NASDAQ$MREO

Mereo Biopha-Adr · Q2 2026 earnings

Q2 2026 earnings · · Before market open · Investor relations

Briefing

Mereo BioPharma reported second quarter 2026 financial results including zero revenue, a net loss of $7.0 million, and an expanded cash runway into late-2027 following a new licensing option agreement.

The company recorded no revenue and a net loss of $7.0 million for the quarter ended June 30, 2026, driven by reduced R&D and G&A expenses. Cash and cash equivalents stood at $30.1 million, now expected to fund operations into late-2027. Key developments included an option and license deal with Sentynl for alvelestat and ongoing regulatory discussions for setrusumab with Ultragenyx.

  • Entered option and license agreement with Sentynl Therapeutics for alvelestat in AATD-LD, with potential $40 million upfront/R&D payments and up to $435 million milestones.
  • Setrusumab Phase 3 studies missed primary fracture endpoints but showed significant BMD improvements and favorable safety; regulatory path discussions ongoing with FDA and MHRA.
  • R&D expenses fell to $1.8 million and G&A to $5.2 million, contributing to a narrower net loss of $7.0 million versus $14.6 million in Q2 2025.
  • Cash position of $30.1 million extended to fund operations into late-2027, excluding potential alvelestat option proceeds.

Headline financials

Total Revenue

$0.00

Previous: $500K-100.0%
EPS (adj)

-$0.01

Previous: -$0.02+50.0%
R&D expenses

$1.81M

No prior period
G&A expenses

$5.22M

No prior period
Net Income

-$7.01M

Previous: -$14.6M+52.1%
Operating Income

-$7.03M

Previous: -$10.5M+33.0%
Cash & Equivalents

$30.1M

No prior period

Revenue & EPS history

Mereo Biopha-Adr · Revenue · Quarterly

$0

Q2 2026-100%vs Q2 2025
Beat estimate in 0 of 5 quarters(0%)
ActualEstimate

Forward guidance

Cash runway extended into late-2027; Phase 3 alvelestat study targeted for early 2027 initiation if option exercised; setrusumab regulatory updates expected by year-end 2026.

Tailwinds

  • Partnership with Sentynl provides non-dilutive funding potential and external development support for alvelestat.
  • Extended cash runway reduces near-term financing needs.
  • Regulatory engagement progressing for setrusumab path forward.

Headwinds

  • Phase 3 setrusumab studies missed primary endpoints, requiring additional regulatory dialogue.
  • No immediate revenue from product sales or partnerships recognized in the quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 12 quarterly earnings reports

Historical avg

+3.4%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+18.4%

Avg return

30 days after

69%

9 / 13 earnings

Positive

+11.9%

Q4 2023

Best reaction

-6.1%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026
Q1 2026+4.1%+0.9%+31.7%
Q4 2025+4.6%-4.5%-4.3%
Q3 2025+6.3%+0.6%+27.1%
Q2 2025+9.4%+14.5%+19.7%
Q1 2025+1.3%-2.2%+25.3%
Q4 2024-3.6%-11.6%+15.6%
Q3 2024-5.4%-17.5%-12.9%
Q3 2023-5.4%-17.5%-12.9%
Q2 2024+6.2%+16.4%+18.0%
Q1 2024+10.5%+10.1%+43.6%
Q1 2023+10.5%+10.1%+43.6%
Q4 2023+11.9%+15.6%-7.1%
Q4 2022-6.1%-10.3%+52.3%

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