Revenue remains highly intermittent with zero reported revenue in seven of the last ten quarters, while R&D intensity continues to drive operating losses that reached $8.8 million in 2026Q1.
| Sales/Revenue | 500K | 500K | 0 | 10M | 0 | 49.21M | 0 | 0 | 0 | -3.29M | 0 |
| Revenue Growth % | - | - | -100% | - | -100% | - | - | - | 100% | - | - |
| Cost of Goods Sold | 437.49K | 133K | 0 | 2.57M | -257.44K | 24.17M | 2.05M | 2.01M | 22.7M | 34.61M | 24.56M |
| COGS % of Revenue | - | 26.6% | - | 25.74% | - | 49.11% | - | - | - | -1053.38% | - |
| Gross Profit | 62.51K | 367K | 0 | 7.43M | 257.44K | 25.04M | -2.05M | -2.01M | -22.7M | -37.89M | -24.56M |
| Gross Margin % | 12.5% | 73.4% | - | 74.26% | - | 50.89% | - | - | - | 1153.38% | - |
| Gross Profit Growth % | - | - | -100% | 2784.53% | -98.97% | 1321.36% | -1.92% | 91.14% | 40.08% | -54.27% | - |
| Operating Expenses | 37.72M | 38.62M | 47.36M | 35.84M | 53.92M | 53.3M | 46.13M | 48.4M | 12.5M | 10.7M | 11.62M |
| OpEx % of Revenue | - | 7724.8% | - | 358.42% | - | 108.3% | - | - | - | -325.61% | - |
| Selling, General & Admin | 19.75M | 23.01M | 26.43M | 18.42M | 23.18M | 21.5M | 25.16M | 18.28M | 12.5M | 10.7M | 11.62M |
| SG&A % of Revenue | - | 4601.6% | - | 184.24% | - | 43.7% | - | - | - | -325.61% | - |
| Research & Development | 18.13M | 17.77M | 20.93M | 17.42M | 30.75M | 31.8M | 20.96M | 30.12M | 22.7M | 34.61M | 24.56M |
| R&D % of Revenue | - | 3553.2% | - | 174.18% | - | 64.61% | - | - | - | -1053.38% | - |
| Other Operating Expenses | -166.22K | -2.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -293.33K | 0 |
| Operating Income | -37.66M | -38.26M | -47.36M | -28.42M | -53.67M | -28.26M | -48.18M | -50.41M | -35.21M | -45.3M | -36.18M |
| Operating Margin % | -7531.06% | -7651.4% | - | -284.16% | - | -57.42% | - | - | - | 1378.99% | - |
| Operating Income Growth % | - | 19.23% | -66.68% | 47.05% | -89.93% | 41.35% | 4.44% | -43.19% | 22.28% | -25.22% | - |
| EBITDA | -36.41M | -37.11M | -46.28M | -27.36M | -52.77M | -27.39M | -46.13M | -48.4M | -35.17M | -45.27M | -36.15M |
| EBITDA Margin % | -7281.36% | -7421.6% | - | -273.55% | - | -55.65% | - | - | - | 1377.89% | - |
| EBITDA Growth % | 23.26% | 19.81% | -69.17% | 48.16% | -92.67% | 40.62% | 4.7% | -37.62% | 22.31% | -25.23% | - |
| D&A (Non-Cash Add-back) | 1.25M | 1.15M | 1.09M | 1.06M | 895.5K | 866.47K | 2.05M | 2.01M | 37.8K | 36.08K | 32.94K |
| EBIT | -40.54M | -41.62M | -41.88M | -27.12M | -40.87M | 24.62M | -205.46M | -46.58M | -32.89M | -45.6M | -33.74M |
| Net Interest Income | 1.76M | 1.92M | 1.67M | -750K | -2.67M | -5.22M | -6.34M | -3.12M | -2.05M | -263.07K | 15.38K |
| Interest Income | 1.84M | 2.17M | 3.04M | 2.13M | 696K | 1.38K | 44K | 377K | 306.83K | 826.86K | 195.14K |
| Interest Expense | 54.83K | 255K | 1.37M | 2.88M | 3.36M | 5.22M | 6.38M | 3.5M | 2.36M | 1.09M | 179.76K |
| Other Income/Expense | 1.86M | -3.62M | 4.11M | -1.58M | 9.21M | 47.48M | -165.27M | -2.04M | -2.1M | -1.65M | 2.46M |
| Pretax Income | -35.79M | -41.88M | -43.25M | -30M | -44.46M | 19.22M | -213.45M | -52.46M | -37.31M | -46.95M | -33.72M |
| Pretax Margin % | -7158.72% | -8375.6% | - | -299.98% | - | 39.05% | - | - | - | 1429.13% | - |
| Income Tax | -94.84K | 0 | 0 | -532K | -2.34M | 2.05M | -3.62M | -8M | -5.28M | -8.15M | -5.33M |
| Effective Tax Rate % | 0.26% | 0% | 0% | 1.77% | 5.26% | 10.65% | 1.7% | 15.26% | 14.15% | 17.36% | 15.81% |
| Net Income | -35.7M | -41.88M | -43.25M | -29.47M | -42.12M | 17.17M | -209.83M | -44.45M | -32.03M | -38.8M | -28.39M |
| Net Margin % | -7139.75% | -8375.6% | - | -294.66% | - | 34.9% | - | - | - | 1180.99% | - |
| Net Income Growth % | 24.24% | 3.18% | -46.79% | 30.05% | -345.26% | 108.18% | -372.04% | -38.79% | 17.45% | -36.66% | - |
| Net Income (Continuing) | -35.7M | -41.88M | -43.25M | -29.47M | -42.12M | 17.17M | -209.83M | -44.45M | -32.03M | -38.8M | -28.39M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.22 | -0.26 | -0.29 | -1100.22 | -1750.35 | 749.65 | -16503.30 | -12902.58 | -14352.87 | -19003.80 | -19553.91 |
| EPS Growth % | 99.95% | 10.34% | 99.97% | 37.14% | -333.49% | 104.54% | -27.91% | 10.1% | 24.47% | 2.81% | - |
| EPS (Basic) | - | -0.26 | -0.29 | -1100.22 | -1750.35 | 749.65 | -16503.30 | -12902.58 | -14352.87 | -19003.80 | -19553.91 |
| Diluted Shares Outstanding | 160.36M | 159.42M | 147.92M | 131.89M | 120.64M | 116.73M | 67.79M | 17.88M | 14.23M | 13.8M | 8.96M |
| Basic Shares Outstanding | 160.36M | 159.42M | 147.92M | 131.89M | 120.64M | 116.73M | 67.79M | 17.87M | 14.23M | 13.8M | 8.96M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and clinical execution
As indicated by the provided financial data, Mereo BioPharma's revenue remains highly intermittent, with the company reporting zero revenue in seven of the last ten quarters, underscoring the absence of a recurring commercial engine and reliance on sporadic milestone payments to sustain its clinical development pipeline.
The lack of consistent top-line growth reflects the company's status as a pure-play clinical development entity rather than a commercial-stage enterprise. Investors should monitor the timing of future milestone triggers, as the current revenue profile is entirely dependent on external partnership events rather than organic market demand.
Based on reported income statements, Mereo BioPharma consistently incurs significant R&D expenditures, which have averaged approximately $4.5 million per quarter over the last ten periods, highlighting the heavy financial burden required to advance its orphan drug pipeline toward potential regulatory milestones and commercial viability.
The company's cost structure is dominated by clinical trial execution, which remains the primary driver of its persistent operating deficits. Management's expense discipline appears focused on maintaining core programs, yet the high fixed cost base relative to minimal revenue suggests a structural vulnerability that necessitates ongoing external funding.
According to recent financial filings, Mereo BioPharma continues to issue stock-based compensation, with quarterly expenses frequently exceeding $1.5 million, which effectively dilutes existing shareholders while the company remains in a pre-revenue state with no clear path to near-term profitability or positive net income generation.
The consistent use of equity-based incentives during periods of significant operating losses warrants further investigation into management's alignment with long-term value creation. This practice complicates the assessment of true operational efficiency, as the reported net losses do not fully capture the economic cost of talent retention.
As reported in financial statements, the company's cash position of approximately $41 million against a high quarterly burn rate suggests a looming liquidity event, which may force management to pursue dilutive financing or strategic out-licensing deals to maintain operations beyond the next twelve months.
Short-sellers would likely focus on the mismatch between the company's cash runway and the capital-intensive nature of late-stage clinical trials. If the company fails to secure additional funding or achieve a major partnership milestone, the ability to sustain its current R&D trajectory appears increasingly precarious.
Quick answers to the most common questions about buying MREO stock.
For fiscal year 2025, Mereo BioPharma Group plc (MREO) reported total revenue of $0.5M.
Mereo BioPharma Group plc (MREO) reported a net loss of $41.9M for the fiscal year ending 2025.
Mereo BioPharma Group plc (MREO) reported an operating income of $-38.3M, resulting in an operating profit margin of -7651.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Mereo BioPharma Group plc (MREO) generated $0.4M in gross profit for the year, representing a gross profit margin of 73.4%. This demonstrates the company's core pricing power and production efficiency.