Press Release: BeOne Medicines Announces First Quarter 2026 Financial Results and Business Updates

Dow Jones05-06
   --  Total global revenues of $1.5 billion for the first quarter, an 
      increase of 35% from the prior year 
 
   --  Foundational BRUKINSA (zanubrutinib) global revenues of $1.1 billion 
      for the first quarter, an increase of 38% from the prior year 
 
   --  Diluted GAAP Earnings per American Depository Share (ADS) of $1.96 for 
      the first quarter; non-GAAP diluted Earnings per ADS of $3.24 for the 
      first quarter 
SAN CARLOS, Calif.--(BUSINESS WIRE)--May 06, 2026-- 

BeOne Medicines Ltd. (NASDAQ: ONC; HKEX: 06160; SSE: 688235), a global oncology company, today announced financial results and corporate updates from the first quarter of 2026.

John V. Oyler, Co-Founder, Chairman, and CEO, BeOne, said:

"These strong first-quarter results reinforce BeOne's continued growth as a global oncology leader, driven by disciplined commercial execution, and underpinned by our established hematology leadership, and an impressive, rapidly emerging solid tumor pipeline. The sustained competitive advantages of our global superhighway for clinical development and manufacturing are now clear. BRUKINSA has firmly established itself as the foundational, best-in-class BTK inhibitor with unmatched long-term efficacy and safety data for the treatment of CLL and as the only BTKi with proven efficacy superiority over ibrutinib which has resulted in clear global revenue leadership. The fixed-duration combination of sonrotoclax, a foundational, next-generation BCL2 inhibitor, and BRUKINSA represents a potential new standard-of-care in first-line CLL, with BTK CDAC BGB-16673 emerging as a potential first-in-class therapy in the relapsed or refractory setting. With more than 20 abstracts across our hematology and solid tumor pipeline accepted for presentation at ASCO, BeOne has solidified its position as a leading oncology company."

 
(Amounts in thousands of U.S. dollars and unaudited) 
 
                              Three Months Ended 
                                   March 31, 
                      ----------------------------------- 
                            2026              2025          % Change 
                      ----------------  ----------------   ----------- 
Net product revenues   $     1,487,329   $     1,108,530        34% 
Other revenue          $        26,109   $         8,749       198% 
                          ------------      ------------ 
Total revenue          $     1,513,438   $     1,117,279        35% 
 
GAAP income from 
 operations            $       249,902   $        11,102     2,151% 
Adjusted income from 
 operations*           $       414,394   $       139,357       197% 
 
GAAP net income        $       227,357   $         1,270    17,802% 
Adjusted net income*   $       375,042   $       136,137       175% 
 
GAAP basic EPS per 
 ADS                   $          2.05   $          0.01    20,400% 
Adjusted basic EPS 
 per ADS*              $          3.38   $          1.27       166% 
 
GAAP diluted EPS per 
 ADS                   $          1.96   $          0.01    19,500% 
Adjusted diluted EPS 
 per ADS*              $          3.24   $          1.22       166% 
 
Free Cash Flow*        $       160,547   $       (12,325)    1,403% 
 
* For an explanation of our use of non-GAAP financial measures, refer 
to the "Note Regarding Use of Non-GAAP Financial Measures" section 
later in this press release and for a reconciliation of each non-GAAP 
financial measure to the most comparable GAAP measures, see the table 
at the end of this press release. 
 

First Quarter 2026 Financial Results

Product Revenue totaled $1.5 billion for the first quarter of 2026, representing growth of 34% compared to the prior-year period.

   --  BRUKINSA: Global sales totaled $1.1 billion for the first quarter of 
      2026, representing growth of 38% compared to the prior-year period; U.S. 
      sales of BRUKINSA totaled $761 million in the first quarter of 2026, 
      representing growth of 35% compared to the prior-year period. 
 
   --  TEVIMBRA (tislelizumab): Global sales totaled $206 million in the first 
      quarter of 2026, representing growth of 20% compared to the prior-year 
      period. 
 
   --  Amgen in-licensed products: Global sales totaled $142 million in the 
      first quarter of 2026, representing growth of 25% compared to the 
      prior-year period. 

Gross Margin as a percentage of global product sales for the first quarter of 2026 was 89%, compared to 85% in the prior-year period on a GAAP basis. The gross margin percentage increased due to a proportionally higher sales mix of global BRUKINSA compared to other products in our portfolio. Gross margin also benefited from productivity improvements resulting in lower costs for both BRUKINSA and TEVIMBRA.

Operating Expenses

The following table summarizes operating expenses for the first quarter of 2026:

 
 
                          GAAP                           Non-GAAP 
                  --------------------              ------------------ 
(unaudited, in 
thousands, 
except 
percentages)       Q1 2026    Q1 2025    % Change   Q1 2026   Q1 2025    % Change 
                  ----------  --------  ----------  --------  --------  ---------- 
Research and 
 development      $  541,224  $481,887   12%        $465,904  $421,195   11% 
Selling, general 
 and 
 administrative   $  555,097  $459,288   21%        $471,993  $395,511   19% 
                   ---------   -------               -------   ------- 
Total operating 
 expenses         $1,096,321  $941,175   16%        $937,897  $816,706   15% 
                   ---------   -------               -------   ------- 
 

Research and Development (R&D) Expenses increased for the first quarter of 2026 compared to the prior-year period on both a GAAP and adjusted basis due to advancing preclinical programs into the clinic and early clinical programs into late stage.

Selling, General and Administrative (SG&A) Expenses increased for the first quarter of 2026 compared to the prior-year period on both a GAAP and adjusted basis due to continued investment to support commercial growth. SG&A expenses as a percentage of product sales were 37% for the first quarter of 2026, compared to 41% in the prior-year period.

Net Income and Basic/Diluted Earnings Per Share

GAAP net income for the first quarter of 2026 was $227 million, an increase of $226 million over the prior-year period, primarily attributable to revenue growth and improved operating leverage.

For the first quarter of 2026, basic and diluted earnings per share were $0.16 and $0.15 per share and $2.05 and $1.96 per American Depositary Share (ADS), compared to basic and diluted earnings per share of $0.00 per share and $0.01 per ADS in the prior-year period.

Free Cash Flow for the first quarter of 2026 was $161 million, representing an increase of $173 million over the prior-year period.

For further details on BeOne's First Quarter 2026 Financial Statements, please see BeOne's Quarterly Report on Form 10-Q for the first quarter of 2026 filed with the U.S. Securities and Exchange Commission.

Updated Full Year 2026 Guidance

BeOne's financial guidance is summarized below:

 
 
                                                    Current FY 2026 
                            Prior FY 2026 Guidance  Guidance(1) 
Total revenue               $6.2 - $6.4 billion     $6.3 - $6.5 billion 
GAAP gross margin %         High-80% range          High-80% range 
GAAP operating expenses(2) 
(combined R&D and SG&A)     $4.7 - $4.9 billion     $4.7 - $4.9 billion 
GAAP operating income(2)    $700 - $800 million     $750 - $850 million 
Non-GAAP operating          $1.4 - $1.5 billion     $1.45 - $1.55 billion 
 income(2,3) 
 
(1) Assumes May 1, 2026 foreign exchange rates. (2) Does not assume any 
potential new, material business development activity or unusual/non-recurring 
items. (3) Non-GAAP operating income is a financial measure that excludes from 
the corresponding GAAP measure costs related to share-based compensation, 
depreciation and amortization expense. Guidance assumes that Non-GAAP expenses 
track overall expense growth. 
 

BeOne's total revenue guidance for full year 2026 of $6.3 billion to $6.5 billion includes expectations for strong revenue growth driven by BRUKINSA's leadership position in the U.S. and continued global expansion in both Europe and other important rest of world markets. Gross margin percentage is expected to be in the high-80% range and includes the impact of product mix and a full year of 2026 productivity improvements. Guidance for combined operating expenses on a GAAP basis includes expectations of investment to support growth in both commercial and research at a pace that continues to deliver meaningful operating leverage.

The Company is providing the following additional guidance on items impacting net income and earnings per ADS:

   --  Other income (expense): Estimated range of $25 million to $50 million 
      in expense, includes interest amortization from Royalty Pharma 
      arrangement. 
 
   --  Income tax outlook: Earnings may provide sufficient positive evidence 
      to reverse certain valuation allowances in 2026, resulting in a material 
      tax benefit when recognized; the timing and magnitude of a potential 
      reversal is uncertain; prior to reversal, income tax expense should trend 
      with earnings per historical relationship. See Form 10-Q for additional 
      updates on income tax uncertainties. 
 
   --  Diluted ADS outstanding: The Company expects diluted ADSs outstanding 
      of approximately 118 million. 

First Quarter 2026 Business Highlights

Core Marketed Products

BRUKINSA (zanubrutinib)

   --  Received Orphan Drug Designation in Japan for the treatment of adult 
      patients with relapsed or refractory (R/R) marginal zone lymphoma (MZL). 
 
 
   --  Submitted New Drug Application in Japan for R/R MZL and tablet 
      formulation. 

Sonrotoclax (BCL2 inhibitor)

   --  Launched and commercially available in China for the treatment of adult 
      patients with R/R mantle cell lymphoma (MCL) and R/R chronic lymphocytic 
      leukemia (CLL)/small lymphocytic lymphoma (SLL). 
 
   --  Included in the European Society of Medical Oncology (ESMO) guidelines 
      as a recommended third-line treatment for R/R MCL patients. 

TEVIMBRA (tislelizumab)

   --  Received acceptance of a Supplemental Biologics License Application 
      (sBLA) by the U.S. Food and Drug Administration (FDA) with Priority 
      Review for the treatment of adult patients with first-line HER2-positive 
      gastroesophageal adenocarcinoma (GEA) in combination with ZIIHERA 
      (zanidatamab) and chemotherapy, based on results of the HERIZON-GEA-01 
      trial which demonstrated statistically significant and clinically 
      meaningful improvement in overall survival versus trastuzumab plus 
      chemotherapy. 
 
   --  Received acceptance of sBLA by the Center for Drug Evaluation $(CDE)$ in 
      China for the treatment of adult patients with first-line HER2-positive 
      GEA in combination with ZIIHERA and chemotherapy. 

ZIIHERA (zanidatamab)

   --  Received acceptance of sBLA by the CDE in China for the treatment of 
      adult patients with first-line HER2-positive GEA in combination with 
      chemotherapy, with or without TEVIMBRA. 

Select Clinical-Stage Programs

Hematology

   --  BGB-16673 (BTK CDAC): Initiated Phase 2 cohorts in R/R MZL and 
      Richter's Transformation. 

Breast and Gynecological Cancers

   --  BGB-43395 (CDK4 inhibitor): Received acceptance of Phase 1 study data 
      as a poster presentation at ASCO. 
 
   --  BG-C9074 (B7-H4 ADC): Received acceptance of Phase 1 study data as a 
      rapid oral presentation at ASCO. 

Gastrointestinal Cancers

   --  BGB-B2033 (GPC3x41BB bispecific antibody): 
 
          --  Received FDA Orphan Drug Designation for hepatocellular 
             carcinoma $(HCC)$. 
 
          --  Initiated potentially registrational study in patients with 
             HCC. 
 
          --  Received acceptance of Phase 1 study data as a rapid oral 
             presentation at ASCO. 
 
 

Lung Cancer

   --  BG-C0979 (ADAM9-targeting ADC): Initiated first-in-human study. 

Inflammation and Immunology

   --  BG-A3004 (KLRG1 mAb): Initiated first-in-human study. 

Anticipated R&D Milestones

 
Programs            Milestones                                         Timing 
------------------  -------------------------------------------------  ------- 
BRUKINSA            --  Interim analysis in the Phase 3 MANGROVE       1H 2026 
                        study data in combination with rituximab 
                        versus bendamustine plus rituximab for the 
                        treatment of adult patients with first-line 
                        MCL. 
                    --  Japan regulatory action for the treatment of   1H 2026 
                        adult patients with first-line gastric 
                        cancer. 
                    --  U.S. FDA regulatory action for the treatment   2H 2026 
                        of adult patients with first-line 
                        HER2-positive GEA in combination with 
                        ZIIHERA. 
TEVIMBRA            --  China regulatory action for the treatment of   1H 2027 
                        adult patients with first-line HER2-positive 
                        GEA in combination with ZIIHERA. 
Hematology          --  Sonrotoclax (BCL2 inhibitor): 
                          FDA regulatory action on New Drug            1H 2026 
                          Application as monotherapy treatment of 
                          adult patients with R/R MCL. 
                          Phase 3 study initiation for the treatment   2H 2026 
                          of adult patients with R/R multiple myeloma 
                          t(11;14). 
                    --  BGB-16673 (BTK CDAC): 
                          Phase 2 potential accelerated approval       2H 2026 
                          submission (if data support) for the 
                          treatment of adult patients with R/R CLL. 
Breast/Gynecologic  --  BGB-43395 (CDK4 inhibitor): 
Cancers                   Phase 3 study initiation for the treatment   1H 2026 
                          of adult patients with first-line 
                          HR-positive, HER2-negative metastatic 
                          breast cancer. 
Lung Cancer         --  BON-110 (PD-1xVEGF-AxCTLA-4 trispecific 
                        antibody): 
                          First-in-human study initiation.             1H 2026 
Gastrointestinal    --  BGB-B2033 (GPC3x41BB bispecific antibody): 
Cancers                   Pivotal Phase 3 study initiation.            2H 2026 
Inflammation and    --  BGB-16673 (BTK CDAC): 
Immunology                Phase 2 study initiation for the treatment   2H 2026 
                          of adult patients with chronic spontaneous 
                          urticaria. 
 

Corporate Updates

   --  Entered into an exclusive option with Huahui Health to license 
      worldwide rights to HH160 (BON-110), a novel trispecific antibody 
      targeting PD-1, VEGF-A and CTLA-4. 

BeOne's Earnings Results Webcast

The Company's earnings conference call for the first quarter 2026 will be broadcast via webcast at 8:00 a.m. ET on Wednesday, May 6, 2026, and will be accessible through the Investors section of BeOne's website at www.beonemedicines.com. Supplemental information in the form of a slide presentation, transcript of prepared remarks, and a replay of the webcast will also be available.

About BeOne

BeOne Medicines is a global oncology company that is discovering and developing innovative treatments for cancer patients worldwide. With a portfolio spanning hematology and solid tumors, BeOne is expediting development of its diverse pipeline of novel therapeutics through its internal capabilities and collaborations. The Company has a growing global team spanning six continents who are driven by scientific excellence and exceptional speed to reach more patients than ever before.

To learn more about BeOne, please visit www.beonemedicines.com and follow us on LinkedIn, X, Facebook and Instagram.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws, including statements regarding: BeOne's continued growth as a global oncology leader; the fixed-duration combination of sonrotoclax and BRUKINSA as a potential new standard-of-care in first-line CLL; the emergence of BGB-16673 as a potential first-in-class therapy for R/R CLL; BeOne's future revenue, gross margin percentage, operating expenses, operating income, other income or expense, income tax and diluted ADS outstanding; BeOne's expectations regarding continued global expansion and investment to support growth; upcoming R&D milestones to be achieved by BeOne; the timing of clinical and regulatory developments and data readouts; and BeOne's plans, commitments, aspirations and goals under the caption "About BeOne." Actual results may differ materially from those indicated in the forward-looking statements as a result of various important factors, including BeOne's ability to demonstrate the efficacy and safety of its drug candidates; the clinical results for its drug candidates, which may not support further development or marketing approval; actions of regulatory agencies, which may affect the initiation, timing and progress of clinical trials and marketing approval; BeOne's ability to achieve commercial success for its marketed medicines and drug candidates, if approved; BeOne's ability to obtain and maintain protection of intellectual property for its medicines and technology; BeOne's reliance on third parties to conduct drug development, manufacturing, commercialization, and other services; BeOne's limited experience in obtaining regulatory approvals and commercializing pharmaceutical products; BeOne's ability to obtain additional funding for operations and to complete the development of its drug candidates and achieve and maintain profitability; and those risks more fully discussed in the section entitled "Risk Factors" in BeOne's most recent periodic report filed with the U.S. Securities and Exchange Commission ("SEC"), as well as discussions of potential risks, uncertainties, and other important factors in BeOne's subsequent filings with the SEC. All information in this press release is as of the date of this press release, and BeOne undertakes no duty to update such information unless required by law. BeOne's financial guidance is based on estimates and assumptions that are subject to significant uncertainties.

 
Condensed Consolidated Statements of Operations (U.S. GAAP) (Amounts in 
thousands of U.S. dollars, except for shares, American Depositary Shares 
                  (ADSs), per share and per ADS data) 
 
                                            Three Months Ended 
                                                 March 31, 
                                   ------------------------------------- 
                                           2026             2025 
                                       -------------    ------------- 
 
                                      (Unaudited) 
Revenues 
   Product revenue, net             $      1,487,329   $    1,108,530 
   Other revenue                              26,109            8,749 
                                       -------------    ------------- 
      Total revenues                       1,513,438        1,117,279 
Cost of sales - products                     167,215          165,002 
                                       -------------    ------------- 
Gross profit                               1,346,223          952,277 
Operating expenses: 
   Research and development                  541,224          481,887 
   Selling, general and 
    administrative                           555,097          459,288 
                                       -------------    ------------- 
      Total operating expenses             1,096,321          941,175 
                                       -------------    ------------- 
Income from operations                       249,902           11,102 
   Interest income                            27,664           12,850 
   Interest expense                          (32,887)          (7,002) 
   Other income, net                          14,536            3,950 
                                       -------------    ------------- 
Income before income taxes                   259,215           20,900 
Income tax expense                            31,858           19,630 
                                       -------------    ------------- 
Net income                          $        227,357   $        1,270 
                                       =============    ============= 
 
Earnings per share 
   Basic                            $           0.16   $         0.00 
                                       =============    ============= 
   Diluted                          $           0.15   $         0.00 
                                       =============    ============= 
Weighted-average shares 
 outstanding--basic                    1,442,451,870    1,390,052,966 
                                       =============    ============= 
Weighted-average shares 
 outstanding--diluted                  1,505,027,338    1,445,253,219 
                                       =============    ============= 
 
Earnings per American Depositary 
Share ("ADS") 
   Basic                            $           2.05   $         0.01 
                                       =============    ============= 
   Diluted                          $           1.96   $         0.01 
                                       =============    ============= 
Weighted-average ADSs 
 outstanding--basic                      110,957,836      106,927,151 
                                       =============    ============= 
Weighted-average ADSs 
 outstanding--diluted                    115,771,334      111,173,325 
                                       =============    ============= 
 
 
       Select Condensed Consolidated Balance Sheet Data (U.S. GAAP) 
                  (Amounts in thousands of U.S. Dollars) 
 
                                                         As of 
                                             ----------------------------- 
                                               March 31,     December 31, 
                                                 2026            2025 
                                             -------------  -------------- 
                                              (unaudited)     (audited) 
Assets: 
Cash, cash equivalents and restricted cash    $  4,853,425   $   4,609,647 
Accounts receivable, net                           938,019         865,080 
Inventories                                        681,590         608,227 
Property, plant and equipment, net               1,640,918       1,641,678 
Total assets                                  $  8,553,619   $   8,188,573 
Liabilities and equity: 
Accounts payable                              $    423,546   $     479,035 
Accrued expenses and other payables              1,079,283       1,109,120 
R&D cost share liability                            35,700          64,345 
Sale of future royalty liability                   904,399         906,956 
Debt                                             1,078,655       1,019,206 
Total liabilities                                3,793,177       3,827,379 
Total equity                                  $  4,760,442   $   4,361,194 
 
 
 Select Condensed Consolidated Statements of Cash Flows (U.S. GAAP) 
               (Amounts in thousands of U.S. Dollars) 
 
                                              Three Months Ended 
                                                   March 31, 
                                          -------------------------- 
                                             2026         2025 
                                           ---------    --------- 
 
                                                 (unaudited) 
Cash, cash equivalents and restricted 
 cash at beginning of period              $4,609,647   $2,638,747 
   Net cash provided by operating 
    activities                               201,336       44,082 
   Net cash used in investing activities     (45,510)    (121,941) 
   Net cash provided by (used in) 
    financing activities                      68,632      (33,777) 
   Net effect of foreign exchange rate 
    changes                                   19,320        3,480 
                                           ---------    --------- 
      Net increase (decrease) in cash, 
       cash equivalents, and restricted 
       cash                                  243,778     (108,156) 
                                           ---------    --------- 
Cash, cash equivalents and restricted 
 cash at end of period                    $4,853,425   $2,530,591 
                                           =========    ========= 
 

Note Regarding Use of Non-GAAP Financial Measures

BeOne provides certain non-GAAP financial measures, including Adjusted Operating Expenses, Adjusted Operating Loss, Adjusted Net Income, Adjusted Earnings Per Share, Free Cash Flow and certain other non-GAAP income statement line items, each of which include adjustments to GAAP figures. These non-GAAP financial measures are intended to provide additional information on BeOne's operating performance. Adjustments to BeOne's GAAP figures exclude, as applicable, non-cash items such as share-based compensation, depreciation and amortization. Certain other special items or substantive events may also be included in the non-GAAP adjustments periodically when their magnitude is significant within the periods incurred. Non-GAAP adjustments are tax effected to the extent there is U.S. GAAP current tax expense. The Company currently records a valuation allowance on its net deferred tax assets, so there is no net impact recorded for deferred tax effects. BeOne maintains an established non-GAAP policy that guides the determination of what costs will be excluded in non-GAAP financial measures and the related protocols, controls and approval with respect to the use of such measures. BeOne believes that these non-GAAP financial measures, when considered together with the GAAP figures, can enhance an overall understanding of BeOne's operating performance. The non-GAAP financial measures are included with the intent of providing investors with a more complete understanding of BeOne's historical and expected financial results and trends and to facilitate comparisons between periods and with respect to projected information. In addition, these non-GAAP financial measures are among the indicators BeOne's management uses for planning and forecasting purposes and measuring BeOne's performance. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The non-GAAP financial measures used by BeOne may be calculated differently from, and therefore may not be comparable to, non-GAAP financial measures used by other companies.

 
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (Amounts 
 in thousands of U.S. Dollars, except for per share and per ADS data) 
                             (unaudited) 
 
                                                 Three Months Ended 
                                                     March 31, 
                                              ------------------------ 
                                                 2026        2025 
                                               ---------    ------- 
 
Reconciliation of GAAP to adjusted cost of 
sales - products: 
GAAP cost of sales - products                 $  167,215   $165,002 
Less: Depreciation                                 4,326      2,613 
Less: Amortization of intangibles                  1,742      1,173 
                                               ---------    ------- 
Adjusted cost of sales - products             $  161,147   $161,216 
                                               =========    ======= 
 
Reconciliation of GAAP to adjusted research 
and development: 
GAAP research and development                 $  541,224   $481,887 
Less: Share-based compensation cost               53,856     41,767 
Less: Depreciation                                21,464     18,925 
                                               ---------    ------- 
Adjusted research and development             $  465,904   $421,195 
                                               =========    ======= 
 
Reconciliation of GAAP to adjusted selling, 
general and administrative: 
GAAP selling, general and administrative      $  555,097   $459,288 
Less: Share-based compensation cost               69,492     53,684 
Less: Depreciation                                13,595     10,076 
Less: Amortization of intangibles                     17         17 
                                               ---------    ------- 
Adjusted selling, general and administrative  $  471,993   $395,511 
                                               =========    ======= 
 
Reconciliation of GAAP to adjusted operating 
expenses 
GAAP operating expenses                       $1,096,321   $941,175 
Less: Share-based compensation cost              123,348     95,451 
Less: Depreciation                                35,059     29,001 
Less: Amortization of intangibles                     17         17 
                                               ---------    ------- 
Adjusted operating expenses                   $  937,897   $816,706 
                                               =========    ======= 
 
Reconciliation of GAAP to adjusted income 
from operations: 
GAAP income from operations                   $  249,902   $ 11,102 
Plus: Share-based compensation cost              123,348     95,451 
Plus: Depreciation                                39,385     31,614 
Plus: Amortization of intangibles                  1,759      1,190 
                                               ---------    ------- 
Adjusted income from operations               $  414,394   $139,357 
                                               =========    ======= 
 
Reconciliation of GAAP to adjusted net 
income: 
GAAP net income                               $  227,357   $  1,270 
Plus: Share-based compensation expenses          123,348     95,451 
Plus: Depreciation                                39,385     31,614 
Plus: Amortization of intangibles                  1,759      1,190 
Plus: Impairment of equity investments                --     12,376 
Plus: Discrete tax items                           3,535      5,473 
Plus: Income tax effect of non-GAAP 
 adjustments(1)                                  (20,342)   (11,237) 
                                               ---------    ------- 
Adjusted net income                           $  375,042   $136,137 
                                               =========    ======= 
 
Reconciliation of GAAP to adjusted EPS - 
basic 
GAAP earnings per share - basic               $     0.16   $   0.00 
Plus: Share-based compensation expenses             0.09       0.07 
Plus: Depreciation                                  0.03       0.02 
Plus: Amortization of intangibles                   0.00       0.00 
Plus: Impairment of equity investments              0.00       0.01 
Plus: Discrete tax items                            0.00       0.00 
Plus: Income tax effect of non-GAAP 
 adjustments(1)                                    (0.01)     (0.01) 
                                               ---------    ------- 
Adjusted earnings per share - basic           $     0.26   $   0.10 
                                               =========    ======= 
 
Reconciliation of GAAP to adjusted EPS - 
diluted 
GAAP earnings per share - diluted             $     0.15   $   0.00 
Plus: Share-based compensation expenses             0.08       0.07 
Plus: Depreciation                                  0.03       0.02 
Plus: Amortization of intangibles                   0.00       0.00 
Plus: Impairment of equity investments              0.00       0.01 
Plus: Discrete tax items                            0.00       0.00 
Plus: Income tax effect of non-GAAP 
 adjustments(1)                                    (0.01)     (0.01) 
                                               ---------    ------- 
Adjusted earnings per share - diluted         $     0.25   $   0.09 
                                               =========    ======= 
 
Reconciliation of GAAP to adjusted earnings 
per ADS - basic 
GAAP earnings per ADS - basic                 $     2.05   $   0.01 
Plus: Share-based compensation expenses             1.11       0.89 
Plus: Depreciation                                  0.35       0.30 
Plus: Amortization of intangibles                   0.02       0.01 
Plus: Impairment of equity investments              0.00       0.12 
Plus: Discrete tax items                            0.03       0.05 
Plus: Income tax effect of non-GAAP 
 adjustments(1)                                    (0.18)     (0.11) 
                                               ---------    ------- 
Adjusted earnings per ADS - basic             $     3.38   $   1.27 
                                               =========    ======= 
 
Reconciliation of GAAP to adjusted earnings 
per ADS - diluted 
GAAP earnings per ADS - diluted               $     1.96   $   0.01 
Plus: Share-based compensation expenses             1.07       0.86 
Plus: Depreciation                                  0.34       0.28 
Plus: Amortization of intangibles                   0.02       0.01 
Plus: Impairment of equity investments              0.00       0.11 
Plus: Discrete tax items                            0.03       0.05 
Plus: Income tax effect of non-GAAP 
 adjustments(1)                                    (0.18)     (0.10) 
                                               ---------    ------- 
Adjusted earnings per ADS - diluted           $     3.24   $   1.22 
                                               =========    ======= 
 
1. Tax effect of Non-GAAP adjustments is based on the statutory tax 
rate in the relevant tax jurisdiction. Please note that the Company 
currently records a valuation allowance on its net deferred tax 
assets, so there is no net impact recorded for deferred tax effects. 
 
 
                                                Three Months Ended 
                                                    March 31, 
                                              ---------------------- 
                                                2026       2025 
                                               -------    ------- 
 
Free Cash Flow (Non-GAAP): 
Net cash provided by operating activities 
 (GAAP)                                       $201,336   $ 44,082 
Less: Purchases of property, plant and 
 equipment                                     (40,789)   (56,407) 
                                               -------    ------- 
Free Cash Flow (Non-GAAP)                     $160,547   $(12,325) 
                                               =======    ======= 
 
 
 
 
Reconciliation of GAAP Operating Income Guidance 
to Non-GAAP 
Operating Income Guidance for Full Year 2026 
                                                        (Unaudited) 
 
GAAP operating income                               750,000  --    850,000 
Plus: Adjustments to arrive at Non-GAAP(1)          700,000  --    700,000 
                                                  --------- 
Non-GAAP operating income                         1,450,000  --  1,550,000 
                                                  =========      ========= 
 
1. The non-GAAP adjustments are based on best available information at 
this time related to non-cash items similar to those reported in our 
actual Non-GAAP results. 
 

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(END) Dow Jones Newswires

May 06, 2026 06:00 ET (10:00 GMT)

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