Earnings release
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NEWS RELEASE Emergent Biosolutions Reports Third Quarter 2026 Financial Results 2026-11-02 Third Quarter 2026 Total Revenues of $110.0 million Third Quarter 2026 Net Loss of $32.7 million and Net Loss Margin was (30)% Third Quarter 2026 Adjusted Net Loss of $18.7 million Third Quarter 2026 Gross Margin % of 14% and Adjusted Gross Margin % of 28% Third Quarter 2026 Adjusted EBITDA was a loss of $4.6 million and Adjusted EBITDA Margin was (4)% GAITHERSBURG, Md.--(BUSINESS WIRE)-- Emergent BioSolutions Inc. (NYSE: EBS) today reported nancial results for the third quarter ended September 30, 2026. “Emergent's third-quarter results, which include revenue of $110.0 million inline with our guidance, were primarily driven by our diverse biodefense/medical countermeasures and naloxone portfolio, underscoring the importance of disciplined execution as we advance our multi-year transformation,” said Joe Papa, president and chief executive o cer of Emergent BioSolutions. “We remain focused on our turnaround priorities and strengthening our nancial position, which includes improving operating performance, reducing debt, creating long-term shareholder value, continuously demonstrating high standards of quality and compliance in all we do and delivering on our mission to protect and save lives.” FINANCIAL HIGHLIGHTS Q3 2026 vs. Q3 2025 ($ in millions, except per share amounts)Q3 2026Q3 2025% Change Total Revenues $ 110.0$ 231.1 (52)%Net Income (Loss) $ (32.7) $ 51.2 (164)%NtI (L) DiltdSh $ (064) $ 091 (170)% (1) 1
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Net Income (Loss) per Diluted Share $ (0.64) $ 0.91 (170)%Adjusted Net Income (Loss) $ (18.7) $ 65.2 (129)%Adjusted Net Income (Loss) per Diluted Share$ (0.36) $ 1.15 (131)%Adjusted EBITDA $ (4.6) $ 92.6 (105)%Net Income (Loss) Margin (30)% 22%Adjusted EBITDA Margin (4)% 40%Gross Margin % 14% 54%Adjusted Gross Margin % 28% 62% Year to Date ("YTD") 2026 vs YTD 2025 ($ in millions, except per share amounts)YTD 2026YTD 2025% Change Total Revenues $ 500.4$ 594.2 (16)%Net Income (Loss) $ (206.1) $ 107.2 (292)%Net Income (Loss) per Diluted Share $ (3.99) $ 1.89 (311)%Adjusted Net Income $ 24.1$ 120.5 (80)%Adjusted Net Income per Diluted Share$ 0.47$ 2.13 (78)%Adjusted EBITDA $ 127.5$ 204.8 (38)%Net Income (Loss) Margin (41)% 18%Adjusted EBITDA Margin 25% 34%Gross Margin % 39% 48%Adjusted Gross Margin % 49% 57% RECENT BUSINESS UPDATES Announced Rich Lindahl, Executive Vice President, Chief Financial O cer will retire from Emergent, e ective December 31, 2026, and will stay on as a part-time advisor through March 31, 2027; Frank Vargo, Vice President, Treasurer, will serve as interim Chief Financial O cer beginning January 1, 2027 Completed repurchase of $75 million aggregate principal amount of Senior Unsecured Notes Implemented restructuring e orts aimed to improve overall cost structure, drive e ciencies and align resourcing to the current needs of the organization, including creation of new Growth organization Awarded contract modi cation valued at approximately $24 million for CYFENDUS (Anthrax Vaccine Adsorbed, Adjuvanted) Awarded 'Standing O er' for NARCAN Nasal Spray from the Government of Canada Announced commitment to cross-sector collaboration against biological threats in an evolving global security environment Announced ongoing commitment to opioid overdose education and preparedness on International Overdose Awareness Day THIRD QUARTER 2026 FINANCIAL PERFORMANCE Revenues The Company uses the following categories in discussing revenues: Naloxone — comprises contributions from NARCAN Nasal Spray and KLOXXADO Nasal Spray Anthrax MCM — comprises contributions from CYFENDUS , BioThrax , ANTHRASIL , and Raxibacumab Smallpox MCM — comprises contributions from ACAM2000 , CNJ-016 (VIGIV) and TEMBEXA (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) ® ® (1) ® ® ® ® ® ® ® ® 2
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Other Products— comprises contributions from BAT All Other Revenues— comprises revenues from the Services operating segment and contracts and grants revenues ($ in millions) Q3 2026Q3 2025$ Change% Change Product sales, net: Naloxone $ 43.5$ 74.9$ (31.4) (42)%Anthrax MCM 25.1 1.4 23.7 NMSmallpox MCM 26.7 83.6 (56.9) (68)% Other Products 7.6 57.5 (49.9) (87)% Total Product sales, net$ 102.9$ 217.4$ (114.5) (53)% All other revenues 7.1 13.7 (6.6) (48)% Total revenues $ 110.0$ 231.1$ (121.1) (52)% NM - Not Meaningful Product Sales, net Naloxone For Q3 2026, revenues from Naloxone products decreased $31.4 million, or 42%, as compared with Q3 2025. The decrease was primarily attributable to lower sales of OTC NARCAN, mostly driven by an unfavorable price-volume mix in U.S. public interest channels, partially mitigated by increases in Canadian sales of branded NARCAN. Anthrax MCM For Q3 2026, revenues from Anthrax MCM products increased $23.7 million as compared with Q3 2025. The increase was primarily attributable to higher USG sales of CYFENDUS due to timing. Anthrax vaccine product sales are primarily made under annual purchase options exercised by the USG. Fluctuations in revenues result from the timing of the exercise of annual purchase options, the timing of USG purchases, the availability of governmental funding and the Company’s delivery of orders that follow. Smallpox MCM For Q3 2026, revenues from Smallpox MCM products decreased $56.9 million, or 68%, as compared with Q3 2025. The decrease was primarily attributable to lower USG sales of ACAM2000 due to timing, lower USG sales due to timing as well as less international sales of CNJ-016 (VIGIV), partially o set by higher TEMBEXA USG sales due to timing. Fluctuations in revenues from Smallpox MCM result from the timing of the exercise of annual purchase options in the existing procurement contracts, the timing of USG purchases, the availability of governmental funding and the Company’s delivery of orders that follow. ® (3) (3) ® ® ® ® ® ® 3
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Other Products For Q3 2026, revenues from Other Product sales decreased $49.9 million, or 87%, as compared with Q3 2025. The decrease was primarily due to lower USG BAT sales due to timing, partially o set by an increase in international BAT sales. All Other Revenues Services For Q3 2026, revenues from Services decreased $1.1 million, or 24%, as compared with Q3 2025. The decrease was primarily attributable to less production activity at the Company’s Winnipeg facility. Contracts and Grants For Q3 2026, revenues from contracts and grants decreased $5.5 million, or 60%, as compared with Q3 2025. The decrease was primarily due to lower Ebanga related development work, re ecting the timing and nature of the work performed. Operating Expenses ($ in millions) Q3 2026Q3 2025$ Change% Change Cost of product and services sales, net$ 80.8$ 85.9$ (5.1) (6)%Research and development (“R&D”) 9.4 13.5 (4.1) (30)%Selling, general and administrative (“SG&A”)46.5 38.9 7.6 20% Amortization of intangible assets 10.6 16.3 (5.7) (35)% Total operating expenses$ 147.3$ 154.6$ (7.3) (5)% Cost of Product and Services Sales, Net For Q3 2026, cost of product and services sales, net decreased $5.1 million, or 6%, as compared with Q3 2025. The decrease was driven by a decrease in cost of Commercial Product sales of $13.1 million, which was partially o set by higher cost of Services of $6.0 million and cost of MCM Product sales of $2.0 million. Research and Development Expenses For Q3 2026, R&D expenses decreased $4.1 million, or 30%, as compared with Q3 2025. The decrease was primarily due to reduced development work related to Ebangaas well as other unfunded R&D project spend. ® ® ® 4
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Selling, General and Administrative Expenses For Q3 2026, SG&A expenses increased $7.6 million, or 20%, as compared with Q3 2025. The increase was primarily due to the one-time litigation insurance reimbursement recognized in the prior year period related to settlements of our securities and shareholders litigation matters in addition to severance costs associated with the August 2026 restructuring plan in the current year. The increase was partially o set by lower marketing and administrative support expenses. ADDITIONAL FINANCIAL INFORMATION Capital Expenditures ($ in millions) Q3 2026Q3 2025% Change Capital expenditures $ 3.3$ 3.4 (3)%Capital expenditures as a % of total revenues3% 1% For Q3 2026, capital expenditures decreased slightly due to reduced development activities across the Company’s facilities. REPORTABLE SEGMENT INFORMATION The Company manages the business with a focus on three operating segments: (1) a Commercial Products segment consisting of NARCANNasal Spray and KLOXXADO Nasal Spray; (2) a MCM Products segment consisting of Anthrax - MCM, Smallpox - MCM and Other products and (3) a services segment consisting of our Bioservices o erings (“Services”). Commercial Products and MCM Products are our two reportable segments. The Services operating segment no longer meets the quantitative thresholds of a reportable segment and did not meet the aggregation criteria set forth in Accounting Standards Codi cation 280, Segment Reporting, and as such is categorized within “All other revenues” along with “Contracts and Grants”. The Company evaluates the performance of these reportable segments based on revenues and segment adjusted gross margin, which is a non-GAAP nancial measure. Segment revenue includes external customer sales but does not include inter-segment services. The Company does not allocate contracts and grants revenue, R&D, SG&A, amortization of intangible assets, interest and other income (expense) or taxes to its evaluation of the performance of these segments. THIRD QUARTER 2026 REPORTABLE SEGMENT RESULTS (1) ® ® 5
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($ in millions) Commercial Products Quarter Ended September 30, 20262025$ Change% Change Revenues $ 43.5$ 74.9$ (31.4) (42)% Cost of sales 29.5 42.6 (13.1) (31)% Intangible asset amortization2.8 9.4 (6.6) (70)% Gross margin* $ 11.2$ 22.9$ (11.7) (51)% Gross margin %* 26% 31%Add back: Intangible asset amortization $ 2.8$ 9.4 Segment adjusted gross margin **$ 14.0$ 32.3$ (18.3) (57)% Segment adjusted gross margin % **32% 43% * Gross margin is calculated as revenues less cost of sales and intangible asset amortization. Gross margin % is calculated as gross margin divided byrevenues.** Segment adjusted gross margin, which is a non-GAAP nancial measure, for our Commercial Products segment is calculated as gross margin plusintangible asset amortization. Segment adjusted gross margin percentage, which is a non-GAAP nancial measure, is calculated as segment adjustedgross margin divided by revenues. The Company’s management utilizes segment adjusted gross margin and segment adjusted gross marginpercentage for purposes of evaluating our ongoing operations and for internal planning and forecasting purposes. In calculating these measures, webegan excluding stock-based compensation that is recorded as cost of sales in the rst quarter of 2026, as this re ects a non-cash expenditure that isnot related to segment operating performance. As re ected in the table above, we have recast our 2025 results to also re ect this adjustment. Webelieve that these non-GAAP operating measures, when reviewed collectively with our GAAP nancial information, provide useful supplementalinformation to investors in assessing our operating performance. Cost of Commercial Products sales decreased $13.1 million, or 31%, to $29.5 million for the quarter ended September 30, 2026. The decrease was primarily due to declines in U.S. sales volumes of OTC NARCAN compared with the prior year period, partially o set by an increase in Canadian sales volumes of branded NARCAN. Commercial Products gross margin decreased $11.7 million, or 51%, to $11.2 million for the quarter ended September 30, 2026. Commercial Products gross margin percentage decreased 5 percentage points to 26% for the quarter ended September 30, 2026. The decrease was largely due to an unfavorable price and volume mix of OTC NARCANacross most U.S. sales channels, partially o set by reduced amortization expense as a result of the impairment charge taken on the NARCAN asset group during the second quarter of 2026. Commercial Products segment adjusted gross margin in the current quarter period excludes the impact of intangible asset amortization of $2.8 million. ($ in millions) MCM Products Quarter Ended September 30, 20262025$ Change% Change Revenues $ 59.4$ 142.5$ (83.1) (58)% Cost of sales 40.1 38.1 2.0 5% Intangible asset amortization7.8 6.9 0.9 13% Gross margin* $ 11.5$ 97.5$ (86.0) (88)% Gross margin %* 19% 68%Add back:Intangible asset amortization $ 7.8$ 6.9Inventory step-up provision 2.1 —Severance and restructuring costs1.3 0.2 Stock-based compensation expense0.7 0.2 Segment adjusted gross margin**$ 23.4$ 104.8$ (81.4) (78)% Segment adjusted gross margin %**39% 74% * Gross margin is calculated as revenues less cost of sales and intangible asset amortization. Gross margin % is calculated as gross margin divided byrevenues.**S tdjtd i hihi GAAP il f MCMPdt ti l ltd i l ® ® ® ® 6
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** Segment adjusted gross margin, which is a non-GAAP nancial measure, for our MCM Products segment is calculated as gross margin plusintangible asset amortization, inventory step-up provision, severance and restructuring costs and the portion of stock-based compensation expensethat is recorded as cost of sales. Segment adjusted gross margin percentage, which is a non-GAAP nancial measure, is calculated as segmentadjusted gross margin divided by revenues. The Company’s management utilizes segment adjusted gross margin and segment adjusted gross marginpercentage for purposes of evaluating our ongoing operations and for internal planning and forecasting purposes. In calculating these measures, webegan excluding stock-based compensation that is recorded as cost of sales in the rst quarter of 2026, as this re ects a non-cash expenditure that isnot related to segment operating performance. As re ected in the table above, we have recast our 2025 results to also re ect this adjustment. Webelieve that these non-GAAP operating measures, when reviewed collectively with our GAAP nancial information, provide useful supplementalinformation to investors in assessing our operating performance. Cost of MCM product sales increased $2.0 million, or 5%, to $40.1 million for the quarter ended September 30, 2026. The increase was primarily attributable to higher product sales volumes for CYFENDUSand TEMBEXAas well as higher plant shutdown costs. These increases were partially o set by a decrease in cost of sales for BAT, ACAM2000 and CNJ-016 (VIGIV) driven by lower sales volumes. MCM Products gross margin decreased $86.0 million, or 88%, to $11.5 million for the quarter ended September 30, 2026. MCM Product gross margin percentage decreased 49 percentage points to 19% for the quarter ended September 30, 2026. The decrease in gross margin percentage was primarily driven by an unfavorable sales mix and decreased sales volumes, which decreased the absorption of xed manufacturing costs. MCM Product segment adjusted gross margin in the current quarter period excludes the impacts of intangible asset amortization of $7.8 million, inventory step-up provision of $2.1 million, severance and restructuring costs of $1.3 million and the portion of stock-based compensation expense recorded as cost of sales of $0.7 million. YTD 2026 REPORTABLE SEGMENT RESULTS ($ in millions) Commercial Products Nine Months Ended September 30, 20262025$ Change% Change Revenues $ 138.8$ 187.7$ (48.9) (26)% Cost of sales 92.6 103.5 (10.9) (11)% Intangible asset amortization21.7 28.3 (6.6) (23)% Gross margin* $ 24.5$ 55.9$ (31.4) (56)% Gross margin %* 18% 30%Add back:Intangible asset amortization $ 21.7$ 28.3Severance and restructuring costs— 0.2 Stock-based compensation expense0.1 — Segment adjusted gross margin** $ 46.3$ 84.4$ (38.1) (45)% Segment adjusted gross margin %** 33% 45% * Gross margin is calculated as revenues less cost of sales and intangible asset amortization. Gross margin % is calculated as gross margin divided byrevenues.** Segment adjusted gross margin, which is a non-GAAP nancial measure, for our Commercial Products segment is calculated as gross margin plusintangible asset amortization, severance and restructuring costs and the portion of stock-based compensation expense that is recorded as cost ofsales. Segment adjusted gross margin percentage, which is a non-GAAP nancial measure, is calculated as segment adjusted gross margin divided byrevenues. The Company’s management utilizes segment adjusted gross margin and segment adjusted gross margin percentage for purposes ofevaluating our ongoing operations and for internal planning and forecasting purposes. In calculating these measures, we began excluding stock-basedcompensation that is recorded as cost of sales in the rst quarter of 2026, as this re ects a non-cash expenditure that is not related to segmentoperating performance. As re ected in the table above, we have recast our 2025 results to also re ect this adjustment. We believe that these non-GAAP operating measures, when reviewed collectively with our GAAP nancial information, provide useful supplemental information to investors inassessing our operating performance. Cost of Commercial Product sales decreased $10.9 million, or 11%, to $92.6 million for the nine months ended September 30, 2026. The decrease was primarily due to lower sales volumes of OTC NARCAN in the U.S., partially ® ® ® ® ® ® 7
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o set by higher Canadian sales volumes of branded NARCAN and KLOXXADOproduct costs. Commercial Products gross margin decreased $31.4 million, or 56%, to $24.5 million for the nine months ended September 30, 2026. Commercial Products gross margin percentage decreased 12 percentage points to 18% for the nine months ended September 30, 2026. The decrease was largely due to an unfavorable price and volume mix of OTC NARCANacross most U.S. sales channels, partially o set by reduced amortization expense as a result of the impairment charge taken on the NARCAN asset group during the second quarter of 2026, and product cost improvements in the Canadian market. Commercial Products segment adjusted gross margin in the current year period excludes the impact of intangible asset amortization of $21.7 million and the portion of stock-based compensation expense recorded as cost of sales of $0.1 million. ($ in millions) MCM Products Nine Months Ended September 30, 20262025$ Change% Change Revenues $ 329.2$ 357.5$ (28.3) (8)% Cost of sales 129.7 114.1 15.6 14% Intangible asset amortization22.6 20.5 2.1 10% Gross margin* $ 176.9$ 222.9$ (46.0) (21)% Gross margin %* 54% 62%Add back:Intangible asset amortization $ 22.6$ 20.5Severance and restructuring costs (bene ts)1.3 (1.0)Inventory step-up provision 2.4 1.8 Stock-based compensation expense1.9 0.8 Segment adjusted gross margin** $ 205.1$ 245.0$ (39.9) (16)% Segment adjusted gross margin %** 62% 69% * Gross margin is calculated as revenues less cost of sales and intangible asset amortization. Gross margin % is calculated as gross margin divided byrevenues.** Segment adjusted gross margin, which is a non-GAAP nancial measure, for our MCM Products segment is calculated as gross margin plusintangible asset amortization, severance and restructuring costs (bene ts), inventory step-up provision and the portion of stock-based compensationexpense that is recorded as cost of sales. Segment adjusted gross margin percentage, which is a non-GAAP nancial measure, is calculated assegment adjusted gross margin divided by revenues. The Company’s management utilizes segment adjusted gross margin and segment adjustedgross margin percentage for purposes of evaluating our ongoing operations and for internal planning and forecasting purposes. In calculating thesemeasures, we began excluding stock-based compensation that is recorded as cost of sales in the rst quarter of 2026, as this re ects a non-cashexpenditure that is not related to segment operating performance. As re ected in the table above, we have recast our 2025 results to also re ect thisadjustment. We believe that these non-GAAP operating measures, when reviewed collectively with our GAAP nancial information, provide usefulsupplemental information to investors in assessing our operating performance. Cost of MCM product sales increased $15.6 million, or 14%, to $129.7 million for the nine months ended September 30, 2026. The increase was primarily due to higher cost of sales of CYFENDUS, CNJ-016 (VIGIV), BioThrax, and TEMBEXA re ecting increased sales volumes, as well as increased discrete product costs related to CYFENDUS. These increases were partially o set by lower cost of sales for ANTHRASIL, and ACAM2000 due to lower unit sales volume. MCM Product gross margin decreased $46.0 million, or 21%, to $176.9 million for the nine months ended September 30, 2026. MCM Product gross margin percentage decreased 8 percentage points to 54% for the nine months ended September 30, 2026. The decrease in gross margin percentage was primarily due to an unfavorable ® ® ® ® ® ® ® ® ® ® ® 8
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sales mix and decreased sales volumes, which decreased the absorption of xed manufacturing costs as well as discrete product costs related to CYFENDUS. MCM Product segment adjusted gross margin in the current year period excludes the impacts of intangible asset amortization of $22.6 million, inventory step-up provision of $2.4 million, the portion of stock-based compensation expense recorded as cost of sales of $1.9 million and severance and restructuring costs of $1.3 million. 2026 FINANCIAL FORECAST The Company provides the following updated nancial forecast for full year 2026, re ecting management's expectations based on the most current information available. METRIC ($ in millions) Updated Range (as of11/02/2026)Action Previous Range (as of08/05/2026) Total revenues $600 - $645REVISED$645 - $675 Net loss $(255) - $(225)REVISED$(245) - $(225) Adjusted net income (loss) ($10) - $20REVISED$10 - $30 Adjusted EBITDA $110 - $140REVISED$130 - $150 Adjusted gross margin % 45% - 47%REVISED42% - 44% Key Assumptions ($ and shares in millions) Updated Range(as of11/02/2026) Interest expense ~$38 R&D ~6% of RevenueSG&A ~28-30% of RevenueWeighted average fully diluted share count~52Stock-based compensation expense~$19Capex ~$16Depreciation & amortization~$81 FOOTNOTES All nancial information included in this release is unaudited. See “Non-GAAP Financial Measures” and the “Reconciliation of Non-GAAP Financial Measures” tables for the de nitions and reconciliations of Company-wide non-GAAP nancial measures to the most closely related GAAP nancial measures. Reconciliations of segment non-GAAP nancial measures are included within the reportable segment tables. In the rst quarter of 2026 we revised our calculations of these measures to exclude the impact of stock-based compensation expense, as this is a non-cash expense that is not related to our operating performance. The updated ranges for our 2026 forecast re ect this adjustment. ® (2) (2) (2) (1) (2) 9
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Product sales, net are reported net of variable consideration including returns, rebates, wholesaler fees and prompt pay discounts in accordance with GAAP. CONFERENCE CALL, PRESENTATION SUPPLEMENT AND WEBCAST INFORMATION Company management will host a conference call at 5:00 p.m. Eastern Time today, November 2, 2026, to discuss these nancial results. The conference call and presentation supplement can be accessed from the Company's website or through the following: By phone Advanced registration is required. Visit https://events.q4inc.com/analyst/688313100?pwd=A7MKQraj to register and receive an email with the dial-in number, passcode and registrant ID. By webcast Visit https://events.q4inc.com/attendee/688313100 A replay of the call can be accessed from the Emergent website. ABOUT EMERGENT BIOSOLUTIONS INC. At Emergent, our mission is to protect and save lives. For over 25 years, we’ve been at work preparing those entrusted with protecting public health. We deliver protective and life-saving solutions for health threats like smallpox, mpox, botulism, Ebola, anthrax and opioid overdose emergencies. To learn more about how we help prepare communities around the world for today’s health challenges and tomorrow’s threats, visit our website and follow us on LinkedIn, X, Instagram, Apple Podcasts and Spotify. NON-GAAP FINANCIAL MEASURES In the accompanying analysis of nancial information, we sometimes use information derived from consolidated and segment nancial information that may not be presented in our nancial statements or prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Certain of these nancial measures are considered not in conformity with GAAP (“non-GAAP nancial measures”) under the United States Securities and Exchange Commission (“SEC”) rules. Speci cally, we have referred to the following non-GAAP (3) 10
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nancial measures: Adjusted Net Income (Loss) Adjusted Net Income (Loss) per Diluted Share Adjusted EBITDA Adjusted EBITDA Margin Adjusted Gross Margin Adjusted Gross Margin % Segment Adjusted Gross Margin Segment Adjusted Gross Margin % We de ne Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share, which are non-GAAP nancial measures, as net income (loss) and net income (loss) per diluted share, respectively, excluding the impact of inventory step-up provision, settlement charges, net, severance and restructuring costs (bene ts), stock-based compensation expense, acquisition and divestiture costs, non-cash amortization charges, impairments, loss on assets held-for-sale, contingent consideration milestones, changes in fair value of nancial instruments, loss (gain) on debt extinguishment, other, net, and tax e ects. In the rst quarter of 2026 we revised our calculation of these measures to exclude the impact of stock-based compensation expense, as this is a non-cash expense that is not related to our operating performance. We use Adjusted Net Income (Loss) for the purpose of calculating Adjusted Net Income (Loss) per Diluted Share. Management uses Adjusted Net Income (Loss) per Diluted Share to assess total Company operating performance on a consistent basis. We believe that these non-GAAP nancial measures, when considered together with our GAAP nancial results and GAAP nancial measures, provide management and investors with an additional understanding of our business operating results, including underlying trends. We de ne Adjusted EBITDA, which is a non-GAAP nancial measure, as net income (loss) before depreciation and amortization, income taxes, total interest expense, net, inventory step-up provision, severance and restructuring costs (bene ts), stock-based compensation expense, acquisition and divestiture costs, impairments, loss on assets held-for-sale, contingent consideration milestones, changes in fair value of nancial instruments, settlement charges, net, loss (gain) on debt extinguishment, and other, net. We de ne Adjusted EBITDA Margin, which is a non- GAAP nancial measure, as Adjusted EBITDA divided by Total Revenues. In the rst quarter of 2026 we revised our calculation of these measures to exclude the impact of stock-based compensation expense, as this is a non-cash expense that is not related to our operating performance. We believe that these non-GAAP nancial measures, when considered together with our GAAP nancial results and GAAP nancial measures, provide management and investors with a more complete understanding of our operating results, including underlying trends. In addition, EBITDA is a common alternative measure of operating performance used by many of our competitors. It is used by investors, nancial analysts, rating agencies and others to value and compare the nancial performance of companies in our industry, although it may be de ned di erently by di erent companies. Therefore, we also 11
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believe that this non-GAAP nancial measure, considered along with corresponding GAAP nancial measures, provides management and investors with additional information for comparison of our operating results with the operating results of other companies. We de ne Adjusted Gross Margin, which is a non-GAAP nancial measure, as Gross Margin, excluding the impact of intangible asset amortization, stock-based compensation expense, severance and restructuring costs (bene ts) and inventory step-up provision. We de ne Adjusted Gross Margin %, which is a non-GAAP nancial measure, as Adjusted Gross Margin as a percentage of Products and services sales, net. In the rst quarter of 2026 we revised our calculation of these measures to exclude the impact of stock-based compensation expense, as this is a non- cash expense that is not related to our operating performance. We de ne Segment Adjusted Gross Margin, which is a non-GAAP nancial measure, as a segment's Gross Margin excluding the respective impact of intangible asset amortization, severance and restructuring costs (bene ts), inventory step-up provision and stock-based compensation expense. We de ne Segment Adjusted Gross Margin %, which is a non-GAAP nancial measure, as Segment Adjusted Gross Margin as a percentage of a segment's revenues. In the rst quarter of 2026 we revised our calculation of these measures to exclude the impact of stock- based compensation expense, as this is a non-cash expense that is not related to segment operating performance. Non-GAAP nancial measures are not de ned in the same manner by all companies and may not be comparable with other similarly titled measures of other companies. The determination of the amounts that are excluded from these non-GAAP nancial measures are a matter of management judgment and depend upon, among other factors, the nature of the underlying expense or income amounts. Non-GAAP nancial measures should be considered in addition to, but not as a substitute for or superior to, the information contained in our Consolidated Statements of Operations and Consolidated Statements of Cash Flows. Reconciliations of these non-GAAP nancial measures to the most directly comparable GAAP nancial measures are included in the nancial tables accompanying this press release. SAFE HARBOR STATEMENT This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements, other than statements of historical fact, including statements regarding the future performance of the Company or any of our businesses, our business strategy, future operations, future nancial position, future revenues and earnings, our ability to achieve the objectives of our restructuring initiatives, acquisitions and divestitures, including our future results, projected costs, prospects, plans and objectives of management are forward-looking statements. We generally identify forward-looking statements by using words like “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “goal,” 12
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“intend,” “may,” “plan,” “position,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and similar expressions or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements. These forward-looking statements are based on our current intentions, beliefs, assumptions and expectations regarding future events based on information that is currently available. You should realize that if underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could di er materially from our expectations. Readers are, therefore, cautioned not to place undue reliance on any forward-looking statement contained herein. Any such forward-looking statement speaks only as of the date of this press release, and, except as required by law, we do not undertake any obligation to update any forward-looking statement to re ect new information, events or circumstances. There are a number of important factors that could cause our actual results to di er materially from those indicated by such forward-looking statements, including, among others, the availability of USG funding for contracts related to procurement of our medical countermeasures (“MCM”) products, including CYFENDUS (Anthrax Vaccine Adsorbed (AVA) Adjuvanted) (previously known as AV7909), ACAM2000 (Smallpox and Mpox (Vaccinia) Vaccine, Live), CNJ-016 (Vaccinia Immune Globulin Intravenous (Human) (VIGIV)), BAT (Botulism Antitoxin Heptavalent (A,B,C,D,E,F,G)-(Equine)), BioThrax (Anthrax Vaccine Adsorbed) Ebanga (ansuvimab-zykl), and/or TEMBEXA (brincidofovir) among others, as well as contracts related to development of medical countermeasures; our ability to meet our commitments to quality and compliance in all of our manufacturing operations; our ability to negotiate additional USG procurement or follow-on contracts for our MCM products that have expired or will be expiring; the commercial availability and impact of generic and branded competition on future sales of NARCAN (naloxone HCL) Nasal Spray, over-the-counter NARCAN Nasal Spray and KLOXXADO Nasal Spray; our ability to perform under our contracts with the USG, including the timing of and speci cations relating to deliveries; the impact of business developments with our customers, including the USG, on our nancial statements under applicable legal and accounting rules; our ability and that of our contractors and suppliers to maintain compliance with current good manufacturing practices, quality and other regulatory and contractual obligations; our ability to collect reimbursement for raw materials and payment of service fees from our Bioservices customers; the results of pending government investigations and their potential impact on our business; our ability to satisfy the conditions of our litigation settlement agreements, and the potential impact of such agreements, including the funds to resolve related litigation, on our business; our ability to comply with the operating and nancial covenants required by (i) our term loan facility under the Credit Agreement, dated April 16, 2026, by and among the Company, the lenders from time to time party thereto, and OrbiMed Royalty & Credit Opportunities V, LP, as administrative agent, (ii) our revolving credit facility under a credit agreement, dated September 30, 2024 and amended on April 16, 2026, among the Company, certain subsidiary borrowers, the lenders from time to time party thereto and Wells Fargo, National Association, as Agent, and (iii) our 3.875% Senior Unsecured Notes due 2028; our ability to maintain adequate internal control over nancial reporting and to prepare accurate nancial statements in a timely manner; our ability to maintain su cient cash ow from our operations to pay our substantial debt, both now and in the ® ® ® ® ® ® ® ® ® ® 13
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future; our ability to invest in our business operations as a result of our current indebtedness; our ability to execute on, and realize any bene t from, our organizational restructuring activities; the impact of our share and debt repurchase programs; the procurement of our product candidates by USG entities under regulatory authorities that permit government procurement of certain medical products prior to FDA marketing authorization, and corresponding procurement by government entities outside the United States; the success of our commercialization, marketing and manufacturing capabilities and strategy; our ability to identify and acquire companies, businesses, products or product candidates that satisfy our selection criteria; our ability to attract and retain quali ed personnel; our ability to adequately secure and protect our intellectual property rights; the impact of tari s and trade relationships between the USG and foreign governments on our business; the impact of cybersecurity incidents, including which may a ect our business partners, collaborators or other third parties; and the accuracy of our estimates regarding future revenues, expenses, capital requirements and need for additional nancing. The foregoing sets forth many, but not all, of the factors that could cause actual results to di er materially from our expectations in any forward-looking statement. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could a ect the accuracy of any forward- looking statements. Readers should consider this cautionary statement, as well as the risks identi ed in our periodic reports led with the Securities and Exchange Commission, when evaluating our forward-looking statements. Trademarks Emergent, BioThrax, BaciThrax, BAT, ANTHRASIL, CNJ-016, ACAM2000, NARCAN, CYFENDUS, TEMBEXA and any and all Emergent BioSolutions Inc. brands, products, services and feature names, logos and slogans are trademarks or registered trademarks of Emergent BioSolutions Inc. or its subsidiaries in the United States or other countries. .All other brands, products, services and feature names or trademarks are the property of their respective owners, including KLOXXADO, which is a registered trademark of Hikma Pharmaceuticals USA Inc; Ebanga, which is a registered trademark of Ridgeback Biotherapeutics L.P.; and IMOJEV, which is a registered trademark of Substipharm Biologics. Emergent BioSolutions Inc.Consolidated Balance Sheets(in millions, except per share data) September 30,2026December 31,2025 (unaudited) ASSETS Current assets:Cash and cash equivalents $ 175.7$ 205.4Restricted cash 1.2 3.7Accounts receivable, net 77.5 84.2I t i t 2809 3434 ® ® ® ® ® ® ® ® ® ® ® ® ® 14
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Inventories, net 280.9 343.4 Prepaid expenses and other current assets22.9 25.8 Total current assets 558.2 662.5Property, plant and equipment, net 174.8 205.4Intangible assets, net 252.5 436.5 Other assets 9.7 14.2 Total assets $ 995.2$ 1,318.6 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities:Accounts payable $ 52.0$ 55.6Accrued expenses 7.5 12.2Accrued compensation 34.1 41.8Deferred revenue 14.3 5.0Current tax liability 4.3 6.8 Other current liabilities 9.8 10.8 Total current liabilities 122.0 132.2Debt 507.7 572.1Deferred tax liability 22.2 37.8 Other liabilities 30.1 53.9 Total liabilities $ 682.0$ 796.0Stockholders’ equity:Preferred stock, $0.001 par value per share; 15.0 shares authorized, no shares issued and outstanding— —Common stock, $0.001 par value per share; 200.0 shares authorized, 62.0 and 60.9 shares issued; 51.3and 52.1 shares outstanding, respectively. 0.1 0.1Treasury stock, at cost, 10.7 and 8.7 common shares, respectively(270.7) (252.6)Additional paid-in capital 956.6 942.4Accumulated other comprehensive loss, net(6.9) (7.5) Accumulated de cit (365.9) (159.8) Total stockholders’ equity $ 313.2$ 522.6 Total liabilities and stockholders’ equity$ 995.2$ 1,318.6 Emergent BioSolutions Inc.Consolidated Statements of Operations(unaudited, in millions, except per share data) Three Months EndedSeptember 30,Nine Months EndedSeptember 30, 2026 2025 2026 2025 Revenues: Product and services sales, net$ 106.4$ 222.0$ 482.9$ 561.4 Contracts and grants 3.6 9.1 17.5 32.8 Total revenues 110.0 231.1 500.4 594.2 Operating expenses: Cost of product and services sales, net80.8 85.9 249.9 241.3Research and development 9.4 13.5 29.1 41.1Selling, general and administrative46.5 38.9 137.7 135.0Amortization of intangible assets10.6 16.3 44.3 48.8 Impairment of long-lived assets— — 191.3 — Total operating expenses 147.3 154.6 652.3 466.2 Income (loss) from operations(37.3) 76.5 (151.9) 128.0 Other income (expense): Interest expense (9.7) (15.2) (30.7) (44.6)Loss on assets held-for-sale — — — (12.2)Gain (loss) on debt extinguishment6.7 1.1 (13.8) 1.1 Other, net 3.9 (4.8) 7.1 61.2 Total other income (expense), net0.9 (18.9) (37.4) 5.5 Income (loss) before income taxes(36.4) 57.6 (189.3) 133.5 Income tax provision (bene t)(3.7) 6.4 16.8 26.3 Net income (loss) $ (32.7) $ 51.2$ (206.1) $ 107.2 Earnings (loss) per common share Basic $ (0.64) $ 0.96$ (3.99) $ 1.99Diluted $ (0.64) $ 0.91$ (3.99) $ 1.89 Weighted average shares outstanding Basic 51.3 53.2 51.6 53.9Diluted 51.3 56.5 51.6 56.7 Exclusive of intangible asset amortization (1) (1) 15
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Emergent BioSolutions Inc.Consolidated Statements of Cash Flows(unaudited, in millions) Nine Months Ended September30, 2026 2025 Operating Activities Net income (loss) $ (206.1) $ 107.2Adjustments to reconcile net income (loss) to net cash provided by operating activities:Stock-based compensation expense 13.0 10.9Depreciation and amortization 64.5 72.3Amortization of deferred nancing costs 5.0 7.2Deferred income taxes (15.6) (5.5)Noncash loss on assets held-for-sale — 12.2Change in fair value of warrant liability (12.5) (1.8)Impairment of long-lived assets 191.3 —Loss on disposal of assets 14.3 (4.4)Other 12.7 (0.8) Changes in operating assets and liabilities: Accounts receivable 4.9 (26.4)Inventories 62.6 (44.5)Prepaid expenses and other assets (0.4) 27.1Accounts payable (3.0) (19.8)Accrued expenses and other liabilities (10.9) (27.0)Long-term incentive plan accrual 0.4 2.3Accrued compensation (8.1) (21.8)Income taxes receivable and payable, net4.4 4.6 Contract liabilities 5.9 1.1 Net cash provided by operating activities122.4 92.9 Investing Activities Purchases of property, plant and equipment(7.8) (9.9)Proceeds from sale of property, plant and equipment5.6 38.2Milestone payment from prior asset transaction(50.4) —Milestone proceeds from prior asset transaction2.5 50.0 Purchase of convertible note receivable — (5.0) Net cash provided by (used in) investing activities(50.1) 73.3 Financing Activities Repurchase of debt (68.1) (6.9)Purchases of treasury stock (18.1) (15.8)Proceeds from stock-based compensation activity1.5 1.0Taxes paid for stock-based compensation activity(3.4) (1.0)Repayment of prior term loan facility (150.0) —Repayment of term loan facility (0.4) —Proceeds from the issuance of debt, net of lender fees145.5 — Debt issuance and extinguishment costs (11.5) — Net cash used in nancing activities:(104.5) (22.7) E ect of exchange rate changes on cash, cash equivalents and restricted cash— 0.1Net change in cash, cash equivalents and restricted cash(32.2) 143.6 Cash, cash equivalents and restricted cash, beginning of period209.1 105.6 Cash, cash equivalents and restricted cash, end of period$ 176.9$ 249.2 Supplemental cash ow disclosures: Cash paid for interest $ 29.6$ 41.7Cash paid for income taxes, net of refunds$ 21.9$ 27.5 Non-cash investing and nancing activities: Purchases of property, plant and equipment unpaid at period end$ 3.4$ 1.8Gain (loss) on debt extinguishment $ (13.8) $ 1.1Excise tax liability accrued for treasury stock purchases$ 0.2$ 0.2 Reconciliation of cash and cash equivalents and restricted cash: Cash and cash equivalents $ 175.7$ 245.5 Restricted cash 1.2 3.7 Total $ 176.9$ 249.2 Emergent BioSolutions Inc.R iliti fNGAAPFi ilM 16
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Reconciliation of Non-GAAP Financial MeasuresReconciliation of Net Income (Loss) and Net Income (Loss) per Diluted Share to Adjusted Net Income (Loss) andAdjusted Net Income (Loss) per Diluted Share ($ in millions, except per share data) Three Months Ended September 30,Nine Months Ended September 30, 20262025 20262025 Source Net income (loss)$ (32.7)$ 51.2$ (206.1)$ 107.2Adjustments: Inventory step-up provision$ 2.1$ —$ 2.4$ 1.8Cost of product and services sales,net Settlement charges, net— (10.5) — (10.5)Cost of product and services sales,netSeverance and restructuringcosts (bene ts) 9.3 — 10.0 (0.8)Cost of product and services sales,net, SG&A and R&DStock-based compensationexpense 4.2 4.8 13.0 10.9Cost of product and services sales,net, SG&A and R&DAcquisition and divestiturecosts — — — 0.2SG&ANon-cash amortizationcharges 12.2 18.8 49.4 56.0Amortization of intangible assets("IA"), Other Income (Expense)Impairments — — 191.3 —Impairment of long-lived assetsLoss on assets held-for-sale— — — 12.2Other Income (Expense)Contingent considerationmilestones — — (5.0) (50.0)Other Income (Expense)Changes in fair value of nancial instruments(3.6) 4.8 (12.5) (1.8)Other Income (Expense)Loss (gain) on debtextinguishment (6.7) (1.1) 13.8 (1.1)Other Income (Expense)Other, net 0.7 — 11.1 (2.9)Other Income (Expense) Tax e ect (4.2) (2.8) (43.3) (0.7) Total adjustments:$ 14.0$ 14.0$ 230.2$ 13.3 Adjusted net income (loss)$ (18.7)$ 65.2$ 24.1$ 120.5 Net income (loss) per dilutedshare $ (0.64)$ 0.91$ (3.99)$ 1.89Adjustments: Inventory step-up provision$ 0.04$ —$ 0.05$ 0.03Cost of product and services sales,net Settlement charges, net— (0.19) — (0.19)Cost of product and services sales,netSeverance and restructuringcosts (bene ts) 0.18 — 0.19 (0.01)Cost of product and services sales,net, SG&A and R&DStock-based compensationexpense 0.08 0.08 0.25 0.19Cost of product and services sales,net, SG&A and R&DAcquisition and divestiturecosts — — — —SG&ANon-cash amortizationcharges 0.24 0.33 0.96 0.99Amortization of IA, Other Income(Expense)Impairments — — 3.71 —Impairment of long-lived assetsLoss on assets held-for-sale— — — 0.22Other Income (Expense)Contingent considerationmilestones — — (0.10) (0.88)Other Income (Expense)Changes in fair value of nancial instruments(0.07) 0.08 (0.24) (0.03)Other Income (Expense)Loss (gain) on debtextinguishment(0.13) (0.02) 0.27 (0.02)Other Income (Expense)Other, net 0.01 — 0.22 (0.05)Other Income (Expense) Tax e ect (0.07) (0.04) (0.85) (0.01) Total adjustments:$ 0.28$ 0.24$ 4.46$ 0.24 Adjusted net income (loss)per diluted share$ (0.36)$ 1.15$ 0.47$ 2.13 Diluted shares used in computingAdjusted net income (loss) per dilutedshare 51.3 56.5 51.6 56.7 Amounts for scal year 2025 have been revised from those previously reported to re ect the exclusion of stock-based compensation expense. Emergent BioSolutions Inc.Reconciliation of Net Income (Loss) and Net Income (Loss) Margin to Adjusted EBITDA and Adjusted EBITDAMargin Three Months EndedSeptember 30,Nine Months EndedSeptember 30, 2026 2025 2026 2025 (1) (1) (1) 17
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($ in millions) 2026 2025 2026 2025 Net income (loss) $ (32.7) $ 51.2$ (206.1) $ 107.2Adjustments:Depreciation & amortization$ 17.0$ 23.4$ 64.6$ 72.3Income taxes (3.7) 6.4 16.8 26.3Total interest expense, net 8.8 13.6 28.1 41.0Inventory step-up provision 2.1 — 2.4 1.8Settlement charges, net — (10.5) — (10.5)Severance and restructuring costs (bene ts)9.3 — 10.0 (0.8)Stock-based compensation expense4.2 4.8 13.0 10.9Acquisition and divestiture costs— — — 0.2Impairments — — 191.3 —Loss on assets held-for-sale — — — 12.2Contingent consideration milestones— — (5.0) (50.0)Changes in fair value of nancial instruments(3.6) 4.8 (12.5) (1.8)Loss (gain) on debt extinguishment(6.7) (1.1) 13.8 (1.1) Other, net 0.7 — 11.1 (2.9) Total adjustments $ 28.1$ 41.4$ 333.6$ 97.6 Adjusted EBITDA $ (4.6) $ 92.6$ 127.5$ 204.8 Total revenues $ 110.0$ 231.1$ 500.4$ 594.2 Net income (loss) margin(30)% 22% (41)% 18% Adjusted EBITDA margin(4)% 40% 25% 34% Amounts for scal year 2025 have been revised from those previously reported to re ect the exclusion of stock-based compensation expense. Emergent BioSolutions Inc.Reconciliations of Total Revenues to Product and Services Sales, Net and of Gross Margin and Gross Margin %to Adjusted Gross Margin and Adjusted Gross Margin % Three Months EndedSeptember 30,Nine Months EndedSeptember 30, ($ in millions) 2026 2025 2026 2025 Total revenues $ 110.0$ 231.1$ 500.4$ 594.2 Contracts and grants 3.6 9.1 17.5 32.8 Product and services sales, net$ 106.4$ 222.0$ 482.9$ 561.4 Cost of product and services sales, net80.8 85.9 249.9 241.3 Intangible asset amortization10.6 16.3 44.3 48.8 Gross margin $ 15.0$ 119.8$ 188.7$ 271.3 Gross margin % 14% 54% 39% 48% Add back: Intangible asset amortization$ 10.6$ 16.3$ 44.3$ 48.8Stock-based compensation expense0.7 0.3 2.1 0.9Severance and restructuring costs (bene ts)1.3 0.2 1.4 (0.8) Inventory step-up provision 2.1 — 2.4 1.8 Adjusted gross margin$ 29.7$ 136.6$ 238.9$ 322.0 Adjusted gross margin %28% 62% 49% 57% Amounts for scal year 2025 have been revised from those previously reported to re ect the exclusion of stock-based compensation expense. Emergent BioSolutions Inc.Reconciliation of Net Loss Forecast to Adjusted Net Income (Loss) Forecast ($ in millions) 2026 Full YearForecast Source Net loss $(255) - $(225)Adjustments:Inventory step-up provision$5 Cost of products and services, netSeverance and restructuring costs11 Cost of products and services, net, SG&A and R&DStock-based compensation expense19 COGS, R&D and SGANon-cash amortization charges62 Amortization of IA and Other Income (Expense)Impairments 191 Impairment of long-lived assetsLoss on assets held-for-sale11 Other Income (Expense)Contingent consideration milestones(5) Other Income (Expense)Changes in fair value of nancial instruments(13) Other Income (Expense)L dbtti ih t 14 OthI (E ) (1) (1) (1) 18
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Loss on debt extinguishment14 Other Income (Expense) Tax e ect (50) Total adjustments: $245 Adjusted net income (loss)($10) - $20 Reconciliation of Net Loss Forecast to Adjusted EBITDA Forecast ($ in millions) 2026 Full Year Forecast Net loss $(255) - $(225) Adjustments:Depreciation & amortization $81Income taxes 13Total interest expense, net 38Inventory step-up provision 5Severance and restructuring costs 11Stock-based compensation expense 19Impairments 191Loss on assets held-for-sale 11Contingent consideration milestones (5)Changes in fair value of nancial instruments(13) Loss on debt extinguishment 14 Total adjustments $365 Adjusted EBITDA $110 - $140 Emergent BioSolutions Inc.Reconciliations of Forecasted Total Revenues to Forecasted Product and Services Sales, Net and of ForecastedGross Margin and Gross Margin % to Forecasted Adjusted Gross Margin and Adjusted Gross Margin % ($ in millions) 2026 Full Year Forecast Total revenues $600 - $645Contracts & Grants $(22) - $(25) Product and services sales, net $578 - $620 Cost of product and services sales, net$328 - $339 Intangible asset amortization 55 Gross margin $195 - $226 Gross margin % 34% - 36% Add back: Intangible asset amortization $55Inventory step-up provision 5Severance and restructuring costs 2 Stock-based compensation expense 3 Adjusted gross margin $260 - $291 Adjusted gross margin % 45% - 47% Investor Contact Rich Lindahl Executive Vice President, Chief Financial O cer lindahlr@ebsi.com Media Contact Assal Hellmer Vice President, Communications 19
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mediarelations@ebsi.com Source: Emergent BioSolutions Inc. 20