Celularity (CELU) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was $3.8 million, down 66% year-over-year, driven by a sharp decline in product sales due to lower demand and reimbursement uncertainty for key products.

• Net income for the quarter was $0.9 million, compared to a net loss of $19.8 million in Q1 2025, primarily due to a $12.2 million gain from the sale of New Jersey net operating loss carryforwards.

• The company completed a strategic realignment, transferring certain biomaterials assets and licensing rights to NexGel, resulting in a shift of commercialization responsibilities and a reduction in operating costs.

• Significant operational restructuring was implemented, including workforce reductions and leadership changes, to focus on core cell therapy and manufacturing capabilities.

Financial highlights

• Product sales fell 90% year-over-year to $0.9 million, mainly due to lower Biovance 3L and Rebound sales and changes in customer purchasing behavior.

• License, royalty, and other revenues increased 73% to $1.7 million, while services revenue declined 11% to $1.3 million.

• Operating expenses decreased 36% to $14.0 million, reflecting lower sales rep compensation, reduced headcount, and lower stock-based compensation.

• Cash and cash equivalents were $0.4 million at quarter-end, with a working capital deficit of $64.3 million and an accumulated deficit of $990.6 million.

• Cash provided by operating activities was $1.4 million, driven by the one-time sale of tax loss carryforwards; excluding this, operations used net cash.

Outlook and guidance

• Management expects continued operating losses and negative cash flows absent additional financing or significant revenue growth.

• The company is actively seeking new capital through equity, debt, or strategic transactions but cannot assure success.

• Ongoing Nasdaq non-compliance and liquidity challenges raise substantial doubt about the ability to continue as a going concern.