Keros Therapeutics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $14.2 million for the quarter ended September 30, 2026, compared to a net loss of $7.3 million in the same period in 2025.
• Total revenue was $40.0 million for the quarter, driven by $40.0 million in license revenue, compared to $14.3 million in the prior year period.
• Research and development expenses were $20.5 million for the quarter, an increase of $1.0 million from $19.5 million in Q3 2025, primarily due to additional pipeline advancement efforts offset by decreased elritercept-related expenses.
• General and administrative expenses decreased to $6.7 million from $10.1 million in Q3 2025, driven by lower compensation costs and professional fees.
• Cash and cash equivalents stood at $259.5 million as of September 30, 2026, down from $287.4 million as of December 31, 2025.
• Net income per share was $0.71 (basic) and $0.70 (diluted) for the quarter, compared to a loss of $0.18 per share in the prior year period.

Guidance and Future Outlook:

• Based on current operating assumptions, the company expects its cash position to fund operating expenses and capital requirements into the second half of 2028.
• Initial data from the Phase 2 clinical trial of rinvatercept in Duchenne muscular dystrophy is expected to be announced in the first half of 2027.

Business Segments and Product Lines:

• Rinvatercept: First patient dosed in the Phase 2 clinical trial for Duchenne muscular dystrophy in September 2026.
• KER-206: Nominated from the nonclinical pipeline for further investigation; presented as a novel ligand trap designed to bind select TGF-β ligands (activin A, activin B, GDF8, GDF11) to regulate bone remodeling.
• Elritercept: Activities transitioned to Takeda during 2025, resulting in decreased related research and development expenses.

Other Key Points:

• The increase in net income of approximately $21.4 million year-over-year was primarily attributed to revenue recognized in 2026 related to the license agreement with Takeda.
• The company maintains a focus on developing therapeutics targeting disorders linked to dysfunctional signaling of the TGF-β family of proteins.