A month has gone by since the last earnings report for Keros Therapeutics, Inc. (KROS). Shares have added about 2.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Keros Therapeutics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Keros Q4 Loss Narrower Than Expected
The company reported a loss per share of 86 cents per share in the fourth quarter, wider than the Zacks Consensus Estimate of a loss of 49 cents, but narrower than the loss of $1.14 per share in the year-ago quarter.
Revenues of $0.4 million were down 87% year over year from $3.0 million in the year-ago quarter. The figure reflected $0.4 million of service and other revenues, primarily related to transition services under the Takeda arrangement, with no license revenues recognized in the period. This compares to license revenues of $3.0 million in the year-ago quarter.
Quarter In Detail
R&D expense of $17.9 million was down 61% year over year following the transition of elritercept development responsibilities and expenses to Takeda.
G&A expense of $11.7 million was up 10% year over year.
Cash and cash equivalents of $287.4 million as of Dec. 31, 2025, were down 49% year over year from $559.9 million. The year-over-year decline primarily reflects capital return actions in 2025, including an issuer tender offer of approximately $194.4 million and separate repurchases totaling approximately $180.6 million. Shares outstanding fell to 19.5 million at year-end.
Management indicated that the cash balance is expected to fund planned operating expenses and capital expenditures into the first half of 2028, contingent on current operating assumptions.
Pipeline Updates
The company expects to commence a phase II study of rinvatercept in DMD in the second quarter of 2026 and plans to engage regulators on the design of a phase II study in amyotrophic lateral sclerosis (ALS) in the second half of 2026.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -115% due to these changes.
VGM Scores
Currently, Keros Therapeutics has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, the stock has a score of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Keros Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Keros Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Jazz Pharmaceuticals (JAZZ), a stock from the same industry, has gained 1.8%. The company reported its results for the quarter ended December 2025 more than a month ago.
Jazz reported revenues of $1.2 billion in the last reported quarter, representing a year-over-year change of +10.1%. EPS of $6.64 for the same period compares with $6.60 a year ago.
Jazz is expected to post earnings of $4.63 per share for the current quarter, representing a year-over-year change of +175.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +17.9%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Jazz. Also, the stock has a VGM Score of A.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
