RS
Roivant Sciences Ltd. (ROIV)·Q1 2026 Earnings Summary
Executive Summary
- Q1 2026 was operationally “quiet” with focus on clinical execution and near-term catalysts; GAAP revenue was $2.17M, GAAP diluted EPS from continuing operations was -$0.33, and adjusted loss from continuing operations was $170.1M .
- Management reiterated imminent Phase 3 dermatomyositis (DM) topline for brepocitinib in 2H 2025 and strong progress across the FcRn (IMVT-1402) franchise (Graves’, Sjögren’s, MG, CIDP), positioning for multiple potential launches over the next 24–36 months .
- Balance sheet remains robust: $4.5B in consolidated cash, equivalents, restricted cash and marketable securities; completed $1.5B buyback (including $208M in Q1) and authorized an additional $500M repurchase program .
- Near-term stock catalysts: DM Phase 3 readout (2H 2025), Graves’ remission data from batoclimab (ATA, September), and LNP litigation summary judgment decisions in fall ahead of a U.S. jury trial scheduled for March 2026 .
What Went Well and What Went Wrong
What Went Well
- Continued clinical execution: brepocitinib DM VALOR reached last patient, last visit in July; NIU Phase 3 and cutaneous sarcoidosis (CS) PoC are enrolling toward 2026–2027 readouts .
- FcRn portfolio expansion: initiated potentially registrational IMVT-1402 trials in Graves’ and Sjögren’s in June; all six indications remain on track .
- Capital allocation: completed $1.5B buyback, reduced share count >15% since Mar 31, 2024; board approved new $500M program. “We repurchased just under 150,000,000 shares at an average price of just over $10” .
What Went Wrong
- GAAP revenue declined to $2.17M and GAAP diluted EPS from continuing operations was -$0.33; loss from continuing operations was $273.9M, reflecting higher R&D and G&A (share-based comp) versus prior year .
- R&D increased to $152.9M (non-GAAP $141.0M), driven by anti-FcRn and mosliciguat program costs; G&A rose to $134.0M (non-GAAP $62.6M) primarily from higher share-based comp tied to 2024 executive awards .
- LNP litigation remains an overhang; summary judgment motions filed and case reassigned to a new judge; timeline extends to March 2026 jury trial, adding legal uncertainty into 2026 .
Financial Results
Balance sheet (selected):
Consensus vs actual (S&P Global)*:
KPIs:
Guidance Changes
Earnings Call Themes & Trends
Management Commentary
- “It is a relatively quiet quarter before [a] very busy fall… three main themes… IVT-1402 and Immunovant; registrational dermatomyositis data from brepcitinib… and… LNP litigation” .
- “We completed the $1,000,000,000… share repurchase program… repurchased just under 150,000,000 shares at an average price of just over $10… [then] authorized additional $500,000,000” .
- Financials: “Adjusted… net loss of 170,000,000… $4,500,000,000 of cash as of June 30, no debt, and a significantly reduced share count” .
- On DM trial bar: “We think… a simple stat sig trial on TIS is the bar for efficacy” .
- On Graves’ remission: “Any amount of meaningful remission would be practice-changing… good data here would be helpful for… enrollment” .
Q&A Highlights
- DM steroid taper/rescue: Protocol mandates consistent taper; designed to mitigate TIS variability; 98% achieved taper by week 36; risk of placebo imbalance acknowledged but mitigated .
- Graves’ dosing and trial design: Lower dose arm included to ensure minimally efficacious dose approvability; trials structured to capture proptosis signals and durability .
- BD strategy: Balance sheet supports opportunistic late-stage deals; China assets considered given quality/valuation; focus on mechanisms enabling creative development (FcRn, JAK1/TYK2) .
- IMVT-1402 enrollment/spend: Enrollment “on track” across registrational programs; R&D ramps with multiple Phase 3s; cash runway comfortable to Graves’ data .
- Competitive positioning in DM: Oral, first-to-market differentiation vs IVIG and injectables; physician familiarity with JAKs supports adoption .
Estimates Context
- Q1 2026 results vs consensus (S&P Global)*: EPS beat (Primary EPS -$0.25 vs -$0.26), EBITDA beat (-$277.5M vs -$305.0M), but revenue missed ($2.17M vs $6.92M). Primary EPS differs from reported GAAP diluted EPS (-$0.33) due to definition; investors should anchor comparisons accordingly .
*Values retrieved from S&P Global.
Key Takeaways for Investors
- Near-term catalysts cluster: brepocitinib DM Phase 3 readout in 2H 2025; Graves’ remission signal at ATA in September; these can reset the commercial narrative and drive the stock into data .
- FcRn franchise is broadening with multiple registrational tracks; deeper IgG reduction strategy continues to correlate with better outcomes, supporting IMVT-1402 differentiation .
- Capital returns continue alongside pipeline expansion; $4.5B liquidity enables both opportunistic BD and share repurchases as volatility persists .
- Legal overhang persists but is scheduled; summary judgments this fall and U.S. jury trial in March 2026 frame potential resolution and optionality .
- Financials show investment phase: rising R&D tied to registrational activity; monitor non-GAAP loss trajectory and operating expense discipline as trials scale .
- For trading: anticipate headline volatility around DM topline and ATA Graves’ remission; oral-first position in DM and any remission signal in Graves’ are likely positive skew catalysts .
- Medium term: stacking indications (DM → NIU → Graves’/MG/CIDP/SjD) could transition Roivant to a multi-asset commercial story over 24–36 months .