Mesoblast posts revenue jump and new funding: Key takeaways for investors

Mesoblast posts strong Ryoncil sales and secures new funding, with cash reserves set for upcoming clinical milestones.

| More on:
An investor looks happy holding a finger to his computer screen while holding a coffee cup in a home office scenario.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Mesoblast Ltd (ASX: MSB) share price is in focus after the company reported net revenues of US$30 million for the December 2025 quarter, up 60% from the prior period, on the back of strong Ryoncil® sales and new financing arrangements.

What did Mesoblast report?

  • Ryoncil® gross sales reached US$35 million, a 60% lift quarter-on-quarter
  • Net revenues for the quarter totalled US$30 million
  • US$130 million in cash on hand at 31 December 2025
  • Net operating cash outflow of US$16 million for the quarter
  • Secured a US$125 million non-dilutive credit facility at 8% interest, with an unsecured US$75 million tranche drawn
  • No interim dividend declared

What else do investors need to know?

Mesoblast enhanced its financial flexibility this quarter, drawing US$75 million from a new lower-cost debt facility. This replaces more expensive loans and gives the company greater room to fund strategic partnerships as well as potential product expansion.

Clinically, Mesoblast provided positive updates on Ryoncil®'s use in paediatric patients with steroid-refractory acute graft-versus-host disease (SR-aGvHD), as well as progress in extending Ryoncil®'s label to treat adults—an addressable market about three times larger. The company also received constructive feedback from the US FDA regarding its chronic low back pain therapy, with pivotal Phase 3 studies close to completing enrolment.

What did Mesoblast management say?

Mesoblast Chief Executive Dr. Silviu Itescu said:

This quarter was highlighted by continued strong Ryoncil® sales and the establishment of a new lower-cost non-dilutive financing facility both of which enable greater flexibility for strategic partnerships and pursuit of label expansion for Ryoncil®.

What's next for Mesoblast?

Looking ahead, Mesoblast expects net cash outflows to decline, driven by stable or growing product revenues and tight cost controls. The company aims to complete the pivotal trial for Ryoncil® in adults and finish key patient enrolment in its chronic low back pain program during the next quarter.

Management also flagged its plans to pursue new regulatory submissions and further manufacturing scale-up, as it seeks to establish additional cell therapies for inflammatory conditions. Strategic partnerships and global commercial expansion remain key sections of Mesoblast's long-term roadmap.

Mesoblast share price snapshot

Over the past 12 months, Mesoblast shares have declined 12%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

More on Share Market News

A young woman wearing a blue blouse with white polkadots holds her phone up with an intrigued and happy look on her face as she reads some news.
Share Market News

Liontown earnings: Revenue surges and underground transition completed in Q2 FY26

Liontown delivered a 91% revenue jump and reduced unit costs as its Kathleen Valley site completed transition to underground mining…

Read more »

Cheerful businessman with a mining hat on the table sitting back with his arms behind his head while looking at his laptop's screen.
Share Market News

Liontown shares in focus as LG Energy Solution swaps $250m debt for equity

LG Energy Solution will hold 8% of Liontown after converting its US$250m note, simplifying Liontown’s balance sheet and deepening their…

Read more »

Two young African mine workers wearing protective wear are discussing coal quality while on site at a coal mine.
Share Market News

Whitehaven Coal posts strong Q2 production and cost control

Whitehaven Coal boosts Q2 production and sales, maintains cost discipline, and keeps guidance steady for FY26.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Share Market News

Perpetual reports mixed results in FY26 second quarter update

Perpetual delivered a mixed FY26 Q2, with asset management outflows but growth in Corporate Trust and ongoing Wealth sale talks.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Share Market News

AMP reports FY24 results and cost allocation changes

AMP reports FY24 earnings and updates cost allocation methods for improved transparency and investor clarity.

Read more »

Teen standing in a city street smiling and throwing sparkling gold glitter into the air.
Share Market News

Perseus Mining posts quarterly gold output and solid cash, progresses key projects

Perseus Mining delivered solid gold production and growing cash, while pushing forward with development projects in the December 2025 quarter.

Read more »

a man leans back in his chair with his arms supporting his head as he smiles a satisfied smile while sitting at his desk with his laptop computer open in front of him.
Share Market News

IGO posts improved earnings on higher lithium price, Nova strength

IGO delivered a solid December quarter, with stronger Nova output, higher spodumene prices, and progress on safety and board renewal.

Read more »

A young female ASX investor sits at her desk with her fists raised in excitement as she reads about rising ASX share prices on her laptop.
Share Market News

Mineral Resources upgrades lithium guidance on strong Q2 sales

Mineral Resources upgraded FY26 lithium guidance and delivered strong Q2 results with higher sales and lower debt.

Read more »