Friday, November 6, 2026

BeOne Medicines Announces Third Quarter 2026 Financial Results and Business Updates

 SAN CARLOS, Calif. - Thursday, 05. November 2026



Total global revenues of $1.9 billion for the third quarter, an increase of 34% from the prior year

BRUKINSA (zanubrutinib) global revenues of $1.4 billion for the third quarter, an increase of 34% from the prior year

Diluted GAAP Earnings per American Depository Share (ADS) of $3.28 for the third quarter; non-GAAP diluted Earnings per ADS of $4.59 for the third quarter

Raised 2026 total revenue guidance to $6.9 to $7.0 billion; GAAP operating income of $1.2 to $1.3 billion, non-GAAP operating income of $1.9 to $2.0 billion

 


(BUSINESS WIRE) -- BeOne Medicines Ltd. (NASDAQ: ONC; HKEX: 06160; SSE: 688235), a global oncology company, today announced financial results and corporate updates from the third quarter of 2026.


John V. Oyler, Co-Founder, Chairman, and CEO, BeOne, said:


“Our strong third quarter results and raised full-year guidance reflect continued rapid global growth and leadership in hematology, anchored by our foundational BTK inhibitor BRUKINSA, which drives powerful and sustained responses in patients, and now joined by our next-generation BCL2 inhibitor BEQALZI. We look forward to multiple catalysts in the coming months from one of the deepest pipelines in oncology, spanning hematology and solid tumors, accelerated by our differentiated capabilities in R&D, manufacturing, and commercialization.”


(Amounts in thousands of U.S. dollars and unaudited)


   

 


 


Three Months Ended


 


 


 


Nine Months Ended


 


 


 


 


September 30,


 


 


 


September 30,


 


 


 


 


2026


 


2025


 


% Change


 


2026


 


2025


 


% Change


Net product revenues


 


$


1,855,057


 


$


1,395,013


 


33


%


 


$


5,022,180


 


$


3,805,619


 


32


%


Other revenue


 


$


34,758


 


$


17,271


 


101


%


 


$


86,144


 


$


39,244


 


120


%


Total revenue


 


$


1,889,815


 


$


1,412,284


 


34


%


 


$


5,108,324


 


$


3,844,863


 


33


%


 


 


 


 


 


 


 


 


 


 


 


 


 


GAAP income from operations


 


$


418,675


 


$


163,114


 


157


%


 


$


993,624


 


$


262,101


 


279


%


Adjusted income from operations*


 


$


612,226


 


$


341,184


 


79


%


 


$


1,529,649


 


$


755,486


 


102


%


 


 


 


 


 


 


 


 


 


 


 


 


 


GAAP net income


 


$


384,706


 


$


124,841


 


208


%


 


$


849,070


 


$


220,431


 


285


%


Adjusted net income*


 


$


538,735


 


$


303,663


 


77


%


 


$


1,358,274


 


$


692,622


 


96


%


 


 


 


 


 


 


 


 


 


 


 


 


 


GAAP basic EPS per ADS


 


$


3.38


 


$


1.13


 


199


%


 


$


7.58


 


$


2.03


 


273


%


Adjusted basic EPS per ADS*


 


$


4.74


 


$


2.76


 


72


%


 


$


12.12


 


$


6.38


 


90


%


 


 


 


 


 


 


 


 


 


 


 


 


 


GAAP diluted EPS per ADS


 


$


3.28


 


$


1.09


 


201


%


 


$


7.30


 


$


1.96


 


272


%


Adjusted diluted EPS per ADS*


 


$


4.59


 


$


2.65


 


73


%


 


$


11.68


 


$


6.14


 


90


%


 


 


 


 


 


 


 


 


 


 


 


 


 


Free Cash Flow*


 


$


473,532


 


$


354,469


 


34


%


 


$


1,069,423


 


$


561,916


 


90


%


   

*For an explanation of our use of non-GAAP financial measures, refer to the “Note Regarding Use of Non-GAAP Financial Measures” section later in this press release and for a reconciliation of each non-GAAP financial measure to the most comparable GAAP measures, see the table at the end of this press release.


Third Quarter 2026 Financial Results


Product Revenue totaled $1.9 billion for the third quarter of 2026, representing growth of 33% compared to the prior-year period.


BRUKINSA: Global sales totaled $1.4 billion for the third quarter of 2026, representing growth of 34% compared to the prior-year period; U.S. sales of BRUKINSA totaled $1.0 billion in the third quarter of 2026, representing growth of 36% compared to the prior-year period.

TEVIMBRA (tislelizumab): Global sales totaled $243 million in the third quarter of 2026, representing growth of 28% compared to the prior-year period.

Amgen in-licensed products: Global sales totaled $167 million in the third quarter of 2026, representing growth of 26% compared to the prior-year period.

Gross Margin as a percentage of global product sales for the third quarter of 2026 was 88%, compared to 86% in the prior-year period on a GAAP basis. The gross-margin percentage increased due to a proportionally higher sales mix of global BRUKINSA compared to other products in the Company’s portfolio. Gross margin also benefited from productivity improvements resulting in lower costs for both BRUKINSA and TEVIMBRA, which was offset by a non-cash intangible asset impairment charge of $22 million associated with our decision to discontinue promotion of POBEVCY. On an adjusted basis, which does not include depreciation and amortization, or the impairment charge, gross margin as a percentage of product sales increased to 90%, from 86% in the comparable period of the prior year.


Operating Expenses


The following table summarizes operating expenses for the third quarter of 2026:


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


GAAP


 


 


 


Non-GAAP


 


 


(unaudited, in thousands, except percentages)


 


Q3 2026


 


Q3 2025


 


% Change


 


Q3 2026


 


Q3 2025


 


% Change


Research and development


 


$


660,784


 


$


523,662


 


26


%


 


$


586,168


 


$


445,904


 


31


%


Selling, general and administrative


 


$


593,460


 


$


528,998


 


12


%


 


$


503,719


 


$


434,484


 


16


%


Total operating expenses


 


$


1,254,244


 


$


1,052,660


 


19


%


 


$


1,089,887


 


$


880,388


 


24


%


The following table summarizes operating expenses for the year-to-date period ended September 30, 2026, and 2025:


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


GAAP


 


 


 


Non-GAAP


 


 


(unaudited, in thousands, except percentages)


 


Q3 YTD 2026


 


Q3 YTD 2025


 


% Change


 


Q3 YTD 2026


 


Q3 YTD 2025


 


% Change


Research and development


 


$


1,814,288


 


$


1,530,445


 


19


%


 


$


1,586,022


 


$


1,311,156


 


21


%


Selling, general and administrative


 


$


1,741,771


 


$


1,526,199


 


14


%


 


$


1,476,386


 


$


1,271,650


 


16


%


Total operating expenses


 


$


3,556,059


 


$


3,056,644


 


16


%


 


$


3,062,408


 


$


2,582,806


 


19


%


Research and Development (R&D) Expenses increased for the third quarter of 2026 compared to the prior-year period on both a GAAP and adjusted basis due to advancing early clinical programs into late stage and preclinical programs into the clinic.


Selling, General and Administrative (SG&A) Expenses increased for the third quarter of 2026 compared to the prior-year period on both a GAAP and adjusted basis due to continued investment to support commercial growth.


Net Income and Basic/Diluted Earnings Per Share


GAAP net income for the third quarter of 2026 was $385 million, an increase of $260 million over the prior-year period, primarily attributable to revenue growth and improved operating leverage. Adjusted net income was $539 million, an increase of $235 million over the prior-year period.


For the third quarter of 2026, basic and diluted earnings per share were $0.26 and $0.25 per share and $3.38 and $3.28 per American Depositary Share (ADS), respectively, compared to $0.09 and $0.08 per share and $1.13 and $1.09 per ADS in the prior-year period. On an adjusted basis, basic and diluted earnings per share was $0.36 and $0.35 per share and $4.74 and $4.59 per ADS, respectively, compared to $0.21 and $0.20 per share and $2.76 and $2.65 per ADS in the prior-year period.


Free Cash Flow for the third quarter of 2026 was $474 million, representing an increase of $119 million over the prior-year period.


For further details on BeOne’s Third Quarter 2026 Financial Statements, please see BeOne’s Quarterly Report on Form 10-Q for the third quarter of 2026 filed with the U.S. Securities and Exchange Commission.


Full Year 2026 Guidance


BeOne’s financial guidance is summarized below:


 


Prior FY 2026 Guidance


Current FY 2026 Guidance1


Total revenue


$6.6B - $6.8B


$6.9B - $7.0B


GAAP gross margin %


High-80% range


High-80% range


GAAP operating expenses2


(combined R&D and SG&A)


$4.8B - $5.0B


$4.9B - $5.0B


GAAP operating income2


$1.0B - $1.1B


$1.2B - $1.3B


Non-GAAP operating income2,3


$1.7B-$1.8B


$1.9B-$2.0B


   

1 Assumes November 1, 2026, foreign exchange rates.


2 Does not assume any potential new, material business development activity or unusual/non-recurring items.


3 Non-GAAP operating income is a financial measure that excludes from the corresponding GAAP measure costs related to share-based compensation, depreciation and amortization expense. Guidance assumes that Non-GAAP expenses track overall expense growth.


BeOne’s total revenue guidance for full year 2026 of $6.9 billion to $7.0 billion reflects performance through the third quarter and the Company’s expectations for the remainder of the year. Gross margin percentage is expected to be in the high-80% range and includes the impact of product mix and productivity improvements. Guidance for combined operating expenses on a GAAP basis includes expectations of investment to support growth.


The Company is providing the following additional guidance on items impacting net income and earnings per ADS:


Other income (expense): Estimated range of $25 million to $50 million in expense, includes interest amortization from the Royalty Pharma arrangement.


Income tax outlook: Earnings may provide sufficient positive evidence to reverse certain valuation allowances in 2026, resulting in a material tax benefit when recognized. The Company continues to evaluate and assess the magnitude but expects the reversal will occur in the fourth quarter of 2026. See Form 10-Q for additional updates.


Diluted ADS outstanding: The Company expects diluted ADSs outstanding of approximately 118 million.


Third Quarter 2026 Business Highlights


Core Marketed Products


BRUKINSA (zanubrutinib)


Received U.S. Food and Drug Administration (FDA) Priority Review designation for the Phase 3 MANGROVE filing


Completed Phase 3 MANGROVE regulatory submissions in the EU and China.


29 abstracts accepted for presentation at the American Society of Hematology (ASH) 2026 Annual Meeting, including interim analysis results from the Phase 3 MANGROVE study in first-line mantle cell lymphoma (MCL) to be presented during the Plenary Scientific Session.


BEQALZI (sonrotoclax)


10 abstracts accepted for presentation at ASH 2026.


TEVIMBRA (tislelizumab)


Received Japan regulatory approval for the treatment of adult patients with first-line nasopharyngeal cancer.


ZIIHERA (zanidatamab) for which BeOne holds commercialization rights in select markets


Presented Phase 3 survival data reinforcing benefit of ZIIHERA-containing regimens in first-line HER2+ gastroesophageal adenocarcinoma (GEA) at the European Society for Medical Oncology Congress 2026 (ESMO 2026).


Received U.S. Food and Drug Administration (FDA) approval for TEVIMBRA-based regimen for first-line HER2+ GEA.


Select Clinical-Stage Programs


Hematology


6 Tacabrutideg abstracts accepted for presentation at ASH 2026.


Tacabrutideg (BTK CDAC): Pivotal Phase 2 portion of CaDAnCe-101 met its primary endpoint of overall response rate in patients with relapsed/refractory chronic lymphocytic leukemia (CLL).


BG-75202 (KAT6 A/B inhibitor): First patient enrolled into monotherapy cohort for the Phase 1 study for the treatment of adult patients with acute myeloid leukemia.


Gastrointestinal Cancers


BGB-B2033 (GPC3x4-1BB bispecific antibody):


Updated data presented at ESMO 2026.


Received Orphan Drug Designation from the European Commission and awarded Innovation Passport, enabling entry to the UK's Innovative Licensing and Access Pathway, in hepatocellular carcinoma (HCC).


BG-85738 (RAS ONi): First patient enrolled in the Phase 1 study of advanced solid tumors with RAS mutations.


Lung Cancer


BG-C477 (CEA ADC):


Disclosed first clinical data at ESMO 2026.


Received FDA Fast Track Designation for the treatment of patients with advanced or metastatic CEA-high non-small cell lung cancer whose disease has progressed following prior systemic therapy.


BGB 58067 (MTA-cooperative PRMT5 inhibitor): Disclosed first clinical data at ESMO 2026.


Breast and Gynecological Cancers


BG-C9074 (B7-H4 ADC): Initiated Starstone-301 Phase 3 study in combination with bevacizumab for the treatment of adult patients with first-line ovarian cancer in maintenance setting.


Anticipated R&D Milestones


Programs


Milestones


Timing


BRUKINSA


Regulatory submission in Japan for the treatment of adult patients with first-line MCL.

Q4 2026


TEVIMBRA


China regulatory action for the treatment of adult patients with first-line HER2-positive GEA in combination with ZIIHERA and chemotherapy.

 


1H 2027


 


ZIIHERA


China regulatory action for the treatment of adult patients with first-line HER2-positive GEA in combination with chemotherapy, with or without TEVIMBRA.

1H 2027


Tacabrutideg


(BGB-16673)


Phase 2 potential submission for the treatment of adult patients with R/R CLL.

Mid 2027


CaDAnCe-306: Phase 3 study initiation for R/R CLL in combination with BEQALZI

1H 2027


BGB-B2033


(GPC3x4-1BB bispecific antibody)


GroundBBreaker-301 Phase 3 study initiation in second-line or later HCC.

Q4 2026


 


GroundBBreaker-201 potentially pivotal single-arm Phase 2 study initiation in second-line or later HCC.

Q4 2026


 

GroundBBreaker-302 pivotal Phase 3 study initiation in first-line HCC.

1H 2027


Corporate Updates


Announced a multi-part collaboration with Revolution Medicines, including a clinical collaboration to evaluate drug combinations incorporating select clinical-stage oncology assets from BeOne with any of Revolution Medicines’ four clinical RAS(ON) inhibitors, and a separate regional rights agreement granting BeOne exclusive development and commercialization rights to these Revolution Medicines assets in select Asian markets.


Announced a voluntary agreement with the U.S. Government to expand access to innovative cancer medicines for American patients while strengthening the Company’s U.S manufacturing footprint.


Announced the renewal of a partnership with the BeOne Care Foundation and The Max Foundation, a leading global health nonprofit organization, to expand access to BRUKINSA for the treatment of adult patients with CLL in low- and middle-income countries through 2028.


BeOne’s Earnings Results Webcast


The Company’s earnings conference call for the third quarter 2026 will be broadcast via webcast at 8:00 a.m. ET on Thursday, November 5, 2026, and will be accessible through the Investors section of BeOne’s website at www.beonemedicines.com. Supplemental information in the form of a slide presentation, transcript of prepared remarks, and a replay of the webcast will also be available.


About BeOne


BeOne Medicines is a global oncology company that is discovering and developing innovative treatments for cancer patients worldwide. With a portfolio spanning hematology and solid tumors, BeOne is expediting development of its diverse pipeline of novel therapeutics through its internal capabilities and collaborations. The Company has a growing global team spanning six continents who are driven by scientific excellence and exceptional speed to reach more patients than ever before.


To learn more about BeOne, please visit www.beonemedicines.com and follow us on LinkedIn, X, Facebook and Instagram.


Forward-Looking Statements


This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws, including statements regarding: BeOne’s continued rapid global growth and leadership in hematology; future catalysts for BeOne’s business; BeOne’s full year 2026 guidance; BeOne’s expectations regarding certain valuation allowances; BeOne’s expectations regarding continued global expansion and investment to support growth; upcoming R&D milestones to be achieved by BeOne; the timing of clinical and regulatory developments and data readouts; and BeOne’s plans, commitments, aspirations and goals under the caption “About BeOne.” Actual results may differ materially from those indicated in the forward-looking statements as a result of various important factors, including BeOne’s ability to demonstrate the efficacy and safety of its drug candidates; the clinical results for its drug candidates, which may not support further development or marketing approval; actions of regulatory agencies, which may affect the initiation, timing and progress of clinical trials and marketing approval; BeOne’s ability to achieve commercial success for its marketed medicines and drug candidates, if approved; BeOne’s ability to obtain and maintain protection of intellectual property for its medicines and technology; BeOne’s reliance on third parties to conduct drug development, manufacturing, commercialization, and other services; BeOne’s limited experience in obtaining regulatory approvals and commercializing pharmaceutical products; BeOne’s ability to obtain additional funding for operations and to complete the development of its drug candidates and achieve and maintain profitability; and those risks more fully discussed in the section entitled “Risk Factors” in BeOne’s most recent periodic report filed with the U.S. Securities and Exchange Commission (“SEC”), as well as discussions of potential risks, uncertainties, and other important factors in BeOne’s subsequent filings with the SEC. All information in this press release is as of the date of this press release, and BeOne undertakes no duty to update such information unless required by law. BeOne’s financial guidance is based on estimates and assumptions that are subject to significant uncertainties.


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


September 30,


 


Nine Months Ended


September 30,


 


 


 


2026


 


 


 


2025


 


 


 


2026


 


 


 


2025


 


 


 


 


 


 


 


 


 


 


 


 


(Unaudited)


 


(Unaudited)


Revenues


 


 


 


 


 


 


 


 


Product revenue, net


 


$


1,855,057


 


 


$


1,395,013


 


 


$


5,022,180


 


 


$


3,805,619


 


Other revenue


 


 


34,758


 


 


 


17,271


 


 


 


86,144


 


 


 


39,244


 


Total revenues


 


 


1,889,815


 


 


 


1,412,284


 


 


 


5,108,324


 


 


 


3,844,863


 


Cost of sales - products


 


 


216,896


 


 


 


196,510


 


 


 


558,641


 


 


 


526,118


 


Gross profit


 


 


1,672,919


 


 


 


1,215,774


 


 


 


4,549,683


 


 


 


3,318,745


 


Operating expenses:


 


 


 


 


 


 


 


 


Research and development


 


 


660,784


 


 


 


523,662


 


 


 


1,814,288


 


 


 


1,530,445


 


Selling, general and administrative


 


 


593,460


 


 


 


528,998


 


 


 


1,741,771


 


 


 


1,526,199


 


Total operating expenses


 


 


1,254,244


 


 


 


1,052,660


 


 


 


3,556,059


 


 


 


3,056,644


 


Income from operations


 


 


418,675


 


 


 


163,114


 


 


 


993,624


 


 


 


262,101


 


Interest income


 


 


33,663


 


 


 


19,393


 


 


 


89,227


 


 


 


43,735


 


Interest expense


 


 


(42,407


)


 


 


(16,364


)


 


 


(115,033


)


 


 


(31,361


)


Other income (expense), net


 


 


429


 


 


 


(18,979


)


 


 


14,216


 


 


 


(6,862


)


Income before income taxes


 


 


410,360


 


 


 


147,164


 


 


 


982,034


 


 


 


267,613


 


Income tax expense


 


 


25,654


 


 


 


22,323


 


 


 


132,964


 


 


 


47,182


 


Net income


 


$


384,706


 


 


$


124,841


 


 


$


849,070


 


 


$


220,431


 


 


 


 


 


 


 


 


 


 


Earnings per share


 


 


 


 


 


 


 


 


Basic


 


$


0.26


 


 


$


0.09


 


 


$


0.58


 


 


$


0.16


 


Diluted


 


$


0.25


 


 


$


0.08


 


 


$


0.56


 


 


$


0.15


 


Weighted-average shares outstanding—basic


 


 


1,478,074,394


 


 


 


1,432,801,699


 


 


 


1,457,134,424


 


 


 


1,410,497,062


 


Weighted-average shares outstanding—diluted


 


 


1,524,954,790


 


 


 


1,488,750,354


 


 


 


1,511,972,953


 


 


 


1,465,535,004


 


 


 


 


 


 


 


 


 


 


Earnings per American Depositary Share (“ADS”)


 


 


 


 


 


 


 


 


Basic


 


$


3.38


 


 


$


1.13


 


 


$


7.58


 


 


$


2.03


 


Diluted


 


$


3.28


 


 


$


1.09


 


 


$


7.30


 


 


$


1.96


 


Weighted-average ADSs outstanding—basic


 


 


113,698,030


 


 


 


110,215,515


 


 


 


112,087,263


 


 


 


108,499,774


 


Weighted-average ADSs outstanding—diluted


 


 


117,304,215


 


 


 


114,519,258


 


 


 


116,305,612


 


 


 


112,733,462


 


Select Condensed Consolidated Balance Sheet Data (U.S. GAAP)


(Amounts in thousands of U.S. Dollars)


 


 


 


 


 


 


 


As of


 


 


September 30,


 


December 31,


 


 


2026


 


2025


 


 


(unaudited)


 


(audited)


Assets:


 


 


 


 


Cash, cash equivalents and restricted cash


 


$


5,866,314


 


$


4,609,647


Accounts receivable, net


 


 


1,092,535


 


 


865,080


Inventories


 


 


807,922


 


 


608,227


Property, plant and equipment, net


 


 


1,647,231


 


 


1,641,678


Total assets


 


$


9,875,925


 


$


8,188,573


Liabilities and equity:


 


 


 


 


Accounts payable


 


$


496,879


 


$


479,035


Accrued expenses and other payables


 


 


1,342,646


 


 


1,109,120


R&D cost share liability


 


 


—


 


 


64,345


Sale of future royalty liability


 


 


912,581


 


 


906,956


Debt


 


 


1,074,081


 


 


1,019,206


Total liabilities


 


 


4,055,531


 


 


3,827,379


Total equity


 


$


5,820,394


 


$


4,361,194


Select Condensed Consolidated Statements of Cash Flows (U.S. GAAP)


(Amounts in thousands of U.S. Dollars)


   

 


 


Three Months Ended


September 30,


 


Nine Months Ended


September 30,


 


 


 


2026


 


 


 


2025


 


 


 


2026


 


 


 


2025


 


 


 


 


 


 


 


 


 


 


 


 


(unaudited)


 


(unaudited)


Cash, cash equivalents and restricted cash at beginning of period


 


$


5,280,674


 


 


$


2,786,086


 


 


$


4,609,647


 


 


$


2,638,747


 


Net cash provided by operating activities


 


 


508,707


 


 


 


402,553


 


 


 


1,172,863


 


 


 


710,233


 


Net cash used in investing activities


 


 


(35,760


)


 


 


(49,274


)


 


 


(130,623


)


 


 


(237,820


)


Net cash provided by financing activities


 


 


102,194


 


 


 


961,272


 


 


 


164,772


 


 


 


962,520


 


Net effect of foreign exchange rate changes


 


 


10,499


 


 


 


9,905


 


 


 


49,655


 


 


 


36,862


 


Net increase in cash, cash equivalents, and restricted cash


 


 


585,640


 


 


 


1,324,456


 


 


 


1,256,667


 


 


 


1,471,795


 


Cash, cash equivalents and restricted cash at end of period


 


$


5,866,314


 


 


$


4,110,542


 


 


$


5,866,314


 


 


$


4,110,542


 


Note Regarding Use of Non-GAAP Financial Measures


BeOne provides certain non-GAAP financial measures, including Adjusted Cost of Sales- Product, Adjusted Operating Expenses, Adjusted Income from Operations, Adjusted Income Tax Expense, 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.


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


 


Nine Months Ended


 


 


September 30,


 


September 30,


 


 


 


2026


 


 


 


2025


 


 


 


2026


 


 


 


2025


 


 


 


 


 


 


 


 


Reconciliation of GAAP to adjusted cost of sales - products:


 


 


 


 


 


 


 


 


GAAP cost of sales - products


 


$


216,896


 


 


$


196,510


 


 


$


558,641


 


 


$


526,118


 


Less: Depreciation


 


 


5,596


 


 


 


4,261


 


 


 


15,442


 


 


 


10,195


 


Less: Amortization of intangibles


 


 


23,598


 


 


 


1,537


 


 


 


26,932


 


 


 


8,459


 


Less: Other


 


 


—


 


 


 


—


 


 


 


—


 


 


 


893


 


Adjusted cost of sales - products


 


$


187,702


 


 


$


190,712


 


 


$


516,267


 


 


$


506,571


 


 


 


 


 


 


 


 


 


 


Reconciliation of GAAP to adjusted research and development:


 


 


 


 


 


 


 


 


GAAP research and development


 


$


660,784


 


 


$


523,662


 


 


$


1,814,288


 


 


$


1,530,445


 


Less: Share-based compensation cost


 


 


56,474


 


 


 


58,839


 


 


 


168,866


 


 


 


164,998


 


Less: Depreciation


 


 


18,142


 


 


 


18,919


 


 


 


59,400


 


 


 


54,291


 


Adjusted research and development


 


$


586,168


 


 


$


445,904


 


 


$


1,586,022


 


 


$


1,311,156


 


 


 


 


 


 


 


 


 


 


Reconciliation of GAAP to adjusted selling, general and administrative:


 


 


 


 


 


 


 


 


GAAP selling, general and administrative


 


$


593,460


 


 


$


528,998


 


 


$


1,741,771


 


 


$


1,526,199


 


Less: Share-based compensation cost


 


 


76,143


 


 


 


81,947


 


 


 


224,566


 


 


 


221,792


 


Less: Depreciation


 


 


13,582


 


 


 


12,550


 


 


 


40,769


 


 


 


32,712


 


Less: Amortization of intangibles


 


 


16


 


 


 


17


 


 


 


50


 


 


 


45


 


Adjusted selling, general and administrative


 


$


503,719


 


 


$


434,484


 


 


$


1,476,386


 


 


$


1,271,650


 


 


 


 


 


 


 


 


 


 


Reconciliation of GAAP to adjusted operating expenses:


 


 


 


 


 


 


 


 


GAAP operating expenses


 


$


1,254,244


 


 


$


1,052,660


 


 


$


3,556,059


 


 


$


3,056,644


 


Less: Share-based compensation cost


 


 


132,617


 


 


 


140,786


 


 


 


393,432


 


 


 


386,790


 


Less: Depreciation


 


 


31,724


 


 


 


31,469


 


 


 


100,169


 


 


 


87,003


 


Less: Amortization of intangibles


 


 


16


 


 


 


17


 


 


 


50


 


 


 


45


 


Adjusted operating expenses


 


$


1,089,887


 


 


$


880,388


 


 


$


3,062,408


 


 


$


2,582,806


 


 


 


 


 


 


 


 


 


 


Reconciliation of GAAP to adjusted income from operations:


 


 


 


 


 


 


 


 


GAAP income from operations


 


$


418,675


 


 


$


163,114


 


 


$


993,624


 


 


$


262,101


 


Plus: Share-based compensation cost


 


 


132,617


 


 


 


140,786


 


 


 


393,432


 


 


 


386,790


 


Plus: Depreciation


 


 


37,320


 


 


 


35,730


 


 


 


115,611


 


 


 


97,198


 


Plus: Amortization of intangibles


 


 


23,614


 


 


 


1,554


 


 


 


26,982


 


 


 


8,504


 


Plus: Other


 


 


—


 


 


 


—


 


 


 


—


 


 


 


893


 


Adjusted income from operations


 


$


612,226


 


 


$


341,184


 


 


$


1,529,649


 


 


$


755,486


 


 


 


 


 


 


 


 


 


 


Reconciliation of GAAP to adjusted income tax expense:


 


 


 


 


 


 


 


 


GAAP income tax expense


 


$


25,654


 


 


$


22,323


 


 


$


132,964


 


 


$


47,182


 


Plus: Discrete tax items


 


 


11,527


 


 


 


926


 


 


 


(41,847


)


 


 


9,663


 


Plus: Income tax effect of non-GAAP adjustments


 


 


27,995


 


 


 


17,044


 


 


 


68,668


 


 


 


45,747


 


Adjusted income tax expense


 


$


65,176


 


 


$


40,293


 


 


$


159,785


 


 


$


102,592


 


 


 


 


 


 


 


 


 


 


Reconciliation of GAAP to adjusted net income:


 


 


 


 


 


 


 


 


GAAP net income


 


$


384,706


 


 


$


124,841


 


 


$


849,070


 


 


$


220,431


 


Plus: Share-based compensation expenses


 


 


132,617


 


 


 


140,786


 


 


 


393,432


 


 


 


386,790


 


Plus: Depreciation


 


 


37,320


 


 


 


35,730


 


 


 


115,611


 


 


 


97,198


 


Plus: Amortization of intangibles


 


 


23,614


 


 


 


1,554


 


 


 


26,982


 


 


 


8,504


 


Plus: Other


 


 


—


 


 


 


—


 


 


 


—


 


 


 


893


 


Plus: Impairment of equity investments


 


 


—


 


 


 


18,722


 


 


 


—


 


 


 


34,216


 


Plus: Discrete tax items


 


 


(11,527


)


 


 


(926


)


 


 


41,847


 


 


 


(9,663


)


Plus: Income tax effect of non-GAAP adjustments1


 


 


(27,995


)


 


 


(17,044


)


 


 


(68,668


)


 


 


(45,747


)


Adjusted net income


 


$


538,735


 


 


$


303,663


 


 


$


1,358,274


 


 


$


692,622


 


 


 


 


 


 


 


 


 


 


Reconciliation of GAAP to adjusted EPS - basic


 


 


 


 


 


 


 


 


GAAP earnings per share - basic


 


$


0.26


 


 


$


0.09


 


 


$


0.58


 


 


$


0.16


 


Plus: Share-based compensation expenses


 


 


0.09


 


 


 


0.10


 


 


 


0.27


 


 


 


0.27


 


Plus: Depreciation


 


 


0.03


 


 


 


0.02


 


 


 


0.08


 


 


 


0.07


 


Plus: Amortization of intangibles


 


 


0.02


 


 


 


0.00


 


 


 


0.02


 


 


 


0.01


 


Plus: Other


 


 


0.00


 


 


 


0.00


 


 


 


0.00


 


 


 


0.00


 


Plus: Impairment of equity investments


 


 


0.00


 


 


 


0.01


 


 


 


0.00


 


 


 


0.02


 


Plus: Discrete tax items


 


 


(0.01


)


 


 


0.00


 


 


 


0.03


 


 


 


(0.01


)


Plus: Income tax effect of non-GAAP adjustments1


 


 


(0.02


)


 


 


(0.01


)


 


 


(0.05


)


 


 


(0.03


)


Adjusted earnings per share - basic


 


$


0.36


 


 


$


0.21


 


 


$


0.93


 


 


$


0.49


 


 


 


 


 


 


 


 


 


 


Reconciliation of GAAP to adjusted EPS - diluted


 


 


 


 


 


 


 


 


GAAP earnings per share - diluted


 


$


0.25


 


 


$


0.08


 


 


$


0.56


 


 


$


0.15


 


Plus: Share-based compensation expenses


 


 


0.09


 


 


 


0.09


 


 


 


0.26


 


 


 


0.26


 


Plus: Depreciation


 


 


0.02


 


 


 


0.02


 


 


 


0.08


 


 


 


0.07


 


Plus: Amortization of intangibles


 


 


0.02


 


 


 


0.00


 


 


 


0.02


 


 


 


0.01


 


Plus: Other


 


 


0.00


 


 


 


0.00


 


 


 


0.00


 


 


 


0.00


 


Plus: Impairment of equity investments


 


 


0.00


 


 


 


0.01


 


 


 


0.00


 


 


 


0.02


 


Plus: Discrete tax items


 


 


(0.01


)


 


 


0.00


 


 


 


0.03


 


 


 


(0.01


)


Plus: Income tax effect of non-GAAP adjustments1


 


 


(0.02


)


 


 


(0.01


)


 


 


(0.05


)


 


 


(0.03


)


Adjusted earnings per share - diluted


 


$


0.35


 


 


$


0.20


 


 


$


0.90


 


 


$


0.47


 


 


 


 


 


 


 


 


 


 


Reconciliation of GAAP to adjusted earnings per ADS - basic


 


 


 


 


 


 


 


 


GAAP earnings per ADS - basic


 


$


3.38


 


 


$


1.13


 


 


$


7.58


 


 


$


2.03


 


Plus: Share-based compensation expenses


 


 


1.17


 


 


 


1.28


 


 


 


3.51


 


 


 


3.56


 


Plus: Depreciation


 


 


0.33


 


 


 


0.32


 


 


 


1.03


 


 


 


0.90


 


Plus: Amortization of intangibles


 


 


0.21


 


 


 


0.01


 


 


 


0.24


 


 


 


0.08


 


Plus: Other


 


 


0.00


 


 


 


0.00


 


 


 


0.00


 


 


 


0.01


 


Plus: Impairment of equity investments


 


 


0.00


 


 


 


0.17


 


 


 


0.00


 


 


 


0.32


 


Plus: Discrete tax items


 


 


(0.10


)


 


 


(0.01


)


 


 


0.37


 


 


 


(0.09


)


Plus: Income tax effect of non-GAAP adjustments1


 


 


(0.25


)


 


 


(0.15


)


 


 


(0.61


)


 


 


(0.42


)


Adjusted earnings per ADS - basic


 


$


4.74


 


 


$


2.76


 


 


$


12.12


 


 


$


6.38


 


 


 


 


 


 


 


 


 


 


Reconciliation of GAAP to adjusted earnings per ADS - diluted


 


 


 


 


 


 


 


 


GAAP earnings per ADS - diluted


 


$


3.28


 


 


$


1.09


 


 


$


7.30


 


 


$


1.96


 


Plus: Share-based compensation expenses


 


 


1.13


 


 


 


1.23


 


 


 


3.38


 


 


 


3.43


 


Plus: Depreciation


 


 


0.32


 


 


 


0.31


 


 


 


0.99


 


 


 


0.86


 


Plus: Amortization of intangibles


 


 


0.20


 


 


 


0.01


 


 


 


0.23


 


 


 


0.08


 


Plus: Other


 


 


0.00


 


 


 


0.00


 


 


 


0.00


 


 


 


0.01


 


Plus: Impairment of equity investments


 


 


0.00


 


 


 


0.16


 


 


 


0.00


 


 


 


0.30


 


Plus: Discrete tax items


 


 


(0.10


)


 


 


(0.01


)


 


 


0.36


 


 


 


(0.09


)


Plus: Income tax effect of non-GAAP adjustments1


 


 


(0.24


)


 


 


(0.15


)


 


 


(0.59


)


 


 


(0.41


)


Adjusted earnings per ADS - diluted


 


$


4.59


 


 


$


2.65


 


 


$


11.68


 


 


$


6.14


 


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.

 


 


Three Months Ended


 


Nine Months Ended


 


 


September 30,


 


September 30,


 


 


 


2026


 


 


 


2025


 


 


 


2026


 


 


 


2025


 


 


 


 


 


 


 


 


 


 


Free Cash Flow (Non-GAAP):


 


 


 


 


 


 


Net cash provided by operating activities (GAAP)


 


$


508,707


 


 


$


402,553


 


 


$


1,172,863


 


 


$


710,233


 


Less: Purchases of property, plant and equipment


 


 


(35,175


)


 


 


(48,084


)


 


 


(103,440


)


 


 


(148,317


)


Free Cash Flow (Non-GAAP)


 


$


473,532


 


 


$


354,469


 


 


$


1,069,423


 


 


$


561,916


 


Reconciliation of GAAP Operating Income Guidance to Non-GAAP


 


 


 


 


 


Operating Income Guidance for Full Year 2026


 


 


 


 


 


 


(Unaudited)


 


 


 


 


 


 


GAAP operating income


1,200,000


 


—


 


1,300,000


Plus: Adjustments to arrive at Non-GAAP1


700,000


 


—


 


700,000


Non-GAAP operating income


1,900,000


 


—


 


2,000,000


The non-GAAP adjustments are based on actual results through the first nine months of 2026 and best available information at this time related to similar items for the remainder of the year.

 


 


View source version on businesswire.com: https://www.businesswire.com/news/home/20261105790053/en/



Permalink

https://www.aetoswire.com/en/news/0511202658864


Contacts

Investor Contact

Liza Heapes

+1 857-302-5663

ir@beonemed.com


Media Contact

Meredith Ferguson

+1 216-338-3797

media@beonemed.com