Emmaus Life Sciences Reports $1.98 Million Revenue Decline and $3.34 Million Net Loss in Q1 2026

Emmaus Life Sciences, Inc. reported a net revenue of $1.98 million for the first quarter of 2026, a decrease of 18% from $2.41 million in the same period of 2025. The decline in revenue is attributed primarily to reduced sales of its product Endari® in the U.S., which faced increased competition from a generic version of L-Glutamine oral powder introduced by ANI Pharmaceuticals in mid-2024. This competitive pressure has negatively impacted both sales and reimbursement rates from Medicare, Medicaid, and other payors. Despite the overall decline, sales in the Middle East North Africa (MENA) region showed some growth, partially offsetting the losses in the U.S. market.

The company's cost of goods sold decreased by 25% to $168,000, reflecting the lower sales volume. Research and development expenses saw a significant reduction of 77%, down to $40,000, as the company ceased its R&D activities in late 2024. Conversely, selling expenses increased by 16% to $747,000, primarily due to higher consulting fees, while general and administrative expenses decreased by 21% to $1.85 million, driven by lower rent and payroll costs. Overall, Emmaus reported a net loss of $3.34 million for the quarter, compared to a loss of $2.33 million in the prior year, largely due to increased interest expenses and other financial costs.

As of March 31, 2026, Emmaus had total assets of $18.70 million, down from $21.44 million at the end of 2025. The company’s cash and cash equivalents decreased to $1.07 million from $2.13 million, while accounts receivable also fell to $2.05 million from $2.80 million. Current liabilities increased to $70.54 million, leading to a stockholders' deficit of $67.86 million, up from $63.61 million at the end of the previous fiscal year. The increase in liabilities is attributed to higher accounts payable and accrued expenses, reflecting ongoing operational challenges.

Strategically, Emmaus entered into a License and Exclusive Distribution Agreement with NeoImmuneTech, Inc. in December 2025, granting NIT exclusive rights to market and distribute Endari® in the U.S. and Canada. This agreement includes an upfront cash payment and royalties on sales, although the effective date of the agreement is contingent upon NIT obtaining necessary regulatory approvals. Pending this effective date, NIT has begun utilizing selected members of Emmaus's U.S. sales force, and the company continues to receive revenue from Endari® sales in the interim.

Looking ahead, Emmaus faces significant challenges in achieving sustainable profitability. The company has indicated that it will need to restructure or refinance its existing debt and raise additional funds through various means, including loans and equity financing, to meet its operational needs. With an accumulated deficit of $273.4 million and ongoing financial losses, there is substantial doubt about the company's ability to continue as a going concern over the next 12 months. Emmaus's future performance will largely depend on its ability to successfully navigate these financial hurdles and capitalize on its strategic agreements.