ZEVASKYN revenue rose 31% on the quarter to $11.4M as five patients were treated, but a failed batch left one unbilled and a $7.2M warrant charge pushed the net loss to $20.2M.
Revenue
$11M
Net income
-$20M
Diluted EPS
$-0.35
Operating margin
-120.0%
ZEVASKYN sales rise 31% on the quarter, but one failed batch and a $7.2M paper loss keep Abeona deep in the red
Abeona Therapeutics sells one product: ZEVASKYN, a one-time gene therapy for wounds caused by recessive dystrophic epidermolysis bullosa (RDEB), a rare genetic disease that makes skin blister and tear. Each treatment is made from the patient's own skin cells, which are genetically corrected and grown into sheets in Abeona's Cleveland plant. In the second quarter of 2026 (April–June), the second full quarter of sales since the first one in December 2025, net product revenue was $11.4 million, up from $8.7 million in Q1. Five patients were treated, but revenue was booked for only four, because one batch produced fewer skin sheets than the minimum needed to count as a sale. Operating losses shrank sharply from the prior quarter. The bottom line still showed a $20.2 million net loss, and $7.2 million of that was a non-cash accounting charge tied to the company's rising share price.
At a glance
$11.4M revenue from 4 billed treatments (5 performed). That works out to roughly $2.8M of net revenue per billed treatment (our arithmetic). With only 12 treatments completed since launch, a single failed batch moves quarterly revenue by about a fifth.
Operating loss of $13.7M, down from $23.0M in Q1 and $22.8M a year ago. About $7M of the Q1 figure was a one-time licensing fee, but spending also fell for everyday reasons: fewer manufacturing "engineering runs" (test batches) and lower training costs.
$146.8M in cash and short-term investments, down $21.5M during the quarter. Management says that covers at least the next 12 months. At Q2's pace it is closer to about seven quarters (our estimate), before any money from the $51.5M of shares the company can still sell on the market.
Key figures
The year-ago quarter isn't a like-for-like comparison. ZEVASKYN was approved in April 2025 but first sold in December 2025, so Q2 2025 had no product sales. Its profit came from a one-time $152.4M gain on selling a "priority review voucher," a transferable FDA fast-track certificate the company received with the approval. For that reason the table below compares against Q2 2025 as the metrics template requires, and a second table compares against the previous quarter, which tells you more about how the launch is going.
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Metric
Q2 2026
Q2 2025
YoY Change
Total revenue
$11.4M
$0.4M (one-off license fee)
n/m (+2,745% as reported)
Product revenue (ZEVASKYN)
$11.4M
—
n/m (first sale Dec 2025)
Gross margin (product)
63.3%
—
n/m
Operating loss
$(13.7)M
$(22.8)M
loss 40% smaller
Operating margin
-120.0%
n/m
n/m
Net income (loss)
$(20.2)M
$108.8M (incl. $152.4M voucher gain)
n/m (swing to loss)
Diluted EPS
$(0.35)
$1.71
n/m (swing to loss)
Patients treated / treatments billed
5 / 4
0 / 0
n/m
Cash + short-term investments (period-end)
$146.8M
$163.5M cash alone (Q2 2025)
—
Gross margin is the share of sales left after the direct cost of making and delivering the product (here including royalties owed to Stanford, which licensed the technology). Operating margin is what's left after all operating costs, including research and overhead. When it's negative, it shows how much larger costs are than sales. n/m = not meaningful.
Quarter-on-quarter
Q2 2026
Q1 2026
Change
Product revenue
$11.4M
$8.7M
+31%
Cost of sales
$4.2M
$2.7M
+55%
Gross margin
63.3%
69.1%
-5.8 pts
R&D expense
$5.0M
$9.6M (incl. $7.0M upfront license fee)
-48%
Selling, general & admin (SG&A)
$15.8M
$19.5M
-19%
Operating loss
$(13.7)M
$(23.0)M
loss 41% smaller
Net loss
$(20.2)M
$(17.1)M
loss 18% larger
Net loss per share
$(0.35)
$(0.30)
—
Q1 figures derived from the 10-Q's six-month totals minus the Q2 figures, and match the Q1 amounts in the company's Q2 earnings release.
Takeaway: The launch is growing, from 3 patients treated in Q1 to 5 in Q2 and 3 more in the first six weeks of Q3. But each ZEVASKYN treatment is a custom manufacturing job for one patient, and 2 of the 12 treatments so far did not meet the standard needed to be billed. For the next few quarters, the main question for revenue is how reliably the Cleveland plant produces batches that pass, alongside how many patients are enrolled.
What drove the quarter
Revenue. All $11.4M came from ZEVASKYN. The company says in its earnings release that one of the five Q2 treatments did not count as revenue "as one batch yielded fewer than the threshold number of sheets for revenue recognition." Since launch, two patients have gone unbilled for low manufacturing yield or failing to meet lot-release specifications (the quality tests a batch must pass before it can be used). Some contracts also include an outcomes-based rebate and a discount on a later treatment. Abeona therefore sets aside part of each sale as deferred revenue, meaning cash-linked revenue it will book later, and that balance reached $0.7M at June 30.
Gross margin slipped from 69.1% to 63.3%. The 10-Q says $0.9M of overhead that previously sat in SG&A was moved into cost of sales in Q2. That reclassification alone accounts for roughly 8 points of Q2 gross margin (our arithmetic). The filing does not break out what the failed batch cost, but a treatment that was made and not billed adds cost without adding revenue.
Research and development (R&D) fell to $5.0M from $5.9M a year ago. The company attributes this to production costs that now go into inventory or cost of sales instead of R&D, since ZEVASKYN is approved. Q1's $9.6M included a $7.0M upfront payment to license ABO-701, an engineered T-cell therapy for prostate cancer. It was expensed right away because it is early-stage research with no other use. Management expects R&D to rise again as ABO-701 moves toward the clinic.
SG&A (selling, general and administrative costs) was $15.8M, down from $17.1M a year earlier. The 10-Q cites the $0.9M overhead reallocation and $0.4M less in recruiting costs. For the first half as a whole, SG&A rose $8.4M year on year, mostly from $5.7M of higher salaries and stock-based pay for new hires and $1.9M of engineering runs.
What the headline numbers hide
About a third of the net loss wasn't cash. Abeona has warrants outstanding (rights for investors to buy shares at a set price). Accounting rules treat them as a liability that is marked to market every quarter, so when the share price rises, the company books a loss. In Q2 that loss was $7.2M. Without it, the pre-tax loss would have been about $13.0M instead of $20.2M (our arithmetic). That's why net loss grew from Q1 even though the operating loss fell by $9.4M. The warrant liability stood at $20.7M on June 30.
Cash conversion: burn matched the loss, but for offsetting reasons. First-half operating cash outflow was $37.3M, almost exactly the $37.3M net loss. Non-cash charges added back $10.4M, including $6.3M of stock-based pay and $1.8M of warrant losses. Working capital used about the same amount: the company paid down $6.3M of payables and accrued expenses, and receivables grew $3.2M.
Receivables are high relative to sales. Accounts receivable rose to $9.4M from $6.1M at year-end, equal to about 75 days of Q2 revenue (our arithmetic). With a handful of hospital customers and invoices of several million dollars each, one late payment can swing this. The company reports no write-offs and no credit-loss allowance. Inventory was roughly flat at $5.9M versus $5.5M.
The year-ago profit came from one asset sale. Q2 2025's $108.8M net income came entirely from the $152.4M voucher gain, less a $15.5M tax charge on it. Take that out and Abeona has never been profitable, as the 10-Q itself states.
Share count and debt. Weighted shares rose to 57.0M from 52.5M a year ago (+8.6%) through stock awards and 2025 share sales. No shares were sold in 2026. The company repaid $5.6M of its term loan in the first half, and $15.0M remains on the balance sheet, $13.3M of it due within 12 months.
No GAAP vs. adjusted gap to reconcile. Abeona reports no "adjusted" earnings figure, so the numbers above are the only ones.
Did last time's read hold up?
This is the first Abeona report on this site, so we have no earlier outlook to check. The company's own Q1 release (May 13) is a useful benchmark. It said one treatment had been completed so far in Q2 and six more patients were expected to be biopsied (have skin samples taken, the first step in making a treatment) during the quarter. Q2 ended with five treatments, so enrollment progressed roughly as described. The Q1 release did not mention the risk of a failed batch.
Outlook
Abeona gives no revenue or patient-count guidance. What the filings do state:
Treatment network: seven qualified treatment centers (QTCs, the hospitals certified to give ZEVASKYN), with Cincinnati Children's activated in July. CHOP and UTMB have started taking patient biopsies. Three treatments were completed in Q3 as of August 13.
Payment: starting October 1, 2026, Medicare will pay hospitals an extra "New Technology Add-On Payment" (NTAP) on top of the standard fee when they treat Medicare patients with ZEVASKYN. The company says Medicare patients are about 10% of RDEB patients, so this mainly helps hospitals decide to adopt the therapy. Commercial insurance policies already cover 95% of commercially insured U.S. lives, per the Q1 release.
Pipeline: an IND filing (the application to begin human trials) and first-in-human dosing for ABO-701 are planned for the second half of 2027. In-house eye-disease programs have been deprioritized.
Funding: management says cash will last "at least the next 12 months" and that it "may need to raise additional capital."
Our read: Getting from three to five treatments a quarter is progress. At about $2.8M per billed treatment, though, Abeona needs roughly 11–12 billed treatments a quarter to cover Q2's $20.9M of R&D and SG&A at Q2's 63% gross margin (our arithmetic). That is nearly three times the four it billed in Q2. Three treatments in the first six weeks of Q3 put the company on course to match or slightly beat Q2, if manufacturing yields hold. The Q3 10-Q, expected around mid-November, should show whether batch failures were a one-off and whether the growing number of active QTCs translates into more than five billed treatments a quarter. If it doesn't, the cash runway makes another equity raise likely in 2027.
Source: Abeona Therapeutics Form 10-Q for the quarter ended June 30, 2026 (filed August 13, 2026), plus the company's Q2 and Q1 2026 earnings releases (Form 8-K Exhibit 99.1) for patient counts and operational updates.