Zymeworks Inc. (ZYME): Reports Third Quarter 2026 Financial Results
Zymeworks Inc. (ZYME) filed an SEC Form 8-K — Results of Operations and Financial Condition. Zymeworks Provides Corporate Update and Reports Third Quarter 2026 Financial Results • 2026 financial guidance raised to a total revenue range of $337 million to $351 million (previously between $278 million and $292 million) and an Adjusted EBITDA range of $176 million to $190 m
How this was made
The 30-second read
Why it matters
The filing provides new decision-relevant inputs: raised 2026 guidance, a $250 million U.S. approval milestone tied to Ziihera, and details on acquisition integration and collaboration pathways.
Market read
Traders can update valuation expectations immediately using the raised 2026 revenue and adjusted EBITDA ranges and the disclosed Ziihera U.S. approval milestone cash.
What to watch
The company elected not to host a third-quarter earnings call, which can reduce incremental clarity for investors and increase uncertainty around near-term execution details.
Q3 2026 net income of $173,700 thousand on a $250.0 million Jazz milestone; FY2026 total revenue guidance raised to $337 million to $351 million
Reported quarterly revenue and net income rose sharply, but the company attributes the increase primarily to a one-time $250.0 million Jazz milestone. SG&A rose to $42.7 million from $14.1 million, the company cites acquisition-related costs, and cash and marketable securities fell to $100,464 thousand from $228,797 thousand at December 31, 2025. Guidance was raised, and the filing states that the raise reflects business development execution.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue (research and development collaborations), Q3 2026GAAP | $256.5M | – | – |
| Research and development expenses, Q3 2026GAAP | $36.1M | – | – |
| Selling, general and administrative expenses, Q3 2026GAAP | $42.7M | – | – |
| Total operating expenses, Q3 2026GAAP | $78.86M | – | – |
| Income from operations, Q3 2026GAAP | $177.6M | – | – |
| Other (expense) income, net, Q3 2026GAAP | −$4.35M | – | – |
| Income tax recovery (expense), Q3 2026GAAP | $452K | – | – |
| Net income (loss), Q3 2026GAAP | $173.7M | – | – |
| Basic net income (loss) per common share, Q3 2026GAAP | $2.43 | – | – |
| Diluted net income (loss) per common share, Q3 2026GAAP | $2.28 | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $215.3M | – | – |
| Royalty revenue from Jazz Pharmaceuticals and BeOne Medicines, Q3 2026other | $2.3M | – | – |
| YUPELRI U.S. net sales recognized by Viatris, Q3 2026other | $71.5M | – | 0.2% (3Q-2026 vs 3Q-2025) |
| Revenue from Theravance Biopharma (seven days of ownership), Q3 2026other | approximately $1.5 million | – | – |
| Total revenue (research and development collaborations), nine months 2026GAAP | $263.5M | – | – |
| Research and development expenses, nine months 2026GAAP | $98.02M | – | – |
| Selling, general and administrative expenses, nine months 2026GAAP | $77.14M | – | – |
| Total operating expenses, nine months 2026GAAP | $175.2M | – | – |
| Income from operations, nine months 2026GAAP | $88.3M | – | – |
| Other (expense) income, net, nine months 2026GAAP | −$6.70M | – | – |
| Income tax recovery (expense), nine months 2026GAAP | $2.92M | – | – |
| Net income (loss), nine months 2026GAAP | $84.52M | – | – |
| Basic net income (loss) per common share, nine months 2026GAAP | $1.16 | – | – |
| Diluted net income (loss) per common share, nine months 2026GAAP | $1.08 | – | – |
| Adjusted EBITDA, nine months 2026non-GAAP | $153.0M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Royalty revenue from Jazz Pharmaceuticals and BeOne MedicinesCompany states the royalty revenue was driven primarily by net product sales of Ziihera by Jazz in the United States. | $2.3 million (three months ended September 30, 2026) | – | – |
| YUPELRI collaboration revenueCompany states increased doses of YUPELRI pulled through the hospital channel grew at a double-digit rate YoY, reflecting continued underlying momentum. The $71.5 million is the net sales figure recognized by Viatris, not a reported Zymeworks revenue line. | U.S. net sales of $71.5 million recognized by Viatris in 3Q 2026 | – | increased 4% YoY (collaboration revenue, as stated); U.S. net sales increased 0.2% YoY |
| Theravance Biopharma (acquired September 23, 2026)Company states this reflects seven days of ownership following the September 23, 2026 acquisition date. | approximately $1.5 million | – | – |
FY2026 outlook
- Revenue$337 million to $351 million
- NoteAdjusted EBITDA (non-GAAP) $176 million to $190 million, excluding the impact of any future transactions
- NotePreviously total revenue between $278 million and $292 million; previously Adjusted EBITDA between $114 million and $128 million
- NoteSubject to expiration or termination of the HSR waiting period as it relates to the Roche collaboration, expected during the fourth quarter of 2026
Capital returns
- Repurchased 534,381 shares for $14.0 million in the third quarter of 2026.
- Total share repurchases of 5,737,790 shares for $140.4 million in the first nine months of 2026 at an average price of $24.48 per share (exclusive of commission expense and estimated excise tax).
- Since initiating the repurchase program in August 2024, the company has cumulatively utilized $279.8 million to reacquire 12,940,827 shares at an average price of $21.63 per share (exclusive of commission expense and estimated excise tax).
- The company references a $125.0 million share repurchase program in its forward-looking statements.
- No dividends are reported in the filing.
What drove it
- The company states the increase in total revenue was primarily due to the $250.0 million milestone earned from Jazz following U.S. approval of Ziihera for first-line HER2-positive GEA, partially offset by the absence of a $25.0 million development milestone from Johnson & Johnson Innovative Medicine recognized in Q3 2025.
- The company states R&D expenses were generally consistent with the prior year period: lower spending on ZW171 following its 2025 discontinuation and reduced spending on certain preclinical programs were largely offset by employee-related costs associated with the Theravance Biopharma acquisition.
- The company states the SG&A increase was primarily driven by costs associated with the Theravance Biopharma acquisition, including severance and transaction-related professional fees, together with higher stock-based compensation associated with 2026 equity awards, including leadership transition awards and the settlement of certain Theravance Biopharma equity awards.
- The company states the change in other income (expense), net was driven primarily by interest expense related to the royalty-backed note financing with Royalty Pharma executed in March 2026 and lower interest income from reduced investment balances.
- The company states the increase in net income was driven primarily by the $250.0 million Jazz milestone, partially offset by nonrecurring acquisition-related costs and interest expense on the royalty-based note financing.
- The company states it expects $13 million to $15 million of annualized overhead and corporate costs to be eliminated following the Theravance Biopharma acquisition.
- Adjusted EBITDA reconciliation includes stock-based compensation of $23,083 thousand for Q3 2026, of which $10,581 thousand relates to settlement of equity awards attributable to the post-combination period, and restructuring and severance costs of $9,026 thousand, of which $8,994 thousand is severance related to the Theravance Acquisition, as footnoted in the release.
- The company reports the Ziihera first-line GEA approval expands royalty opportunity, and that up to $190 million of further ex-U.S. regulatory milestones remain eligible from Jazz and BeOne.
Concerns
- Q3 2026 net income of $173,700 thousand reflects the one-time $250.0 million milestone; the company itself attributes the increase primarily to that milestone.
- SG&A of $42.7 million in Q3 2026 compared with $14.1 million in Q3 2025, and nine-month SG&A of $77,140 thousand compared with $46,082 thousand, as stated in the release.
- Other (expense) income, net turned negative at $(4,350) thousand in Q3 2026 from $3,844 thousand, the company citing interest expense on the royalty-backed note.
- Long-term liabilities rose to $756,699 thousand from $35,708 thousand at December 31, 2025, and cash and short-term marketable securities declined to $100,464 thousand from $228,797 thousand.
- Stockholders' equity declined to $258,253 thousand from $268,501 thousand at December 31, 2025.
- The Roche collaboration and the increased guidance are subject to HSR waiting period expiration, which the company expects during Q4 2026.
- The company says Theravance Biopharma contributed only seven days of revenue in the quarter, so the full impact of the acquisition is not visible in Q3 2026 results.
What to watch
- Expiration or termination of the HSR waiting period for the Roche ZW209 collaboration, expected in Q4 2026, and the $55 million upfront payment and $40 million payment on Phase 1b initiation.
- Whether the FY2026 total revenue range of $337 million to $351 million and Adjusted EBITDA range of $176 million to $190 million are achieved, excluding any future transactions.
- Full-quarter contribution from Theravance Biopharma and realization of the $13 million to $15 million of annualized overhead cost elimination.
- Ziihera ex-U.S. regulatory milestones, up to $190 million, from Jazz and BeOne.
- YUPELRI U.S. net sales, which increased 0.2% YoY in 3Q 2026, and hospital channel growth.
- The R&D Day in New York on February 11, 2027.
- Continued share repurchases, which total 5,737,790 shares for $140.4 million in the first nine months of 2026.
Balance sheet and cash flow
- Cash, cash equivalents and short-term marketable securities: $100,464 thousand at September 30, 2026, compared with $228,797 thousand at December 31, 2025.
- Long-term marketable securities: nil at September 30, 2026, compared with $41,787 thousand at December 31, 2025.
- Accounts receivable: $413,861 thousand at September 30, 2026, compared with $4,638 thousand at December 31, 2025.
- Total assets: $1,176,413 thousand at September 30, 2026, compared with $346,527 thousand at December 31, 2025.
- Long-term liabilities: $756,699 thousand at September 30, 2026, compared with $35,708 thousand at December 31, 2025.
- Total liabilities: $918,160 thousand at September 30, 2026, compared with $78,026 thousand at December 31, 2025.
- Stockholders' equity: $258,253 thousand at September 30, 2026, compared with $268,501 thousand at December 31, 2025.
- During 2026 the company accessed $600 million of non-dilutive financing through a non-recourse royalty-backed note and a non-recourse note, with a weighted average cost of capital of less than 10%, which the company says supported the Theravance Biopharma acquisition and the share repurchase program.
- The company states it currently has no current plans for additional equity issuances.
- No operating or free cash flow figures are reported in the filing.
Analysis
Zymeworks reported third quarter 2026 results that are dominated by a single item. Total revenue from research and development collaborations was $256.5 million, compared with $27.6 million in the third quarter of 2025, and the company attributes the increase primarily to the $250.0 million milestone earned from Jazz on the U.S. approval of Ziihera for first-line HER2-positive GEA. Net income was $173,700 thousand, or $2.43 basic and $2.28 diluted per share, against a net loss of $(19,602) thousand a year earlier. Income from operations was $177,598 thousand, compared with $(22,110) thousand. Excluding the milestone from the read of the quarter, the release's own figures show that the underlying operating base remains small, with R&D of $36.1 million and SG&A of $42.7 million in the quarter. The filing does not present a revenue figure excluding the milestone, so the reader should weigh the milestone as the principal driver of the reported result.
Operating costs rose in mix. R&D of $36.1 million was broadly flat against $35.6 million, which the company says reflects lower ZW171 and preclinical spending offset by employee costs tied to the Theravance Biopharma acquisition. SG&A increased to $42.7 million from $14.1 million, which the company attributes to acquisition costs, severance, transaction fees and higher stock-based compensation, including $10,581 thousand of equity award settlement attributable to the post-combination period, as footnoted in the Adjusted EBITDA reconciliation. Adjusted EBITDA, a non-GAAP measure, was $215,339 thousand in the quarter, against $(13,529) thousand a year earlier, and the company reconciles it to net income in the release. Other expense, net was $(4,350) thousand, which the company attributes to interest on the royalty-backed note with Royalty Pharma executed in March 2026.
On the revenue lines beneath the milestone, royalty revenue from Jazz and BeOne was $2.3 million, which the company links to Ziihera net sales by Jazz in the United States. YUPELRI U.S. net sales recognized by Viatris were $71.5 million, up 0.2% year over year, while the company states YUPELRI collaboration revenue rose 4% YoY and hospital channel doses grew at a double-digit rate. Theravance Biopharma contributed approximately $1.5 million in its seven days of ownership following the September 23, 2026 closing. These are the operating lines that will show the durability of the business as the Theravance contribution accumulates.
Balance sheet and capital allocation changed materially in 2026. Total assets rose to $1,176,413 thousand from $346,527 thousand at December 31, 2025, and long-term liabilities rose to $756,699 thousand from $35,708 thousand. Cash and short-term marketable securities fell to $100,464 thousand from $228,797 thousand. The company says it accessed $600 million of non-dilutive financing in 2026 at a weighted average cost of capital below 10%, which supported the Theravance acquisition and buybacks, and that it has no current plans for additional equity issuances. Stockholders' equity declined to $258,253 thousand from $268,501 thousand. Buybacks totaled 5,737,790 shares for $140.4 million in the first nine months.
Guidance for FY2026 was raised to total revenue of $337 million to $351 million, from $278 million to $292 million, and Adjusted EBITDA of $176 million to $190 million, from $114 million to $128 million, excluding future transactions. The company states the raise reflects business development execution, and notes the guidance is subject to HSR clearance for the Roche collaboration, expected in Q4 2026. The release does not provide a prior-quarter comparison or a prior-year percentage change for total revenue, so those fields are left null.
Management, verbatim
We are entering the next phase of Zymeworks growth with a fundamentally stronger and more diversified business. The transformation of Zymeworks is becoming increasingly visible in our financial profile and in the breadth of opportunities available to us
Kenneth Galbraith, Chair and Chief Executive Officer of Zymeworks
Importantly, this collaboration with Roche demonstrates how the components of our business model work together in practice. By combining recurring commercial cash flows with a disciplined approach to R&D and partnerships, we are building a business model that can generate value through multiple pathways
Kenneth Galbraith, Chair and Chief Executive Officer of Zymeworks
Not in the filing
stated, not guessed- Prior-quarter (Q2 2026) figures for revenue, expense, net income, EPS and Adjusted EBITDA are not printed in the filing.
- Percentage year-over-year changes for total revenue, R&D, SG&A, net income and Adjusted EBITDA are not printed in the filing.
- Gross margin and cost of sales are not reported; the revenue line is research and development collaborations only.
- Operating cash flow and free cash flow are not reported.
- Prior-year balance sheet figures on a same-period basis are not printed; balance sheet comparisons are to December 31, 2025.
- Revenue excluding the $250.0 million Jazz milestone is not reported.
- Previous outlook release was not provided, so a comparison of actual results against prior guidance cannot be made beyond the prior ranges printed in this filing.
- The filing does not state a share price reaction, consensus estimates or analyst expectations.
- Dividend declarations are not reported.
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
Zymeworks reported third-quarter 2026 results and provided a corporate update, including guidance changes and recent business highlights.
Ticker impact
Zymeworks raised 2026 financial guidance to $337 million to $351 million revenue and $176 million to $190 million adjusted EBITDA, plus disclosed a $250 million Ziihera U.S. approval milestone.
Likely upward pressure as traders price in higher 2026 revenue and EBITDA plus the incremental milestone cash tied to Ziihera’s U.S. approval.
The filing is a primary SEC 8-K with explicit guidance ranges raised and a $250 million milestone payment tied to Ziihera’s first-line HER2-positive GEA U.S. FDA approval.
Market effects
Biotech investors may re-rate commercial-royalty models and non-dilutive financing structures when guidance is raised alongside FDA milestone receipts.
Limited direct regional impact beyond North American biotech sentiment.
FDA approval and ex-U.S. milestone eligibility can influence global HER2-positive GEA treatment expectations and partner royalty narratives.
Counterpoint
Raised guidance may still be contingent on HSR clearance timing for the Roche collaboration and on continued commercial pull-through for YUPELRI.
Key entities
- companyZymeworks Inc.
Nasdaq-listed biotech issuer reporting third-quarter 2026 results and raising 2026 guidance.
- productZiihera (zanidatamab-hrii)
Zymeworks’ partnered asset with U.S. FDA approval milestone payment disclosed in the filing.
- partnerRoche
Collaboration agreement disclosed, with HSR waiting period expected to expire in Q4 2026.
