First Quarter 2026 Net Income of $6.8 million and Net Income Margin of 4%
First Quarter 2026 Adjusted EBITDA of $35.6 million and Adjusted EBITDA Margin of 23%
GAITHERSBURG, Md., April 30, 2026 (GLOBE NEWSWIRE) -- Emergent BioSolutions Inc. (NYSE:EBS) today reported financial results for the first quarter ended March 31, 2026.
"Emergent's first quarter results demonstrate a strong and positive start to 2026, with healthy topline revenue of $156 million, above the high-end of our guidance range, and adjusted EBITDA of $36 million," said Joe Papa, president and CEO of Emergent. "We are further strengthening our financial position in 2026 through our recently announced debt refinancing, which increases our strategic flexibility and meaningfully reduces interest expense payments. Additionally, we are pleased to have monetized our capability and capacity in our Canton facility by securing a strategic manufacturing partnership with Substipharm Biologics, which includes a manufacturing agreement and exclusive U.S. (future) distribution rights to its Japanese Encephalitis vaccine, following U.S. FDA approval. We maintained our market share position with NARCAN® Nasal Spray through our efforts across multiple distribution channels, as well as by launching a new carrying case and multipack presentations, and we continued to deliver our biodefense medical countermeasures to multiple government partners in the United States, Canada and around the world. Our mission to protect and save lives remains a prominent driving force for our entire team and we are proud to do so while executing our multi-year transformation plan and turnaround strategy to build several growing and profitable verticals over time."
FINANCIAL HIGHLIGHTS (1)
Q1 2026 vs. Q1 2025
($ in millions, except per share amounts)
Q1 2026
Q1 2025
% Change
Total Revenues
$
156.1
$
222.2
(30)%
Net Income
$
6.8
$
68.0
(90)%
Net Income per Diluted Share
$
0.07
$
1.19
(94)%
Adjusted Net Income(2)
$
11.9
$
42.2
(72)%
Adjusted Net Income per Diluted Share(2)
$
0.21
$
0.74
(72)%
Adjusted EBITDA(2)
$
35.6
$
79.1
(55)%
Net Income Margin
4
%
31
%
Adjusted EBITDA Margin(2)
23
%
36
%
Gross Margin %
41
%
50
%
Adjusted Gross Margin %(2)
52
%
58
%
RECENT BUSINESS UPDATES
Secured two new strategic manufacturing partnerships with:
SAB Biotherapeutics to advance its type 1 diabetes candidate, SAB-142
Substipharm Biologics to support its Japanese Encephalitis vaccine in the United States
Refinanced term loan with new $150 million facility and amended asset-backed loan facility
Appointed John D. Fowler, Jr. to Board of Directors
Announced partnership with British Columbia to supply NARCAN® Nasal Spray for the launch of the expanded BC Take Home Naloxone Program
Partnered with professional baseball player Davis Schneider to raise awareness of NARCAN® Nasal Spray in Canada
Announced launch of new NARCAN® Nasal Spray Carrying Case and Multipacks to expand opioid overdose preparedness following U.S. FDA approvals on supplemental new drug applications
Announced participation in several international preparedness conferences
Secured over $60 Million in new contract award with the U.S. Government and new orders with an international government partner for smallpox medical countermeasures
Secured approximately $140 million in medical countermeasures contract awards with the Government of Canada
Secured delivery order up to $21.5 Million to supply BioThrax® (Anthrax Vaccine Adsorbed) to the U.S. Department of War in 2026
Announced the Board of Directors authorized up to $50.0 million in repurchases from February 25, 2026 through March 31, 2027
Announced resolution of New York Attorney General investigation related to legacy claims
Received approval from Singapore Health Sciences Authority for expanded indication of ACAM2000® (Smallpox and Mpox (Vaccinia) Vaccine, Live) to include mpox
Announced continued support to PANTHER for the ongoing Africa CDC-led Mpox Study in Africa
FIRST QUARTER 2026 FINANCIAL PERFORMANCE (1)
Revenues
The Company uses the following categories in discussing revenues:
Naloxone, comprises contributions from NARCAN® Nasal Spray and KLOXXADO® Nasal Spray
Anthrax MCM, comprises contributions from CYFENDUS®, BioThrax®, ANTHRASIL®, and Raxibacumab
Smallpox MCM, comprises contributions from ACAM2000®, CNJ-016® (VIGIV) and TEMBEXA®
Other Products, comprises contributions from BAT®
All Other Revenues, comprises revenues from the Services operating segment and contracts and grants revenues
($ in millions)
Q1 2026
Q1 2025
$ Change
% Change
Product sales, net:(3)
Naloxone
$
42.9
$
45.3
$
(2.4
)
(5)%
Anthrax MCM
21.6
47.9
(26.3
)
(55)%
Smallpox MCM
64.2
106.4
(42.2
)
(40)%
Other Products
16.0
2.3
13.7
NM
Total Product sales, net
$
144.7
$
201.9
$
(57.2
)
(28)%
All other revenues
$
11.4
$
20.3
$
(8.9
)
(44)%
Total revenues
$
156.1
$
222.2
$
(66.1
)
(30)%
NM - Not Meaningful
Product Sales, net (3)
NaloxoneFor Q1 2026, revenues from Naloxone products decreased $2.4 million, or 5%, as compared with Q1 2025. The decrease was primarily attributable to lower sales of OTC NARCAN®, driven primarily by an unfavorable price-volume mix in US sales, partially offset by increases in Canadian sales of branded NARCAN® and the timing of the integration of KLOXXADO® into the Company's product portfolio.
Anthrax MCMFor Q1 2026, revenues from Anthrax MCM products decreased $26.3 million, or 55%, as compared with Q1 2025. The decrease was due to lower international sales of ANTHRASIL®, mainly to the Canadian government, coupled with lower volumes of CYFENDUS® sales to the USG, primarily due to the impact of timing. These decreases were partially offset by an increase in USG BioThrax® sales due to timing of exercised purchase options. Anthrax vaccine product sales are primarily made under annual purchase options exercised by the USG. Fluctuations in revenues result from the timing of the exercise of annual purchase options, the timing of USG purchases, the availability of governmental funding and the Company's delivery of orders that follow.
Smallpox MCMFor Q1 2026, revenues from Smallpox MCM products decreased $42.2 million, or 40%, as compared with Q1 2025. The decrease was primarily driven by lower ACAM2000® sales, largely due to reduced international volumes and an overall decline in TEMBEXA® sales driven by lower USG sales volume due to timing partially offset by higher international sales. These decreases were partially offset by an increase in CNJ-016® (VIGIV) USG sales due to timing. Fluctuations in revenues from Smallpox MCM result from the timing of the exercise of annual purchase options in the existing procurement contracts, the timing of USG purchases, the availability of governmental funding and the Company's delivery of orders that follow.
Other ProductsFor Q1 2026, revenues from Other Product sales increased $13.7 million, or 596%, as compared with Q1 2025. The increase was primarily due to higher Canadian and other international BAT® sales.
All Other Revenues
ServicesFor Q1 2026, revenues from Services decreased $2.2 million, or 31%, as compared with Q1 2025. The decrease was primarily attributable to a decline in production at the Company's Winnipeg facility.
Contracts and GrantsFor Q1 2026, revenues from contracts and grants decreased $6.7 million, or 51%, as compared with Q1 2025. The decrease was primarily due to lower project spend on Ebanga™ related development work.
Operating Expenses
($ in millions)
Q1 2026
Q1 2025
$ Change
% Change
Cost of product and services sales, net
$
72.0
$
88.5
$
(16.5
)
(19
)%
Research and development ("R&D")
10.5
15.1
(4.6
)
(30
)%
Selling, general and administrative ("SG&A")
46.6
52.4
(5.8
)
(11
)%
Amortization of intangible assets
16.5
16.3
0.2
1
%
Total operating expenses
$
145.6
$
172.3
$
(26.7
)
(15
)%
Cost of Product and Services Sales, NetFor Q1 2026, cost of product and services sales, net decreased $16.5 million, or 19%, as compared with Q1 2025. The decrease was driven by reductions in cost of MCM Product sales of $13.4 million and cost of Services of $5.4 million, partially offset by an increase in cost of Commercial Product sales of $2.3 million.
Research and Development ExpensesFor Q1 2026, R&D expenses decreased $4.6 million, or 30%, as compared with Q1 2025. The decrease was primarily due to lower project spend on Ebanga™ related development work, partially offset by increases in development overhead spend.
Selling, General and Administrative Expenses
For Q1 2026, SG&A expenses decreased $5.8 million, or 11%, as compared with Q1 2025. The decrease was primarily due to lower professional services, marketing, and administrative support expenses, primarily attributable to cost-saving initiatives implemented as part of the Company's ongoing turnaround and transformation efforts.
ADDITIONAL FINANCIAL INFORMATION(1)
Capital Expenditures
($ in millions)
Q1 2026
Q1 2025
% Change
Capital expenditures
$
2.4
$
3.6
(33)%
Capital expenditures as a % of total revenues
2
%
2
%
For Q1 2026, capital expenditures decreased largely due to reduced development activities across the Company's facilities.
REPORTABLE SEGMENT INFORMATION
The Company manages the business with a focus on three operating segments: (1) a Commercial Products segment consisting of NARCAN® Nasal Spray and KLOXXADO® Nasal Spray; (2) a MCM Products segment consisting of Anthrax - MCM, Smallpox - MCM and Other products and (3) a services segment consisting of our Bioservices offerings ("Services"). Commercial Products and MCM Products are our two reportable segments. The Services operating segment no longer meets the quantitative thresholds of a reportable segment and did not meet the aggregation criteria set forth in Accounting Standards Codification 280, Segment Reporting, and as such is categorized within "All other revenues" along with "Contracts and Grants". The Company evaluates the performance of these reportable segments based on revenues and segment adjusted gross margin, which is a non-GAAP financial measure. Segment revenue includes external customer sales but does not include inter-segment services. The Company does not allocate contracts and grants revenue, R&D, SG&A, amortization of intangible assets, interest and other income (expense) or taxes to its evaluation of the performance of these segments.
FIRST QUARTER 2026 REPORTABLE SEGMENT RESULTS
($ in millions)
Commercial Products
Quarter Ended March 31,
2026
2025
$ Change
% Change
Revenues
$
42.9
$
45.3
$
(2.4
)
(5
)%
Cost of sales
26.8
24.5
2.3
9
%
Intangible asset amortization
9.4
9.5
(0.1
)
(1
)%
Gross margin*
$
6.7
$
11.3
$
(4.6
)
(41
)%
Gross margin %*
16
%
25
%
Add back:
Intangible asset amortization
$
9.4
$
9.5
$
(0.1
)
(1
)%
Segment adjusted gross margin **
$
16.1
$
20.8
$
(4.7
)
(23
)%
Segment adjusted gross margin % **
38
%
46
%
* Gross margin is calculated as revenues less cost of sales and intangible asset amortization. Gross margin % is calculated as gross margin divided by revenues.
** Segment adjusted gross margin, which is a non-GAAP financial measure, for our Commercial Products segment is calculated as gross margin plus intangible asset amortization. Segment adjusted gross margin percentage, which is a non-GAAP financial measure, is calculated as segment adjusted gross margin divided by revenues. The Company's management utilizes segment adjusted gross margin and segment adjusted gross margin percentage for purposes of evaluating our ongoing operations and for internal planning and forecasting purposes. We believe that these non-GAAP operating measures, when reviewed collectively with our GAAP financial information, provide useful supplemental information to investors in assessing our operating performance.
Cost of Commercial Product sales increased $2.3 million, or 9%, to $26.8 million for the quarter ended March 31, 2026. The increase was primarily due to higher KLOXXADO® sales due to timing of its integration into the Company's product portfolio, and Canadian branded NARCAN® sales.
Commercial Products gross margin decreased $4.6 million, or 41%, to $6.7 million for the quarter ended March 31, 2026. Commercial Products gross margin percentage decreased 9 percentage points to 16% for the quarter ended March 31, 2026. The decrease was largely due to an unfavorable price and volume mix of OTC NARCAN® as well as Canadian branded NARCAN®. Commercial Products segment adjusted gross margin in the current year period excludes the impact of intangible asset amortization of $9.4 million.
($ in millions)
MCM Products
Quarter Ended March 31,
2026
2025
$ Change
% Change
Revenues
$
101.8
$
156.6
$
(54.8
)
(35
)%
Cost of sales
36.8
50.2
(13.4
)
(27
)%
Intangible asset amortization
7.1
6.8
0.3
4
%
Gross margin*
$
57.9
$
99.6
$
(41.7
)
(42
)%
Gross margin %*
57
%
64
%
Add back:
Intangible asset amortization
$
7.1
$
6.8
$
0.3
4
%
Inventory step-up provision
0.1
1.8
(1.7
)
(94
)%
Severance and restructuring benefits
—
(0.8
)
0.8
100
%
Stock-based compensation expense
0.5
0.3
0.2
67
%
Segment adjusted gross margin**
$
65.6
$
107.7
$
(42.1
)
(39
)%
Segment adjusted gross margin %**
64
%
69
%
* Gross margin is calculated as revenues less cost of sales and intangible asset amortization. Gross margin % is calculated as gross margin divided by revenues.
** Segment adjusted gross margin, which is a non-GAAP financial measure, for our MCM Products segment is calculated as gross margin plus intangible asset amortization, inventory step-up provision, severance and restructuring benefits and the portion of stock-based compensation expense that is recorded as cost of sales. Segment adjusted gross margin percentage, which is a non-GAAP financial measure, is calculated as segment adjusted gross margin divided by revenues. The Company's management utilizes segment adjusted gross margin and segment adjusted gross margin percentage for purposes of evaluating our ongoing operations and for internal planning and forecasting purposes. In calculating these measures, we began excluding stock-based compensation that is recorded as cost of sales in the first quarter of 2026, as this reflects a non-cash expenditure that is not related to segment operating performance. As reflected in the table above, we have recast our 2025 results to also reflect this adjustment. We believe that these non-GAAP operating measures, when reviewed collectively with our GAAP financial information, provide useful supplemental information to investors in assessing our operating performance.
Cost of MCM product sales decreased $13.4 million, or 27%, to $36.8 million for the quarter ended March 31, 2026. The decrease was primarily due to lower cost of sales for ANTHRASIL®, ACAM2000®, CYFENDUS® and TEMBEXA® reflecting reduced sales volumes and the absence of significant prior-year non-recurring manufacturing related costs, including shutdown and severance expenses. These decreases were partially offset by an increase in cost of sales for CNJ-016® (VIGIV), BAT® and BioThrax® driven by greater sales volumes and increased overhead costs at the Winnipeg facility.
MCM Product gross margin decreased $41.7 million, or 42%, to $57.9 million for the quarter ended March 31, 2026. MCM Product gross margin percentage decreased 7 percentage points to 57% for the quarter ended March 31, 2026. The decrease in gross margin percentage was primarily due to an unfavorable sales mix weighted more heavily toward lower margin products as well as product absorption-related variances. These impacts were partially offset by a decrease in shutdown and severance related costs compared with the prior year. MCM Product segment adjusted gross margin in the current year period excludes the impacts of intangible asset amortization of $7.1 million, the portion of stock-based compensation expense recorded as cost of sales of $0.5 million, and inventory step-up provision of $0.1 million.
2026 FINANCIAL FORECAST
The Company provides the following updated financial forecast for full year 2026, reflecting management's expectations based on the most current information available.
METRIC($ in millions)
Updated ...
