OPKO Health, Inc. (OPK Quick QuoteOPK - Free Report) posted a first-quarter 2026 loss of 7 cents per share, in line with the Zacks Consensus Estimate. The bottom line improved from a loss of 10 cents in the year-ago quarter.

OPK’s Detailed Revenues Analysis

OPK’s first-quarter revenues fell 25.7% year over year to $124.2 million and missed the Zacks Consensus mark by 4.9%. Results reflected a smaller Diagnostics revenue base after last year’s asset sale, partly offset by higher Pharmaceutical product sales.

OPK’s top line was weighed down by weakness in its Diagnostics unit, reflecting a smaller BioReference footprint following the 2025 divestiture.

OPK’s Revenue Falls as Diagnostics Base Resets

Service revenue declined to $72.2 million from $102.8 million in the year-ago quarter, which witnessed contributions from oncology assets that were subsequently divested.

Within Diagnostics, core diagnostics revenue was $65.8 million compared with $70.4 million a year ago. While 4Kscore test revenue was $6.4 million compared with $6.5 million a year ago. Per management, the decline was due to lower clinical test reimbursement rates following the exit of certain higher-priced offerings that carried low or negative gross margins, along with a modest decrease in overall testing volumes.

OPK’s Product Growth Lifts Pharmaceutical Segment

Total pharmaceutical revenue increased to $52.0 million from $47.1 million in the year-ago quarter, supported by gains in product sales and higher contributions from intellectual property and other items.

Revenue from products rose 9.2% to $38.0 million, driven by higher sales volumes from OPKO’s Spanish operations and a favorable foreign exchange impact. Rayaldee revenue was steady at $6.3 million.

Revenue from the transfer of intellectual property and other increased to $14.0 million from $12.3 million, helped by higher gross profit share payments for Pfizer’s NGENLA, which totaled $6.4 million compared with $4.5 million a year ago. This was partly offset by lower BARDA contract revenue of $4.1 million compared with $7.0 million in the prior-year period.

OPKO Health, Inc. Price, Consensus and EPS Surprise

OPKO Health, Inc. price-consensus-eps-surprise-chart | OPKO Health, Inc. Quote

OPK’s Cost & Margin Analysis

OPK’s cost structure improved year over year, contributing to a narrower operating loss despite the revenue decline.

For the first quarter, gross profit was $45.8 million compared with $42.6 million a year ago. Gross margin expanded to 36.9% from 28.4%, reflecting lower service costs on the reduced Diagnostics base and the benefit of revenue streams not directly tied to the cost of revenues.

Total costs and expenses decreased to $175.2 million from $217.1 million in the first quarter of 2026, reflecting the reduced Diagnostics footprint and continued streamlining. SG&A expense decreased to $48.6 million from $59.1 million. Research and development expense was $29.2 million compared with $30.8 million a year ago. Operating loss improved to $51 million from $67.2 million in the year-ago quarter.

OPK’s Balance Sheet & Cashflow Analysis

OPK ended the first quarter of 2026 with cash, cash equivalents, marketable securities and restricted cash of $341.9 million. The company also continued returning capital to shareholders, noting approximately $92 million of common stock had been repurchased under its program since authorization in July 2025, including $4.8 million in the first quarter, with about $108.0 million still authorized for future repurchases.

Cumulative net cash used in operating activities at the end of first-quarter 2026 was $19.3 million compared with $34.6 million a year ago.

Q2 & FY2026 Guidance

For the second quarter of 2026, OPK expects total revenues of $127-$132 million, including services revenue of $72-$76 million, product revenue of $38-$42 million and IP and other revenue of $15-$19 million.

The company expects Pfizer’s gross profit share of $6-$8 million and BARDA revenue of $5-$7 million within that revenue outlook. Total costs and expenses are projected to be in the range of $180-$190 million, with R&D of $32-$38 million and depreciation and amortization of approximately $24 million.

Full-year guidance remains unchanged, calling for a total revenue of $530-$560 million and total costs and expenses in the range of $725-$750 million.

Our Take

OPK exited the first quarter with mixed results, as earnings were in line with the Zacks Consensus Estimate while revenues missed the same. The quarter underscored continued strategic reshaping and cost discipline, with profitability metrics improving year over year, including a narrower operating loss and a higher gross margin, as the company adjusted to a more streamlined operating footprint.

On the Diagnostics side, BioReference remains centered on core regional clinical lab operations in New York and New Jersey, the correctional health business and the national specialty urology testing franchise anchored by 4Kscore. Management continues to streamline infrastructure and align the cost base with this tighter footprint, targeting further efficiency gains as the segment executes toward breakeven.

Within therapeutics, OPKO Health highlighted meaningful progress across the ModeX pipeline. The company initiated and completed the first dose cohort in the Phase 1 clinical trial of MDX2301, its BARDA-funded multispecific antibody program for the prevention of COVID-19 in high-risk populations. OPKO also initiated the Phase 1 trial of MDX2003 in relapsed or refractory B-cell lymphoma, while continuing to advance MDX2001 and MDX2004. In addition, the company plans to present data on multispecific antibody-targeted in vivo CAR-T cell programs at ASGCT, with plans to enter Phase 1 studies later this year. Overall, continued pipeline execution alongside an active share repurchase program reinforces OPKO’s effort to balance clinical catalysts with financial flexibility.

On partnerships, management said the Regeneron collaboration combines antibody binder libraries with the ModeX platform across multiple indications, with potential milestone value that could exceed $1 billion plus future royalties. OPKO also expanded its partnership with Entera Bio to advance an oral long-acting PTH tablet program, with plans to target an IND filing in late 2026.

OPK’s Zacks Rank & Stocks to Consider

OPKO Health has a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks from the broader medical space that are expected to report earnings soon are DexCom, Inc. (DXCM Quick QuoteDXCM - Free Report) , Encompass Health Corporation (EHC Quick QuoteEHC - Free Report) and The Cooper Companies, Inc. (COO Quick QuoteCOO - Free Report) .

The Zacks Consensus Estimate for DexCom’s first-quarter 2026 adjusted EPS is currently pegged at 47 cents. The consensus estimate for revenues is pegged at $1.18 billion. DXCM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DexCom has an estimated long-term growth rate of 20.6%. DXCM’s earnings yield of 4.1% compares favorably with the industry’s negative yield.

Encompass Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for its first-quarter 2026 adjusted EPS is currently pegged at $1.51. The same for revenues is pegged at $1.57 billion.

Encompass Health has an estimated long-term growth rate of 8.8%. EHC’s earnings yield of 5.9% compares favorably with the industry’s 5.6%.

Cooper Companies currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter fiscal 2026 adjusted EPS is currently pegged at $1.10. The same for its revenues is pegged at $1.05 billion.

Cooper Companies has an estimated long-term growth rate of 8.4%. COO’s earnings yield of 7.2% compares favorably with the industry’s 6.1%.