0001664710-26-000030
SEC filingA challenging quarter as revenue collapsed 99.8% following the prior-year Takeda license milestone, swinging the company to a net loss and negative free cash flow.
Total revenue decreased by $210.9 million to $367.0K for the three months ended March 31, 2026, compared to $211.2 million in the same period in 2025. The decline was primarily due to the recognition of license revenue under the Takeda Agreement during the three months ended March 31, 2025, which did not recur. This highlights the company's reliance on milestone-based partnership revenue and the volatility inherent in such a model.
Net cash used in operating activities was $3.5 million in Q1 2026, compared to $161.2 million provided in Q1 2025. Capital expenditures were $73.0K, resulting in negative free cash flow of $3.6 million. Based on current operating assumptions, management believes existing cash and cash equivalents will be sufficient to fund projected liquidity requirements into the first half of 2028.
Keros's most advanced program, elritercept, is partnered with Takeda for global development outside China, with a Phase 3 trial in lower-risk MDS initiated in July 2025. The lead wholly-owned candidate, rinvatercept, is in Phase 2 planning for Duchenne muscular dystrophy and ALS, with initial data expected in the first half of 2027. The company expects general and administrative expenses to increase as it supports continued research and development and potential commercialization. While near-term financials are weak, the strong cash position provides a foundation to execute on clinical milestones.