Q2 FY2026
Filed Aug 5, 2026Sarepta reported $328.7 million in second-quarter 2026 net product revenues and achieved GAAP and non-GAAP operating income of $13.3 million and $86.5 million, respectively, while narrowing FY 2026 total net product revenue guidance to $1.2-$1.3 billion.
The company returned to quarterly GAAP and non-GAAP operating profitability and reduced R&D and SG&A expenses, but total revenues declined 34% year over year, principally reflecting lower ELEVIDYS sales volume following the updated label.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $401.3 million | – | (34)% |
| Net product revenuesGAAP | $328.7 million | – | – |
| Cost of sales (excluding amortization of in-licensed rights)GAAP | $149.4 million | – | – |
| Research and development expensesGAAP | $91.3 million | – | – |
| Research and development expensesnon-GAAP | $76.7 million | – | – |
| Selling, general and administrative expensesGAAP | $107.6 million | – | – |
| Selling, general and administrative expensesnon-GAAP | $88.0 million | – | – |
| Operating incomeGAAP | $13.3 million | – | (89)% |
| Operating incomenon-GAAP | $86.5 million | – | (47)% |
| Net lossGAAP | $(4.9) million | – | Not meaningful |
| Net incomenon-GAAP | $78.6 million | – | (63)% |
| Diluted loss per shareGAAP | $(0.05) | – | Not meaningful |
| Diluted earnings per sharenon-GAAP | $0.64 | – | (68)% |
| Total revenues, six months ended June 30GAAP | $1,132.1 million | – | (17)% |
| Operating income, six months ended June 30GAAP | $371.7 million | – | Not meaningful |
| Operating income, six months ended June 30non-GAAP | $484.2 million | – | Not meaningful |
| Net income, six months ended June 30GAAP | $326.1 million | – | Not meaningful |
| Net income, six months ended June 30non-GAAP | $464.0 million | – | Not meaningful |
| Diluted earnings per share, six months ended June 30GAAP | $2.99 | – | Not meaningful |
| Diluted earnings per share, six months ended June 30non-GAAP | $3.79 | – | Not meaningful |
| Research and development expenses, six months ended June 30GAAP | $245.2 million | – | – |
| Research and development expenses, six months ended June 30non-GAAP | $214.2 million | – | – |
| Selling, general and administrative expenses, six months ended June 30GAAP | $216.6 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| PMO net product revenueReported as PMO net product revenue. | $230.6 million | – | – |
| ELEVIDYS net product revenueReported as ELEVIDYS net product revenue; total revenue declined primarily due to lower ELEVIDYS sales volume following the updated label limiting treatment to the ambulatory patient population. | $98.1 million | – | – |
FY 2026 outlook
- Revenue$1.2-$1.3 billion
- Operating expenses$800.0-$850.0 million combined non-GAAP R&D and SG&A expense guidance
- NoteReadouts from MAD cohorts in ongoing Phase 1/2 studies in DM1 and FSHD remain on track for 2H 2026.
- NoteFull enrollment of ENDEAVOR Cohort 8 expected by year-end 2026.
- Note12-week data from the full ENDEAVOR Cohort 8 expected in Q1 2027.
What drove it
- Second-quarter total revenues declined primarily due to lower ELEVIDYS sales volume following the updated label that includes only the ambulatory patient population for treatment.
- The second-quarter decline also reflected the absence of the $63.5 million Japan Approval Milestone received from Roche in the 2025 period.
- Revenue pressure was partially offset by a $27.4 million increase in contract manufacturing revenues tied to commercial ELEVIDYS supply delivered to Roche and $10.0 million of license revenue.
- R&D and SG&A declines reflected pipeline reprioritization and the restructuring announced in July 2025.
- Six-month collaboration revenue included $365.0 million related to Roche's declined option for certain program rights and a milestone for the first commercial dosing of ELEVIDYS in Japan.
- The company incurred and paid a $50.0 million annual collaboration license fee to Arrowhead during the six months ended June 30, 2026.
Concerns
- ELEVIDYS sales volume was lower because the updated label only includes the ambulatory patient population for treatment.
- Second-quarter total revenue fell $209.8 million from the comparable 2025 period.
- GAAP net income in the second quarter changed to a net loss of $(4.9) million from net income of $196.9 million.
- Cost of sales included increased write-offs of certain product batches not meeting quality specifications under the Roche collaboration agreement.
- FY 2026 total net product revenue guidance was narrowed to the lower end of the prior $1.2-$1.4 billion range.
What to watch
- MAD-cohort readouts from the ongoing Phase 1/2 DM1 and FSHD studies in 2H 2026.
- ENDEAVOR Cohort 8 enrollment by year-end 2026 and 12-week data from the full cohort in Q1 2027.
- FDA review of the sNDAs seeking conversion of AMONDYS 45 and VYONDYS 53 from accelerated to traditional approval.
- Commercial execution for ELEVIDYS within the ambulatory patient population.
- Delivery against FY 2026 total net product revenue guidance of $1.2-$1.3 billion and combined non-GAAP R&D and SG&A expense guidance of $800.0-$850.0 million.
Balance sheet and cash flow
- Cash, cash equivalents, restricted cash and investments were $945.0 million as of June 30, 2026, compared with $953.8 million as of December 31, 2025.
- The company stated that cash, cash equivalents, restricted cash and investments increased by approximately $197.0 million in the quarter.
Analysis
Sarepta reported second-quarter total revenues of $401.3 million, down 34% from $611.1 million in the comparable 2025 period. Net product revenues were $328.7 million, comprising $230.6 million of PMO net product revenue and $98.1 million of ELEVIDYS net product revenue. The company attributed the revenue decline principally to lower ELEVIDYS sales volume after its updated label limited treatment to ambulatory patients. The quarter also lacked the $63.5 million Roche Japan Approval Milestone recorded in the year-earlier period.
The company nonetheless achieved operating profitability in the quarter, reporting GAAP operating income of $13.3 million and non-GAAP operating income of $86.5 million. GAAP net results were a loss of $(4.9) million, while non-GAAP net income was $78.6 million. Both GAAP and non-GAAP operating income and non-GAAP net income were below the comparable 2025 quarter, reflecting the lower revenue base.
Expense reductions were substantial. GAAP R&D expense declined to $91.3 million from $204.4 million, while GAAP SG&A expense declined to $107.6 million from $137.9 million. Sarepta cited pipeline reprioritization, its July 2025 restructuring, lower personnel and stock-based compensation costs, and lower professional-services spending related to ELEVIDYS commercialization. Cost of sales declined to $149.4 million from $152.6 million, though the company noted higher costs on products shipped to Roche and greater write-offs for certain batches not meeting quality specifications.
The six-month results were influenced by collaboration activity. Total revenues were $1,132.1 million, down from $1,355.9 million, while GAAP operating income was $371.7 million and GAAP net income was $326.1 million. The company cited $365.0 million of collaboration revenue associated with Roche's declined option for certain program rights and a milestone related to the first commercial dosing of ELEVIDYS in Japan. Six-month R&D expense also reflected that the year-earlier period included $583.6 million of Arrowhead up-front and collaboration license fees.
Sarepta narrowed FY 2026 total net product revenue guidance to $1.2-$1.3 billion, consistent with its stated prior expectation toward the lower end of the prior $1.2-$1.4 billion range. It also narrowed combined non-GAAP R&D and SG&A expense guidance to $800.0-$850.0 million. Cash, cash equivalents, restricted cash and investments were $945.0 million as of June 30, 2026, and the company stated this balance increased by approximately $197.0 million in the quarter. Near-term execution points are the 2H 2026 DM1 and FSHD readouts, ENDEAVOR Cohort 8 enrollment by year-end 2026, and full-cohort 12-week data in Q1 2027.
Management, verbatim
Our second quarter results, including $328.7 million in total net product revenue and both GAAP and non-GAAP operating profitability, reflect the strength and resilience of our business.
Michael Severino, MD, chief executive officer, Sarepta Therapeutics
Our priorities are clear: execute our commercial strategy, advance our promising siRNA pipeline, and continue allocating capital with discipline.
Michael Severino, MD, chief executive officer, Sarepta Therapeutics
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported financial metrics.
- Gross margin or gross-profit metric.
- Operating cash flow.
- Free cash flow.
- Debt balance.
- Share repurchases, dividends, or other reported capital-return activity.
- Tax rate guidance.
- FY 2026 gross-margin guidance.
- FY 2026 tax-rate guidance.
- Prior outlook section for comparison with reported actual results.
- Year-over-year change for PMO net product revenue.
- Year-over-year change for ELEVIDYS net product revenue.
- Detailed second-quarter revenue amounts for collaboration revenue, contract manufacturing revenue, and license revenue.
- Six-month non-GAAP selling, general and administrative expense, as the filing text provided is truncated before that disclosure is completed.
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.