Q2 FY2026
Filed Aug 11, 2026CARVYKTI net trade sales increased 50% versus second quarter of 2025 to approximately $657 million as Legend Biotech reported IFRS net income of $33.2 million and adjusted net income of $63.1 million.
CARVYKTI growth, higher collaboration and license revenue, and an operating-income and net-income turnaround supported the quarter, while the company also raised approximately $212 million and reported approximately $965 million of cash and time deposits.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Collaboration revenueother | $326.1 million | – | – |
| License and other revenueother | $61.4 million | – | – |
| Total revenueother | $387.5 million | – | – |
| Cost of collaboration revenueother | $(136.0) million | – | – |
| Cost of license and other revenueother | $(1.4) million | – | – |
| Research and development expensesother | $(96.0) million | – | – |
| Administrative expensesother | $(33.0) million | – | – |
| Selling and distribution expensesother | $(63.4) million | – | – |
| Operating income (loss)other | $57.7 million | – | – |
| Finance costsother | $(5.8) million | – | – |
| Finance incomeother | $5.6 million | – | – |
| Other expense, netother | $(2.0) million | – | – |
| Income (loss) before taxother | $55.5 million | – | – |
| Income tax expenseother | $(22.3) million | – | – |
| Net income (loss)other | $33.2 million | – | – |
| Basic earnings (loss) per shareother | $0.09 | – | – |
| Diluted earnings (loss) per shareother | $0.09 | – | – |
| Adjusted net income (loss)non-GAAP | $63.1 million | – | – |
| Adjusted net income per share, basicnon-GAAP | $0.17 | – | – |
| Adjusted net income per share, dilutednon-GAAP | $0.16 | – | – |
| Cash flows used in operating activitiesother | $(20.9) million | – | – |
| Cash flows used in investing activitiesother | $(120.0) million | – | – |
| Cash flows provided by financing activitiesother | $167.7 million | – | – |
| Cash and cash equivalents at end of periodother | $672.9 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| CARVYKTI net trade salesU.S. net trade sales growth of 32% and ex-U.S. net trade sales growth of 128% year-over-year. | approximately $657 million | – | 50% |
| Collaboration revenueIncrease in revenue generated from sales of CARVYKTI in connection with the Janssen collaboration and license agreement. | $326.1 million | – | – |
| License and other revenueDriven by milestones of $56.0 million achieved under the Janssen Agreement, partly offset by no related party license revenue and lower revenue under the Novartis License Agreement. | $61.4 million | – | – |
2026 outlook
- NoteLegend Biotech believes cash and cash equivalents and time deposits will provide financial runway beyond 2026.
- NoteLegend Biotech believes it will achieve a company-wide profit in 2026. Company-wide profit is defined as Adjusted Net Income.
What drove it
- CARVYKTI net trade sales increased 50% versus second quarter of 2025 to approximately $657 million.
- Legend launched CARVYKTI in Ireland, bringing availability to 348 global sites and 19 global markets.
- Operating income improvement was primarily due to higher gross profit from CARVYKTI and higher license and other revenue.
- Research and development expense decreased primarily because patient dosing phases of major cilta-cel trials substantially concluded, partly offset by higher pipeline-related research and development activities.
- Selling and distribution expense increased primarily because of sales force expansion and Janssen-related marketing and market access activities.
- LB2501 reported 100% ORR (6/6) and 83.3% CR (5/6) at the higher dose level (DL2) in patients with relapsed or refractory B-cell non-Hodgkin lymphoma.
Concerns
- Income tax expense was $22.3 million, and the company continues to negotiate an advance pricing agreement with the Chinese Tax Authority.
- Legend stated that the final outcome with a tax authority may result in a tax liability materially different from that reflected in the consolidated financial statements.
- Cash flows used in operating activities were $(20.9) million and cash flows used in investing activities were $(120.0) million for the three months ended June 30, 2026.
- Selling and distribution expenses increased to $(63.4) million from $(48.1) million.
- LB2102 reported an ORR of 28.6% and a DCR of 78.6% at higher dose levels in heavily pretreated patients.
What to watch
- Execution of CARVYKTI expansion across 348 global sites and 19 global markets.
- Whether higher CARVYKTI sales continue to increase collaboration revenue and gross profit.
- Progress toward company-wide profit in 2026, defined as Adjusted Net Income.
- Resolution of the advance pricing agreement with the Chinese Tax Authority.
- Further clinical data for LB2501 and LB2102, including the reproducibility and durability of favorable initial results.
Balance sheet and cash flow
- Cash and cash equivalents, and time deposits were approximately $965 million as of June 30, 2026.
- Cash and cash equivalents were $672.9 million as of June 30, 2026.
- Time deposits were $291.7 million as of June 30, 2026.
- Collaboration interest-bearing advanced funding was $156.4 million as of June 30, 2026.
- Total liabilities were $521.3 million as of June 30, 2026.
- Total equity was $1,229.6 million as of June 30, 2026.
- Closed a public offering of 7,700,000 American Depositary Shares with net proceeds of approximately $212 million, after deducting underwriting discounts and commissions and estimated offering expenses.
- Cash flows used in operating activities were $(20.9) million for the three months ended June 30, 2026.
- Cash flows used in investing activities were $(120.0) million for the three months ended June 30, 2026.
- Cash flows provided by financing activities were $167.7 million for the three months ended June 30, 2026.
Analysis
Legend reported a materially improved Q2 2026 under IFRS. Total revenue was $387.5 million, comprising $326.1 million of collaboration revenue and $61.4 million of license and other revenue. CARVYKTI net trade sales increased 50% versus the second quarter of 2025 to approximately $657 million. U.S. net trade sales growth was 32%, while ex-U.S. growth was 128%, and the Ireland launch extended availability to 348 global sites and 19 global markets.
The revenue increase translated into operating income of $57.7 million, compared with an operating loss of $(21.9) million. Cost of collaboration revenue increased to $(136.0) million as CARVYKTI-related cost of sales increased, while selling and distribution expenses rose to $(63.4) million with sales force expansion and Janssen-related marketing and market access activities. Research and development expenses declined to $(96.0) million as patient dosing phases of major cilta-cel trials substantially concluded, partly offset by higher pipeline investment.
Net income was $33.2 million, compared with a net loss of $(125.4) million, reflecting improved operating performance and lower unrealized foreign currency exchange losses. Adjusted net income was $63.1 million, compared with adjusted net income of $10.1 million. Income tax expense rose to $(22.3) million as taxable income increased across U.S., Belgium and PRC entities. The unresolved advance pricing agreement with the Chinese Tax Authority remains important because the final tax outcome could differ materially from the amount reflected in the financial statements.
Liquidity was bolstered by the ADS offering, which generated net proceeds of approximately $212 million. Cash and cash equivalents and time deposits were approximately $965 million as of June 30, 2026. Quarterly operating cash flow was $(20.9) million and investing cash flow was $(120.0) million, while financing cash flow was $167.7 million. Management stated that this liquidity will provide runway beyond 2026 and that it expects company-wide profit, defined as Adjusted Net Income, in 2026.
Pipeline progress accompanied the commercial performance. LB2501 generated first clinical proof-of-concept, with 100% ORR (6/6) and 83.3% CR (5/6) at DL2 following a single infusion. LB2102 reported an ORR of 28.6% and DCR of 78.6% at higher dose levels. The key reported execution points are continued CARVYKTI expansion, conversion of sales into profitability, management of commercial spending and cash use, the Chinese tax matter, and durability of the early clinical data.
Management, verbatim
Our second quarter results demonstrate the strength of our commercial and innovation engines at Legend Biotech.
Alan Bash, Interim Chief Executive Officer of Legend Biotech
CARVYKTI continued to deliver growth as we expand patient access globally, including the most recent launch in Ireland, our 19 th market.
Alan Bash, Interim Chief Executive Officer of Legend Biotech
With meaningful commercial and clinical momentum and a strengthened balance sheet, we remain confident in our ability to advance innovation and progress toward company-wide profitability.
Alan Bash, Interim Chief Executive Officer of Legend Biotech
Not in the filing
stated, not guessed- Gross margin was not reported.
- Free cash flow was not reported.
- A tax rate was not reported.
- Total operating expenses were not reported as a single line item.
- Prior-quarter comparisons were not reported for the quarterly financial metrics.
- Forward revenue guidance was not reported.
- Forward gross-margin guidance was not reported.
- Forward operating-expense guidance was not reported.
- Forward tax-rate guidance was not reported.
- Share repurchases, dividends, or other shareholder capital returns were not reported.
- A total debt figure was not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.