$SRPT earnings report

Third-quarter total revenue was $381.4 million, down from $399.4 million in the prior-year period. Net product revenues were approximately $323.8 million, comprising approximately $240.3 million from PMO products and $83.5 million from ELEVIDYS. The Company attributed the revenue decline primarily to lower ELEVIDYS volume after the updated label limited treatment to ambulatory patients. A $31.4 million increase in contract manufacturing revenue associated with commercial ELEVIDYS supply delivered to Roche partially offset that decline.

Profitability improved sharply from the prior-year quarter despite the top-line decline. GAAP operating loss narrowed to ($9.0) million from ($103.4) million, while non-GAAP operating income was $22.9 million versus a non-GAAP operating loss of ($35.7) million. GAAP net loss was ($28.5) million and non-GAAP net income was $15.6 million. The primary expense improvement came from R&D, which fell to $82.5 million from $218.9 million, principally because the prior-year quarter included a $100.0 million Arrowhead milestone payment and because of lower manufacturing and clinical expenses following the pipeline reprioritization.

Cost discipline was not uniform across the income statement. Third-quarter GAAP SG&A rose to $118.6 million from $91.9 million, and non-GAAP SG&A increased to $97.6 million from $77.1 million. Cost of sales increased to $188.5 million from $150.8 million, driven primarily by a $62.0 million take-or-pay charge related to Catalent obligations, as well as increased Roche shipments and certain product-batch write-offs. These items remain important to monitor alongside the expected level of ELEVIDYS revenue.

For the nine months, total revenue was $1,513.4 million, down from $1,755.3 million, while GAAP operating income was $362.7 million and non-GAAP operating income was $507.1 million. Nine-month results included $365.0 million of collaboration revenue related to Roche's declined option and a Japan commercial-dosing milestone, while the period also included a $39.0 million litigation settlement charge. The Company ended the quarter with $998.7 million in cash, cash equivalents, restricted cash and investments and stated that it delivered positive cash flow.

Management raised the low end of full-year total net product revenue guidance by $50.0 million to $1.25 billion to $1.3 billion, citing strong PMO performance. It also lowered the high end of combined non-GAAP R&D and SG&A guidance by $25.0 million to $800 million to $825 million. ELEVIDYS fourth-quarter net product revenue is expected to trend in line with the third quarter. Near-term execution centers on fourth-quarter multiple ascending dose data from SRP-1003 in DM1 and SRP-1001 in FSHD, as Sarepta prepares both programs for potential Phase 3 development.

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.