10-Q · May 14, 2026
Keros Therapeutics reported Q1 2026 results with revenue of $367,000, a significant decline from $211.2 million in Q1 2025, largely due to a lack of license revenue compared to prior periods. The net loss widened to…
Earnings analysis · 10-Q
KROS earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
Keros reported no Q2 revenue and a $28.7 million net loss, or $1.45 per diluted share, as prior-year Takeda service revenue of $18.2 million did not recur. Cost control was meaningful: quarterly R&D and G&A fell by…
Read full summary
Keros reported no Q2 revenue and a $28.7 million net loss, or $1.45 per diluted share, as prior-year Takeda service revenue of $18.2 million did not recur. Cost control was meaningful: quarterly R&D and G&A fell by $21.2 million and $5.9 million, respectively, narrowing the loss despite increased rinvatercept investment. The $257.6 million cash balance supports management's stated runway into the first half of 2028, but the investment case remains dependent on clinical execution, including initial DMD data expected in the first half of 2027.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
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
- $-1.45
What stood out
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Loss narrowed as operating costs fell
Quarterly net loss narrowed 6% year over year to $28.7 million from $30.7 million, while R&D expense fell 49% to $22.3 million from $43.5 million and G&A expense declined 41% to $8.6 million from $14.5 million.
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Takeda transition reduced elritercept spend
Elritercept transition to Takeda drove a $15.6 million quarterly reduction in elritercept R&D expense, including $11.1 million less clinical spend and $4.5 million less manufacturing spend.
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Cash runway extends into H1 2028
Cash and cash equivalents were $257.6 million at June 30, 2026; management believes this runway funds projected liquidity needs into the first half of 2028.
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Lead-program investment increased
Rinvatercept investment increased by $2.7 million year over year to $4.1 million in Q2, driven by $1.6 million more clinical spending for the DMD Phase 2 and planned ALS Phase 2 trial plus $1.1 million more manufacturing and preclinical activity.
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Working-capital release supported cash flow
For the first half, operating cash use was $24.0 million, helped by $14.8 million of cash provided by operating assets and liabilities, including a $15.2 million reduction in prepaid expenses and other current assets.
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Takeda milestone adds near-term liquidity event
Takeda dosed the first patient in the Phase 3 ELRiSE MDS study in July 2026, triggering a $20.0 million milestone payable to Keros; Keros expects to distribute 25% of net cash proceeds from that payment to stockholders after receipt.
What to watch
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No product revenue and recurring losses
Revenue was $0 in Q2 2026 versus $18.2 million in Q2 2025, and the company reported a $28.7 million quarterly net loss. Management states it expects operating losses and negative operating cash flow for the foreseeable future, with an accumulated deficit of $534.2 million at June 30, 2026.
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New UK trial rules add execution risk
The updated regulatory-risk discussion notes that the UK clinical-trial rule change became applicable on April 28, 2026. New requirements for Keros and its CROs could raise costs or delay trial initiation and conduct.
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EU reform could shorten future exclusivity
The filing adds EU pharmaceutical-reform uncertainty: the proposed framework could reduce baseline orphan market exclusivity from 10 years to 9 years, with full application not anticipated before 2028. This could reduce future EU exclusivity and accelerate biosimilar competition if adopted.
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Long clinical timeline and demonstrated safety risk
Clinical development remains the primary value driver and is exposed to safety risk: Keros previously terminated the cibotercept PAH Phase 2 TROPOS trial after unanticipated pericardial-effusion adverse events. Rinvatercept's DMD Phase 2 initial data are not expected until the first half of 2027.
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Future financing flexibility is constrained
Keros has no committed external funding source and cannot currently sell under its ATM program; it had sold 4,290,096 ATM shares for aggregate net proceeds of approximately $228.6 million, but was ineligible to offer or sell ATM shares as of June 30, 2026.
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Operating cash flow reversed year over year
Cash flow turned negative following the nonrecurring Takeda upfront-payment period: first-half operating cash flow was negative $24.0 million versus positive $131.5 million a year earlier, while cash used in financing was $5.6 million.
Management's outlook
No numeric revenue or EPS guidance was provided in the 10-Q. Management expects $257.6 million of cash and cash equivalents at June 30, 2026 to fund operating expenses and capital expenditures into the first half of 2028, expects initial rinvatercept Phase 2 DMD data in the first half of 2027, and plans to engage regulators on an ALS Phase 2 trial in the second half of 2026.
Earlier filings 4
10-K · March 4, 2026
Keros is a clinical-stage biopharmaceutical company focused on TGF-ß pathway ligand traps (lead: rinvatercept; most advanced: elritercept). The 10-K highlights pipeline progress and a commercial license with Takeda…
10-Q · November 5, 2025
Keros reported Q3 revenue of $14,262 thousand (vs $388 thousand in Q3 2024) and a narrowed net loss of $(7,280) thousand (EPS $(0.18)) for the quarter. License revenue of $10,000 thousand drove year-over-year revenue…
10-Q · May 6, 2025
Keros reported a one-time-driven quarter: total revenue of $211,246,000 and net income of $148,451,000 (diluted EPS $3.62) for the three months ended March 31, 2025, driven primarily by $195,355,000 of license revenue.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.