Omeros Corporation (NASDAQ: OMER) reported Q2 2026 net product sales of $28.5 million, up from zero a year earlier, while basic EPS improved to $0.18 from a loss of $0.43. YARTEMLEA’s first full commercial quarter brought the company to operating break-even, although an $11.5 million non-cash fair-value gain and $6.6 million from discontinued operations contributed substantially to GAAP net income. Operating activities provided $4.1 million of cash, and cash plus short-term investments totaled $132.0 million at quarter-end.
Core financial results
YARTEMLEA generated enough gross profit to cover nearly all reported operating costs. Based on net product sales and cost of product sales, gross profit was approximately $27.7 million and gross margin was about 97.2%.
The expense mix shifted from the prior year: R&D expense fell about 37% to $13.8 million, while SG&A expense increased about 34% to $13.9 million. Total costs and expenses declined to $28.5 million from $32.4 million, allowing Omeros to report a small operating profit.
| Metric | Q2 2026 | Q2 2025 | Year-over-year change |
|---|---|---|---|
| Net product sales | $28.529 million | $0 | New commercial revenue |
| Approx. gross profit / margin | $27.731 million / 97.2% | — | Not meaningful |
| Operating income (loss) | $0.074 million | $(32.354) million | Improved by $32.428 million |
| Net income (loss), continuing operations | $6.637 million | $(25.889) million | Improved by $32.526 million |
| Total GAAP net income (loss) | $13.232 million | $(25.424) million | Improved by $38.656 million |
| Basic EPS | $0.18 | $(0.43) | Turned positive |
| Diluted EPS | $0.15 | $(0.43) | Turned positive |
| Operating cash flow | $4.1 million | — | Prior-year figure not provided |
Gross profit and gross margin are calculated from the reported $28.529 million of net product sales and $0.798 million of cost of product sales.
YARTEMLEA launch accelerates
YARTEMLEA gross revenue reached $32.2 million, up 190% from $11.1 million in Q1 2026. Net revenue increased to $28.5 million from $9.9 million, an increase of approximately 188%, while gross-to-net adjustments edged up to 11.5% from 11.0%.
The permanent J-code for YARTEMLEA became effective July 1, 2026. CMS also granted New Technology Add-on Payment status effective October 1, which provides eligible hospitals with additional Medicare reimbursement for inpatient cases involving the treatment.
The European regulatory path remains unresolved. The EMA’s Committee for Medicinal Products for Human Use issued a negative opinion on the narsoplimab marketing application in June, and Omeros requested re-examination. An external Ad Hoc Expert Group is expected to review the evidence, while the company continues to provide access in Europe through an expanded access program.
Beyond the current indication, Omeros expects two supported YARTEMLEA studies to begin enrollment by the end of 2026. The company also expects enrollment in an inpatient OMS527 study for cocaine use disorder to start by year-end after completing additional nonclinical work requested by the FDA. A first-in-human Phase 1b trial of oncology candidate OMS805 is targeted for late 2027.
Operating break-even does not fully explain GAAP profit
The small operating profit reflects the underlying improvement from YARTEMLEA commercialization, but the $13.2 million GAAP net income includes several material non-operating items. Omeros recorded an $11.4 million gain from changes in the fair value of financial instruments, primarily the embedded derivative associated with its 2029 convertible notes. It also recognized $6.6 million of net income from discontinued operations.
These gains were partly offset by $7.6 million of interest expense and a $1.9 million loss on the early extinguishment of the 2029 notes. Interest and other income rose to $4.6 million, including a reimbursement from Novo Nordisk related to the transfer of zaltenibart inventory.
Excluding non-cash fair-value gains, company-defined non-GAAP adjusted net income was $1.8 million, or $0.02 per share. That compares with an adjusted net loss of $17.1 million, or $0.24 per share, in Q1 2026. This adjustment removes fair-value remeasurement but does not exclude every non-operating or discontinued item.
Cash, debt, and capital allocation
Omeros ended June with $132.0 million of cash and short-term investments. This quarter-end figure does not reflect the convertible-note repurchases completed in July, which required a total purchase price of $60.2 million plus $0.2 million of accrued interest.
The July transactions repurchased $30.5 million of 2029 note principal and reduced the remaining principal to approximately $40.3 million. They also lowered the number of shares potentially issuable upon conversion from approximately 11.4 million to 6.5 million and eliminated $8.6 million of future interest payments.
Separately, Omeros repurchased approximately 0.5 million common shares during Q2 for $5.7 million, at an average cost of $11.70 per share. First-half repurchases totaled approximately 0.8 million shares and $9.9 million.
Recent insider transactions
The supplied insider data shows 407,500 shares acquired and 7,500 shares sold over the latest six-month period, resulting in a net acquisition of 400,000 shares. The acquisitions were derivative-security exercises or conversions rather than open-market purchases, so the activity does not by itself establish insiders’ views on valuation or future performance.
| Date | Insider and role | Transaction | Reported price | Reported value |
|---|---|---|---|---|
| May 22, 2026 | Thomas J. Cable, Director | Sale | $11.61 per share | $87,039 |
| May 22, 2026 | Thomas J. Cable, Director | Derivative exercise/conversion | $10.84 per share | $81,300 |
| Feb. 18, 2026 | Gregory A. Demopulos, CEO | Derivative exercise/conversion | $10.27 per share | $4.108 million |
| Jan. 13, 2026 | David J. Borges, Officer | Sale | $12.31–$12.72 per share | $750,915 |
| Jan. 13, 2026 | David J. Borges, Officer | Derivative exercise/conversion | $3.06 per share | $91,800 |
| Oct. 13, 2025 | Gregory A. Demopulos, CEO | Stock gift | $0.00 per share | $0 |
Risks investors need to watch
- Dependence on YARTEMLEA: All current product revenue came from a single recently launched treatment, making launch execution, patient access, and reimbursement central to near-term operating performance.
- European regulatory uncertainty: The negative CHMP opinion creates uncertainty around European approval despite the requested re-examination.
- GAAP earnings volatility: Fair-value changes associated with the convertible notes can produce large non-cash gains or losses that are separate from commercial performance.
- Liquidity after capital deployment: The $132.0 million June cash and investment balance preceded the $60.2 million note repurchase completed in July, while the company continues funding commercialization and multiple development programs.
- Clinical timelines: OMS527 requires additional nonclinical work requested by the FDA, and other pipeline programs remain subject to development and regulatory execution.
Summary
Omeros reached operating break-even in Q2 2026 as YARTEMLEA produced $28.5 million of net revenue in its first full commercial quarter. The underlying result improved materially, but reported net income was also supported by non-cash fair-value gains and discontinued operations. The next points to monitor are the durability of YARTEMLEA demand, the effect of new reimbursement mechanisms, the European re-examination, and liquidity following the July convertible-note repurchase.
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