Key financial results
- RAS(ON) Q: Revolution Medicines generated net product revenue of $198 million for the third quarter of 2026 reflecting approximately 5 weeks of commercialization following the August 26 FDA approval of RAS(ON) Q.
RAS(ON) Q generated net product revenue of $198 million for the quarter reflecting more than 5,000 unique patients treated on a commercial basis.
- Cost of sales: Cost of sales for the quarter was $0.3 million, which management noted is not representative of normalized cost of sales because products sold included inventory manufactured before FDA approval that was previously expensed to R&D.
Cost of sales for the quarter was $0.3 million.
- Gross to net: The gross to net discount for the quarter came in at the lower end of the anticipated 20% to 30% range and is expected to increase within that range as payer mix and discounts mature.
The gross to net discount for the quarter came in at the lower end of our anticipated 20% to 30% range.
- Cash position: The company ended the third quarter with $3.7 billion in cash, cash equivalents and marketable securities, a total that excludes an additional $250 million received in October from the first debt tranche under its Royalty Pharma funding arrangement.
We ended the third quarter with $3.7 billion in cash, cash equivalents and marketable securities.
- R&D expenses: Research and development expenses for the third quarter of 2026 were $417.1 million compared to $262.5 million for the third quarter of 2025, driven by higher clinical trial and manufacturing expenses and personnel costs.
R&D expenses for the third quarter of 2026 were $417.1 million compared to $262.5 million for the third quarter of 2025.
- SG&A expenses: Selling, general and administrative expenses for the third quarter of 2026 were $153.3 million compared to $52.8 million for the third quarter of 2025, driven by higher personnel and commercial launch expenses.
SG&A Expenses for the third quarter of 2026 were $153.3 million compared to $52.8 million for the third quarter of 2025.
- Net loss: Net loss for the third quarter of 2026 was $407.5 million compared to $305.2 million for the third quarter of 2025, including a noncash charge of $40.7 million related to the change in fair value of warrants from the EQRx acquisition.
Net loss for the third quarter of 2026 was $407.5 million compared to $305.2 million for the third quarter of 2025.
Business segment results
- RAS(ON) Q launch: The U.S. commercial launch of RAS(ON) Q treated more than 5,000 unique patients during the quarter, supported by approximately 2,700 unique prescribing health care providers across academic and community settings.
approximately 2,700 unique health care providers prescribe RAS(ON) Q in the quarter.
- Demand breakdown: Initial commercial demand comprised the transition of patients from the U.S. expanded access program, a finite cohort of patients awaiting commercial availability after exhausting other options, and newly eligible patients.
Demand in the quarter reflected 3 components
- Prescribing settings: Utilization across academic and community settings was split approximately 40% in academic centers and 60% in community practices.
It was about a 40% academic contribution and about a 60% community contribution.
Capital allocation
- Royalty Pharma: Management elected not to draw the optional third royalty tranche under the Royalty Pharma funding arrangement to avoid committing to incremental future royalties given the company's strong cash position.
We elected not to draw the optional third royalty tranche given our strong cash position
- Committed capital: Up to an optional $1 billion in additional committed capital remains available under the funding arrangement subject to achieving specified milestones.
There remains up to an additional $1 billion in committed capital under the funding arrangement
Industry trends and dynamics
- Pancreatic cancer guidelines: The NCCN guidelines included RAS(ON) Q as a Category 1 preferred subsequent therapy option for appropriate patients with locally advanced or metastatic pancreatic cancer and recurrent disease.
The NCCN guidelines are more expansive than the approved label and now include RAS(ON) Q as a Category 1 preferred subsequent therapy option
- NSCLC guidelines: NCCN guidelines also included RAS(ON) Q as a Category 2a available targeted agent for patients with metastatic non-small cell lung cancer harboring KRAS G12, G13, or Q61 mutations.
the NCCN guidelines also now include RAS(ON) Q as a Category 2a available targeted agent
Competitive landscape
- PRMT5 inhibitors: Management noted that clinical data generated by Tango Therapeutics provides proof of concept for PRMT5 inhibition, and the company is evaluating three PRMT5 inhibitors from Tango, Bristol-Myers Squibb, and B1 Medicines.
We're currently evaluating 3 PRMT5 inhibitors.
Macroeconomic environment
- The call did not discuss broader macroeconomic environment factors such as inflation, interest rates, or currency fluctuations.
Growth opportunities and strategies
- Regulatory designations: The FDA granted breakthrough therapy designation for the combination of RAS(ON) Q with gemcitabine and nab-paclitaxel in first-line metastatic pancreatic cancer and orphan drug designation to zoldonrasib.
The FDA granted breakthrough therapy designation for the investigational combination of RAS(ON) Q with gemcitabine and nab-paclitaxel
- EU regulatory progress: The EMA's CHMP adopted a positive opinion for daraxonrasib as monotherapy for previously treated metastatic pancreatic adenocarcinoma.
the EMA's Committee for Medicinal Products for Human Use, or CHMP, has also moved rapidly to adopt a positive opinion for daraxonrasib as a monotherapy
- Phase III trials: The company is advancing multiple global Phase III studies, including RASolute 303, RASolute 304, RASolute 305, RASolute 309, RASolve 301, RASolve 307, RASolve 308, and RESONATE 312.
We are conducting 4 additional global Phase III studies across first-line metastatic and adjuvant pancreatic cancer
- B1 collaboration: B1 Medicines is funding and conducting the global registrational Phase III RESONATE 312 trial in first-line RAS G12D colorectal cancer on the company's behalf.
B1 is funding and conducting this global registrational Phase III study on our behalf
- BMS collaboration: The company entered into clinical collaborations with Bristol-Myers Squibb to evaluate pamitamig in four planned early-stage combination study cohorts across the RAS(ON) inhibitor portfolio.
We also entered into clinical collaborations with Bristol-Myers Squibb to evaluate pamitamig
Financial guidance and outlook
- Operating expenses guidance: Management reiterated full year 2026 GAAP operating expense guidance of $2.1 billion to $2.2 billion, which includes expected noncash stock-based compensation expense of $270 million to $290 million.
We are reiterating our guidance for full year GAAP operating expenses of $2.1 billion to $2.2 billion.
- 2027 outlook: Management expects full year 2027 GAAP operating expenses to increase from the current run rate due to increased investments in advancing the RAS(ON) inhibitor portfolio and expanding global commercial infrastructure.
we do expect full year 2027 GAAP operating expenses to increase from our current GAAP operating expense run rate.
Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Net product revenue | $197.6 million | Not stated |
| R&D expenses | $417.1 million | increased from $262.5 million in Q3 2025 |
| SG&A expenses | $153.3 million | increased from $52.8 million in Q3 2025 |
| Net loss | $407.5 million | compared to $305.2 million in Q3 2025 |
| Cash, cash equivalents and marketable securities | $3.7 billion | Not stated |
How management sounded
Positive (+45 on our -100 to +100 scale). Management expressed strong confidence driven by a transformational commercial launch and broad clinical pipeline momentum. Management sounded more upbeat than on 62% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- Normalized trajectory of RAS(ON) Q commercial launch beyond early finite demand cohorts.
- European Commission decision following the CHMP positive opinion for daraxonrasib.
- Readouts from ongoing global Phase III studies across pancreatic, non-small cell lung, and colorectal cancers.
Earlier calls
- Q2 2026 (Aug 5, 2026), tone Positive: Revolution Medicines reported financial and pipeline updates for Q2 2026, highlighted by broad clinical progress in pancreatic and lung cancers and strong operational momentum.
