Emergent BioSolutions Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Emergent BioSolutions (NYSE:EBS) reported Q2 2026 total revenues of $234.3 million, up 66% year over year, driven mainly by higher U.S. government sales of smallpox and other medical countermeasure (MCM) products. Adjusted net income was $30.9 million (up 134%) and adjusted EBITDA reached $96.5 million with a 41% margin. GAAP results showed a net loss of $180.2 million, largely due to a $191.3 million non-cash impairment on the NARCAN asset group, even as gross margin expanded to 50% and adjusted gross margin to 58%.
The company is implementing a restructuring, including about 90 role reductions and creating a new Growth organization, targeting approximately $40 million in annualized savings. Emergent also refinanced its term loan with a new $150 million facility, executed ACAM2000 and BAT contract modifications totaling over $117 million, secured new manufacturing partnerships, and obtained additional international approvals for ACAM2000.
Positive
- Total revenues $234.3M, up 66% vs. Q2 2025
- Adjusted net income $30.9M, up 134% vs. Q2 2025
- Adjusted EBITDA $96.5M with a 41% margin, up 192% vs. Q2 2025
- Gross margin 50% and adjusted gross margin 58%, expanding 1,400 bps and 900 bps
- MCM product sales $220.4M, up 75% year over year
- Restructuring targeting ~$40M in annualized savings when fully implemented
- New $150M term loan and amended asset‑backed facility completed
- $52.7M ACAM2000 delivery and $64.5M BAT contract modification with U.S. government
- International approvals for ACAM2000 from Saudi Arabia and expanded indication in Singapore
Negative
- Net loss $180.2M in Q2 2026 vs. $12.0M prior year
- $191.3M non‑cash impairment on the NARCAN asset group
- Naloxone revenues $52.4M, down 22% vs. Q2 2025
- Commercial Products gross margin fell to 13% from 32%
- Q2 net loss margin widened to (77)% from (9)%
- YTD 2026 net loss $173.4M vs. $56.0M net income YTD 2025
- Approximately 90 roles to be reduced under restructuring plan
News Explained
As of March 31, 2026, cash equaled 426.8 days of last reported operating cash use; Q2 segment economics were concentrated in MCM Products.
Emergent BioSolutions has reported second-quarter results for the period ended
The company defines segment gross margin as revenue less cost of sales and intangible-asset amortization; Q2 gross margin was
Those same-quarter segment figures place both the stronger revenue contribution and the stronger gross-margin contribution in MCM Products, while the Commercial Products segment remains the weaker operating contributor.
As of
Sources and calculations
- Emergent BioSolutions second-quarter 2026 results release (2026-08-05)
- Emergent BioSolutions Q1 2026 fundamentals (2026-03-31)
- Cash and equivalents vs quarterly operating cash outflow, in days of cash use $160,300,000 / ($33,800,000 / 90) = [object Object]
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 30 | Q1 earnings report | Positive | +2.9% | Revenue, profitability, refinancing, partnerships, and contracts supported the quarterly update. |
| Feb 26 | Q4 earnings report | Negative | -26.6% | Mixed annual results, buybacks, and debt repayment accompanied a substantial negative price reaction. |
| Oct 29 | Q3 earnings report | Positive | +36.6% | Revenue beat, improved profitability, raised guidance, and biodefense demand supported the release. |
| Aug 06 | Q2 earnings report | Positive | +36.6% | Revenue beat, stronger EBITDA, contract wins, and raised profitability guidance supported the update. |
| May 07 | Q1 earnings report | Positive | +34.2% | Profitability improvement, contract wins, facility sale, buyback, and reaffirmed guidance supported results. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions aligned positively in four of five events, with one sharp negative divergence.
Key Terms
adjusted ebitda financial
non-cash impairment charge financial
asset-backed loan facility financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Second Quarter 2026 Total Revenues of
$234.3 million , an improvement of66% versus prior year - Second Quarter 2026 Net Loss of
$180.2 million worsening 1,402% versus prior year, largely due to a$191.3 million non-cash impairment charge - Second Quarter 2026 Adjusted Net Income of
$30.9 million improved134% versus prior year - Second Quarter 2026 Gross Margin % of
50% and Adjusted Gross Margin % of58% , an expansion of 1400 bps and 900 bps, respectively, versus prior year - Second Quarter 2026 Adjusted EBITDA of
$96.5 million and Adjusted EBITDA Margin of41% , an improvement of 1,800 bps versus prior year - Restructuring business operations to align resourcing to current needs; expected to result in annualized savings of approximately
$40 million when fully implemented
GAITHERSBURG, Md., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Emergent BioSolutions Inc. (NYSE: EBS) today reported financial results for the second quarter ended June 30, 2026.
“Emergent delivered a strong second quarter, significantly exceeding the high end of our guidance range with revenues of
FINANCIAL HIGHLIGHTS (1)
Q2 2026 vs. Q2 2025
| ($ in millions, except per share amounts) | Q2 2026 | Q2 2025 | % Change | |||||
| Total Revenues | $ | 234.3 | $ | 140.9 | 66 | % | ||
| Net Loss | $ | (180.2 | ) | $ | (12.0 | ) | (1,402)% | |
| Net Loss per Diluted Share | $ | (3.49 | ) | $ | (0.22 | ) | (1,486)% | |
| Adjusted Net Income (2) | $ | 30.9 | $ | 13.2 | 134 | % | ||
| Adjusted Net Income per Diluted Share (2) | $ | 0.60 | $ | 0.24 | 150 | % | ||
| Adjusted EBITDA (2) | $ | 96.5 | $ | 33.1 | 192 | % | ||
| Net Loss Margin | (77)% | (9)% | ||||||
| Adjusted EBITDA Margin (2) | 41 | % | 23 | % | ||||
| Gross Margin % | 50 | % | 36 | % | ||||
| Adjusted Gross Margin % (2) | 58 | % | 49 | % | ||||
Year to Date ("YTD") 2026 vs YTD 2025
| ($ in millions, except per share amounts) | YTD 2026 | YTD 2025 | % Change | |||||
| Total Revenues | $ | 390.4 | $ | 363.1 | 8 | % | ||
| Net Income (Loss) | $ | (173.4 | ) | $ | 56.0 | (410)% | ||
| Net Income (Loss) per Diluted Share | $ | (3.35 | ) | $ | 0.99 | (438)% | ||
| Adjusted Net Income (2) | $ | 42.8 | $ | 55.4 | (23)% | |||
| Adjusted Net Income per Diluted Share (2) | $ | 0.83 | $ | 0.98 | (15)% | |||
| Adjusted EBITDA (2) | $ | 132.0 | $ | 112.2 | 18 | % | ||
| Net Income (Loss) Margin | (44)% | 15 | % | |||||
| Adjusted EBITDA Margin (2) | 34 | % | 31 | % | ||||
| Gross Margin % | 46 | % | 45 | % | ||||
| Adjusted Gross Margin % (2) | 56 | % | 55 | % | ||||
RECENT BUSINESS UPDATES
- Secured contract modification from U.S. government and completed delivery of approximately
$52.7 million of ACAM2000® (Smallpox and Mpox (Vaccinia) Vaccine, Live) - Executed
$64.5 million for BAT® (Botulism Antitoxin Heptavalent (A, B, C, D, E, F, G) – (Equine)) contract modification with U.S. government - Secured two new strategic manufacturing partnerships with:
- SAB Biotherapeutics to advance its type 1 diabetes candidate, SAB-142
- Substipharm Biologics to support its Japanese Encephalitis vaccine in the United States;
- Refinanced term loan with new
$150 million facility and amended asset-backed loan facility - Announced partnership with British Columbia to supply NARCAN® Nasal Spray for the launch of the expanded BC Take Home Naloxone Program
- Supported National Naloxone Awareness Day to increase awareness of life-saving naloxone
- Partnered with professional baseball player Davis Schneider to raise awareness of NARCAN® Nasal Spray in Canada
- Announced launch of new NARCAN® Nasal Spray Carrying Case and multipack configurations to expand opioid overdose preparedness following U.S. FDA approvals on supplemental new drug applications
- Received Saudi Food and Drug Authority Approval for ACAM2000® (Smallpox and Mpox (Vaccinia) Vaccine, Live)
- Received approval from Singapore Health Sciences Authority for expanded indication of ACAM2000® (Smallpox and Mpox (Vaccinia) Vaccine, Live) to include mpox
- Announced participation in several international preparedness conferences
RESTRUCTURING UPDATES
- Efforts aim to improve overall cost structure, drive efficiencies and align resourcing to the current needs of the organization; includes reduction of approximately 90 roles
- Creation of a new Growth organization that integrates the capabilities of R&D, Business Development, Strategy into one function led by Stephanie Duatschek, Senior Vice President, Chief Global Strategy & Franchise Development Officer, who will assume the role of Executive Vice President, Chief Growth Officer, with responsibility for the Company’s strategic growth
SECOND QUARTER 2026 FINANCIAL PERFORMANCE (1)
Revenues
The Company uses the following categories in discussing revenues:
- Naloxone — comprises contributions from NARCAN® Nasal Spray and KLOXXADO® Nasal Spray
- Anthrax MCM — comprises contributions from CYFENDUS®, BioThrax®, ANTHRASIL®, and Raxibacumab
- Smallpox MCM — comprises contributions from ACAM2000®, CNJ-016® (VIGIV) and TEMBEXA®
- Other Products — comprises contributions from BAT®
- All Other Revenues — comprises revenues from the Services operating segment and contracts and grants revenues
| ($ in millions) | Q2 2026 | Q2 2025 | $ Change | % Change | |||||
| Product sales, net: (3) | |||||||||
| Naloxone | $ | 52.4 | $ | 67.5 | $ | (15.1 | ) | (22)% | |
| Anthrax MCM | 12.3 | 11.6 | 0.7 | 6 | % | ||||
| Smallpox MCM | 101.6 | 40.6 | 61.0 | 150 | % | ||||
| Other Products | 54.1 | 6.2 | 47.9 | NM | |||||
| Total Product sales, net | $ | 220.4 | $ | 125.9 | $ | 94.5 | 75 | % | |
| All other revenues | $ | 13.9 | $ | 15.0 | $ | (1.1 | ) | (7)% | |
| Total revenues | $ | 234.3 | $ | 140.9 | $ | 93.4 | 66 | % | |
Product Sales, net (3)
Naloxone
For Q2 2026, revenues from Naloxone products decreased
Anthrax MCM
For Q2 2026, revenues from Anthrax MCM products increased
Smallpox MCM
For Q2 2026, revenues from Smallpox MCM products increased
Other Products
For Q2 2026, revenues from Other Product sales increased
All Other Revenues
Services
For Q2 2026, revenues from Services increased
Contracts and Grants
For Q2 2026, revenues from contracts and grants decreased
Operating Expenses
| ($ in millions) | Q2 2026 | Q2 2025 | $ Change | % Change | |||||
| Cost of product and services sales, net | $ | 97.1 | $ | 66.9 | $ | 30.2 | 45 | % | |
| Research and development (“R&D”) | 9.2 | 12.5 | (3.3 | ) | (26)% | ||||
| Selling, general and administrative (“SG&A”) | 44.6 | 43.7 | 0.9 | 2 | % | ||||
| Amortization of intangible assets | 17.2 | 16.2 | 1.0 | 6 | % | ||||
| Impairment of long-lived assets | 191.3 | — | 191.3 | NM | |||||
| Total operating expenses | $ | 359.4 | $ | 139.3 | $ | 220.1 | 158 | % | |
Cost of Product and Services Sales, Net
For Q2 2026, cost of product and services sales, net increased
Research and Development Expenses
For Q2 2026, R&D expenses decreased
Selling, General and Administrative Expenses
For Q2 2026, SG&A expenses increased
Impairment of Long-Lived Assets
For Q2 2026, impairment of long-lived assets was
ADDITIONAL FINANCIAL INFORMATION(1)
Capital Expenditures
| ($ in millions) | Q2 2026 | Q2 2025 | % Change | ||||
| Capital expenditures | $ | 2.1 | $ | 2.9 | (28)% | ||
| Capital expenditures as a % of total revenues | 1 | % | 2 | % | |||
For Q2 2026, capital expenditures decreased largely due to reduced development activities across the Company’s facilities.
REPORTABLE SEGMENT INFORMATION
The Company manages the business with a focus on three operating segments: (1) a Commercial Products segment consisting of NARCAN® Nasal Spray and KLOXXADO® Nasal Spray; (2) a MCM Products segment consisting of Anthrax - MCM, Smallpox - MCM and Other products and (3) a services segment consisting of our Bioservices offerings (“Services”). Commercial Products and MCM Products are our two reportable segments. The Services operating segment no longer meets the quantitative thresholds of a reportable segment and did not meet the aggregation criteria set forth in Accounting Standards Codification 280, Segment Reporting, and as such is categorized within “All other revenues” along with “Contracts and Grants”. The Company evaluates the performance of these reportable segments based on revenues and segment adjusted gross margin, which is a non-GAAP financial measure. Segment revenue includes external customer sales but does not include inter-segment services. The Company does not allocate contracts and grants revenue, R&D, SG&A, amortization of intangible assets, interest and other income (expense) or taxes to its evaluation of the performance of these segments.
SECOND QUARTER 2026 REPORTABLE SEGMENT RESULTS
| ($ in millions) | Commercial Products | ||||||||||
| Quarter Ended June 30, | |||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||
| Revenues | $ | 52.4 | $ | 67.5 | $ | (15.1 | ) | (22)% | |||
| Cost of sales | 36.3 | 36.4 | (0.1 | ) | — | % | |||||
| Intangible asset amortization | 9.4 | 9.4 | — | — | % | ||||||
| Gross margin* | $ | 6.7 | $ | 21.7 | $ | (15.0 | ) | (69)% | |||
| Gross margin %* | 13 | % | 32 | % | |||||||
| Add back: | |||||||||||
| Intangible asset amortization | $ | 9.4 | $ | 9.4 | |||||||
| Severance and restructuring costs | — | 0.2 | |||||||||
| Stock-based compensation expense | 0.1 | — | |||||||||
| Segment adjusted gross margin ** | $ | 16.2 | $ | 31.3 | $ | (15.1 | ) | (48)% | |||
| Segment adjusted gross margin % ** | 31 | % | 46 | % | |||||||
| * Gross margin is calculated as revenues less cost of sales and intangible asset amortization. Gross margin % is calculated as gross margin divided by revenues. | |||||||||||
| ** Segment adjusted gross margin, which is a non-GAAP financial measure, for our Commercial Products segment is calculated as gross margin plus intangible asset amortization, severance and restructuring costs and the portion of stock-based compensation expense that is recorded as cost of sales. Segment adjusted gross margin percentage, which is a non-GAAP financial measure, is calculated as segment adjusted gross margin divided by revenues. The Company’s management utilizes segment adjusted gross margin and segment adjusted gross margin percentage for purposes of evaluating our ongoing operations and for internal planning and forecasting purposes. In calculating these measures, we began excluding stock-based compensation that is recorded as cost of sales in the first quarter of 2026, as this reflects a non-cash expenditure that is not related to segment operating performance. As reflected in the table above, we have recast our 2025 results to also reflect this adjustment. We believe that these non-GAAP operating measures, when reviewed collectively with our GAAP financial information, provide useful supplemental information to investors in assessing our operating performance. | |||||||||||
| NM - Not meaningful | |||||||||||
Cost of Commercial Products sales decreased
Commercial Products gross margin decreased
| ($ in millions) | MCM Products | |||||||||
| Quarter Ended June 30, | ||||||||||
| 2026 | 2025 | $ Change | % Change | |||||||
| Revenues | $ | 168.0 | $ | 58.4 | $ | 109.6 | 188 | % | ||
| Cost of sales | 52.8 | 25.8 | 27.0 | 105 | % | |||||
| Intangible asset amortization | 7.8 | 6.8 | 1.0 | 15 | % | |||||
| Gross margin* | $ | 107.4 | $ | 25.8 | $ | 81.6 | NM | |||
| Gross margin %* | 64 | % | 44 | % | ||||||
| Add back: | ||||||||||
| Intangible asset amortization | $ | 7.8 | $ | 6.8 | ||||||
| Inventory step-up provision | 0.2 | — | ||||||||
| Severance and restructuring benefit | — | (0.4 | ) | |||||||
| Stock-based compensation expense | 0.7 | 0.3 | ||||||||
| Segment adjusted gross margin** | $ | 116.1 | $ | 32.5 | $ | 83.6 | NM | |||
| Segment adjusted gross margin %** | 69 | % | 56 | % | ||||||
| * Gross margin is calculated as revenues less cost of sales and intangible asset amortization. Gross margin % is calculated as gross margin divided by revenues. | ||||||||||
| ** Segment adjusted gross margin, which is a non-GAAP financial measure, for our MCM Products segment is calculated as gross margin plus intangible asset amortization, inventory step-up provision, severance and restructuring benefit and the portion of stock-based compensation expense that is recorded as cost of sales. Segment adjusted gross margin percentage, which is a non-GAAP financial measure, is calculated as segment adjusted gross margin divided by revenues. The Company’s management utilizes segment adjusted gross margin and segment adjusted gross margin percentage for purposes of evaluating our ongoing operations and for internal planning and forecasting purposes. In calculating these measures, we began excluding stock-based compensation that is recorded as cost of sales in the first quarter of 2026, as this reflects a non-cash expenditure that is not related to segment operating performance. As reflected in the table above, we have recast our 2025 results to also reflect this adjustment. We believe that these non-GAAP operating measures, when reviewed collectively with our GAAP financial information, provide useful supplemental information to investors in assessing our operating performance. | ||||||||||
| NM - Not Meaningful | ||||||||||
Cost of MCM product sales increased
MCM Products gross margin increased
YTD 2026 REPORTABLE SEGMENT RESULTS
| ($ in millions) | Commercial Products | ||||||||||
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||
| Revenues | $ | 95.3 | $ | 112.8 | $ | (17.5 | ) | (16)% | |||
| Cost of sales | 63.1 | 60.9 | 2.2 | 4 | % | ||||||
| Intangible asset amortization | 18.9 | 18.9 | — | — | % | ||||||
| Gross margin* | $ | 13.3 | $ | 33.0 | $ | (19.7 | ) | (60)% | |||
| Gross margin %* | 14 | % | 29 | % | |||||||
| Add back: | |||||||||||
| Intangible asset amortization | $ | 18.9 | $ | 18.9 | |||||||
| Severance and restructuring costs | — | 0.2 | |||||||||
| Stock-based compensation expense | 0.1 | — | |||||||||
| Segment adjusted gross margin** | $ | 32.3 | $ | 52.1 | $ | (19.8 | ) | (38)% | |||
| Segment adjusted gross margin %** | 34 | % | 46 | % | |||||||
| * Gross margin is calculated as revenues less cost of sales and intangible asset amortization. Gross margin % is calculated as gross margin divided by revenues. | |||||||||||
| ** Segment adjusted gross margin, which is a non-GAAP financial measure, for our Commercial Products segment is calculated as gross margin plus intangible asset amortization, severance and restructuring costs and the portion of stock-based compensation expense that is recorded as cost of sales. Segment adjusted gross margin percentage, which is a non-GAAP financial measure, is calculated as segment adjusted gross margin divided by revenues. The Company’s management utilizes segment adjusted gross margin and segment adjusted gross margin percentage for purposes of evaluating our ongoing operations and for internal planning and forecasting purposes. In calculating these measures, we began excluding stock-based compensation that is recorded as cost of sales in the first quarter of 2026, as this reflects a non-cash expenditure that is not related to segment operating performance. As reflected in the table above, we have recast our 2025 results to also reflect this adjustment. We believe that these non-GAAP operating measures, when reviewed collectively with our GAAP financial information, provide useful supplemental information to investors in assessing our operating performance. | |||||||||||
| NM - Not Meaningful | |||||||||||
Cost of Commercial Product sales increased
Commercial Products gross margin decreased
| ($ in millions) | MCM Products | |||||||||
| Six Months Ended June 30, | ||||||||||
| 2026 | 2025 | $ Change | % Change | |||||||
| Revenues | $ | 269.8 | $ | 215.0 | $ | 54.8 | 25 | % | ||
| Cost of sales | 89.6 | 76.0 | 13.6 | 18 | % | |||||
| Intangible asset amortization | 14.8 | 13.6 | 1.2 | 9 | % | |||||
| Gross margin* | $ | 165.4 | $ | 125.4 | $ | 40.0 | 32 | % | ||
| Gross margin %* | 61 | % | 58 | % | ||||||
| Add back: | ||||||||||
| Intangible asset amortization | $ | 14.8 | $ | 13.6 | ||||||
| Severance and restructuring benefit | — | (1.2 | ) | |||||||
| Inventory step-up provision | 0.3 | 1.8 | ||||||||
| Stock-based compensation expense | 1.2 | 0.6 | ||||||||
| Segment adjusted gross margin** | $ | 181.7 | $ | 140.2 | $ | 41.5 | 30 | % | ||
| Segment adjusted gross margin %** | 67 | % | 65 | % | ||||||
| * Gross margin is calculated as revenues less cost of sales and intangible asset amortization. Gross margin % is calculated as gross margin divided by revenues. | ||||||||||
| ** Segment adjusted gross margin, which is a non-GAAP financial measure, for our MCM Products segment is calculated as gross margin plus intangible asset amortization, inventory step-up provision, severance and restructuring benefit and the portion of stock-based compensation expense that is recorded as cost of sales. Segment adjusted gross margin percentage, which is a non-GAAP financial measure, is calculated as segment adjusted gross margin divided by revenues. The Company’s management utilizes segment adjusted gross margin and segment adjusted gross margin percentage for purposes of evaluating our ongoing operations and for internal planning and forecasting purposes. In calculating these measures, we began excluding stock-based compensation that is recorded as cost of sales in the first quarter of 2026, as this reflects a non-cash expenditure that is not related to segment operating performance. As reflected in the table above, we have recast our 2025 results to also reflect this adjustment. We believe that these non-GAAP operating measures, when reviewed collectively with our GAAP financial information, provide useful supplemental information to investors in assessing our operating performance. | ||||||||||
| NM - Not Meaningful | ||||||||||
Cost of MCM product sales increased
MCM Product gross margin increased
2026 FINANCIAL FORECAST
The Company provides the following updated financial forecast for full year 2026, reflecting management's expectations based on the most current information available.
| METRIC ($ in millions) | Updated Range (as of 08/05/2026) | Action | Previous Range (as of 04/30/2026) |
| Total revenues | REVISED | ||
| Net loss | REVISED | ||
| Adjusted net income (2) | REVISED | ||
| Adjusted EBITDA (2) | REVISED | ||
| Adjusted gross margin % (2) | REVISED | ||
| Key Assumptions ($ and shares in millions) | Updated Range (as of 08/05/2026) |
| Interest expense | ~ |
| R&D | ~ |
| SG&A | ~ |
| Weighted avg. fully diluted share count | ~52 |
| Stock-based compensation expense | ~ |
| Capex | ~ |
| Depreciation & amortization | ~ |
Q2 2026
| METRIC ($ in millions) | Q3 2026 Forecast |
| Total revenues | |
FOOTNOTES
(1) All financial information included in this release is unaudited.
(2) See “Non-GAAP Financial Measures” and the “Reconciliation of Non-GAAP Financial Measures” tables for the definitions and reconciliations of Company-wide non-GAAP financial measures to the most closely related GAAP financial measures. Reconciliations of segment non-GAAP financial measures are included within the reportable segment tables. In the first quarter of 2026 we revised our calculations of these measures to exclude the impact of stock-based compensation expense, as this is a non-cash expense that is not related to our operating performance. The updated ranges for our 2026 forecast reflect this adjustment.
(3) Product sales, net are reported net of variable consideration including returns, rebates, wholesaler fees and prompt pay discounts in accordance with GAAP.
CONFERENCE CALL, PRESENTATION SUPPLEMENT AND WEBCAST INFORMATION
Company management will host a conference call at 5:00 pm eastern time today, August 5, 2026, to discuss these financial results. The conference call and presentation supplement can be accessed from the Company's website or through the following:
By phone
Advanced registration is required.
Visit https://register-conf.media-server.com/register/BI77a0454e68eb4a728e6c2ddddee54766 to register and receive an email with the dial-in number, passcode and registrant ID.
By webcast
Visit https://edge.media-server.com/mmc/p/fjwb9v5g/
A replay of the call can be accessed from the Emergent website.
ABOUT EMERGENT BIOSOLUTIONS INC.
At Emergent, our mission is to protect and save lives. For over 25 years, we’ve been at work preparing those entrusted with protecting public health. We deliver protective and life-saving solutions for health threats like smallpox, mpox, botulism, Ebola, anthrax and opioid overdose emergencies. To learn more about how we help prepare communities around the world for today’s health challenges and tomorrow’s threats, visit our website and follow us on LinkedIn, X, Instagram, Apple Podcasts and Spotify.
NON-GAAP FINANCIAL MEASURES
In the accompanying analysis of financial information, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Certain of these financial measures are considered not in conformity with GAAP (“non-GAAP financial measures”) under the United States Securities and Exchange Commission (“SEC”) rules. Specifically, we have referred to the following non-GAAP financial measures:
- Adjusted Net Income
- Adjusted Net Income per Diluted Share
- Adjusted EBITDA
- Adjusted EBITDA Margin
- Adjusted Gross Margin
- Adjusted Gross Margin %
- Segment Adjusted Gross Margin
- Segment Adjusted Gross Margin %
We define Adjusted Net Income and Adjusted Net Income per Diluted Share, which are non-GAAP financial measures, as net income (loss) and net income (loss) per diluted share, respectively, excluding the impact of non-cash amortization charges, impairments, severance and restructuring costs (benefits), inventory step-up provision, acquisition and divestiture costs, loss on assets held for sale, contingent consideration milestones, changes in fair value of financial instruments, stock-based compensation expense, loss on debt extinguishment, other, net, and tax effects. In the first quarter of 2026 we revised our calculation of these measures to exclude the impact of stock-based compensation expense, as this is a non-cash expense that is not related to our operating performance. We use Adjusted Net Income for the purpose of calculating Adjusted Net Income per Diluted Share. Management uses Adjusted Net Income per Diluted Share to assess total Company operating performance on a consistent basis. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results and GAAP financial measures, provide management and investors with an additional understanding of our business operating results, including underlying trends.
We define Adjusted EBITDA, which is a non-GAAP financial measure, as net income (loss) before depreciation and amortization, income taxes, total interest expense, net, impairments, inventory step-up provision, changes in fair value of financial instruments, severance and restructuring costs (benefits), acquisition and divestiture costs, loss on assets held for sale, contingent consideration milestones, stock-based compensation expense, loss on debt extinguishment, and other, net. We define Adjusted EBITDA Margin, which is a non-GAAP financial measure, as Adjusted EBITDA divided by Total Revenues. In the first quarter of 2026 we revised our calculation of these measures to exclude the impact of stock-based compensation expense, as this is a non-cash expense that is not related to our operating performance. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results and GAAP financial measures, provide management and investors with a more complete understanding of our operating results, including underlying trends. In addition, EBITDA is a common alternative measure of operating performance used by many of our competitors. It is used by investors, financial analysts, rating agencies and others to value and compare the financial performance of companies in our industry, although it may be defined differently by different companies. Therefore, we also believe that this non-GAAP financial measure, considered along with corresponding GAAP financial measures, provides management and investors with additional information for comparison of our operating results with the operating results of other companies.
We define Adjusted Gross Margin, which is a non-GAAP financial measure, as Gross Margin, excluding the impact of intangible asset amortization, stock-based compensation expense, severance and restructuring costs (benefits) and inventory step-up provision. We define Adjusted Gross Margin %, which is a non-GAAP financial measure, as Adjusted Gross Margin as a percentage of Products and services sales, net. In the first quarter of 2026 we revised our calculation of these measures to exclude the impact of stock-based compensation expense, as this is a non-cash expense that is not related to our operating performance.
We define Segment Adjusted Gross Margin, which is a non-GAAP financial measure, as a segment's Gross Margin excluding the respective impact of intangible asset amortization, severance and restructuring costs (benefits), stock-based compensation expense and inventory step-up provision. We define Segment Adjusted Gross Margin %, which is a non-GAAP financial measure, as Segment Adjusted Gross Margin as a percentage of a segment's revenues. In the first quarter of 2026 we revised our calculation of these measures to exclude the impact of stock-based compensation expense, as this is a non-cash expense that is not related to segment operating performance.
Non-GAAP financial measures are not defined in the same manner by all companies and may not be comparable with other similarly titled measures of other companies. The determination of the amounts that are excluded from these non-GAAP financial measures are a matter of management judgment and depend upon, among other factors, the nature of the underlying expense or income amounts. Non-GAAP financial measures should be considered in addition to, but not as a substitute for or superior to, the information contained in our Consolidated Statements of Operations and Consolidated Statements of Cash Flows. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.
SAFE HARBOR STATEMENT
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements, other than statements of historical fact, including statements regarding the future performance of the Company or any of our businesses, our business strategy, future operations, future financial position, future revenues and earnings, our ability to achieve the objectives of our restructuring initiatives, acquisitions and divestitures, including our future results, projected costs, prospects, plans and objectives of management, are forward-looking statements. We generally identify forward-looking statements by using words like “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “confident,” “commit,” “forecast,” “future,” “outlook,” “goal,” “intend,” “may,” “plan,” “position,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and similar expressions or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements. These forward-looking statements are based on our current intentions, beliefs, assumptions and expectations regarding future events based on information that is currently available. You should realize that if underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could differ materially from our expectations. Readers are, therefore, cautioned not to place undue reliance on any forward-looking statement contained herein. Any such forward-looking statement speaks only as of the date of this press release, and, except as required by law, we do not undertake any obligation to update any forward-looking statement to reflect new information, events or circumstances.
There are a number of important factors that could cause our actual results to differ materially from those indicated by such forward-looking statements, including, among others, the availability of USG funding for contracts related to procurement of our medical countermeasures (“MCM”) products, including CYFENDUS® (Anthrax Vaccine Adsorbed (AVA) Adjuvanted), previously known as AV7909, ACAM2000® (Smallpox and Mpox (Vaccinia) Vaccine, Live), CNJ-016® (Vaccinia Immune Globulin Intravenous (Human) (VIGIV)), BAT® (Botulism Antitoxin Heptavalent (A,B,C,D,E,F,G)-(Equine)), BioThrax® (Anthrax Vaccine Adsorbed) Ebanga® (ansuvimab-zykl) and/or TEMBEXA® (brincidofovir) among others, as well as contracts related to development of medical countermeasures; our ability to meet our commitments to quality and compliance in all of our manufacturing operations; our ability to negotiate additional USG procurement or follow-on contracts for our MCM products that have expired or will be expiring; the commercial availability and impact of a generic and competitive marketplace on future sales of NARCAN® (naloxone HCL) Nasal Spray, over-the-counter NARCAN® Nasal Spray and KLOXXADO® Nasal Spray; our ability to perform under our contracts with the USG, including the timing of and specifications relating to deliveries; the ability of our contractors and suppliers to maintain compliance with current good manufacturing practices and other regulatory obligations; our ability to collect reimbursement for raw materials and payment of service fees from our Bioservices customers; the results of pending government investigations and their potential impact on our business; our ability to satisfy the conditions of our litigation settlement agreements, and the potential impact of such agreements, including the funds to resolve related litigation, on our business; our ability to comply with the operating and financial covenants required by (i) our term loan facility under the Credit Agreement, dated April 16, 2026, by and among the Company, the lenders from time to time party thereto, and OrbiMed Royalty & Credit Opportunities V, LP, as administrative agent, (ii) our revolving credit facility under a credit agreement, dated September 30, 2024, among the Company, certain subsidiary borrowers, the lenders from time to time party thereto and Wells Fargo, National Association, as Agent, and (iii) our
Trademarks
Emergent®, BioThrax®, BaciThrax®, BAT®, Trobigard®, ANTHRASIL®, CNJ-016®, ACAM2000®, NARCAN®, CYFENDUS®, TEMBEXA® and any and all Emergent BioSolutions Inc. brands, products, services and feature names, logos and slogans are trademarks or registered trademarks of Emergent BioSolutions Inc. or its subsidiaries in the United States or other countries. All other brands, products, services and feature names or trademarks are the property of their respective owners, including KLOXXADO®, which is a registered trademark of Hikma Pharmaceuticals USA Inc.
| Investor Contact Rich Lindahl Executive Vice President, Chief Financial Officer lindahlr@ebsi.com | Media Contact Assal Hellmer Vice President, Communications mediarelations@ebsi.com |
| Emergent BioSolutions Inc. Consolidated Balance Sheets (in millions, except per share data) | |||||||
| June 30, 2026 | December 31, 2025 | ||||||
| (unaudited) | |||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 139.7 | $ | 205.4 | |||
| Restricted cash | 1.2 | 3.7 | |||||
| Accounts receivable, net | 190.0 | 84.2 | |||||
| Inventories, net | 303.6 | 343.4 | |||||
| Prepaid expenses and other current assets | 25.4 | 25.8 | |||||
| Assets held-for-sale | 6.1 | — | |||||
| Total current assets | 666.0 | 662.5 | |||||
| Property, plant and equipment, net | 178.0 | 205.4 | |||||
| Intangible assets, net | 261.8 | 436.5 | |||||
| Other assets | 11.0 | 14.2 | |||||
| Total assets | $ | 1,116.8 | $ | 1,318.6 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 50.2 | $ | 55.6 | |||
| Accrued expenses | 17.1 | 12.2 | |||||
| Accrued compensation | 26.2 | 41.8 | |||||
| Deferred revenue | 15.0 | 5.0 | |||||
| Current tax liability | 4.4 | 6.8 | |||||
| Other current liabilities | 9.9 | 10.8 | |||||
| Total current liabilities | 122.8 | 132.2 | |||||
| Debt | 581.8 | 572.1 | |||||
| Deferred tax liability | 35.4 | 37.8 | |||||
| Other liabilities | 35.4 | 53.9 | |||||
| Total liabilities | $ | 775.4 | $ | 796.0 | |||
| Stockholders’ equity: | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 0.1 | 0.1 | |||||
| Treasury stock, at cost, 10.7 and 8.7 common shares, respectively | (270.5 | ) | (252.6 | ) | |||
| Additional paid-in capital | 951.8 | 942.4 | |||||
| Accumulated other comprehensive loss, net | (6.8 | ) | (7.5 | ) | |||
| Accumulated deficit | (333.2 | ) | (159.8 | ) | |||
| Total stockholders’ equity | $ | 341.4 | $ | 522.6 | |||
| Total liabilities and stockholders’ equity | $ | 1,116.8 | $ | 1,318.6 | |||
| Emergent BioSolutions Inc. Consolidated Statements of Operations (unaudited, in millions, except per share data) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenues: | |||||||||||||||
| Product and services sales, net | $ | 226.8 | $ | 130.3 | $ | 376.5 | $ | 339.4 | |||||||
| Contracts and grants | 7.5 | 10.6 | 13.9 | 23.7 | |||||||||||
| Total revenues | 234.3 | 140.9 | 390.4 | 363.1 | |||||||||||
| Operating expenses: | |||||||||||||||
| Cost of product and services sales, net (1) | 97.1 | 66.9 | 169.1 | 155.4 | |||||||||||
| Research and development | 9.2 | 12.5 | 19.7 | 27.6 | |||||||||||
| Selling, general and administrative | 44.6 | 43.7 | 91.2 | 96.1 | |||||||||||
| Amortization of intangible assets | 17.2 | 16.2 | 33.7 | 32.5 | |||||||||||
| Impairment of long-lived assets | 191.3 | — | 191.3 | — | |||||||||||
| Total operating expenses | 359.4 | 139.3 | 505.0 | 311.6 | |||||||||||
| Income (loss) from operations | (125.1 | ) | 1.6 | (114.6 | ) | 51.5 | |||||||||
| Other income (expense): | |||||||||||||||
| Interest expense | (10.0 | ) | (14.7 | ) | (21.0 | ) | (29.4 | ) | |||||||
| Loss on assets held-for-sale | (10.7 | ) | — | (10.7 | ) | (12.2 | ) | ||||||||
| Loss on debt extinguishment | (20.5 | ) | — | (20.5 | ) | — | |||||||||
| Other, net | — | (3.7 | ) | 13.9 | 66.0 | ||||||||||
| Total other income (expense), net | (41.2 | ) | (18.4 | ) | (38.3 | ) | 24.4 | ||||||||
| Income (loss) before income taxes | (166.3 | ) | (16.8 | ) | (152.9 | ) | 75.9 | ||||||||
| Income tax provision (benefit) | 13.9 | (4.8 | ) | 20.5 | 19.9 | ||||||||||
| Net income (loss) | $ | (180.2 | ) | $ | (12.0 | ) | $ | (173.4 | ) | $ | 56.0 | ||||
| Earnings (loss) per common share | |||||||||||||||
| Basic | $ | (3.49 | ) | $ | (0.22 | ) | $ | (3.35 | ) | $ | 1.03 | ||||
| Diluted | $ | (3.49 | ) | $ | (0.22 | ) | $ | (3.35 | ) | $ | 0.99 | ||||
| Weighted average shares outstanding | |||||||||||||||
| Basic | 51.6 | 54.2 | 51.7 | 54.3 | |||||||||||
| Diluted | 51.6 | 54.2 | 51.7 | 56.7 | |||||||||||
| (1) Exclusive of intangible asset amortization | |||||||||||||||
| Emergent BioSolutions Inc. Consolidated Statements of Cash Flows (unaudited, in millions) | |||||||
| Six Months Ended June 30, | |||||||
| 2026 | 2025 | ||||||
| Operating Activities | |||||||
| Net income (loss) | $ | (173.4 | ) | $ | 56.0 | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Stock-based compensation expense | 8.8 | 6.1 | |||||
| Depreciation and amortization | 47.5 | 48.9 | |||||
| Amortization of deferred financing costs | 3.4 | 4.7 | |||||
| Deferred income taxes | (2.4 | ) | 4.7 | ||||
| Noncash loss on assets held-for-sale | 10.7 | 12.2 | |||||
| Change in fair value of warrant liability | (8.9 | ) | (6.6 | ) | |||
| Impairment of long-lived assets | 191.3 | — | |||||
| Loss on disposal of assets | 2.0 | 1.3 | |||||
| Other | 19.8 | (9.1 | ) | ||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (107.7 | ) | 45.2 | ||||
| Inventories | 39.8 | (26.9 | ) | ||||
| Prepaid expenses and other assets | (0.6 | ) | 29.2 | ||||
| Accounts payable | (4.4 | ) | (15.8 | ) | |||
| Accrued expenses and other liabilities | 1.2 | (28.3 | ) | ||||
| Long-term incentive plan accrual | 0.4 | 1.6 | |||||
| Accrued compensation | (16.0 | ) | (26.3 | ) | |||
| Income taxes receivable and payable, net | 4.3 | (1.6 | ) | ||||
| Contract liabilities | 6.5 | (0.1 | ) | ||||
| Net cash provided by operating activities | 22.3 | 95.2 | |||||
| Investing Activities | |||||||
| Purchases of property, plant and equipment | (4.5 | ) | (6.5 | ) | |||
| Proceeds from sale of property, plant and equipment | 0.2 | 38.2 | |||||
| Milestone payment from prior asset acquisition | (50.4 | ) | — | ||||
| Milestone proceeds from prior asset divestiture | — | 50.0 | |||||
| Purchase of convertible note receivable | — | (5.0 | ) | ||||
| Net cash provided by (used in) investing activities | (54.7 | ) | 76.7 | ||||
| Financing Activities | |||||||
| Purchases of treasury stock | (18.0 | ) | (6.9 | ) | |||
| Proceeds from stock-based compensation activity | 1.4 | 0.8 | |||||
| Taxes paid for stock-based compensation activity | (3.2 | ) | (0.7 | ) | |||
| Repayment of prior term loan facility | (150.0 | ) | — | ||||
| Proceeds from the issuance of debt, net of lender fees | 145.5 | — | |||||
| Debt issuance and extinguishment costs | (11.5 | ) | — | ||||
| Net cash used in financing activities: | (35.8 | ) | (6.8 | ) | |||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | 0.3 | |||||
| Net change in cash, cash equivalents and restricted cash | (68.2 | ) | 165.4 | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 209.1 | 105.6 | |||||
| Cash, cash equivalents and restricted cash, end of period | $ | 140.9 | $ | 271.0 | |||
| Supplemental cash flow disclosures: | |||||||
| Cash paid for interest | $ | 16.6 | $ | 24.8 | |||
| Cash paid for income taxes, net of refunds | $ | 9.6 | $ | 16.6 | |||
| Non-cash investing and financing activities: | |||||||
| Purchases of property, plant and equipment unpaid at period end | $ | 2.6 | $ | 2.2 | |||
| Loss on extinguishment of debt | $ | (20.5 | ) | $ | — | ||
| Excise tax liability accrued for treasury stock purchases | $ | 0.2 | $ | — | |||
| Reconciliation of cash and cash equivalents and restricted cash: | |||||||
| Cash and cash equivalents | $ | 139.7 | $ | 267.3 | |||
| Restricted cash | 1.2 | 3.7 | |||||
| Total | $ | 140.9 | $ | 271.0 | |||
| Emergent BioSolutions Inc. Reconciliation of Non-GAAP Financial Measures Reconciliation of Net Income (loss) and Net Income (loss) per Diluted Share to Adjusted Net Income and Adjusted Net Income per Diluted Share(1) | ||||||||||||||
| ($ in millions, except per share data) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | Source | ||||||||||
| Net income (loss) | $ | (180.2 | ) | $ | (12.0 | ) | $ | (173.4 | ) | $ | 56.0 | |||
| Adjustments: | ||||||||||||||
| Inventory step-up provision | $ | 0.2 | $ | — | $ | 0.3 | $ | 1.8 | Cost of product and services sales, net | |||||
| Severance and restructuring costs (benefits) | 0.5 | 0.5 | 0.7 | (0.8 | ) | Cost of product and services sales, net, SG&A and R&D | ||||||||
| Stock-based compensation expense | 6.9 | 4.6 | 8.8 | 6.1 | Cost of product and services sales, net, SG&A and R&D | |||||||||
| Acquisition and divestiture costs | — | — | — | 0.2 | SG&A | |||||||||
| Non-cash amortization charges | 18.8 | 18.7 | 37.2 | 37.2 | Amortization of intangible assets ("IA"), Other Income | |||||||||
| Impairments | 191.3 | — | 191.3 | — | Impairment of long-lived assets | |||||||||
| Loss on assets held-for-sale | 10.7 | — | 10.7 | 12.2 | Other Income (Expense) | |||||||||
| Contingent consideration milestones | — | — | (5.0 | ) | (50.0 | ) | Other Income (Expense) | |||||||
| Changes in fair value of financial instruments | (0.5 | ) | 2.9 | (9.0 | ) | (6.6 | ) | Other Income (Expense) | ||||||
| Loss on debt extinguishment | 20.5 | — | 20.5 | — | Other Income (Expense) | |||||||||
| Other, net | — | 5.0 | (0.3 | ) | (2.9 | ) | Other Income (Expense) | |||||||
| Tax effect | (37.3 | ) | (6.5 | ) | (39.0 | ) | 2.2 | |||||||
| Total adjustments: | $ | 211.1 | $ | 25.2 | $ | 216.2 | $ | (0.6 | ) | |||||
| Adjusted net income | $ | 30.9 | $ | 13.2 | $ | 42.8 | $ | 55.4 | ||||||
| Net income (loss) per diluted share | $ | (3.49 | ) | $ | (0.22 | ) | $ | (3.35 | ) | $ | 0.99 | |||
| Adjustments: | ||||||||||||||
| Inventory step-up provision | $ | — | $ | — | $ | 0.01 | $ | 0.03 | Cost of product and services sales, net | |||||
| Severance and restructuring costs (benefits) | 0.01 | 0.01 | 0.01 | (0.01 | ) | Cost of product and services sales, net, SG&A and R&D | ||||||||
| Stock-based compensation expense | 0.13 | 0.08 | 0.17 | 0.11 | Cost of product and services sales, net, SG&A and R&D | |||||||||
| Acquisition and divestiture costs | — | — | — | — | SG&A | |||||||||
| Non-cash amortization charges | 0.36 | 0.35 | 0.72 | 0.66 | Amortization of IA, Other Income | |||||||||
| Impairments | 3.71 | — | 3.70 | — | Impairment of long-lived assets | |||||||||
| Loss on assets held-for-sale | 0.21 | — | 0.21 | 0.22 | Other Income (Expense) | |||||||||
| Contingent consideration milestones | — | — | (0.10 | ) | (0.88 | ) | Other Income (Expense) | |||||||
| Changes in fair value of financial instruments | (0.01 | ) | 0.05 | (0.17 | ) | (0.12 | ) | Other Income (Expense) | ||||||
| Loss on debt extinguishment | 0.40 | — | 0.40 | — | Other Income (Expense) | |||||||||
| Other, net | — | 0.09 | (0.01 | ) | (0.05 | ) | Other Income (Expense) | |||||||
| Tax effect | (0.72 | ) | (0.12 | ) | (0.76 | ) | 0.03 | |||||||
| Total adjustments: | $ | 4.09 | $ | 0.46 | $ | 4.18 | $ | (0.01 | ) | |||||
| Adjusted net income per diluted share | $ | 0.60 | $ | 0.24 | $ | 0.83 | $ | 0.98 | ||||||
| Diluted shares used in computing Adjusted net income per diluted share | 51.6 | 54.2 | 51.7 | 56.7 | ||||||||||
| (1) Amounts for fiscal year 2025 have been revised from those previously reported to reflect the exclusion of stock-based compensation expense. | ||||||||||||||
| Emergent BioSolutions Inc. Reconciliation of Net Income (loss) and Net Income (loss) Margin to Adjusted EBITDA and Adjusted EBITDA Margin(1) | |||||||||||||
| ($ in millions) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| Net income (loss) | $ | (180.2 | ) | $ | (12.0 | ) | $ | (173.4 | ) | $ | 56.0 | ||
| Adjustments: | |||||||||||||
| Depreciation & amortization | $ | 24.0 | $ | 23.5 | $ | 47.5 | $ | 48.9 | |||||
| Income taxes | 13.9 | (4.8 | ) | 20.5 | 19.9 | ||||||||
| Total interest expense, net | 9.2 | 13.4 | 19.4 | 27.4 | |||||||||
| Inventory step-up provision | 0.2 | — | 0.3 | 1.8 | |||||||||
| Severance and restructuring costs (benefits) | 0.5 | 0.5 | 0.7 | (0.8 | ) | ||||||||
| Stock-based compensation expense | 6.9 | 4.6 | 8.8 | 6.1 | |||||||||
| Acquisition and divestiture costs | — | — | — | 0.2 | |||||||||
| Impairments | 191.3 | — | 191.3 | — | |||||||||
| Loss on assets held-for-sale | 10.7 | — | 10.7 | 12.2 | |||||||||
| Contingent consideration milestones | — | — | (5.0 | ) | (50.0 | ) | |||||||
| Changes in fair value of financial instruments | (0.5 | ) | 2.9 | (9.0 | ) | (6.6 | ) | ||||||
| Loss on debt extinguishment | 20.5 | — | 20.5 | — | |||||||||
| Other, net | — | 5.0 | (0.3 | ) | (2.9 | ) | |||||||
| Total adjustments | $ | 276.7 | $ | 45.1 | $ | 305.4 | $ | 56.2 | |||||
| Adjusted EBITDA | $ | 96.5 | $ | 33.1 | $ | 132.0 | $ | 112.2 | |||||
| Total revenues | $ | 234.3 | $ | 140.9 | $ | 390.4 | $ | 363.1 | |||||
| Net income (loss) margin | (77)% | (9)% | (44)% | 15 | % | ||||||||
| Adjusted EBITDA margin | 41 | % | 23 | % | 34 | % | 31 | % | |||||
| (1) Amounts for fiscal year 2025 have been revised from those previously reported to reflect the exclusion of stock-based compensation expense. | |||||||||||||
| Emergent BioSolutions Inc. Reconciliations of Total Revenues to Product and Services Sales, Net and of Gross Margin and Gross Margin % to Adjusted Gross Margin and Adjusted Gross Margin %(1) | |||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||
| Total revenues | $ | 234.3 | $ | 140.9 | $ | 390.4 | $ | 363.1 | |||||
| Contracts and grants | 7.5 | 10.6 | 13.9 | 23.7 | |||||||||
| Product and services sales, net | $ | 226.8 | $ | 130.3 | $ | 376.5 | $ | 339.4 | |||||
| Cost of product and services sales, net | 97.1 | 66.9 | 169.1 | 155.4 | |||||||||
| Intangible asset amortization | 17.2 | 16.2 | 33.7 | 32.5 | |||||||||
| Gross margin | $ | 112.5 | $ | 47.2 | $ | 173.7 | $ | 151.5 | |||||
| Gross margin % | 50 | % | 36 | % | 46 | % | 45 | % | |||||
| Add back: | |||||||||||||
| Intangible asset amortization | $ | 17.2 | $ | 16.2 | $ | 33.7 | $ | 32.5 | |||||
| Stock-based compensation expense | 0.9 | 0.3 | 1.4 | 0.6 | |||||||||
| Severance and restructuring costs (benefits) | 0.1 | (0.1 | ) | 0.1 | (1.0 | ) | |||||||
| Inventory step-up provision | 0.2 | — | 0.3 | 1.8 | |||||||||
| Adjusted gross margin | $ | 130.9 | $ | 63.6 | $ | 209.2 | $ | 185.4 | |||||
| Adjusted gross margin % | 58 | % | 49 | % | 56 | % | 55 | % | |||||
| (1) Amounts for fiscal year 2025 have been revised from those previously reported to reflect the exclusion of stock-based compensation expense. | |||||||||||||
| Emergent BioSolutions Inc. Reconciliation of Net Loss Forecast to Adjusted Net Income Forecast | ||
| ($ in millions) | 2026 Full Year Forecast | Source |
| Net loss | ||
| Adjustments: | ||
| Inventory step-up provision | Cost of products and services, net | |
| Severance and restructuring costs | 11 | Cost of products and services, net, SG&A and R&D |
| Stock-based compensation expense | 19 | COGS, R&D and SGA |
| Non-cash amortization charges | 63 | Amortization of IA and Other Income (Expense) |
| Impairments | 191 | Impairment of long-lived assets |
| Loss on assets held-for-sale | 11 | Other Income (Expense) |
| Contingent consideration milestones | (10) | Other Income (Expense) |
| Changes in fair value of financial instruments | (9) | Other Income (Expense) |
| Loss on debt extinguishment | 21 | Other Income (Expense) |
| Tax effect | (46) | |
| Total adjustments: | ||
| Adjusted net income | ||
| Reconciliation of Net Loss Forecast to Adjusted EBITDA Forecast | |
| ($ in millions) | 2026 Full Year Forecast |
| Net loss | |
| Adjustments: | |
| Depreciation & amortization | |
| Income taxes | 15 |
| Total interest expense, net | 40 |
| Inventory step-up provision | 4 |
| Severance and restructuring costs | 11 |
| Stock-based compensation expense | 19 |
| Impairments | 191 |
| Loss on assets held-for-sale | 11 |
| Contingent consideration milestones | (10) |
| Changes in fair value of financial instruments | (9) |
| Loss on debt extinguishment | 21 |
| Total adjustments | |
| Adjusted EBITDA | |
| Emergent BioSolutions Inc. Reconciliations of Forecasted Total Revenues to Forecasted Product and Services Sales, Net and of Forecasted Gross Margin and Gross Margin % to Forecasted Adjusted Gross Margin and Adjusted Gross Margin % | |
| ($ in millions) | 2026 Full Year Forecast |
| Total revenues | |
| Contracts & Grants | |
| Product and services sales, net | |
| Cost of product and services sales, net | |
| Intangible asset amortization | 55 |
| Gross margin | |
| Gross margin % | |
| Add back: | |
| Intangible asset amortization | |
| Inventory step-up provision | 4 |
| Severance and restructuring costs | 1 |
| Stock-based compensation expense | 3 |
| Adjusted gross margin | |
| Adjusted gross margin % | |
