FY2026
Filed Aug 27, 2026MESOBLAST REPORTS SUBSTANTIAL REVENUE GROWTH TO US$120M RYONCIL Market Share Expands; Phase 3 Back Pain Trial Completes Treatment
FY2026 revenue increased to US$120.3 million from US$17.2 million, led by US$115.2 million of RYONCIL net revenue, while reported net loss narrowed by 44% to US$57.5 million. R&D spending increased and cash declined to US$103 million, as Mesoblast advanced RYONCIL label-expansion programs and completed treatment of 350 patients in the rexlemestrocel-L Phase 3 low-back-pain trial.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Product sales, netother | 115,153 (in U.S. dollars, in thousands) | – | – |
| RYONCIL net revenueother | US$115.2 million | – | – |
| RYONCIL gross to net adjustmentother | 13.4% | – | – |
| Royalty revenueother | 5,097 (in U.S. dollars, in thousands) | – | – |
| Total revenuesother | 120,250 (in U.S. dollars, in thousands) | – | – |
| Total revenueother | US$120.3 million | – | – |
| Cost of revenuesother | (16,667) (in U.S. dollars, in thousands) | – | – |
| Reported gross profitother | US$103.6 million | – | – |
| Gross profit excluding amortizationnon-GAAP | US$109.7 million | – | – |
| Amortization of currently marketed intangible assets included in cost of revenuesother | $6,126 (in U.S. dollars, in thousands) | – | – |
| Research & developmentother | (97,509) (in U.S. dollars, in thousands) | – | – |
| Research & development expense increase after adjusting for prior-period inventory benefitother | US$39.7 million | – | – |
| Inventory benefit in previous periodother | $23.0 million | – | – |
| Selling, general and administrationother | (57,346) (in U.S. dollars, in thousands) | – | – |
| Fair value remeasurement of contingent considerationother | 12,057 (in U.S. dollars, in thousands) | – | – |
| Fair value remeasurement of warrant liabilityother | 859 (in U.S. dollars, in thousands) | – | – |
| Other operating income and expensesother | 5,308 (in U.S. dollars, in thousands) | – | – |
| Finance costsother | (23,839) (in U.S. dollars, in thousands) | – | – |
| Loss before income taxother | (56,887) (in U.S. dollars, in thousands) | – | – |
| Income tax expenseother | (613) (in U.S. dollars, in thousands) | – | – |
| Loss attributable to the owners of Mesoblast Limitedother | (57,500) (in U.S. dollars, in thousands) | – | 44% reduction or US$44.6 million |
| Reported net lossother | US$57.5 million | – | 44% reduction or US$44.6 million |
| Reported net loss in the second halfother | US$17.3 million | – | 68% reduction on the prior comparative period |
| Basic losses per share from continuing operations attributable to ordinary equity holders of the Groupother | (4.44) Cents | – | – |
| Diluted losses per share from continuing operations attributable to ordinary equity holders of the Groupother | (4.44) Cents | – | – |
| Net cash outflows in operating activitiesother | (43,830) (in U.S. dollars, in thousands) | – | – |
| Net operating cash spendother | US$43.8 million | – | – |
| Net operating cash spend for the second halfother | US$13.4 million | – | – |
| Cash & cash equivalentsother | 102,914 (in U.S. dollars, in thousands) | – | – |
| Period-end cash balanceother | US$103 million | – | – |
| Borrowings, currentother | 10,597 (in U.S. dollars, in thousands) | – | – |
| Borrowings, non-currentother | 108,638 (in U.S. dollars, in thousands) | – | – |
| Net cash outflows in investing activitiesother | (1,023) (in U.S. dollars, in thousands) | – | – |
| Net cash outflows by financing activitiesother | (15,329) (in U.S. dollars, in thousands) | – | – |
| Net decrease in cash and cash equivalentsother | (60,182) (in U.S. dollars, in thousands) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Product sales, netSuccessful U.S. commercial launch of RYONCIL. | 115,153 (in U.S. dollars, in thousands) | – | – |
| Royalty revenueNo revenue driver was separately disclosed. | 5,097 (in U.S. dollars, in thousands) | – | – |
mid-CY2027 outlook
- NoteTop-line results are expected in mid-CY2027 after the last treated patient has completed 12 months follow-up.
- NoteUp to 40 sites across the U.S. are expected to be activated this year representing approximately 60% of the ~8,500 annual U.S. allogeneic adult bone marrow transplant population.
- NoteThe request for modular review of the BLA for rexlemestrocel-L in prevention of life-threatening gastrointestinal bleeding due to right ventricular dysfunction in end-stage heart failure patients with a LVAD will be discussed with the Agency next quarter.
What drove it
- RYONCIL net revenue was generated following the successful U.S. commercial launch.
- Mesoblast onboarded more than 50 sites since launch, including 14 of the 15 largest sites that account for nearly half of pediatric transplant volumes.
- Payer coverage and reimbursement access expanded to over 280 million covered lives.
- Median time from patient identification to initiated treatment declined from 29 days at launch to 8 days.
- R&D investment comprised product development for remestemcel-L and rexlemestrocel-L platforms, Phase 3 clinical trials, and regulatory filing activities.
- Treatment was completed for 350 patients in the pivotal randomized controlled Phase 3 trial of rexlemestrocel-L for chronic low back pain.
Concerns
- Reported net loss remained US$57.5 million and finance costs were (23,839) (in U.S. dollars, in thousands).
- Research & development expense was (97,509) (in U.S. dollars, in thousands), compared with (34,807) (in U.S. dollars, in thousands).
- Selling, general and administration expense was (57,346) (in U.S. dollars, in thousands), compared with (39,309) (in U.S. dollars, in thousands).
- Cash & cash equivalents declined to 102,914 (in U.S. dollars, in thousands) from 161,551 (in U.S. dollars, in thousands).
- Top-line results for the rexlemestrocel-L chronic low back pain trial are expected in mid-CY2027.
What to watch
- Top-line results expected in mid-CY2027 from the 350-patient Phase 3 rexlemestrocel-L chronic low back pain trial.
- Enrollment and site activation in the registrational RYONCIL trial for adults with SR-aGvHD as part of a second-line regimen with ruxolitinib.
- Discussion with the FDA next quarter on the requested modular review of the rexlemestrocel-L BLA for prevention of life-threatening gastrointestinal bleeding in LVAD patients.
- RYONCIL institutional adoption, payer access, and patient-treatment timing following the first full year of commercial launch.
Balance sheet and cash flow
- Cash & cash equivalents were 102,914 (in U.S. dollars, in thousands) as of June 30, 2026, compared with 161,551 (in U.S. dollars, in thousands) as of June 30, 2025.
- Mesoblast entered into a US$125.0 million five-year non-dilutive credit-line facility, consolidating and retiring two higher cost facilities.
- Proceeds from borrowings were 121,039 (in U.S. dollars, in thousands); repayment of borrowings was (124,981) (in U.S. dollars, in thousands).
- Total assets were 773,079 (in U.S. dollars, in thousands); total liabilities were 204,674 (in U.S. dollars, in thousands); net assets were 568,405 (in U.S. dollars, in thousands).
- Receipts from customers were 88,447 (in U.S. dollars, in thousands), compared with 5,704 (in U.S. dollars, in thousands).
- Payments to suppliers and employees were (136,210) (in U.S. dollars, in thousands), compared with (60,110) (in U.S. dollars, in thousands).
Analysis
Mesoblast reported a substantial commercial step-up in FY2026. Total revenue was US$120.3 million, compared with US$17.2 million in the prior year period, with RYONCIL generating US$115.2 million of net revenue after a 13.4% gross to net adjustment. The company reported gross profit of US$103.6 million and gross profit excluding amortization of US$109.7 million, compared with US$16.0 million in the prior year period. Product sales, net were 115,153 (in U.S. dollars, in thousands), while royalty revenue was 5,097 (in U.S. dollars, in thousands).
Commercial execution metrics support the revenue increase. Mesoblast said it onboarded more than 50 sites since launch, including 14 of the 15 largest sites, and expanded coverage and reimbursement access to over 280 million covered lives. Median time from patient identification to initiated treatment decreased from 29 days at launch to 8 days. These measures accompanied the first full year of RYONCIL launch in the United States for children with SR-aGvHD.
The company remained loss-making while increasing development investment. Reported net loss narrowed by 44%, or US$44.6 million, to US$57.5 million from US$102.1 million. R&D was (97,509) (in U.S. dollars, in thousands), compared with (34,807) (in U.S. dollars, in thousands), and Mesoblast described a US$39.7 million R&D expense increase after adjusting for a $23.0 million inventory benefit in the previous period. SG&A was (57,346) (in U.S. dollars, in thousands), compared with (39,309) (in U.S. dollars, in thousands), while finance costs were (23,839) (in U.S. dollars, in thousands).
Operating cash outflow was US$43.8 million, compared with US$50.0 million in the prior year period, and second-half net operating cash spend was US$13.4 million. Cash and cash equivalents ended the period at 102,914 (in U.S. dollars, in thousands), compared with 161,551 (in U.S. dollars, in thousands). During FY2026, Mesoblast entered a US$125.0 million five-year non-dilutive credit-line facility and reported proceeds from borrowings of 121,039 (in U.S. dollars, in thousands) and repayment of borrowings of (124,981) (in U.S. dollars, in thousands).
Pipeline execution is centered on RYONCIL label expansion and rexlemestrocel-L. The adult SR-aGvHD second-line registrational trial with ruxolitinib has commenced and is enrolling patients. Separately, the pivotal rexlemestrocel-L chronic low back pain study completed treatment of 350 patients, with top-line results expected in mid-CY2027 after the last treated patient completes 12 months of follow-up. The company also received an FDA BLA filing number and requested modular review for rexlemestrocel-L in prevention of life-threatening gastrointestinal bleeding in specified LVAD patients, with the request to be discussed with the Agency next quarter.
Management, verbatim
We are very pleased to report a strong full year gross profit of US$104M for the fiscal year 2026. The financial result is a product of continued growth in RYONCIL market adoption and focus on disciplined capital allocation while investing in our high-value opportunities.
Dr. Silviu Itescu, Chief Executive of Mesoblast
Most exciting is the completion of patient treatment in the Phase 3 trial of rexlemestrocel-L in the blockbuster chronic low back pain indication which will readout next year. A successful outcome positions for a potential multi-billion-dollar market opportunity.
Dr. Silviu Itescu, Chief Executive of Mesoblast
Not in the filing
stated, not guessed- Accounting framework was not specified in the filing text.
- Reported gross margin.
- GAAP or adjusted operating income or operating loss.
- Non-GAAP EPS.
- Free cash flow.
- Dividends and share repurchases.
- Formal financial guidance for revenue, gross margin, operating expenses, or tax rate.
- Prior-quarter comparisons for reported financial metrics.
- Prior outlook section, so comparison of actual results with prior guidance is unavailable.
AlphAI 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.