Revenue growth remains under pressure with a 29.7% year-over-year contraction in 2026Q1, while gross margins exhibit extreme instability, fluctuating between a negative 25.7% and a peak of 70.1% over the last nine quarters.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'01 |
|---|
| Sales/Revenue | 676.8M | 742.9M | 1.04B | 1.05B | 1.12B | 1.77B | 1.58B | 1.11B | 782.4M | 560.9M | 488.8M | 489.33M | 404.47M | 312.75M | 281.89M | 273.38M | 286.17M | 234.79M | 178.55M | 182.91M | 152.73M | 130.69M | 83.49M | 45.31M |
| Revenue Growth % | -29.89% | -28.81% | -0.54% | -6.1% | -36.99% | 12.45% | 42.61% | 41.36% | 39.49% | 14.75% | -0.11% | 20.98% | 29.33% | 10.95% | 3.11% | -4.47% | 21.89% | 31.49% | -2.38% | 19.76% | 16.87% | 56.52% | 84.28% | - |
| Cost of Goods Sold | 376M | 392.3M | 668.2M | 689.3M | 644.5M | 980.4M | 714.2M | 622.9M | 462M | 277.3M | 244M | 216.84M | 206.68M | 182.06M | 169.31M | 42.17M | 47.11M | 46.26M | 34.08M | 40.31M | 24.13M | 31.6M | 30.1M | 424.1M |
| COGS % of Revenue | - | 52.81% | 64.03% | 65.69% | 57.67% | 55.28% | 45.28% | 56.32% | 59.05% | 49.44% | 49.92% | 44.31% | 51.1% | 58.21% | 60.06% | 15.43% | 16.46% | 19.7% | 19.09% | 22.04% | 15.8% | 24.18% | 36.05% | 936.02% |
| Gross Profit | 300.8M | 350.6M | 375.4M | 360M | 473M | 793.2M | 863.1M | 483.1M | 320.4M | 283.6M | 244.8M | 272.49M | 197.78M | 130.69M | 112.58M | 231.21M | 239.06M | 188.52M | 144.47M | 142.61M | 128.61M | 99.08M | 53.39M | -378.79M |
| Gross Margin % | 44.44% | 47.19% | 35.97% | 34.31% | 42.33% | 44.72% | 54.72% | 43.68% | 40.95% | 50.56% | 50.08% | 55.69% | 48.9% | 41.79% | 39.94% | 84.57% | 83.54% | 80.3% | 80.91% | 77.96% | 84.2% | 75.82% | 63.95% | -836.02% |
| Gross Profit Growth % | - | -6.61% | 4.28% | -23.89% | -40.37% | -8.1% | 78.66% | 50.78% | 12.98% | 15.85% | -10.16% | 37.77% | 51.34% | 16.08% | -51.31% | -3.28% | 26.8% | 30.49% | 1.31% | 10.89% | 29.79% | 85.58% | 114.1% | - |
| Operating Expenses | 229.6M | 240.4M | 484.1M | 1.09B | 643M | 451.8M | 424.6M | 369M | 230.6M | 159.3M | 139.3M | 130.97M | 108.59M | 87.88M | 80.64M | 199.11M | 165.5M | 148.37M | 114.55M | 109.51M | 90.1M | 51.17M | 40.44M | 869.5M |
| OpEx % of Revenue | - | 32.36% | 46.39% | 103.54% | 57.54% | 25.47% | 26.92% | 33.36% | 29.47% | 28.4% | 28.5% | 26.77% | 26.85% | 28.1% | 28.61% | 72.83% | 57.83% | 63.2% | 64.15% | 59.87% | 58.99% | 39.16% | 48.43% | 1919.04% |
| Selling, General & Admin | 180.5M | 186.6M | 298.7M | 356.7M | 339.5M | 348.7M | 304.1M | 273.5M | 202.5M | 142.9M | 143.1M | 121.14M | 108.59M | 84.58M | 76.02M | 74.28M | 76.2M | 73.79M | 55.08M | 55.55M | 44.6M | 42.79M | 30.32M | 340.3M |
| SG&A % of Revenue | - | 25.12% | 28.62% | 33.99% | 30.38% | 19.66% | 19.28% | 24.73% | 25.88% | 25.48% | 29.28% | 24.76% | 26.85% | 27.05% | 26.97% | 27.17% | 26.63% | 31.43% | 30.85% | 30.37% | 29.2% | 32.74% | 36.32% | 751.06% |
| Research & Development | 49.1M | 53.8M | 70.7M | 111.4M | 188.3M | 235.2M | 237.9M | 226.2M | 142.8M | 97.4M | 106.9M | 119.19M | 104.72M | 119.93M | 129.83M | 124.83M | 89.3M | 74.59M | 59.47M | 53.96M | 45.5M | 18.38M | 10.12M | 193M |
| R&D % of Revenue | - | 7.24% | 6.77% | 10.62% | 16.85% | 13.26% | 15.08% | 20.45% | 18.25% | 17.36% | 21.87% | 24.36% | 25.89% | 38.35% | 46.06% | 45.66% | 31.2% | 31.77% | 33.31% | 29.5% | 29.79% | 14.06% | 12.12% | 425.96% |
| Other Operating Expenses | 0 | 0 | 114.7M | 618.3M | 115.2M | -132.1M | -117.4M | -130.7M | -114.7M | -81M | -110.7M | -109.36M | -104.72M | -116.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -10M | 0 | 336.2M |
| Operating Income | 71.2M | 110.2M | -108.7M | -726.4M | -170M | 341.4M | 438.5M | 114.1M | 89.8M | 124.3M | 105.5M | 141.51M | 89.19M | 42.8M | 36.56M | 32.1M | 73.56M | 40.15M | 29.93M | 33.09M | 38.03M | 21.34M | 16.77M | -364K |
| Operating Margin % | 10.52% | 14.83% | -10.42% | -69.23% | -15.21% | 19.25% | 27.8% | 10.32% | 11.48% | 22.16% | 21.58% | 28.92% | 22.05% | 13.69% | 12.97% | 11.74% | 25.7% | 17.1% | 16.76% | 18.09% | 24.9% | 16.33% | 20.09% | -0.8% |
| Operating Income Growth % | - | 201.38% | 85.04% | -327.29% | -149.79% | -22.14% | 284.31% | 27.06% | -27.76% | 17.82% | -25.45% | 58.67% | 108.37% | 17.07% | 13.9% | -56.36% | 83.21% | 34.16% | -9.57% | -12.98% | 78.23% | 27.22% | 4707.42% | - |
| EBITDA | 166.6M | 208.5M | -3.1M | -605.3M | -45M | 459.6M | 548.5M | 222.1M | 152M | 166.9M | 143.7M | 176.85M | 121.64M | 61.76M | 47.76M | 41.45M | 79.55M | 45.15M | 34.89M | 37.91M | 42.74M | 24.89M | 18.64M | 45.43M |
| EBITDA Margin % | 24.62% | 28.07% | -0.3% | -57.69% | -4.03% | 25.91% | 34.77% | 20.08% | 19.43% | 29.76% | 29.4% | 36.14% | 30.07% | 19.75% | 16.94% | 15.16% | 27.8% | 19.23% | 19.54% | 20.73% | 27.99% | 19.04% | 22.32% | 100.26% |
| EBITDA Growth % | 3444.68% | 6825.81% | 99.49% | -1245.11% | -109.79% | -16.21% | 146.96% | 46.12% | -8.93% | 16.14% | -18.74% | 45.39% | 96.96% | 29.32% | 15.21% | -47.89% | 76.19% | 29.4% | -7.96% | -11.31% | 71.76% | 33.52% | -58.97% | - |
| D&A (Non-Cash Add-back) | 95.4M | 98.3M | 105.6M | 121.1M | 125M | 118.2M | 110M | 108M | 62.2M | 42.6M | 38.2M | 35.34M | 32.45M | 18.96M | 11.2M | 9.36M | 5.99M | 5M | 4.96M | 4.82M | 4.71M | 3.55M | 1.87M | 45.79M |
| EBIT | 59.1M | 142.1M | -52.2M | -168.1M | -109.3M | 386M | 499.2M | 150.9M | 92.9M | 132.1M | 94.7M | 151.34M | 89.19M | 46.1M | 36.56M | 31.94M | 73.37M | 41.52M | 32.06M | 33.09M | 38.51M | 47.91M | 12.95M | 45.31M |
| Net Interest Income | -55.6M | -59.3M | -71M | -87.9M | -37.3M | -34.5M | -31.3M | -38.4M | -9.9M | -6.6M | -6.56M | -5.95M | -7.92M | 139K | 128K | 105K | 832K | 1.41M | 1.95M | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.75M | 1.05M | 572K | 320K | 139K | 134K | 105K | 832K | 1.42M | 2M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 55.6M | 59.3M | 71M | 87.9M | 37.3M | 34.5M | 31.3M | 38.4M | 9.9M | 6.59M | 7.62M | 6.52M | 8.24M | 0 | 6K | 0 | 0 | 7K | 47K | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -67.7M | -27.4M | -34.2M | -4.8M | -49M | -38.2M | -26.6M | -36.7M | -8.3M | -5.7M | -6.3M | -5.8M | -4.99M | 565K | -4.5M | -156K | -191K | 1.36M | 2.09M | 2.89M | -490K | -16.8M | -170K | -190K |
| Pretax Income | 3.5M | 82.8M | -142.9M | -731.2M | -219M | 303.2M | 411.9M | 77.4M | 81.5M | 118.6M | 99.2M | 135.72M | 84.19M | 43.37M | 32.06M | 31.94M | 73.37M | 41.51M | 32.74M | 35.99M | 38.02M | 21.11M | 16.6M | -554K |
| Pretax Margin % | 0.52% | 11.15% | -13.69% | -69.68% | -19.6% | 17.1% | 26.11% | 7% | 10.42% | 21.14% | 20.29% | 27.73% | 20.82% | 13.87% | 11.38% | 11.68% | 25.64% | 17.68% | 18.33% | 19.67% | 24.89% | 16.15% | 19.88% | -1.22% |
| Income Tax | 12.1M | 30.2M | 47.7M | 29.3M | -7.4M | 83.7M | 106.1M | 22.9M | 18.8M | 36M | 36.7M | 44.3M | 29.93M | 13.11M | 13.92M | 15.83M | 26.18M | 14.97M | 12.05M | 13.05M | 15.22M | 5.33M | 5.13M | 0 |
| Effective Tax Rate % | 345.71% | 36.47% | -33.38% | -4.01% | 3.38% | 27.61% | 25.76% | 29.59% | 23.07% | 30.35% | 37% | 32.64% | 35.55% | 30.23% | 43.42% | 49.56% | 35.69% | 36.05% | 36.82% | 36.27% | 40.04% | 25.23% | 30.9% | 0% |
| Net Income | -8.6M | 52.6M | -190.6M | -760.5M | -211.6M | 219.5M | 305.8M | 54.5M | 62.7M | 82.6M | 51.8M | 62.87M | 36.74M | 31.14M | 23.52M | 23.02M | 51.7M | 31.14M | 20.68M | 22.94M | 22.79M | 15.78M | 11.47M | -554K |
| Net Margin % | -1.27% | 7.08% | -18.26% | -72.48% | -18.94% | 12.38% | 19.39% | 4.93% | 8.01% | 14.73% | 10.6% | 12.85% | 9.08% | 9.96% | 8.35% | 8.42% | 18.07% | 13.26% | 11.58% | 12.54% | 14.92% | 12.08% | 13.74% | -1.22% |
| Net Income Growth % | 93.47% | 127.6% | 74.94% | -259.4% | -196.4% | -28.22% | 461.1% | -13.08% | -24.09% | 59.46% | -17.61% | 71.12% | 18.01% | 32.35% | 2.19% | -55.47% | 66% | 50.59% | -9.83% | 0.63% | 44.41% | 37.59% | 2170.76% | - |
| Net Income (Continuing) | -8.6M | 52.6M | -190.6M | -760.5M | -211.6M | 219.5M | 305.8M | 54.5M | 62.7M | 82.6M | 62.5M | 91.42M | 54.27M | 30.26M | 0 | 16.11M | 47.18M | 26.55M | 19.96M | 22.94M | 22.79M | 15.78M | 11.47M | -554K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -453K | 770K | 2.48M | 4.1M | 2.62M | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.15 | 0.93 | -3.60 | -14.85 | -4.22 | 4.06 | 5.67 | 1.04 | 1.22 | 1.71 | 1.13 | 1.41 | 0.88 | 0.85 | 0.65 | 0.64 | 1.59 | 0.99 | 0.68 | 0.77 | 0.93 | 0.69 | 0.56 | -0.03 |
| EPS Growth % | 89.86% | 125.83% | 75.76% | -251.9% | -203.94% | -28.4% | 445.19% | -14.75% | -28.66% | 51.33% | -19.86% | 60.23% | 3.53% | 30.77% | 1.56% | -59.75% | 60.61% | 45.59% | -11.69% | -17.2% | 34.78% | 23.21% | 1966.67% | - |
| EPS (Basic) | - | 0.98 | -3.60 | -14.85 | -4.22 | 4.10 | 5.79 | 1.06 | 1.25 | 1.98 | 1.29 | 1.63 | 0.98 | 0.86 | 0.65 | 0.65 | 1.63 | 1.02 | 0.69 | 0.79 | 0.99 | 0.77 | 0.61 | -0.03 |
| Diluted Shares Outstanding | 56.5M | 56.7M | 53M | 51.2M | 50.1M | 54.1M | 53.8M | 52.4M | 51.4M | 50.33M | 49.34M | 47.26M | 45.8M | 36.75M | 36.42M | 36.21M | 32.54M | 31.38M | 30.46M | 29.66M | 24.57M | 22.75M | 20.44M | 18.47M |
| Basic Shares Outstanding | 51.9M | 53.5M | 53M | 51.2M | 50.1M | 53.5M | 52.7M | 51.5M | 50.1M | 41.82M | 40.18M | 38.6M | 37.34M | 36.2M | 36.08M | 35.66M | 31.78M | 30.44M | 29.84M | 29M | 23.04M | 20.53M | 18.92M | 18.47M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 34.21% | - | - |
Government procurement dependency
As evidenced by the most recent quarterly filings, Emergent BioSolutions has experienced a sustained revenue decline, with the 2026Q1 top line of $156.1M representing a 29.7% year-over-year contraction, highlighting the volatility inherent in its reliance on lumpy, project-based government procurement cycles and shifting biodefense priorities.
The consistent negative growth trajectory suggests that the company is struggling to replace expiring COVID-era contracts with sustainable commercial revenue. Investors should monitor whether the transition of Narcan to an OTC model can eventually offset the structural decline in legacy biodefense procurement.
According to historical income statements, gross margins have exhibited extreme instability, ranging from a negative 25.7% in 2024Q2 to a peak of 70.1% in 2024Q4, reflecting the high fixed-cost burden of specialized manufacturing facilities that remain sensitive to fluctuations in production volume and capacity utilization.
The wide variance in margins implies that the company lacks the pricing power to fully absorb idle capacity costs during periods of lower government demand. This structural sensitivity suggests that profitability will remain highly dependent on the company's ability to maintain high throughput at its BSL-3 facilities.
Based on reported financial data, operating income has failed to scale consistently with gross profit, as evidenced by the 2026Q1 operating margin of 6.7% despite a gross margin of 43.3%, indicating that SG&A and overhead costs remain disproportionately high relative to the company's current revenue base.
The inability to achieve meaningful operating leverage suggests that the company's cost structure is not yet optimized for its current, smaller revenue scale. Further rationalization of operating expenses appears necessary to prevent continued margin erosion during periods of top-line weakness.
As reported in recent financial statements, net income has been characterized by significant swings, including a $54.6M loss in 2025Q4 followed by a $6.8M profit in 2026Q1, which complicates the assessment of core earnings power and highlights the impact of non-operating items and inventory write-downs.
The frequent divergence between operating income and net income suggests that one-time charges and restructuring costs are masking the underlying operational performance. Analysts should exercise caution when relying on EPS as a proxy for cash-generating capability given the lumpy nature of these adjustments.
Based on an analysis of the income statement, short-sellers may focus on the company's inability to maintain consistent profitability, as the 2026Q1 net margin of 4.4% remains thin and vulnerable to any further reduction in federal appropriations for the Strategic National Stockpile or increased competitive pressure.
The reliance on a single, highly concentrated customer base creates a binary risk profile that is not fully captured by current valuation multiples. The potential for further inventory obsolescence or contract non-renewals warrants a skeptical view of the company's long-term margin stability.
Quick answers to the most common questions about buying EBS stock.
For fiscal year 2025, Emergent BioSolutions Inc. (EBS) reported total revenue of $742.9M. This represents a 1539.6% increase compared to $45.3M in 2001.
Emergent BioSolutions Inc. (EBS) is profitable, generating $52.6M in net income for the fiscal year ending 2025 with a net profit margin of 7.1%.
Emergent BioSolutions Inc. (EBS) reported an operating income of $110.2M, resulting in an operating profit margin of 14.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Emergent BioSolutions Inc. (EBS) generated $350.6M in gross profit for the year, representing a gross profit margin of 47.2%. This demonstrates the company's core pricing power and production efficiency.