10-Q · May 13, 2026
MacroGenics, Inc. reported revenue of $20.8 million for the first quarter of 2026, marking a 58% increase from $13.2 million in the same period last year, driven by significant growth in contract manufacturing and…
Earnings analysis · 10-Q
MGNX earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
MacroGenics reported $32.8 million of second-quarter revenue, up 375% year over year, but the increase was primarily milestone-driven by a $24.5 million TZIELD payment and higher ZYNYZ royalties. Diluted EPS was -$0.27,…
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MacroGenics reported $32.8 million of second-quarter revenue, up 375% year over year, but the increase was primarily milestone-driven by a $24.5 million TZIELD payment and higher ZYNYZ royalties. Diluted EPS was -$0.27, although R&D and G&A expenses declined to $38.8 million and $7.9 million, respectively. The $119.6 million Bora proceeds and additional expected partner payments extend the stated cash runway through 2028, but the company now faces heightened outsourced-manufacturing and CRO execution risks.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $-0.27
What stood out
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Milestone drove sharp revenue growth
Revenue was $32.8 million, up $25.9 million, or 375%, versus $6.9 million in the prior-year quarter. The increase was driven primarily by a $24.5 million TZIELD regulatory milestone and $6.0 million of additional ZYNYZ royalty revenue.
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ZYNYZ royalties accelerated
Royalty revenue increased to $7.3 million from $1.3 million, up 462% year over year, reflecting higher ZYNYZ sales.
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Operating expenses decreased
Research and development expense declined 5% to $38.8 million from $40.8 million year over year, while general and administrative expense fell to $7.9 million from $9.3 million.
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CDMO divestiture strengthened liquidity
The Bora transaction generated a pretax net gain of $86.1 million from the sale of the CDMO Operations. Bora paid $119.6 million net of customary adjustments in July 2026 and assumed responsibility for the operations.
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Cash burn improved year over year
Six-month operating cash use improved to $76.6 million from $93.9 million in the prior-year period. Investing activities provided $73.3 million versus using $27.7 million a year earlier, while financing activities provided $60.0 million.
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Lead pipeline programs received funding
Clinical investment shifted toward MGC028 and MGC026, with quarterly R&D spending of $10.2 million and $7.2 million, respectively, up 117% and 140% year over year.
What to watch
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Reliance on outsourced manufacturing
Following the June 30, 2026 sale, MacroGenics no longer operates its own GMP facility and must rely on third parties, including Bora, for clinical and potential commercial manufacturing. Bora paid $119.6 million net of adjustments, but capacity, quality or regulatory failures could delay trials or commercialization.
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Post-sale liabilities and indemnities
The company may retain liabilities related to the divested CDMO business, including employee, tax, environmental, product-quality and regulatory matters, and may have indemnification obligations to Bora. The transaction had a stated purchase price of $122.5 million before closing adjustments.
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CRO transition could delay trials
MacroGenics is transitioning more clinical and development work to CROs and warns that switching providers can cause delays. The company spent $38.8 million on R&D in the quarter, including $10.2 million on MGC028 and $7.2 million on MGC026, increasing the potential impact of execution delays.
Management's outlook
No numeric revenue or EPS guidance was provided. Management said cash, cash equivalents and marketable securities at June 30, 2026, plus $119.6 million received from Bora, a $24.5 million Sanofi milestone due in September 2026, a $10.0 million Gilead payment and expected partner payments and cost savings support a cash runway through 2028.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.