Celularity Inc. Reports 66.3% Revenue Decline and Strategic Realignment in Q1 2026

Celularity Inc. reported a significant decline in financial performance for the first quarter of 2026, with total revenues of $3.8 million, down 66.3% from $11.4 million in the same period of 2025. The decrease was primarily driven by a 90.4% drop in product sales, which fell to $0.9 million from $9.0 million, attributed to lower sales of Biovance 3L and Rebound products. Additionally, service revenues from biobanking decreased by 11.2% to $1.3 million, while license and royalty revenues increased by 73.0% to $1.7 million, reflecting a shift in revenue sources.

Operating expenses also decreased, totaling $14.0 million compared to $21.9 million in the prior year, a reduction of 36.2%. This decline was largely due to lower costs associated with product sales and a reduction in selling, general, and administrative expenses, which fell by 35.7% to $9.2 million. The company reported a loss from operations of $10.1 million, slightly improved from a loss of $10.5 million in the previous year. Notably, Celularity achieved a net income of $0.9 million for the quarter, a significant turnaround from a net loss of $19.8 million in the first quarter of 2025, largely due to $12.2 million in proceeds from the sale of New Jersey net operating loss carryforwards.

In terms of strategic developments, Celularity has undergone a business realignment, focusing on its cellular therapy platform while transferring certain biomaterials assets to NexGel, Inc. This agreement, finalized in April 2026, includes an initial payment of $15 million and potential milestone payments totaling $20 million. The company has also implemented operational restructuring to reduce overhead costs and streamline its workforce, aiming to concentrate resources on core commercial opportunities.

Operationally, Celularity's cash and cash equivalents stood at $0.4 million as of March 31, 2026, with an accumulated deficit of $990.6 million and a working capital deficit of $64.3 million. The company reported cash provided by operating activities of $1.4 million, a notable improvement from cash used in operations of $3.0 million in the prior year. However, the company continues to face substantial doubt regarding its ability to continue as a going concern, as it has minimal cash reserves and has historically not generated sufficient cash from operations.

Looking ahead, Celularity is actively seeking additional financing to support its operations and meet its obligations. The company has plans to pursue equity offerings, debt financings, and strategic collaborations to improve its liquidity. However, there is no assurance that these plans will be successful or that the company will be able to secure the necessary funding. The ongoing challenges, including compliance with Nasdaq listing requirements and the need for significant revenue growth, underscore the uncertainties surrounding Celularity's future operations and financial stability.