What is Mereo Biopharma's earnings per share (EPS)?

Mereo Biopharma (MREO) reported diluted earnings per share of $-0.05 for fiscal year 2025. This represents a 16.7% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Mereo Biopharma Financials

MREO

Source SEC Filings (10-K/10-Q) Updated Mar 31, 2026 Currency USD FYE December

This page shows Mereo Biopharma (MREO) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 4 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI MREO FY2025 2026-05-12

Positive net income is masking a cash-burning, development-stage cost structure backed by a very lightly levered balance sheet.

Across FY2024 and FY2025, the company produced about $85.1M of net income but consumed roughly -$63.8M of operating cash, so reported profit and underlying cash economics were moving in opposite directions. Because FY2025 revenue was only $500K, that disconnect points to gains or other accounting items below the operating line rather than to a business that is already funding itself.

The operating model is still expense-led rather than revenue-led: FY2025 research and development was $17.8M and SG&A was $23.0M. With revenue at just $500K, spending on the program base remains the defining activity of the business, which is typical of a company still building toward commercialization rather than harvesting it.

Liquidity, not earnings, is carrying the business: FY2025 cash of $41.0M was more than eight times total liabilities of $5.0M. That makes solvency look conservative, but with operating cash use near -$31.0M and interest expense down to just $255K, the real constraint is the pace of internal spending rather than balance-sheet strain.

Financial Health Signals

Financial Profile 50/100

Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →

Health score ≠ stock price. This rates the quality of Mereo Biopharma's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability

Mereo Biopharma has an operating margin of -8021.4%, meaning the company retains $-8021 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses.

Leverage

100

Mereo Biopharma carries a low D/E ratio of 0.12, meaning only $0.12 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

100

With a current ratio of 10.46, Mereo Biopharma holds $10.46 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 100/100.

Cash Flow

While Mereo Biopharma generated -$31.0M in operating cash flow, capex of $20K consumed most of it, leaving -$31.0M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.

Returns

100

Mereo Biopharma earns a strong 102.4% return on equity (ROE), meaning it generates $102 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 100/100. This is up from 70.9% the prior year.

Piotroski F-Score Neutral

4/9

Mereo Biopharma passes 4 of 9 financial strength tests. 2 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, both operating efficiency signals pass.

Earnings Quality Low Quality

-0.74x

For every $1 of reported earnings, Mereo Biopharma generates $-0.74 in operating cash flow (-$31.0M OCF vs $41.9M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.

Interest Coverage At Risk

-157.3x

Mereo Biopharma earns $-157.3 in operating income for every $1 of interest expense (-$40.1M vs $255K). This narrow margin raises concern about the company's ability to service its debt if operating income declines.

Key Financial Metrics

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Earnings & Revenue

Revenue

$500K

Mereo Biopharma generated $500K in revenue in fiscal year 2025.

EBITDA

-$39.5M

YoY+15.6%

Mereo Biopharma's EBITDA was -$39.5M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 15.6% from the prior year.

Net Income

$41.9M

YoY-3.2%

Mereo Biopharma reported $41.9M in net income in fiscal year 2025. This represents a decrease of 3.2% from the prior year.

EPS (Diluted)

$-0.05

YoY+16.7%

Mereo Biopharma earned $-0.05 per diluted share (EPS) in fiscal year 2025. This represents an increase of 16.7% from the prior year.

Cash & Balance Sheet

Free Cash Flow

-$31.0M

YoY+5.6%

Mereo Biopharma generated -$31.0M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 5.6% from the prior year.

Cash & Debt

$41.0M

YoY-41.3%

Mereo Biopharma held $41.0M in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share

N/A

Shares Outstanding

N/A

Margins & Returns

Gross Margin

N/A

Operating Margin

-8021.4%

Mereo Biopharma's operating margin was -8021.4% in fiscal year 2025, reflecting core business profitability.

Net Margin

8375.6%

Mereo Biopharma's net profit margin was 8375.6% in fiscal year 2025, showing the share of revenue converted to profit.

Return on Equity

102.4%

YoY+31.4pp

Mereo Biopharma's ROE was 102.4% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 31.4 percentage points from the prior year.

Capital Allocation

R&D Spending

$17.8M

YoY-15.1%

Mereo Biopharma invested $17.8M in research and development in fiscal year 2025. This represents a decrease of 15.1% from the prior year.

Share Buybacks

N/A

Capital Expenditures

$20K

Mereo Biopharma invested $20K in capex in fiscal year 2025, funding long-term assets and infrastructure.

MREO Income Statement

Metric	FY25	FY24	FY23	FY22
Revenue	$500K	$0-100.0%	$10.0M	$0
Cost of Revenue	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A
R&D Expenses	$17.8M-15.1%	$20.9M+20.2%	$17.4M-40.9%	$29.5M
SG&A Expenses	$23.0M-13.0%	$26.4M+43.5%	$18.4M-29.4%	$26.1M
Operating Income	-$40.1M+15.3%	-$47.4M-66.7%	-$28.4M+47.8%	-$54.4M
Interest Expense	$255K-81.4%	$1.4M-52.4%	$2.9M-31.0%	$4.2M
Income Tax	$0	$0+100.0%	-$532K+25.9%	-$718K
Net Income	$41.9M-3.2%	$43.3M+46.8%	$29.5M+169.8%	-$42.2M
EPS (Diluted)	$-0.05+16.7%	$-0.06-50.0%	$-0.04+42.9%	$-0.07

Metric	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24
Revenue	N/A	N/A	$0-100.0%	$500K	N/A	N/A	$0	$0
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	$4.7M	N/A	$4.3M-20.5%	$5.4M+36.7%	$3.9M	N/A	$3.2M-35.9%	$4.9M
SG&A Expenses	$4.0M	N/A	$6.0M+10.0%	$5.5M-24.4%	$7.3M	N/A	$6.2M-21.2%	$7.9M
Operating Income	-$8.8M	N/A	-$10.0M+4.6%	-$10.5M+6.3%	-$11.2M	N/A	-$9.4M+26.9%	-$12.8M
Interest Expense	$20K	N/A	$28K+16.7%	$24K-86.7%	$180K	N/A	$353K+6.6%	$331K
Income Tax	$0	N/A	$0	$0	$0	N/A	$0	$0
Net Income	-$6.7M	N/A	-$7.0M+51.9%	-$14.6M-13.4%	-$12.9M	N/A	-$15.0M-22.4%	-$12.3M
EPS (Diluted)	$-0.01	N/A	$-0.01+50.0%	$-0.020.0%	$-0.02	N/A	$-0.020.0%	$-0.02

MREO Balance Sheet

Metric	FY25	FY24	FY23	FY22
Total Assets	$45.9M-39.9%	$76.4M+14.9%	$66.5M-14.1%	$77.4M
Current Assets	$45.0M-39.8%	$74.8M+17.3%	$63.8M-15.2%	$75.2M
Cash & Equivalents	$41.0M-41.3%	$69.8M+21.6%	$57.4M-15.8%	$68.2M
Inventory	N/A	N/A	N/A	N/A
Accounts Receivable	N/A	N/A	N/A	N/A
Goodwill	N/A	N/A	N/A	N/A
Total Liabilities	$5.0M-67.6%	$15.4M-3.4%	$16.0M-38.6%	$26.0M
Current Liabilities	$4.3M-68.9%	$13.8M+46.0%	$9.5M-61.1%	$24.4M
Long-Term Debt	N/A	N/A	N/A	N/A
Total Equity	$40.9M-32.9%	$61.0M+20.6%	$50.5M-1.7%	$51.4M
Retained Earnings	-$501.0M-8.2%	-$462.9M-10.3%	-$419.6M-3.7%	-$404.6M

Metric	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24
Total Assets	$40.6M-11.5%	$45.9M-14.3%	$53.6M-14.4%	$62.6M-8.3%	$68.3M-10.6%	$76.4M-13.9%	$88.7M-7.7%	$96.1M
Current Assets	$40.0M-11.1%	$45.0M-14.1%	$52.4M-14.7%	$61.4M-8.2%	$66.9M-10.5%	$74.8M-13.8%	$86.7M-7.7%	$93.9M
Cash & Equivalents	$36.2M-11.6%	$41.0M-15.8%	$48.7M-13.2%	$56.1M-10.2%	$62.5M-10.5%	$69.8M-13.3%	$80.5M-7.9%	$87.4M
Inventory	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Goodwill	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Liabilities	$6.6M+31.2%	$5.0M-28.6%	$7.0M-17.2%	$8.5M+2.6%	$8.2M-46.6%	$15.4M-90.4%	$161.3M+822.7%	$17.5M
Current Liabilities	$6.2M+43.6%	$4.3M-28.5%	$6.0M-20.4%	$7.6M+0.8%	$7.5M-45.9%	$13.8M-2.5%	$14.2M-8.1%	$15.5M
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$34.1M-16.8%	$40.9M-12.2%	$46.6M-14.0%	$54.2M-9.8%	$60.1M-1.5%	$61.0M+184.1%	-$72.5M-192.2%	$78.7M
Retained Earnings	-$507.5M-1.3%	-$501.0M-1.5%	-$493.7M-1.4%	-$486.6M-3.1%	-$472.0M-2.0%	-$462.9M-1.5%	-$455.8M-3.4%	-$440.8M

MREO Cash Flow Statement

Metric	FY25	FY24	FY23	FY22
Operating Cash Flow	-$31.0M+5.7%	-$32.8M-55.4%	-$21.1M+56.7%	-$48.8M
Capital Expenditures	$20K	$0	$0-100.0%	$13K
Free Cash Flow	-$31.0M+5.6%	-$32.8M-55.4%	-$21.1M+56.7%	-$48.8M
Investing Cash Flow	-$20K+97.1%	-$699K-66.8%	-$419K-121.1%	$2.0M
Financing Cash Flow	$327K-99.3%	$46.1M+478.8%	$8.0M+3886.5%	$200K
Dividends Paid	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A

Metric	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24
Operating Cash Flow	-$4.3M+43.9%	-$7.7M-5.1%	-$7.3M+4.5%	-$7.7M+8.1%	-$8.3M+11.6%	-$9.4M-25.3%	-$7.5M+4.9%	-$7.9M
Capital Expenditures	$0	$0	$0	$0-100.0%	$20K	$0	$0	$0
Free Cash Flow	-$4.3M+43.9%	-$7.7M-5.1%	-$7.3M+4.5%	-$7.7M+8.4%	-$8.3M+11.4%	-$9.4M-25.3%	-$7.5M+4.9%	-$7.9M
Investing Cash Flow	-$300K	$0-100.0%	$300K	$0+100.0%	-$320K	$0	$0-100.0%	$1K
Financing Cash Flow	$0-100.0%	$39K	$0+100.0%	-$134K-131.8%	$422K+1155.0%	-$40K+93.3%	-$594K-101.3%	$46.8M
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

MREO Financial Ratios

Metric	FY25	FY24	FY23	FY22
Gross Margin	N/A	N/A	N/A	N/A
Operating Margin	-8021.4%	N/A	-284.2%	N/A
Net Margin	8375.6%	N/A	294.7%	N/A
Return on Equity	102.4%+31.4pp	70.9%+12.6pp	58.3%+140.5pp	-82.1%
Return on Assets	91.2%+34.6pp	56.6%+12.3pp	44.3%+98.8pp	-54.5%
Current Ratio	10.46+5.1	5.40-1.3	6.72+3.6	3.08
Debt-to-Equity	0.12-0.1	0.25-0.1	0.32-0.2	0.51
FCF Margin	-6198.2%	N/A	-211.3%	N/A

Metric	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	N/A	N/A	N/A	-2099.8%	N/A	N/A	N/A	N/A
Net Margin	N/A	N/A	N/A	-2923.2%	N/A	N/A	N/A	N/A
Return on Equity	-19.7%	N/A	-15.1%+11.9pp	-27.0%-5.5pp	-21.4%	N/A	N/A	-15.6%
Return on Assets	-16.5%	N/A	-13.1%+10.2pp	-23.3%-4.5pp	-18.9%	N/A	-16.9%-4.2pp	-12.8%
Current Ratio	6.48-4.0	10.46+1.8	8.71+0.6	8.13-0.8	8.92+3.5	5.40-0.7	6.10+0.0	6.07
Debt-to-Equity	0.19+0.1	0.12-0.0	0.150.0	0.16+0.0	0.14-0.1	0.25+2.5	-2.22-2.4	0.22
FCF Margin	N/A	N/A	N/A	-1530.2%	N/A	N/A	N/A	N/A

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Frequently Asked Questions

What is Mereo Biopharma's annual revenue?

Mereo Biopharma (MREO) reported $500K in total revenue for fiscal year 2025. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

Is Mereo Biopharma profitable?

Yes, Mereo Biopharma (MREO) reported a net income of $41.9M in fiscal year 2025, with a net profit margin of 8375.6%.

What is Mereo Biopharma's EBITDA?

Mereo Biopharma (MREO) had EBITDA of -$39.5M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

What is Mereo Biopharma's operating margin?

Mereo Biopharma (MREO) had an operating margin of -8021.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is Mereo Biopharma's net profit margin?

Mereo Biopharma (MREO) had a net profit margin of 8375.6% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is Mereo Biopharma's return on equity (ROE)?

Mereo Biopharma (MREO) has a return on equity of 102.4% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Mereo Biopharma's free cash flow?

Mereo Biopharma (MREO) generated -$31.0M in free cash flow during fiscal year 2025. This represents a 5.6% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Mereo Biopharma's operating cash flow?

Mereo Biopharma (MREO) generated -$31.0M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Mereo Biopharma's total assets?

Mereo Biopharma (MREO) had $45.9M in total assets as of fiscal year 2025, including both current and long-term assets.

What are Mereo Biopharma's capital expenditures?

Mereo Biopharma (MREO) invested $20K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does Mereo Biopharma spend on research and development?

Mereo Biopharma (MREO) invested $17.8M in research and development during fiscal year 2025.

What is Mereo Biopharma's current ratio?

Mereo Biopharma (MREO) had a current ratio of 10.46 as of fiscal year 2025, which is generally considered healthy.

What is Mereo Biopharma's debt-to-equity ratio?

Mereo Biopharma (MREO) had a debt-to-equity ratio of 0.12 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Mereo Biopharma's return on assets (ROA)?

Mereo Biopharma (MREO) had a return on assets of 91.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Mereo Biopharma's cash runway?

Based on fiscal year 2025 data, Mereo Biopharma (MREO) had $41.0M in cash against an annual operating cash burn of $31.0M. This gives an estimated cash runway of approximately 16 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.

What is Mereo Biopharma's Piotroski F-Score?

Mereo Biopharma (MREO) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Mereo Biopharma's earnings high quality?

Mereo Biopharma (MREO) has an earnings quality ratio of -0.74x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can Mereo Biopharma cover its interest payments?

Mereo Biopharma (MREO) has an interest coverage ratio of -157.3x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is Mereo Biopharma?

Mereo Biopharma (MREO) scores 50 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.