KROS Q2 Earnings Miss as Revenues Fall to Zero, Pipeline in Focus

KROS' Q2 Results in Detail

Keros does not have a marketed product and therefore lacks a regular source of revenues. The company periodically records service and other revenues as well as license revenues, making quarterly comparisons dependent on the timing of collaboration-related revenue recognition.

Service and other revenues were nil in the reported quarter compared with $18.2 million in the prior-year period. License revenues were also nil in both periods.

Year to date, Keros shares have plunged 50.3% against the industry’s 2% growth.

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Research and development expenses declined 48.7% year over year to $22.3 million. The decrease primarily reflected the transfer of elritercept-related development costs to Takeda and the corporate restructuring completed in 2025.

General and administrative expenses fell 40.6% year over year to $8.6 million. The decrease was due to lower professional fees and reduced compensation costs tied to the 2025 restructuring.

KROS' Cash Runway

Cash and cash equivalents totaled $257.6 million as of June 30, 2026, down from $281.5 million as of March 31, 2026.

Based on current operating assumptions, Keros expects its cash resources to fund operating expenses and capital expenditure requirements into the first half of 2028. The runway supports the ongoing development of rinvatercept as the company advances its clinical programs, with no recurring product revenues.

KROS’ Key Pipeline Updates

Keros initiated a phase II clinical study evaluating its lead candidate, rinvatercept, in patients with Duchenne muscular dystrophy (DMD). The milestone followed a phase I study in healthy volunteers in which the candidate demonstrated increases in muscle mass and bone mineral density, alongside a reduction in fat mass.

KROS continues to expect initial data from the phase II DMD study in the first half of 2027. Rinvatercept is also being developed for amyotrophic lateral sclerosis. The company plans to engage with regulatory authorities soon to discuss the design of a phase II study evaluating rinvatercept for this additional indication.

Keros’ most advanced candidate, elritercept, is in late-stage development for cytopenias, including anemia and thrombocytopenia, in patients with myelodysplastic syndromes and myelofibrosis. Takeda holds exclusive rights to develop, manufacture and commercialize the candidate worldwide outside mainland China, Hong Kong and Macau.

KROS’ Zacks Rank & Stocks to Consider

Keros currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Harmony Biosciences HRMY, Repligen RGEN and Liquidia Corporation LQDA, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Harmony Biosciences’ 2026 earnings per share have risen from $3.20 to $3.30, while estimates for 2027 have increased from $3.64 to $3.87 during the same time. HRMY shares have lost 4.9% year to date.

Harmony Biosciences’ earnings missed estimates in each of the trailing four quarters, with the average negative surprise being 25.16%.

Over the past 60 days, estimates for Repligen’s 2026 earnings per share have risen from $1.99 to $2.06, while estimates for 2027 have increased from $2.57 to $2.62 during the same time. RGEN shares have declined 10.2% year to date.

Repligen’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 16.80%.

Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $2.97 to $3.02, while estimates for 2027 have increased from $4.81 to $5.31 during the same time. LQDA shares have surged 143.1% year to date.

Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%.

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This article originally published on Zacks Investment Research (zacks.com).

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