Emergent Cuts 2026 Revenue Outlook After Third-Quarter Drop

The Tip Desk · November 2, 2026 · 3 min read

Third-quarter revenue was $110.0 million, and the company lowered full-year 2026 revenue guidance to $600 million–$645 million.

Emergent BioSolutions Inc. (EBS) reported third-quarter 2026 total revenues of $110.0 million, down 52% from $231.1 million a year earlier, after a 66% year-over-year increase in the second quarter. The biodefense and naloxone maker said the result was in line with its guidance and was driven primarily by its biodefense/medical countermeasures and naloxone portfolio.

The company swung to a net loss of $32.7 million, or $0.64 a share, from net income of $51.2 million, or $0.91 a share, a year earlier. Adjusted net loss was $18.7 million, or $0.36 a share. Adjusted EBITDA was a loss of $4.6 million, or a 4% margin, compared with $92.6 million, or a 40% margin, in the year-ago quarter. Gross margin was 14%; adjusted gross margin was 28%.

Naloxone product sales, which include NARCAN Nasal Spray and KLOXXADO Nasal Spray, fell $31.4 million, or 42%, to $43.5 million. The company said the decrease was primarily attributable to lower sales of OTC NARCAN, mostly an unfavorable price-volume mix in U.S. public interest channels, partially mitigated by higher Canadian sales of branded NARCAN. Commercial Products segment adjusted gross margin declined 57% to $14.0 million, or 32% of revenue, from 43%. Commercial Products gross margin percentage fell 5 percentage points to 26%.

Medical countermeasures sales were more uneven. Anthrax MCM sales rose $23.7 million to $25.1 million from $1.4 million, which the company attributed primarily to higher U.S. government CYFENDUS sales due to timing. Smallpox MCM sales fell $56.9 million, or 68%, to $26.7 million, on lower U.S. government ACAM2000 and CNJ-016 (VIGIV) sales, partially offset by higher TEMBEXA U.S. government sales. Other Products, which comprises BAT, dropped $49.9 million, or 87%, to $7.6 million, primarily lower U.S. government BAT sales, partially offset by higher international BAT sales.

MCM Products segment revenue fell 58% to $59.4 million. Segment adjusted gross margin declined 78% to $23.4 million, or 39% of revenue, from 74%. Gross margin percentage fell 49 percentage points to 19%. The company said the decline was primarily driven by an unfavorable sales mix and decreased sales volumes, which reduced absorption of fixed manufacturing costs.

Selling, general and administrative expenses increased $7.6 million, or 20%, to $46.5 million. The company said the increase was primarily due to the absence of a one-time litigation insurance reimbursement recognized in the prior-year period related to securities and shareholders litigation settlements, plus severance costs associated with the August 2026 restructuring plan, partially offset by lower marketing and administrative support. Research and development expenses decreased $4.1 million, or 30%, to $9.4 million, primarily from reduced Ebanga development work and other unfunded R&D spend.

The company completed a $75 million repurchase of senior unsecured notes. It announced a contract modification valued at approximately $24 million for CYFENDUS and a standing offer for NARCAN Nasal Spray from the Government of Canada. Chief financial officer Rich Lindahl will retire effective December 31, 2026, and Frank Vargo will serve as interim chief financial officer beginning January 1, 2027.

Emergent revised its full-year 2026 outlook. Total revenue guidance was cut to $600 million–$645 million from $645 million–$675 million. Adjusted EBITDA guidance was reduced to $110 million–$140 million from $130 million–$150 million. The adjusted net income (loss) range moved to ($10) million–$20 million from $10 million–$30 million, and the net loss range to ($255) million–($225) million from ($245) million–($225) million. Adjusted gross margin guidance was raised to 45%–47% from 42%–44%.