Key Highlights

  • Total revenues fell 34% to $401.3 million, driven by lower Elevidys sales.
  • GAAP net loss was $4.9 million; non-GAAP Net Income was $78.6 million.
  • Elevidys Revenue fell to $98.1 million from a $282 million peak a year earlier.
  • Shares closed at $16.51, down $0.93, or 5%, at Tuesday's close.

Sarepta Therapeutics, Inc. (NASDAQ:SRPT)'s second quarter combined continued operating profitability with a sharp decline in total revenue, driven primarily by lower sales of its gene therapy Elevidys following prior safety events and a label change restricting its use to ambulatory patients. New Chief Executive Officer Michael Severino, who took the role the week of the earnings call, said Elevidys performance was in line with the company's expectations for the quarter, with sales remaining relatively steady compared with the first quarter.

SRPT markets four approved therapies for Duchenne muscular dystrophy, including the gene therapy Elevidys and its exon-skipping PMO franchise. The company said more than 1,500 patients have been treated with Elevidys to date.

The company ended the quarter with $945 million in cash and investments, up approximately $197 million from the prior quarter.

Second quarter 2026 compared with the prior-year quarter

Total revenues were $401.3 million, down 34% from a year earlier, which the company attributed mainly to a 65% decline in Elevidys sales following the safety events and label changes. Net product revenue was $328.7 million, comprising $98.1 million from Elevidys and $230.6 million from the PMO franchise.

GAAP Operating Income was $13.3 million, against $115.6 million a year earlier. GAAP net loss was $4.9 million; non-GAAP net income was $78.6 million, or $0.64 per share on a non-GAAP basis. The company recorded a $39 million litigation contingency charge during the quarter related to certain outstanding Patent claims.

Management outlook and stated risks

Management narrowed its full-year 2026 net product revenue guidance to a range of $1.2 billion to $1.3 billion, citing weaker expected Elevidys revenue in the third quarter. The company said second-half 2026 net product revenue is expected to be modestly lower than the first half due to the timing of patient progression and quarter-to-quarter variability inherent in a one-time gene therapy.

Management said enrollment-form activity for Elevidys improved sequentially during the quarter, including activity from returning treatment sites and sites outside the company's existing network, which it said is early evidence that expanded commercial initiatives are taking hold. The company said its ENDEAVOR Cohort 8 data, which it said is important for the non-ambulatory Elevidys indication, has been delayed to the first quarter of 2027.

Final Analysis

Management tied its near-term plans to clinical milestones it said remain on track for the second half of 2026, including data readouts for its DM1 and FSHD programs. The company said it expects full enrollment in its Elevidys safety study by year-end, with 12-week data due in the first quarter of 2027.