10-Q · May 13, 2026
Capricor Therapeutics reported a troubling Q1 2026 with no revenue recognized, significantly underperforming against expectations of $25.2 million, and a diluted EPS of -$0.59, missing estimates by $0.05. Operating…
Earnings analysis · 10-Q
CAPR earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
Capricor reported no revenue and diluted EPS of -$0.70, down from -$0.59 in Q1 2026 and -$0.57 in Q2 2025, while operating expenses rose to $42.9 million from $27.7 million year over year. Free cash flow was -$21…
Read full summary
Capricor reported no revenue and diluted EPS of -$0.70, down from -$0.59 in Q1 2026 and -$0.57 in Q2 2025, while operating expenses rose to $42.9 million from $27.7 million year over year. Free cash flow was -$21 million, although $237.9 million of cash, cash equivalents and marketable securities was expected to fund operating capital requirements for at least twelve months. The 3-to-9 FDA advisory committee vote, the NS distribution dispute moving toward arbitration, and new litigation involving 3 Mesoblast patents materially raise regulatory and commercialization risk.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.7
What stood out
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$237.9M liquidity supports near-term runway
Liquidity remained substantial at $237.9 million as of June 30, 2026, consisting of cash, cash equivalents and marketable securities.
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EPS deteriorated sequentially and year over year
The company reported diluted EPS of -$0.70, compared with -$0.59 in Q1 2026 and -$0.57 in Q2 2025, reflecting deterioration of $0.11 sequentially and $0.13 year over year.
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Cash burn remains significant
Quarterly free cash flow was -$21 million, indicating continued cash consumption while the company remains pre-commercial.
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Limited near-term interest-rate exposure
Management said a hypothetical 100-basis-point increase or decrease in interest rates would not materially affect the fair value of the investment portfolio.
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Disclosure controls assessed effective
Management concluded that disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2026.
What to watch
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Wider loss and expense escalation
Q2 diluted EPS of -$0.70 missed the -$0.58 consensus estimate by $0.12, while operating expenses increased to $42.9 million from $27.7 million in the prior-year quarter, a $15.2 million or approximately 55% increase.
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Unfavorable FDA advisory vote
The FDA advisory committee voted 3 in favor and 9 against effectiveness of Deramiocel for DMD cardiomyopathy. Management said the FDA may issue a complete response letter or delay a decision on the amended BLA.
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Distribution dispute threatens commercialization
The NS distribution dispute has shifted toward arbitration after Capricor withdrew its preliminary-injunction motion without prejudice; the company estimates arbitration will begin in fall 2026. An adverse outcome could impair commercialization and potential revenue.
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New Deramiocel patent litigation
Mesoblast filed a patent infringement and declaratory judgment action on July 16, 2026 concerning Deramiocel, asserting infringement of 3 patents and seeking injunctive relief, damages and attorneys' fees.
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Persistent losses and financing need
Capricor stated that it expects losses to continue for the foreseeable future and may require additional capital to fund trials and development programs.
Management's outlook
No numeric revenue or EPS guidance was provided. Management stated that $237.9 million of cash, cash equivalents and marketable securities as of June 30, 2026 should fund operating capital requirements for at least the next twelve months; additional outlook depends on regulatory clarity.
Earlier filings 4
10-K · March 17, 2026
Capricor is a clinical-stage biotech focused on Deramiocel (a CDC cell therapy) and an exosome platform (StealthX). The company announced positive Phase 3 HOPE-3 topline results (n=106) with the primary endpoint PUL…
10-Q · May 14, 2025
Capricor reported Q1 2025 revenue of $0 (Q1 2024: $4,906,877) and a net loss of $24,391,594, or $(0.53) per share, versus a net loss of $9,794,073, or $(0.31) in Q1 2024. Operating expenses rose to $24,982,948 (Q1 2024:…
10-K · March 26, 2025
Capricor Therapeutics focuses on developing innovative cell and exosome-based therapies for Duchenne muscular dystrophy (DMD). The company recently completed its Biologics License Application (BLA) submission for its…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.