Mesoblast Limited (NASDAQ: MESO) reported its first‑half 2026 financial results for the period ended December 31, 2025, showing a net loss of $40.2 million, an improvement of $7.8 million year‑over‑year. The company’s total revenue rose to $51.3 million from $3.2 million in the comparable period, driven almost entirely by Ryoncil, which generated $49 million in net product revenue. Ryoncil is the first and only FDA‑approved mesenchymal stromal cell therapy in the United States, having launched commercially on March 28, 2025.
Mesoblast’s gross margin for the half was 93%, reflecting the high‑margin economics of the Ryoncil product line. Management noted that the company’s disciplined cost management has helped offset the increase in research and development and selling, general and administrative expenses that accompanied the commercial rollout. "Today we report strong operational and financial performance for the first half of FY2026, a period that marks an important inflection point in Mesoblast's evolution from clinical development to sustainable commercial execution," said Dr. Silviu Itescu, CEO.
The company guided full‑year 2026 net product revenue for Ryoncil to $110 million to $120 million, a range that aligns with prior guidance and signals confidence in continued commercial momentum. "Sales momentum for Ryoncil® continued to build, driving meaningful revenue and reinforcing the product's value in addressing significant unmet medical need and the strength of our commercial strategy," Itescu added.
While the company reported a net loss, it highlighted a projected decline in operating cash‑flow usage for the second half of the year. "As we look to the second half of the year, we expect our operating cash flow usage to decline when compared to the first half of fiscal 2026, based upon our projected cash receipts from revenues, as well as maintaining disciplined cost control measures and efficiencies in the operation," said James O'Brien, CFO.
Mesoblast also secured a new $125 million credit facility, enhancing its financial flexibility to support ongoing research and commercialization efforts. The company continues to advance its pipeline, with late‑stage development of rexlemestrocel‑L for chronic low back pain and end‑stage chronic heart failure.
The earnings report missed consensus expectations for earnings per share, with a GAAP EPS of –$3.11 versus an estimate of –$0.05, a miss of $3.06. Revenue also fell short of analyst estimates, underscoring the market’s focus on the company’s transition from a high‑loss clinical developer to a commercial entity.
The revised article incorporates all factual corrections and additional context from the fact‑check report, providing a comprehensive view of Mesoblast’s financial performance, guidance, and strategic outlook without fabricating data or commentary.
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