Mereo Biopharma Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Sep 2, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Aug 11, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the MREO SEC filings page.
Mereo Biopharma (MREO) reported $500K in revenue for fiscal year 2025. This page shows its 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).
Mereo’s development-led model consumes operating cash while non-operating items convert losses into accounting profits.
The same mismatch appears in FY2023 and FY2025: operating income was negative while net income was positive, so reported profit is not reflecting core operations. In FY2025, a-$40.1M operating loss coexisted with$41.9M of net income, indicating that below-the-line items—not the development business—produced the accounting gain.
Development spending dominates the economics: FY2025 research and development was
Debt-to-equity fell from 0.3x in FY2023 to 0.1x in FY2025, showing less reliance on liabilities relative to equity. The FY2025 current ratio was 10.5x, while reported liquidity equaled 15.9 months of the latest annual operating outflow; that combination describes substantial current-asset coverage of obligations, not operating self-sufficiency.
Financial Health Signals
We are recalculating Mereo Biopharma's peer-relative financial health score against the latest fiscal year. It will appear here once the refresh completes. The signals and metrics below are current.
Mereo Biopharma scores -11.78, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($44.2M) relative to total liabilities ($5.0M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Mereo Biopharma passes 4 of 7 computable financial strength tests (2 of the nine could not be computed from available data). 2 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Mereo Biopharma used $0.74 of operating cash (-$31.0M OCF vs $41.9M net income). Earnings that no cash stands behind rest on accounting accruals, which cannot be repeated indefinitely.
Mereo Biopharma reported an operating loss of $40.1M against $255K in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
Mereo Biopharma generated $0 in revenue in Q2 2026. This represents a decrease of 100.0% from the same quarter a year earlier.
Mereo Biopharma's EBITDA was -$6.9M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 33.6% from the same quarter a year earlier. Against the prior quarter it is up 20.1%.
Mereo Biopharma reported -$7.0M in net income in Q2 2026. This represents an increase of 52.1% from the same quarter a year earlier. Against the prior quarter it is down 4.3%.
Mereo Biopharma earned -$0.01 per diluted share (EPS) in Q2 2026. This represents an increase of 50.0% from the same quarter a year earlier. It is unchanged from the prior quarter.
Cash & Balance Sheet
Mereo Biopharma recorded an outflow of $6.0M in free cash flow in Q2 2026, representing a cash shortfall after capex. This represents an increase of 21.0% from the same quarter a year earlier. Against the prior quarter it is down 40.1%.
Mereo Biopharma held $30.1M in cash as of Q2 2026; long-term debt is not reported for that period.
Not reported for Q2 2026.
Margins & Returns
Mereo Biopharma's ROE was -24.4% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is up 2.5 percentage points from the same quarter a year earlier. Against the prior quarter it is down 4.7 percentage points.
Not reported for Q2 2026.
Not reported for Q2 2026.
Not reported for Q2 2026.
Capital Allocation
Mereo Biopharma invested $1.8M in research and development in Q2 2026. This represents a decrease of 66.4% from the same quarter a year earlier. Against the prior quarter it is down 61.9%.
Not reported for Q2 2026.
MREO Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $0-100.0% | N/A | N/A | $0 | $500K | N/A | N/A | $0 |
| R&D Expenses | $1.8M-66.4% | $4.7M+20.8% | N/A | $4.3M+34.7% | $5.4M+8.6% | $3.9M-1.6% | N/A | $3.2M-11.8% |
| SG&A Expenses | $5.2M-5.0% | $4.0M-44.7% | N/A | $6.0M-2.5% | $5.5M-30.2% | $7.3M+23.1% | N/A | $6.2M+8.7% |
| Operating Income | -$7.0M+33.0% | -$8.8M+21.7% | N/A | -$10.0M-6.8% | -$10.5M+18.1% | -$11.2M-13.2% | N/A | -$9.4M-3.4% |
| EBITDA | -$6.9M+33.6% | -$8.6M+22.3% | N/A | -$10.2M-10.9% | -$10.3M+18.0% | -$11.1M-13.4% | N/A | -$9.2M-3.4% |
| Interest Expense | $16K-33.3% | $20K-88.9% | N/A | $28K-92.1% | $24K-92.7% | $180K-41.9% | N/A | $353K-49.6% |
| Income Tax | $0 | $0 | N/A | $0 | $0 | $0 | N/A | $0 |
| Net Income | -$7.0M+52.1% | -$6.7M+47.9% | N/A | -$7.0M+53.2% | -$14.6M-19.3% | -$12.9M-44.0% | N/A | -$15.0M-129.7% |
| EPS (Basic) | -$0.01+50.0% | -$0.01+50.0% | -$0.010.0% | -$0.01+50.0% | -$0.020.0% | -$0.02-100.0% | -$0.010.0% | -$0.02-100.0% |
| EPS (Diluted) | -$0.01+50.0% | -$0.01+50.0% | -$0.010.0% | -$0.01+50.0% | -$0.020.0% | -$0.02-100.0% | -$0.010.0% | -$0.02-100.0% |
| Diluted Shares (Avg) | 804M+0.5% | 802M+2.2% | N/A | 800M+3.9% | 799M+3.8% | 784M+12.0% | N/A | 770M+12.4% |
Not reported in any period shown, so not listed: Cost of Revenue, Gross Profit.
MREO Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $34.7M-44.6% | $40.6M-40.6% | $45.9M-39.9% | $53.6M-39.6% | $62.6M-34.8% | $68.3M+22.1% | $76.4M+14.9% | $88.7M |
| Current Assets | $33.4M-45.6% | $40.0M-40.2% | $45.0M-39.8% | $52.4M-39.6% | $61.4M-34.6% | $66.9M+25.1% | $74.8M+17.3% | $86.7M |
| Cash & Equivalents | $30.1M-46.3% | $30.1M-51.8% | $41.0M-41.3% | $48.7M-39.5% | $56.1M-35.8% | $62.5M+28.4% | $69.8M+21.6% | $80.5M |
| Short-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $6.1M-28.3% | $6.6M-20.4% | $5.0M-67.6% | $7.0M-95.7% | $8.5M-51.6% | $8.2M-37.1% | $15.4M-3.4% | $161.3M |
| Current Liabilities | $5.7M-24.9% | $6.2M-17.6% | $4.3M-68.9% | $6.0M-57.7% | $7.6M-51.1% | $7.5M-31.9% | $13.8M+46.0% | $14.2M |
| Non-Current Liabilities | $385K-57.1% | $383K-48.5% | $699K-55.6% | $988K-99.3% | $897K-55.4% | $744K-64.5% | $1.6M-75.7% | $147.1M |
| Total Equity | $28.7M-47.1% | $34.1M-43.3% | $40.9M-32.9% | $46.6M+164.2% | $54.2M-31.1% | $60.1M+40.3% | $61.0M+20.6% | -$72.5M-232.6% |
| Retained Earnings | -$514.5M-5.7% | -$507.5M-7.5% | -$501.0M-8.2% | -$493.7M-8.3% | -$486.6M-10.4% | -$472.0M-10.1% | -$462.9M-10.3% | -$455.8M |
Not reported in any period shown, so not listed: Inventory, Accounts Receivable, Goodwill, Long-Term Debt.
MREO Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$6.0M+21.0% | -$4.3M+48.2% | -$7.7M+18.5% | -$7.3M+2.8% | -$7.7M+3.2% | -$8.3M-4.2% | -$9.4M-38.8% | -$7.5M-382.8% |
| Depreciation & Amortization | $165K+1.9% | $171K+18.8% | $460K+210.8% | -$144K-167.9% | $162K-22.1% | $144K-3.4% | $148K-5.7% | $212K+1.4% |
| Stock-Based Compensation | N/A | $1.6M-29.5% | N/A | N/A | N/A | $2.3M+11.1% | N/A | N/A |
| Capital Expenditures | $0 | $0-100.0% | $0 | $0 | $0 | $20K | $0 | $0 |
| Free Cash Flow | -$6.0M+21.0% | -$4.3M+48.4% | -$7.7M+18.5% | -$7.3M+2.8% | -$7.7M+3.2% | -$8.3M-4.5% | -$9.4M | -$7.5M |
| Investing Cash Flow | $0 | -$300K+6.3% | $0 | $300K | $0-100.0% | -$320K+54.3% | $0 | $0 |
| Financing Cash Flow | $0+100.0% | $0-100.0% | $39K+197.5% | $0+100.0% | -$134K-100.3% | $422K | -$40K | -$594K-107.5% |
Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.
MREO Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Margin | N/A | N/A | N/A | N/A | -2099.8% | N/A | N/A | N/A |
| Net Margin | N/A | N/A | N/A | N/A | -2923.2% | N/A | N/A | N/A |
| Return on Equity | -24.4%+2.5pp | -19.7%+1.7pp | N/A | -15.1% | -27.0%-11.4pp | -21.4%-0.6pp | N/A | N/A |
| Return on Assets | -20.2%+3.2pp | -16.5%+2.3pp | N/A | -13.1%+3.8pp | -23.3%-10.6pp | -18.9%-2.9pp | N/A | -16.9% |
| Current Ratio | 5.88-2.2x | 6.48-2.4x | 10.46+5.1x | 8.71+2.6x | 8.13+2.1x | 8.92+4.1x | 5.40-1.3x | 6.10 |
| Debt-to-Equity | 0.21+0.1x | 0.19+0.1x | 0.12-0.1x | 0.15 | 0.16-0.1x | 0.14-0.2x | 0.25-0.1x | N/A |
| Asset Turnover | 0.000.0x | N/A | N/A | 0.000.0x | 0.010.0x | N/A | N/A | 0.00 |
| FCF Margin | N/A | N/A | N/A | N/A | -1530.2% | N/A | N/A | N/A |
Not reported in any period shown, so not listed: Gross Margin.
Reported as filed but not readable as a share of revenue in the periods where the ratio runs further from zero than a revenue base allows; no change figure is given where either compared period is one of those: Operating Margin, Net Margin, FCF Margin.
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Mereo Biopharma MREO | FY2025 | $500K | $41.9M | N/A | $44.2M | — |
| Omeros OMER | FY2025 | N/A | N/A | N/A | $1.4B | — |
| Foghorn Therapeutics Inc. FHTX | FY2025 | $30.9M | -$74.3M | N/A | $340.9M | 48/100 |
| Annexon, Inc. ANNX | FY2025 | N/A | -$206.7M | N/A | $936.5M | — |
| Lexeo Therapeutics Inc LXEO | FY2025 | N/A | -$100.0M | N/A | $390.5M | — |
| Lineage Cell The LCTX | FY2025 | $14.6M | -$63.5M | N/A | $278.2M | 59/100 |
Where Mereo Biopharma Ranks
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.
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 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) recorded an outflow of $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) recorded an outflow of $31.0M in operating cash flow during fiscal year 2025, representing cash used by 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 P/E ratio?
Mereo Biopharma (MREO) trades at 1.1x earnings, its market capitalization divided by net income of $41.9M net income, FY2025. The market capitalization is $44.2M as of Sep 2, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Mereo Biopharma's price-to-sales ratio?
Mereo Biopharma (MREO) trades at 88.4x sales, its market capitalization divided by revenue of $500K revenue, FY2025. The market capitalization is $44.2M as of Sep 2, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
How does Mereo Biopharma's liquidity compare with its operating cash outflow?
At the end of fiscal year 2025, Mereo Biopharma (MREO) held $41.0M in cash, cash equivalents and investments, and reported an operating cash outflow of $31.0M over that year. Dividing the one by the other, the reported balance equals about 16 months of the outflow reported that year. This is arithmetic over figures already filed, not a projection: it assumes nothing about future spending, financing or operations.
What is Mereo Biopharma's Altman Z-Score?
Mereo Biopharma (MREO) has an Altman Z-Score of -11.78, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Mereo Biopharma's Piotroski F-Score?
Mereo Biopharma (MREO) has a Piotroski F-Score of 4 out of 7 computable signals; 2 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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?
For every $1 of reported earnings, Mereo Biopharma (MREO) used $0.74 of operating cash (-$31.0M OCF vs $41.9M net income). Earnings that no cash stands behind rest on accounting accruals, which cannot be repeated indefinitely. 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) reported an operating loss of $40.1M against $255K in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. 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.