Sarepta Q4 Loss Wider Than Expected, Sales Beat Estimates

Sarepta Therapeutics, Inc. SRPT reported a fourth-quarter 2025 adjusted loss of $3.58 per share, wider than the Zacks Consensus Estimate of a loss of 71 cents. This higher-than-anticipated loss was attributed to an increase in operating expenses incurred during the quarter. In the year-ago period, the company posted an adjusted earnings per share (EPS) of $1.91.

The adjusted figures exclude depreciation and amortization costs, stock-based compensation expenses, gains on strategic investments, losses on debt extinguishment and restructuring charges. Including these items, loss during the quarter was $3.93 against an EPS of $1.50 in the year-ago period.

Sarepta recorded total revenues of $442.9 million, down nearly 33% year over year. This downtick was due to lower sales of Elevidys, its one-shot gene therapy for Duchenne muscular dystrophy (DMD). The reported figure beat the Zacks Consensus Estimate of $408.5 million.

Shares of Sarepta fell 5% in after-market trading yesterday, likely due to the wider-than-expected loss. Year to date, the stock has declined12% against the industry’s 9% growth.

More on SRPT’s Earnings

Sarepta’s commercial portfolio includes three approved RNA-based PMO therapies — Exondys 51, Vyondys 53 and Amondys 45 — and Elevidys, all targeting DMD indications. Product revenues fell 42% year over year to $369.6 million.

The company recorded $259 million from the product sales of its three PMO therapies, up 2% year over year. The figure missed the Zacks Consensus Estimate of $270 million.

Sarepta generated $110 million from Elevidys sales, down more than 71% year over year, primarily due to its decision to suspend shipments to non-ambulatory patients in June 2025 amid safety concerns. The therapy’s sales missed the Zacks Consensus Estimate of $114 million.

SRPT recorded approximately $73.3 million in collaboration and other revenues, compared with $20.3 million in the year-ago period. This uptick was mainly due to higher contract manufacturing revenues, driven by higher volume of shipments of Elevidys to Roche RHHBY.

Sarepta and Roche entered into a licensing agreement in 2019 to develop Elevidys. Per the agreement, RHHBY has exclusive rights to launch and market Elevidys in ex-U.S. markets.

Discussion on SRPT’s Operating Costs

Adjusted research and development (R&D) expenses totaled $308.1 million, up 78% year over year. This upside is primarily due to an increase in milestone expenses made toward pipeline development during the quarter.

Adjusted selling, general & administrative (SG&A) expenses declined 20% to $105.4 million, primarily due to the company’s restructuring plan launched last year in July.

Full-Year 2025 Results

Sarepta reported total revenues of $2.2 billion, up 16% year over year.

The adjusted loss in 2025 stood at $5.05 per share against adjusted EPS of $3.71 in the year-ago period.

2026 Guidance

At the conference call, management issued fresh guidance for net product revenues for full-year 2026. It expects figures between $1.2 billion and $1.4 billion. The company projects total collaboration, contract manufacturing and royalty revenues to be between $450 million and $550 million.

Sarepta reiterated its guidance for expenses. It expects the combined adjusted R&D and SG&A expenses to be in the $800-$900 million range.

Updates on SRPT’s Pipeline & Other News

In the conference call, CEO Douglas Ingram announced his intention to retire by the end of 2026 for personal reasons. The company’s board of directors has already started a comprehensive search for a new CEO both within and outside the company.

Last month, Sarepta shared long-term data from the late-stage EMBARK study, which showed that treatment with Elevidys slowed disease progression and achieved sustained improvements in patients' ability to control and coordinate movement three years after treatment. This shows that the therapy can make a meaningful difference over time.

Since the onset of 2025, the stock has been facing a lot of heat from investors after three patient deaths were linked to its gene therapy treatments and attributed to acute liver failure (ALF). While two deaths occurred in patients after receiving Elevidys, one was caused by an experimental limb-girdle muscular dystrophy (LGMD) therapy. All deaths occurred in non-ambulatory patients and were linked to the AAVrh74 gene therapy vector, used in both Elevidys and Sarepta’s experimental LGMD therapies.

The above outcomes led the company to voluntarily suspend Elevidys dosing for non-ambulatory patients. To address the safety concerns, Sarepta is working to create a revised treatment protocol featuring an enhanced, sirolimus-based immunosuppressive regimen to make the therapy’s administration safer. The goal is to reduce the risk of acute liver complications and improve the safety profile of Elevidys in this higher-risk subgroup. In this regard, the company has started dosing patients in cohort 8 of the phase Ib ENDEAVOR study, which is evaluating this regimen in the non-ambulatory population. Data from this study is expected before this year’s end.

Due to the above recent setbacks, Sarepta has paused development of most of its LGMD pipeline and shifted focus to the siRNA programs, which were acquired earlier this year as part of a multi-billion-dollar licensing deal with Arrowhead Pharmaceuticals ARWR.

Per the deal, Sarepta acquired exclusive rights to Arrowhead’s seven siRNA programs, which include four programs being evaluated in separate phase I/II studies. These include SRP-1001 in facioscapulohumeral muscular dystrophy (FSHD), SRP-1002 in idiopathic pulmonary fibrosis (IPF), SRP-1003 in myotonic dystrophy type 1 (DM1) and SRP-1004 in spinocerebellar ataxia 2 (SCA2). The company remains on track to start an early-stage study on SRP-1005, an investigational Huntington’s Disease therapy, in the second quarter of 2026.

SRPT’s Zacks Rank

Sarepta currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank  #1 (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research