Sarepta Therapeutics, Inc.

Q2 total revenues were $401 million, down 34% year over year, driven by lower net product revenue, primarily ELEVIDYS. Total net product revenue was $329 million, including $98 million from ELEVIDYS and $231 million from the PMO franchise. Gross margin on net product revenues was 75% in the quarter and 78% for the first half. Total cost of sales was $149 million, down 2% year over year. GAAP operating income was $13 million and non-GAAP operating income was $86 million; for the first half, GAAP and non-GAAP operating income were $372 million and $484 million, respectively. Cash and investments ended at $945 million, up approximately $197 million sequentially. Guidance: 2026 total net product revenue is now expected to be $1.2 billion to $1.3 billion; total collaboration and other revenue is guided to $550 million-$600 million; non-GAAP OpEx is guided to $800 million-$850 million. Management said ELEVIDYS revenue in Q3 is expected to trend lower than Q2 and second-half 2026 total product revenue should be modestly lower than the first half.

Michael Severino framed the call around Sarepta’s strategy to pair a durable Duchenne franchise with a pipeline he views as highly differentiated. He emphasized the company’s “biology first” approach in RNA and said the siRNA platform has the potential to deliver best-in-class therapies, while also acknowledging concerns around ELEVIDYS adoption, exon-skipping competition, and capital allocation. He sounded constructive but measured, repeatedly pointing to upcoming data and regulatory events as the next proof points.

Ryan Wong focused on financial discipline and balance sheet strength. He cited $401 million of total revenue, $149 million of cost of sales, 75% gross margin on net product revenue, $13 million of GAAP operating income, $86 million of non-GAAP operating income, and $945 million of cash and investments at quarter-end. He also noted a $39 million litigation contingency charge, said base business generated over $240 million in cash in the first half excluding the Arrowhead collaboration payment, and raised collaboration/other revenue guidance to $550 million-$600 million while tightening non-GAAP OpEx to $800 million-$850 million.

Analysts pressed management on whether the company should separate the Duchenne business from the FSHD/DM1 siRNA pipeline, but Severino argued the businesses are synergistic because Duchenne cash flow funds the newer programs. Questions also focused on ELEVIDYS demand timing and the lag from enrollment forms to revenue; management said the typical lag remains about 6 months and that the second-half mix implies more meaningful revenue contribution in 2027. Other notable questions covered regulatory strategy for the siRNA programs, with management saying it may pursue either accelerated or traditional approval depending on the data and landscape, and the AMONDYS/VVYONDYS sNDA path, where FDA has not yet signaled an advisory committee.