Keros Therapeutics Reports Recent Business Highlights and Third Quarter 2026 Financial Results

Quarterly license revenue increased to $40 million, while the nine-month results shifted from profit to loss.

Rhea-AI Summary

Keros Therapeutics (Nasdaq: KROS) reported third-quarter 2026 net income of $14.153 million, reversing a loss in the year-earlier quarter. Revenue rose to $40.009 million from $14.262 million, including $40 million in license revenue. Diluted earnings per share were $0.70 versus a $0.18 loss. Research and development expenses increased to $20.491 million, while general and administrative expenses fell to $6.700 million.

The first patient received rinvatercept in a Phase 2 Duchenne muscular dystrophy trial in September 2026; Keros expects initial data in the first half of 2027. It also nominated nonclinical candidate KER-206 for further investigation in bone disorders. Cash and cash equivalents declined to $259.464 million at September 30 from $287.415 million at year-end 2025. Keros expects funding to last into the second half of 2028, based on current operating assumptions. Its nine-month net loss was $38.265 million.

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How the balance worksHow Sentiment works

1 major · 8 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter revenue increased to $40.009 million from $14.262 million in 2025.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Cash runway is expected into the second half of 2028, based on current operating assumptions.
• Moderate pointNine-month research and development expenses fell to $58.919 million from $111.731 million in 2025.
• Minor pointThird-quarter net income reached $14.153 million versus a $7.280 million loss in 2025.
• Minor pointThird-quarter diluted EPS improved to $0.70 from a $0.18 loss in 2025.

6 minor points

• Minor pointThird-quarter operating income reached $12.818 million versus a $15.384 million loss in 2025.
• Minor pointPhase 2 rinvatercept trial in Duchenne muscular dystrophy dosed its first patient in September 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Initial rinvatercept trial data are expected by Keros in the first half of 2027.
• Minor pointKER-206 was nominated from the nonclinical pipeline for further investigation in bone disorders.
• Minor pointThird-quarter administrative expenses decreased to $6.700 million from $10.127 million in 2025.
• Minor pointNine-month administrative expenses fell to $25.453 million from $35.106 million in 2025.

Negative

• Major pointNine-month revenue declined to $40.376 million from $243.676 million in 2025.
• Minor pointNine-month net loss was $38.265 million versus $110.475 million net income in 2025.
• Minor pointNine-month diluted EPS fell to a $1.94 loss from $2.68 earnings in 2025.
• Minor pointNine-month operating loss was $43.996 million versus $96.839 million operating income in 2025.
• Minor pointCash and cash equivalents fell to $259.464 million at September 30 from $287.415 million at year-end 2025.

3 minor points

• Minor pointThird-quarter research and development expenses increased to $20.491 million from $19.519 million in 2025.
• Minor pointThird-quarter dividend income decreased to $2.220 million from $6.933 million in 2025.
• Minor pointNine-month dividend income decreased to $6.842 million from $20.845 million in 2025.

Key Figures

Net income: $14.2 million License revenue: $40,000 thousand Cash and cash equivalents: $259.5 million +3 more

Net income

$14.2 million

Third quarter 2026; compared with a net loss of $7.3 million in third quarter 2025

License revenue

$40,000 thousand

Third quarter 2026

Cash and cash equivalents

$259.5 million

As of September 30, 2026

Cash runway

Into the second half of 2028

Based on current operating assumptions and cash as of September 30, 2026

First patient dosed

September 2026

Phase 2 rinvatercept trial in Duchenne muscular dystrophy

Initial trial data

First half of 2027

Rinvatercept Phase 2 trial in Duchenne muscular dystrophy

Previous Earnings Reports

2 past events · Latest: Aug 03

Same Type 2 events

1. Aug 03

   Quarterly earnings

   24h Move

   +1.4%

   Reported a smaller quarterly net loss year over year, alongside lower R&D and G&A expenses.

2. Nov 05

   Quarterly earnings

   24h Move

   +3.3%

   Reported a smaller Q3 net loss year over year, with Takeda license revenue and lower elritercept R&D costs.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ligand trap, activin a, osteoclasts, osteoblasts, +1 more

5 terms

ligand trap technical

"a novel ligand trap designed to bind select TGF-β ligands"

A ligand trap is a therapeutic protein that captures and neutralizes a signaling molecule (ligand) before it can bind its cell-surface receptor, typically made by combining a ligand-binding portion of a receptor with another protein domain (often an antibody Fc fragment) to circulate in the bloodstream and sequester the ligand. By removing free ligand, a ligand trap reduces activation of the target receptor pathway; because it acts by binding the ligand rather than blocking the receptor itself, its effects depend on the trap’s binding affinity, concentration relative to the ligand, and how the trapped complex is cleared from the body.

activin a medical

"including activin A, activin B, GDF8 and GDF11"

Activin A is a naturally occurring protein that cells use to send signals controlling growth, inflammation and tissue repair; it often shows up in blood or tissue tests as a sign of disease activity. Investors watch it because changes in Activin A levels can point to the progress of conditions, serve as a target for new drugs, or affect regulatory decisions—like an alarm or thermometer that helps doctors and companies measure whether a treatment is working and how big a market the treatment might have.

osteoclasts medical

"bone-resorptive cells (osteoclasts) and bone-forming cells"

Osteoclasts are large, multinucleated cells derived from the immune cell (monocyte/macrophage) lineage that break down bone tissue by attaching to the bone surface and secreting acid and enzymes to dissolve mineral and degrade collagen. They perform bone resorption as part of normal bone remodeling and repair, working in balance with osteoblasts, which form new bone; excessive or deficient osteoclast activity changes bone mass and structure.

osteoblasts medical

"and bone-forming cells (osteoblasts)"

Osteoblasts are specialized bone-forming cells that produce the organic components of bone matrix (mainly collagen) and initiate mineral deposition to create hardened bone. They come from mesenchymal stem cells, work at sites of new bone formation or repair, and can become embedded in the matrix as long-lived osteocytes or remain as bone-lining cells; they are distinct from osteoclasts, which break down bone tissue.

myelodysplastic syndrome medical

"in patients with myelodysplastic syndrome and in patients with myelofibrosis"

A bone marrow disorder in which the body’s blood-cell “factory” produces too few or abnormal blood cells, leading to anemia, infections, or bleeding and sometimes progressing to acute leukemia. Investors care because the condition creates clinical and commercial opportunities — drugs, tests and treatments that improve blood counts or delay progression can drive regulatory approvals, patient demand and reimbursement decisions, affecting the value of healthcare and biotech companies.

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• First patient dosed in Phase 2 clinical trial of rinvatercept in patients with Duchenne muscular dystrophy in September 2026
• Nominated KER-206, a novel ligand trap designed to bind select TGF-β ligands to regulate bone remodeling, from nonclinical pipeline for further investigation
• Cash runway expected into the second half of 2028  
  
  

LEXINGTON, Mass., Nov. 05, 2026 (GLOBE NEWSWIRE) -- Keros Therapeutics, Inc. (“Keros” or the “Company”) (Nasdaq: KROS), a clinical-stage biopharmaceutical company focused on developing and commercializing novel therapeutics to treat a wide range of patients with disorders that are linked to dysfunctional signaling of the transforming growth factor-beta (“TGF-β”) family of proteins, today provided a business update and reported financial results for the quarter ended September 30, 2026.

“We are excited to continue advancing our pipeline across both clinical and nonclinical development, building on our understanding of TGF-β biology to develop potential new treatments for patients,” said Jasbir S. Seehra, Ph.D., President and Chief Executive Officer. “We remain focused on disciplined execution of our strategic priorities as we work to advance our programs and build on the potential of our pipeline.”

Recent Program Updates

• Rinvatercept for the treatment of Duchenne muscular dystrophy (“DMD”): In September 2026, Keros announced the first patient was dosed in the Phase 2 clinical trial of rinvatercept in patients with DMD. Keros expects to announce initial data from this trial in the first half of 2027.
  
  
• KER-206: In October 2026, Keros presented a nonclinical poster on a research version of KER-206, or RKER-206, at the American Society for Bone and Mineral Research 2026 Annual Meeting.
  
  
  • KER-206 is a nonclinical asset designed to bind select ligands from the TGF-β superfamily, including activin A, activin B, GDF8 and GDF11, which regulate bone remodeling through effects on differentiation and activity of bone-resorptive cells (osteoclasts) and bone-forming cells (osteoblasts). Through inhibition of these TGF-β ligands, the Company believes that KER-206 has the potential to increase bone mass and improve skeletal integrity in disorders characterized by pathological bone loss.

Third Quarter 2026 Financial Results

Keros reported net income of $14.2 million in the third quarter of 2026 as compared to a net loss of $7.3 million in the third quarter of 2025. The increase of approximately $21.4 million was primarily due to revenue recognized in 2026 related to Keros' license agreement with Takeda.

Research and development expenses were $20.5 million for the third quarter of 2026 as compared to $19.5 million for the same period in 2025. The increase of $1.0 million was primarily due to the additional research and development efforts to support the advancement of Keros’ pipeline, partially offset by decreased elritercept-related research and development expenses as activities transitioned to Takeda during 2025.

General and administrative expenses were $6.7 million for the third quarter of 2026 as compared to $10.1 million for the same period in 2025. The decrease of $3.4 million was primarily due to a decrease in compensation costs and a decrease in professional fees.

Keros’ cash and cash equivalents as of September 30, 2026 was $259.5 million compared to $287.4 million as of December 31, 2025. Based on current operating assumptions, Keros expects that its cash and cash equivalents as of September 30, 2026 will enable Keros to fund its operating expenses and capital expenditure requirements into the second half of 2028.

About Keros Therapeutics, Inc.

Keros is a clinical-stage biopharmaceutical company focused on developing and commercializing novel therapeutics to treat a wide range of patients with disorders that are linked to dysfunctional signaling of the TGF-β family of proteins. Keros is a leader in understanding the role of the TGF-β family of proteins, which are master regulators of the growth, repair and maintenance of a number of tissues, including skeletal muscle, bone, adipose, heart tissue and blood. By leveraging this understanding, Keros has discovered and is developing protein therapeutics that have the potential to provide meaningful and potentially disease-modifying benefit to patients. Keros’ lead product candidate, rinvatercept, is being developed for the treatment of DMD and for the treatment of amyotrophic lateral sclerosis. Keros’ most advanced product candidate, elritercept, is being developed for the treatment of cytopenias, including anemia and thrombocytopenia, in patients with myelodysplastic syndrome and in patients with myelofibrosis.

Cautionary Note Regarding Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Words such as “continue,” “expect,” “believe,” “will,” “may,” “potential,” or similar expressions are intended to identify forward-looking statements. Examples of these forward-looking statements include statements concerning: Keros’ expectations regarding its growth, strategy, progress and the advancement of its clinical and nonclinical pipeline; the development plans and potential therapeutic benefits of its product candidates; the design, objectives and timing of its clinical trials for rinvatercept; the potential of KER-206 to    increase bone mass and improve skeletal integrity in disorders characterized by pathological bone loss; and Keros’ expected cash runway and ability to fund its operating expenses and capital expenditure requirements. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among others: Keros’ limited operating history and historical losses; Keros’ ability to raise additional funding to complete the development and any commercialization of its product candidates; Keros’ dependence on the success of its product candidates, rinvatercept and elritercept; that Keros may be delayed in initiating, enrolling or completing any clinical trials; competition from third parties that are developing products for similar uses; Keros’ ability to obtain, maintain and protect its intellectual property; and Keros’ dependence on third parties in connection with manufacturing, clinical trials and nonclinical studies.

These and other risks are described more fully in Keros’ filings with the Securities and Exchange Commission (“SEC”), including the “Risk Factors” section of the Company’s Quarterly Report on Form 10-Q, filed with the SEC on August 3, 2026, and its other documents subsequently filed with or furnished to the SEC. All forward-looking statements contained in this press release speak only as of the date on which they were made. Except to the extent required by law, Keros undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

Investor Contact:

Justin Frantz
jfrantz@kerostx.com
617-221-6042

KEROS THERAPEUTICS, INC. Condensed Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited)
	THREE MONTHS ENDED SEPTEMBER 30,								NINE MONTHS ENDED SEPTEMBER 30,
		2026				2025				2026				2025
REVENUE:
Service and other revenue	$	9			$	4,262			$	376			$	38,321
License revenue		40,000				10,000				40,000				205,355
Total revenue		40,009				14,262				40,376				243,676
OPERATING EXPENSES:
Research and development		(20,491	)			(19,519	)			(58,919	)			(111,731	)
General and administrative		(6,700	)			(10,127	)			(25,453	)			(35,106	)
Total operating expenses		(27,191	)			(29,646	)			(84,372	)			(146,837	)
INCOME (LOSS) FROM OPERATIONS		12,818				(15,384	)			(43,996	)			96,839
OTHER INCOME (EXPENSE), NET
Interest income, net		55				—				55				—
Dividend income		2,220				6,933				6,842				20,845
Other expense, net		(168	)			(253	)			(394	)			(812	)
Total other income, net		2,107				6,680				6,503				20,033
Income (loss) before income taxes		14,925				(8,704	)			(37,493	)			116,872
Income tax (provision) benefit		(772	)			1,424				(772	)			(6,397	)
Net income (loss)	$	14,153			$	(7,280	)		$	(38,265	)		$	110,475
Net income (loss) attributable to common stockholders—basic and diluted	$	14,153			$	(7,280	)		$	(38,265	)		$	110,475
Weighted-average shares of common stock outstanding — basic		19,886,097				40,623,364				19,773,047				40,598,777
Weighted-average shares of common stock outstanding — diluted		20,341,140				40,623,364				19,773,047				41,202,371
Net income (loss) per share of common stock — basic	$	0.71			$	(0.18	)		$	(1.94	)		$	2.72
Net income (loss) per share of common stock — diluted	$	0.70			$	(0.18	)		$	(1.94	)		$	2.68

KEROS THERAPEUTICS, INC. Condensed Consolidated Balance Sheets (In thousands, except share and per share data) (Unaudited)
	SEPTEMBER 30, 2026				DECEMBER 31, 2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	259,464			$	287,415
Accounts receivable		20,000				3,567
Prepaid expenses and other current assets		5,920				22,202
Current income tax receivable		2,250				2,250
Total current assets		287,634				315,434
Operating lease right-of-use assets		14,887				16,841
Property and equipment, net		3,390				4,297
Restricted cash		1,449				1,449
Other long-term assets		11				—
TOTAL ASSETS	$	307,371			$	338,021
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	3,787			$	1,967
Current portion of operating lease liabilities		2,695				2,408
Accrued expenses and other current liabilities		8,761				16,039
Current tax liability		615				—
Total current liabilities		15,858				20,414
Operating lease liabilities, net of current portion		12,415				14,475
Total liabilities		28,273				34,889
STOCKHOLDERS' EQUITY:
Preferred stock, par value of $0.0001 per share; 10,000,000 shares authorized as of September 30, 2026 and December 31, 2025; no shares issued and outstanding		—				—
Series A junior participating preferred stock, par value of $0.0001 per share; 500,000 authorized as of September 30, 2026 and December 31, 2025; no shares issued and outstanding		—				—
Common stock, par value of $0.0001 per share; 200,000,000 shares authorized as of September 30, 2026 and December 31, 2025; 41,103,773 shares issued and 19,830,671 shares outstanding as of September 30, 2026 and 40,670,466 shares issued and 19,543,706 shares outstanding as of December 31, 2025		4				4
Treasury stock, at cost; 21,273,102 shares as of September 30, 2026 and 21,126,760 shares as of December 31, 2025		(386,211	)			(384,558	)
Additional paid-in capital		1,185,335				1,169,451
Accumulated deficit		(520,030	)			(481,765	)
Total stockholders' equity		279,098				303,132
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	307,371			$	338,021

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Keros Therapeutics' third-quarter 2026 financial results?

Keros reported $40.009 million in revenue and $14.153 million in net income for the quarter ended September 30, 2026. The corresponding 2025 figures were $14.262 million in revenue and a $7.280 million net loss. Diluted earnings per share improved to $0.70 from a $0.18 loss.

When does Keros expect initial data from its Phase 2 rinvatercept trial?

Keros expects initial data from its Phase 2 rinvatercept trial in patients with Duchenne muscular dystrophy in the first half of 2027. The first patient was dosed in September 2026.

Why did Keros Therapeutics' third-quarter administrative expenses decline?

Third-quarter general and administrative expenses declined primarily because of lower compensation costs and professional fees. Expenses were $6.700 million in 2026 compared with $10.127 million in the same quarter of 2025.