Sarepta Therapeutics (SRPT) Q2 2026 earnings summary

Executive summary

• Appointed new CEO, Michael Severino, M.D., effective July 2026, to drive growth and maintain strategic continuity, following Doug Ingram's retirement.

• Delivered another quarter of GAAP and non-GAAP operating profitability, with Q2 2026 GAAP operating income of $13.3M and non-GAAP operating income of $86.5M.

• Q2 2026 total revenues were $401.3M, down 34% year-over-year, mainly due to a 65% drop in ELEVIDYS sales after safety events and label changes restricting use to ambulatory patients.

• Over 1,500 patients treated with ELEVIDYS, with commercial and clinical uptake impacted by safety events and regulatory changes.

• Key clinical milestones remain on track for the second half of 2026, including data readouts for DM1 and FSHD and full enrollment of ENDEAVOR Cohort 8.

Financial highlights

• Q2 2026 net product revenue was $328.7M ($98.1M ELEVIDYS, $230.6M PMO franchise).

• Q2 2026 GAAP net loss was $4.9M; non-GAAP net income was $78.6M.

• Gross margin on net product revenues was 75% in Q2 2026.

• Q2 2026 non-GAAP R&D and SG&A expenses were $165M, reflecting lean operations and a 44% year-over-year decrease.

• Ended Q2 2026 with $945M in cash and investments, up $197M from the prior quarter.

Outlook and guidance

• FY 2026 total net product revenue guidance narrowed to $1.2–$1.3B, trending toward the lower end of the original range.

• Collaboration and other revenue guidance raised to $550–$600M, mainly from higher contract manufacturing revenues.

• Combined non-GAAP R&D and SG&A expense guidance narrowed to $800–$850M for FY 2026.

• Second half 2026 net product revenue expected to be modestly lower than first half due to timing of patient progression and quarter-to-quarter variability.

• Management expects existing cash, future operating cash flows, and credit facility availability to fund operations for at least the next 12 months.