BeOne Medicines Announces First Quarter 2026 Financial Results and Business Updates

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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

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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

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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

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Note Regarding Use of Non-GAAP Financial Measures

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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.

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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 adjustments¹		(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 adjustments¹		(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 adjustments¹		(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 adjustments¹		(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 adjustments¹		(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.

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	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	)

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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-GAAP¹	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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Contacts

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Investor Contact
Liza Heapes
+1 857-302-5663
[email protected]

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BeOne Medicines Announces First Quarter 2026 Financial Results and Business Updates

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