4 million decrease in third-quarter general and administrative expenses was primarily due to lower compensation costs and lower professional fees.
- The first patient was dosed in the Phase 2 clinical trial of rinvatercept in patients with DMD in September 2026.
- Keros nominated KER-206 from its nonclinical pipeline for further investigation.
Concerns
- Nine-month total revenue was $ 40,376 (in thousands), compared with $ 243,676 (in thousands) for the nine months ended September 30, 2025.
- Nine-month net loss was $ (38,265) (in thousands), compared with net income of $ 110,475 (in thousands) for the nine months ended September 30, 2025.
- Service and other revenue was $ 9 (in thousands) in the third quarter of 2026, compared with $ 4,262 (in thousands) in the third quarter of 2025.
- Cash and cash equivalents were $ 259,464 (in thousands) as of September 30, 2026, compared with $ 287,415 (in thousands) as of December 31, 2025.
What to watch
- Initial data from the Phase 2 rinvatercept trial in patients with DMD, which Keros expects to announce in the first half of 2027.
- Progress of rinvatercept across DMD and amyotrophic lateral sclerosis.
- Further investigation of KER-206 following its nomination from the nonclinical pipeline.
- Execution against the stated cash runway into the second half of 2028.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $ 259,464 (in thousands); December 31, 2025: $ 287,415 (in thousands).
- Accounts receivable as of September 30, 2026: $ 20,000 (in thousands); December 31, 2025: $ 3,567 (in thousands).
- Total current assets as of September 30, 2026: $ 287,634 (in thousands); December 31, 2025: $ 315,434 (in thousands).
- Total assets as of September 30, 2026: $ 307,371 (in thousands); December 31, 2025: $ 338,021 (in thousands).
- Total current liabilities as of September 30, 2026: $ 15,858 (in thousands); December 31, 2025: $ 20,414 (in thousands).
- Operating lease liabilities, net of current portion, as of September 30, 2026: $ 12,415 (in thousands); December 31, 2025: $ 14,475 (in thousands).
- Total liabilities as of September 30, 2026: $ 28,273 (in thousands); December 31, 2025: $ 34,889 (in thousands).
- Total stockholders' equity as of September 30, 2026: $ 279,098 (in thousands); December 31, 2025: $ 303,132 (in thousands).
- No cash-flow statement, operating cash flow, free cash flow, or debt balance was provided in the filing text.
Analysis
Keros reported third-quarter 2026 total revenue of $ 40,009 (in thousands), compared with $ 14,262 (in thousands) in the third quarter of 2025. License revenue was $ 40,000 (in thousands), and the company said the increase in net income was primarily due to revenue recognized in 2026 under its license agreement with Takeda. Service and other revenue was $ 9 (in thousands), compared with $ 4,262 (in thousands) in the prior-year quarter.
GAAP net income was $ 14,153 (in thousands), or $ 0.70 per diluted share, versus a GAAP net loss of $ (7,280) (in thousands), or $ (0.18) per diluted share, in the third quarter of 2025. Income from operations was $ 12,818 (in thousands), compared with an operating loss of $ (15,384) (in thousands). The quarter's reported profitability therefore reflects license revenue as well as lower total operating expenses of $ (27,191) (in thousands), compared with $ (29,646) (in thousands).
Research and development expenses were $ (20,491) (in thousands), an increase of $1.0 million from the third quarter of 2025. Keros attributed this increase to additional pipeline-supporting research and development work, partly offset by reduced elritercept-related expenses as activities transitioned to Takeda during 2025. General and administrative expenses were $ (6,700) (in thousands), a decrease of $3.4 million, driven by lower compensation costs and professional fees. For the nine months ended September 30, 2026, Keros reported a net loss of $ (38,265) (in thousands), compared with net income of $ 110,475 (in thousands) in the corresponding 2025 period.
Cash and cash equivalents were $ 259,464 (in thousands) as of September 30, 2026, compared with $ 287,415 (in thousands) at December 31, 2025. The company expects this cash balance to fund operating expenses and capital expenditure requirements into the second half of 2028. Operationally, the first DMD patient was dosed in the Phase 2 rinvatercept trial in September 2026, initial data are expected in the first half of 2027, and KER-206 was nominated from the nonclinical pipeline for further investigation.
Management, verbatim
We are excited to continue advancing our pipeline across both clinical and nonclinical development, building on our understanding of TGF-β biology to develop potential new treatments for patients.
Jasbir S. Seehra, Ph.D., President and Chief Executive Officer
We remain focused on disciplined execution of our strategic priorities as we work to advance our programs and build on the potential of our pipeline.
Jasbir S. Seehra, Ph.D., President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for income-statement metrics were not provided.
- Gross profit and gross margin were not provided.
- Non-GAAP financial measures were not provided.
- Operating cash flow, capital expenditures, free cash flow, and a cash-flow statement were not provided.
- Debt balances were not provided.
- Share repurchases, dividends, and other capital-return activity were not provided.
- Reportable operating segments and segment revenue were not provided.
- Revenue, gross margin, operating-expense, or tax-rate guidance was not provided.
- Previous-period outlook was not provided. તેથી vs_prior_guidance is empty.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Keros Therapeutics filed a Form 8‑K announcing Q3 2026 financial results and a Phase 2 dosing milestone for its DMD candidate rinvatercept.
Ticker impact
Keros Therapeutics reported Q3 2026 earnings with net income of $14.2M, $40M license revenue and first patient dosed in a Phase 2 DMD trial.
likely upward pressure as investors price in profitability and trial progress
The 8‑K is the first public disclosure of net income, sizable license revenue and the first Phase 2 dosing, all of which are material for a clinical‑stage biotech.
Market effects
Strengthens the TGF‑β biotech niche and may lift peer valuations.
Limited to US biotech investors; no broader regional effect.
Modest, confined to biotech and specialty pharma investors.
Counterpoint
Cash runway only to H2 2028 and R&D spend remain high; downside risk if trial data disappoints.
Key entities
- companyKeros Therapeutics, Inc.
Clinical‑stage biotech developing TGF‑β pathway therapeutics.
- partnerTakeda Pharmaceutical
License partner providing $40M revenue to Keros.
