01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Insmed Incorporated reported product revenues, net of $305.964 milliona for the three months ended March 31, 2026, up from $92.823 million a year earlier.
The increase was driven by $207.182 millionb of US BRINSUPRI sales following its August 2025 approval, while ARIKAYCE revenue rose to $98.110 million from $92.823 million. Net loss narrowed to $163.563 million, or $(0.76) per share, from $256.583 million, or $(1.42) per share. The improvement was helped by a $46.961 million gain from the change in fair value of contingent consideration.
Operating costs rose sharply, with SG&A expenses of $247.259 millionc, up from $147.545 million, mainly from professional fees and other external expenses tied to BRINSUPRI commercial activities. R&D expenses increased to $209.485 million from $152.577 million. At March 31, 2026, the company held $582.188 million in cash and cash equivalents and $641.326 million in marketable securities, down from $510.445 million and $919.602 million at December 31, 2025.
Net cash used in operating activities was $222.738 milliond. The company also made a $15.0 million milestone payment to AstraZeneca. It states it has sufficient funds to meet its needs for at least the next 12 months.
Term Loans of $500.0 million bear a fixed rate of 9.6% per annum. Management describes the company's future cash requirements as substantial and says it may raise additional capital. Clinical and regulatory activity included positive topline results from the Phase 3b ENCORE study of ARIKAYCE in March 2026, which met its primary endpoint of change from baseline in respiratory symptom score at Month 13 (3.11 points, p=0.0299) and its multiplicity-controlled culture conversion endpoints.
The company plans to file a US supplemental new drug application in the second half of 2026. In April 2026, the Phase 2b CEDAR study of brensocatib in hidradenitis suppurativa did not meet its primary or secondary endpoints, and that program was discontinued. The company also initiated a Phase 3 study of TPIP in PAH in April 2026.
02—Key points
Key Highlights
- Product revenues, net rose to $305.964 million from $92.823 million, including $207.854 million from BRINSUPRI and $98.110 million from ARIKAYCE.
- Net loss was $163.563 million, or $(0.76) per share, compared with a net loss of $256.583 million, or $(1.42) per share, a year earlier, aided by a $46.961 million gain from the change in fair value of contingent consideration.
- SG&A expenses increased to $247.259 million from $147.545 million, and R&D expenses increased to $209.485 million from $152.577 million.
- Cash and cash equivalents were $582.188 million and marketable securities were $641.326 million at March 31, 2026, compared with $510.445 million and $919.602 million at December 31, 2025.
- Net cash used in operating activities was $222.738 million for the quarter, compared with $262.088 million a year earlier.
- Positive topline Phase 3b ENCORE results for ARIKAYCE met the primary endpoint (3.11-point treatment difference, p=0.0299), and an sNDA is planned for the second half of 2026.
- The CEDAR Phase 2b study of brensocatib in hidradenitis suppurativa did not meet its endpoints, and development in that indication was discontinued.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2026, Insmed lost $0.53.
- Revenue$306.0M100.0%
- Cost of revenue−$47.4M15.5%
- Gross profit$258.5M84.5%
- Operating costs−$411.9M134.6%
- Operating income−$153.3M50.1%
- Interest, other & tax−$10.2M3.3%
- Net income−$163.6M53.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $305.96M$92.82M | +229.6% |
| Cost of Revenue | $47.42M$21.28M | +122.9% |
| Gross Profit | $258.54M$71.55M | +261.4% |
| R&D Expenses | $209.49M$152.58M | +37.3% |
| SG&A Expenses | $247.26M$147.54M | +67.6% |
| Operating Expenses | $459.28M$340.96M | +34.7% |
| Operating Income | -$153.32M-$248.14M | +38.2% |
| Net Income | -$163.56M-$256.58M | +36.3% |
| EPS (Basic) | $-0.76$-1.42 | +46.5% |
| EPS (Diluted) | $-0.76$-1.42 | +46.5% |
| Shares Outstanding (Basic) | 215.47M180.86M | +19.1% |
| Shares Outstanding (Diluted) | 215.47M180.86M | +19.1% |
05—Questions
Frequently Asked Questions
What drove the growth in product revenue this quarter?
Product revenues, net were $305.964 million, compared with $92.823 million in the prior-year quarter. The filing attributes the increase mainly to $207.182 million of US BRINSUPRI sales following its August 2025 FDA approval. ARIKAYCE sales grew to $98.110 million from $92.823 million, with international ARIKAYCE sales up 23.4%.
Why did the net loss decline even though operating expenses rose?
Total operating expenses rose to $459.284 million from $340.963 million, led by higher SG&A and R&D costs. Net loss improved to $163.563 million from $256.583 million mainly because product revenues increased by $213.141 million and the change in fair value of contingent consideration produced a gain of $46.961 million, compared with an $18.300 million expense a year earlier.
How much liquidity does the company have, and is it sufficient?
The company reported $582.188 million in cash and cash equivalents and $641.326 million in marketable securities as of March 31, 2026. It states that it currently has sufficient funds to meet its financial needs for at least the next 12 months, but it also expects its future cash requirements to be substantial and may raise additional capital.
What are the key pipeline and regulatory developments disclosed?
ENCORE, a Phase 3b study of ARIKAYCE, produced positive topline results in March 2026, and the company plans to file a US sNDA in the second half of 2026. The company also initiated a Phase 3 study of TPIP in PAH in April 2026. The CEDAR Phase 2b study of brensocatib in hidradenitis suppurativa did not meet its primary or secondary endpoints, and that program was discontinued.
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