Key Highlights

  • Revenues were USD 110.0 million versus USD 231.1 million, a 52% decline, in line with company guidance.
  • The net loss was USD 32.7 million, or USD 0.64 per share, versus Net Income of USD 51.2 million.
  • Adjusted EBITDA was a loss of USD 4.6 million, compared with positive USD 92.6 million a year earlier.
  • Gross Margin was 14% and adjusted gross margin was 28%, compared with 54% and 62%.

Results

Emergent BioSolutions Inc. (NYSE:EBS) reported third-quarter 2026 total revenues of USD 110.0 million, down 52% from USD 231.1 million and in line with company guidance. The net loss was USD 32.7 million, or USD 0.64 per diluted share, compared with net income of USD 51.2 million, or USD 0.91. The adjusted net loss was USD 18.7 million, or USD 0.36 per share, versus adjusted net income of USD 65.2 million, or USD 1.15. Adjusted EBITDA was a loss of USD 4.6 million, a negative 4% margin, versus USD 92.6 million, a 40% margin.

Gross margin was 14% versus 54%, and adjusted gross margin was 28% versus 62%.

Revenue by Category

Product sales were USD 102.9 million versus USD 217.4 million. Naloxone Revenue fell USD 31.4 million, or 42%, to USD 43.5 million, mainly because of lower over-the-counter NARCAN sales on an unfavorable price and Volume mix in U.S. public interest channels, partly offset by higher Canadian sales of branded NARCAN. Anthrax countermeasure revenue rose to USD 25.1 million from USD 1.4 million on higher U.S. government sales of CYFENDUS. Smallpox countermeasure revenue fell 68% to USD 26.7 million from USD 83.6 million, other products fell 87% to USD 7.6 million from USD 57.5 million, and all other revenues fell 48% to USD 7.1 million.

Nine-month revenues were USD 500.4 million versus USD 594.2 million, down 16%. The year-to-date net loss was USD 206.1 million, or USD 3.99 per share, versus net income of USD 107.2 million, or USD 1.89. Adjusted net income was USD 24.1 million, or USD 0.47 per share, versus USD 120.5 million, or USD 2.13, and adjusted EBITDA was USD 127.5 million versus USD 204.8 million. Year-to-date gross margin was 39% and adjusted gross margin 49%, versus 48% and 57%.

Turnaround Actions

President and chief executive Joe Papa said results were driven by the biodefense and naloxone portfolio and that the company remains focused on turnaround priorities: improving operating performance, reducing debt, creating Shareholder value and maintaining quality and compliance. The company completed the repurchase of USD 75 million of principal of its senior unsecured notes and implemented restructuring to improve its cost structure, including creation of a new Growth organization. It received a contract modification valued at about USD 24 million for CYFENDUS and a standing offer from the Government of Canada for NARCAN nasal spray.

The chief financial officer retires effective December 31, 2026 and stays on as a part-time advisor through March 31, 2027, with the treasurer serving as interim chief financial officer from January 1, 2027.

Variables Behind the Next Quarter

Items to track include naloxone pricing in public interest channels, the timing of government countermeasure orders, restructuring savings, further Debt reduction and the chief financial officer transition.