Emmaus Life Sciences (EMMA) posts Q1 2026 revenue drop and wider net loss
Rhea-AI Filing Summary
Emmaus Life Sciences reported first-quarter 2026 results showing lower revenue but reduced operating expenses. Net revenues for the three months ended March 31, 2026 were $2.0 million, down 18% from $2.4 million a year earlier, mainly from a 33% decline in U.S. sales amid generic L-glutamine competition, partly offset by a 446% increase in sales in the MENA region.
Total operating expenses fell to $2.6 million from $3.2 million, improving loss from operations to $0.8 million compared with $1.0 million. However, higher interest and derivative-related costs drove other expense up to $2.5 million, increasing net loss to $3.3 million, or $0.05 per share, versus $2.3 million, or $0.04 per share. Cash and cash equivalents were $1.1 million at March 31, 2026, with total liabilities of $86.6 million and a stockholders’ deficit of $67.9 million.
Positive
- None.
Negative
- Revenue decline and rising net loss: Net revenues fell 18% year-over-year to $2.0 million while net loss widened to $3.3 million from $2.3 million, reflecting competitive pressure and higher non-operating costs.
- Weak liquidity and high leverage: Cash and cash equivalents were $1.1 million versus total liabilities of $86.6 million and a stockholders’ deficit of $67.9 million as of March 31, 2026, alongside disclosed going concern doubt.
Insights
Revenue pressure and leverage remain high despite lower operating costs.
Emmaus reported Q1 2026 net revenue of $2.0 million, an 18% decline from $2.4 million in 2025, driven by a 33% drop in U.S. sales from generic L-glutamine competition. MENA revenue grew strongly, but off a smaller base, partially offsetting domestic weakness.
Cost-cutting lowered operating expenses to $2.6 million from $3.2 million, improving loss from operations to $0.8 million. Yet other expense rose to $2.5 million, largely from higher interest and conversion feature derivative impacts, pushing net loss to $3.3 million versus $2.3 million.
Liquidity and leverage are key concerns: cash and cash equivalents were $1.1 million at March 31, 2026 against total liabilities of $86.6 million and a stockholders’ deficit of $67.9 million. Forward-looking statements reference doubt about the company’s ability to continue as a going concern, so subsequent filings and any financing or restructuring steps will be critical for stakeholders.
8-K Event Classification
Key Figures
Key Terms
going concern financial
conversion feature derivative financial
comprehensive loss financial
Stockholders’ Deficit financial
Endari medical
sickle cell disease medical
Earnings Snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 2.02 Results of Operation and Financial Condition.
On May15, 2026, Emmaus Life Sciences, Inc. (“we,” “us,” “our,” “Emmaus” or the “company”) issued a press release announcing our results of operations and financial condition as of and for the three months ended March 31, 2026, a copy of which is included as Exhibit 99.1 to this Current Report and incorporated herein by reference.
The information included in this Item 2.02 and in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
See the accompanying Index to Exhibits, which is incorporated herein by reference.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: May 15, 2026 | Emmaus Life Sciences, Inc. | ||
| By: | /s/ WILLIS LEE | ||
| Name: | Willis Lee | ||
| Title: | Chairman and Chief Executive Officer | ||
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INDEX TO EXHIBITS
| Exhibit Number |
Description | |
| 99.1 | Press release dated May 15, 2026 | |
| 104 | Cover Page Interactive Date File (embedded within Inline XBRL document) |
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Exhibit 99.1
Emmaus Life Sciences Reports Quarterly Financial Results
Torrance CA, May 15, 2026 - Emmaus Life Sciences, Inc. (OTCQB: EMMA), a commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease, today reported on its financial condition and results of operations as of and for the three months ended March 31, 2026.
Highlights
“We realized an 18% decline in net revenues for three months ended March 31, 2026 as compared to the same period in 2025 primarily driven by a 33% decrease in U.S. sales amid ongoing competition from generic L-Glutamine. The decline was partially offset by a 446% increase in sales in the Middle East and North Africa, or MENA, region,” commented Willis Lee, Chairman and Chief Executive Officer of Emmaus. “Our loss from operations improved by 16% year-over-year, reflecting the impact of our cost reduction initiatives,” he added.
Financial and Operating Results
Net Revenues. Net revenues for the three months ended March 31, 2026 were $2.0 million, compared to $2.4 million in the same period in 2025. The decrease was due to a decrease in U.S. sales which management attributes to competition from the generic version of L-Glutamine introduced in the market in mid-2024, partially offset by an increase of sales in the MENA region.
Operating Expenses. Total operating expenses for the three months were $2.6 million compared to $3.2 million in the comparable period in 2025. The decrease was due primarily to decreases in research and development expenses and general and administrative expenses attributable to a reduction in headcount and other cost cutting measures initiated in the second half of 2024.
Loss From Operations. Loss from operations for the three months was $0.8 million compared to $1.0 million in the same period in 2025. This was due to the lower operating expenses partially offset by a decrease in net revenues.
Other Expense. The company realized other expense of $2.5 million for the three months compared to $1.3 million in the same period in 2025. The increase was primarily due to increases in interest expense and change in fair value of conversion feature derivative.
Net Loss. For the three months, the company realized a net loss of $3.3 million, or $0.05 basic net loss per share based on approximately 70.2 million weighted-average common shares, compared to net loss of $2.3 million, or $0.04 basic net loss per share based on approximately 63.9 million weighted-average common shares in the comparable period in 2025. The increase in net loss was attributable primarily to the increase in other expense.
Liquidity and Capital Resources. At March 31, 2026, the company had cash and cash equivalents of $1.1 million, compared to $2.1 million at December 31, 2025.
About Emmaus Life Sciences
Emmaus Life Sciences, Inc. is a commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease. Endari® (L-glutamine oral powder), indicated to reduce the acute complications of sickle cell disease in adults and children 5 years and older, is approved for marketing in the United States, Israel, Kuwait, Qatar, the United Arab Emirates, Bahrain and Oman and is available on a named patient or early access basis in France, the Netherlands, and the Kingdom of Saudi Arabia, where Emmaus’ application for marketing authorization is awaiting final action by the Saudi Food & Drug Authority. For more information, please visit www.emmausmedical.com.
About Endari® (prescription grade L-glutamine oral powder)
Endari®, Emmaus’ prescription grade L-glutamine oral powder, was approved by the U.S. Food and Drug Administration (FDA) in July 2017 for treating sickle cell disease in adult and pediatric patients five years of age and older.
Indication
Endari® is indicated to reduce the acute complications of sickle cell disease in adult and pediatric patients five years of age and older.
Important Safety Information
The most common adverse reactions (incidence >10 percent) in clinical studies were constipation, nausea, headache, abdominal pain, cough, pain in extremities, back pain, and chest pain.
Adverse reactions leading to treatment discontinuation included one case each of hypersplenism, abdominal pain, dyspepsia, burning sensation, and hot flash.
The safety and efficacy of Endari® in pediatric patients with sickle cell disease younger than five years of age has not been established.
For more information, please see full Prescribing Information of Endari® at: www.ENDARIrx.com/PI.
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About Sickle Cell Disease
There are approximately 100,000 people living with sickle cell disease (SCD) in the United States and millions more globally. The sickle gene is found in every ethnic group, not just among those of African descent; and in the United States an estimated 1-in-365 African Americans and 1-in-16,300 Hispanic Americans are born with SCD.1 The genetic mutation responsible for SCD causes an individual's red blood cells to distort into a "C" or a sickle shape, reducing their ability to transport oxygen throughout the body. These sickled red blood cells break down rapidly, become very sticky, and develop a propensity to clump together, which causes them to become stuck and cause damage within blood vessels. The result is reduced blood flow to distal organs, which leads to physical symptoms of incapacitating pain, tissue and organ damage, and early death.2
1Source: Data & Statistics on Sickle Cell Disease – National Center on Birth Defects and Developmental Disabilities, Centers for Disease Control and Prevention, December 2020.
2Source: Committee on Addressing Sickle Cell Disease – A Strategic Plan and Blueprint for Action -- National Academy of Sciences Press, 2020.
Forward-looking Statements
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements are subject to numerous assumptions, risks and uncertainties which change over time, including doubt about the company’s ability to continue as a going concern and other factors disclosed in the company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 31, 2026 and Quarterly Report on Form 10-Q filed on May 15, 2026, and actual results may differ materially. Such forward-looking statements speak only as of the date they are made, and Emmaus assumes no duty to update them, except as may be required by law.
Company Contact:
Emmaus Life Sciences, Inc.
Investor Relations
(310) 214-0065
IR@emmauslifesciences.com
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(Financial Tables Follow)
| Emmaus Life Sciences, Inc. |
| Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) |
(In thousands, except share and per share amounts)
(unaudited)
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenue, Net | $ | 1,982 | $ | 2,406 | ||||
| Cost of Goods Sold | 168 | 225 | ||||||
| Gross Profit | 1,814 | 2,181 | ||||||
| Operating Expenses | 2,637 | 3,161 | ||||||
| Loss from Operations | (823 | ) | (980 | ) | ||||
| Net Loss | (3,335 | ) | (2,330 | ) | ||||
| Comprehensive Loss | (4,253 | ) | (2,132 | ) | ||||
| Net Loss per Share | $ | (0.05 | ) | $ | (0.04 | ) | ||
| Weighted Average Common Shares Outstanding | 70,188,263 | 63,865,571 | ||||||
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| Emmaus Life Sciences, Inc. |
| Condensed Consolidated Balance Sheets |
(In thousands)
(unaudited)
| As of | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 1,072 | $ | 2,127 | ||||
| Accounts receivable, net | 2,048 | 2,804 | ||||||
| Inventories, net | 1,909 | 1,555 | ||||||
| Prepaid expenses and other current assets | 966 | 1,260 | ||||||
| Total Current Assets | 5,995 | 7,746 | ||||||
| Property and Equipment, net | 98 | 113 | ||||||
| Right of use assets | 736 | 766 | ||||||
| Investment in convertible bond | 11,664 | 12,604 | ||||||
| Other Assets | 203 | 207 | ||||||
| Total Assets | $ | 18,696 | $ | 21,436 | ||||
| Liabilities and Stockholders’ Deficit | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 24,487 | $ | 22,615 | ||||
| Operating lease liabilities, current portion | 349 | 348 | ||||||
| Conversion feature derivative, notes payable | 235 | - | ||||||
| Notes payable, current portion | 10,652 | 11,151 | ||||||
| Convertible notes payable, net of discount | 17,356 | 17,380 | ||||||
| Other current liabilities | 17,458 | 17,578 | ||||||
| Total Current Liabilities | 70,537 | 69,072 | ||||||
| Other long-term liabilities | 16,019 | 15,972 | ||||||
| Total Liabilities | 86,556 | 85,044 | ||||||
| Stockholders’ Deficit | (67,860 | ) | (63,608 | ) | ||||
| Total Liabilities & Stockholders’ Deficit | $ | 18,696 | $ | 21,436 | ||||
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