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TKO Group Holdings, Inc. (TKO) Q1 2026 Earnings Call Transcript

PHOENIX & NEW YORK--(BUSINESS WIRE)--TKO Group Holdings, Inc. (NYSE: TKO), together with the Arizona Sports & Events Alliance, today announced a multi-year agreement that will stage a series of premier UFC, WWE, PBR, and Zuffa Boxing events in Arizona. The seven-event agreement will span three years and feature some of TKO's most high-profile live events, creating new opportunities for fans to experience UFC, WWE, PBR, and Zuffa Boxing events in one of the country's leading sports and enter.

ABU DHABI, United Arab Emirates--(BUSINESS WIRE)--UFC®, the world's premier mixed martial arts organization, together with the Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi), announces its highly anticipated return to the region with UFC® FIGHT NIGHT ABU DHABI on Saturday, 25th July 2026, live from Etihad Arena on Yas Island. UFC® FIGHT NIGHT ABU DHABI tickets will go on sale soon. Fans are encouraged to register their interest early for the best chance to secure tickets via Visi.

TKO President and COO Mark Shapiro has helped oversee one of the biggest transformations in sports and entertainment. In this episode of Power Players, Yahoo Finance Executive Editor Brian Sozzi sits down with Shapiro to talk about the explosive growth of WWE, UFC, PBR, live events, sports media rights, and the future of fan experiences.

VANCOUVER, British Columbia, May 25, 2026 (GLOBE NEWSWIRE) -- Taseko Mines Limited (TSX: TKO; NYSE American: TGB; LSE: TKO) ("Taseko" or the "Company") announces that it has filed its notice of meeting, management information circular (the "Circular") and related documents (collectively, the "Meeting Materials") with securities regulators in connection with its upcoming Annual General Meeting (the “Meeting”) of holders of common shares of the Company (“Shareholders”).

The Meeting Materials, which have been mailed to shareholders, can also be accessed online on Taseko’s website (tasekomines.com/investors/agm) and under the company’s profile on SEDAR+ (sedarplus.ca).

Proposed Name Change

At the upcoming Meeting, the Company is proposing a name change to reflect its growing business and expanded asset base in North America. Management believes that it is the right time for a new name that reflects the Company today and where it is headed. Subject to shareholder approval at this year’s AGM, Taseko Mines Limited will become Trekor Metals Limited.

Stuart McDonald, President and CEO of Taseko, commented, “Over the last two decades, Taseko has been on a journey – steadily growing our business and unlocking value in our high-quality portfolio of development assets. We’ve seized opportunities that others have overlooked and built value for shareholders and the communities where we operate. Our journey will continue as Trekor, a name that embodies our values and reflects our ambition to continue to grow North America’s copper sector.”

Meeting Details

The Meeting will be held in person at the Terminal City Club (837 W Hastings Street, Vancouver, British Columbia, V6C 1B6) on June 24, 2026 at 2:00 p.m. (Pacific Time). At the Meeting, Shareholders will be asked to vote on the follow resolutions:

The setting of the number of directors at nine;The election of directors;The appointment of PricewaterhouseCoopers LLP, Chartered Professional Accountants, as auditors of the Company, and authorization of the Board to fix their remuneration;The approval of a proposed name change of the Company to “Trekor Metals Limited”; andConsideration of the advisory say-on-pay vote.
The Taseko Board unanimously recommends that shareholders vote FOR all proposed resolutions.

Vote Today

The proxy voting deadline is 2:00 p.m. (Pacific Time) on June 22, 2026. Shareholders are encouraged to vote well in advance of the proxy voting deadline to ensure your vote is submitted in a timely manner. Voting is easy. Shareholders may vote online, by telephone or any other methods provided in the form or proxy or voting instruction which have been included as part of the mailing.

Shareholders of record as of the close of business on May 5, 2026 are eligible to vote at the Meeting.

Shareholder Questions & Voting Assistance

Shareholders with questions or who require voting assistance may contact Taseko’s proxy solicitation agent:

Laurel Hill Advisory Group
North America Toll Free: 1-877-452-7184
Outside North America: 1-416-304-0211
Text Message: Text “INFO” to 416-304-0211 or 1-877-452-7184
Email: [email protected]

For further information on Taseko, see the Company’s website at tasekomines.com or contact:

Investor enquiries Brian Bergot, Vice President, Investor Relations – 778-373-4554
Stuart McDonald
President and CEO

No regulatory authority has approved or disapproved of the information contained in this news release.

Caution Regarding Forward-Looking Information

This document contains “forward-looking statements” that were based on Taseko’s expectations, estimates and projections as of the dates as of which those statements were made. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “outlook”, “anticipate”, “project”, “target”, “believe”, “estimate”, “expect”, “intend”, “should” and similar expressions.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. These included but are not limited to:

uncertainties about the future market price of copper and the other metals that we produce or may seek to produce;changes in general economic conditions, the financial markets and in the market price for our input costs including due to inflationary impacts, such as diesel fuel, acid, steel, concrete, electricity and other forms of energy, mining equipment, and fluctuations in exchange rates, particularly with respect to the value of the U.S. dollar and Canadian dollar, and the continued availability of capital and financing;inherent risks associated with mining operations, including our current mining operations at Gibraltar and Florence Copper, and their potential impact on our ability to achieve our production estimates;our high level of indebtedness and its potential impact on our financial condition and the requirement to generate cash flow to service our indebtedness and refinance such indebtedness from time to time;any increases in interest rates may increase our borrowing costs and impact the profitability of our operations;the amounts we are required to pay for our acquisition of Cariboo will increase with higher copper prices;the risk of inadequate insurance or inability to obtain insurance to cover our business risks;uncertainties related to the accuracy of our estimates of Mineral Reserves (as defined below), Mineral Resources (as defined below), production rates and timing of production, future production and future cash and total costs of production and milling;the risk that we may not be able to expand or replace Mineral Reserves as our existing Mineral Reserves are mined;the risk that the ramp-up of the Florence Copper commercial production facility does not proceed within projected timelines or cost estimates, or that initial operations do not achieve results consistent with the projections in the Florence Copper Technical Report, including with respect to operating costs, revenue, sustaining capital, rates of return and cash flows from operations;our ability to comply with all conditions imposed under the APP and UIC permits for the operation of Florence Copper;the availability of, and uncertainties relating to, any additional financing necessary for the continued ramp-up and commercial operation of Florence Copper, including with respect to our ability to obtain any additional financing, if needed, to continue and expand commercial operations at Florence Copper;shortages of water supply, critical spare parts, acid, diesel, maintenance service and new equipment and machinery or our ability to manage surplus water on our mine sites may materially and adversely affect our operations and development projects;our ability to comply with the extensive governmental regulation to which our business is subject;uncertainties related to our ability to obtain necessary title, licenses and permits for our development projects and project delays due to third party opposition;uncertainties related to Indigenous people’s claims and rights, and legislation and government policies regarding the same;our reliance on the availability of infrastructure necessary for development and on operations, including on rail transportation and port terminals for shipping of our copper concentrate production from Gibraltar, and rail transportation and power for the feasibility of our other British Columbia development projects;uncertainties related to unexpected judicial or regulatory proceedings;changes in, and the effects of, the laws, regulations and government policies affecting our exploration and development activities and mining operations;potential changes to the mineral tenure system in British Columbia, which is undergoing reform including for compliance with the British Columbia Declaration on the Rights of Indigenous Peoples Act (“DRIPA”);our dependence solely on our 100% interest in Gibraltar and in due course, Florence Copper for our revenues and our operating cash flows;our ability to extend existing concentrate off-take agreements and cathode purchase agreements or enter into new agreements;environmental issues and liabilities associated with mining including processing and stockpiling ore;labour strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labour in markets in which we operate mines, industrial accidents, equipment failure or other events or occurrences, including third party interference that interrupt the production of minerals in our mines;environmental hazards and risks associated with climate change, including the potential for damage to infrastructure and stoppages of operations due to extreme cold, extreme heat, forest fires, flooding, drought, earthquakes or other natural events in the vicinity of our operations;litigation risks and the inherent uncertainty of litigation;our actual costs of reclamation and mine closure may exceed our current estimates of these liabilities;our ability to renegotiate our existing union agreement for Gibraltar when it expires in May 2027;the capital intensive nature of our business both to sustain current mining operations and to develop any new projects;our ability to develop new mining projects in British Columbia may be impacted by joint decision-making and consent agreements being implemented by the Government of British Columbia with First Nations under DRIPA;The ability to develop the New Prosperity Project is subject to the restrictions set out in our June 2025 Tripartite Agreement with the Province of British Columbia and the Tŝilhqot’in Nation (the “Teẑtan Biny Agreement”), under which the New Prosperity Project is subject to a land use planning process with the Province of British Columbia and we are not permitted to be the proponent of any development of the New Prosperity Project;our reliance upon key personnel;the competitive environment in which we operate;the effects of forward selling instruments to protect against fluctuations in copper prices and other input costs including diesel and acid;the risk of changes in accounting policies and methods we use to report our financial condition, including uncertainties associated with critical accounting assumptions and estimates;uncertainties relating to the war in Ukraine, the escalating military conflict involving Iran and broader Middle East instability, and other future geopolitical events including social unrest, which could disrupt financial markets, commodity markets, supply chains, the price and availability of energy, availability of materials and equipment and execution timelines for any project development;uncertainties relating to the delivery of oil through the Strait of Hormuz resulting from Middle East instability, which could have an adverse effect on global economic activity and potentiallyincrease operating costs generally and reduce global demand for copper, and have a material adverse effect on our business, operations, and the feasibility of our development projects;changes to U.S. trade policies and tariff measures, including retaliatory tariffs imposed or threatened by Canada and other trading partners, may adversely impact overall economic conditions, copper markets, supply chains, metal prices and input costs; andother risks detailed from time-to-time in our annual information forms, annual reports, MD&A, quarterly reports and material change reports filed with and furnished to securities regulators, and those risks which are discussed under the heading “Risk Factors”. For further information on Taseko, investors should review the Company’s annual report on Form 40-F filed with the United States Securities and Exchange Commission and available at www.sec.gov and home jurisdiction filings that are available at www.sedarplus.ca.

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NEW YORK--(BUSINESS WIRE)--TKO Group Holdings, Inc. (NYSE: TKO) (“TKO” or the “Company”), a premium sports and entertainment company, today announced that its board of directors has declared a quarterly cash dividend pursuant to which TKO’s Class A common stockholders will receive their pro rata share of an aggregate distribution of approximately $150 million from TKO Operating Company, LLC to its equityholders. The per share dividend to the holders of TKO’s Class A common stockholders will be $0.79 per share. The dividend will be paid on June 30, 2026 to Class A common stockholders of record as of the close of business on June 15, 2026.

Future declarations of quarterly dividends are subject to the determination and discretion of TKO based on its consideration of various factors, such as its results of operations, financial condition, market conditions, earnings, cash flow requirements, restrictions in its debt agreements and legal requirements and other factors that TKO deems relevant.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. TKO intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including the expected dividend payment date and timing thereof. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees and involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from what is expressed or implied by the forward-looking statements, including, but not limited to those factors discussed in Part I, Item 1A “Risk Factors” in TKO’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as any such factors may be updated from time to time in the Company’s other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and TKO’s Investor Relations site at investor.tkogrp.com. Forward-looking statements speak only as of the date they are made and, except as may be required under applicable law, TKO undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About TKO

TKO Group Holdings, Inc. (NYSE: TKO) is a premium sports and entertainment company. TKO’s businesses include UFC, the world’s premier mixed martial arts organization; WWE, the global leader in sports entertainment; PBR, the world’s premier bull riding organization; and its joint venture Zuffa Boxing, a professional boxing promotion. Together, these properties reach more than 1 billion households across 210 countries and territories and organize more than 500 live events year-round, attracting more than three million fans. TKO also services and partners with major sports rights holders through IMG, an industry-leading global sports marketing agency; and On Location, a global leader in premium experiential hospitality.

Website Disclosure

Investors and others should note that TKO announces material financial and operational information to its investors using press releases, SEC filings and public conference calls and webcasts, as well as its Investor Relations site at investor.tkogrp.com. TKO may also use its website as a distribution channel of material information about the Company. In addition, you may automatically receive email alerts and other information about TKO when you enroll your email address by visiting the “Investor Email Alerts” option under the Resources tab on investor.tkogrp.com.

More News From TKO Group Holdings, Inc.

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Wall Street expects a year-over-year increase in earnings on higher revenues when Expand Energy (EXE - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 28. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis oil and gas company is expected to post quarterly earnings of $3.71 per share in its upcoming report, which represents a year-over-year change of +83.7%.

Revenues are expected to be $2.92 billion, up 27.2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 5.32% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Expand Energy?For Expand Energy, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.69%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Expand Energy will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Expand Energy would post earnings of $1.89 per share when it actually produced earnings of $2.00, delivering a surprise of +5.82%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Expand Energy doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Posted by Defense World Staff on Apr 27th, 2026

Siemens Energy (OTCMKTS:SMNEY – Get Free Report) and Expand Energy (NASDAQ:EXE – Get Free Report) are both large-cap energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Institutional & Insider Ownership 97.9% of Expand Energy shares are held by institutional investors. 0.2% of Expand Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility Siemens Energy has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500. Comparatively, Expand Energy has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Earnings & Valuation This table compares Siemens Energy and Expand Energy”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Siemens Energy $43.21 billion 3.48 $1.56 billion $1.77 99.23 Expand Energy $12.12 billion 1.91 $1.82 billion $7.54 12.79 Expand Energy has lower revenue, but higher earnings than Siemens Energy. Expand Energy is trading at a lower price-to-earnings ratio than Siemens Energy, indicating that it is currently the more affordable of the two stocks.

Profitability This table compares Siemens Energy and Expand Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Siemens Energy 4.75% 18.48% 3.50% Expand Energy 15.00% 8.17% 5.26% Dividends Siemens Energy pays an annual dividend of $0.53 per share and has a dividend yield of 0.3%. Expand Energy pays an annual dividend of $2.30 per share and has a dividend yield of 2.4%. Siemens Energy pays out 29.9% of its earnings in the form of a dividend. Expand Energy pays out 30.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations This is a breakdown of recent ratings and price targets for Siemens Energy and Expand Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Siemens Energy 0 3 7 2 2.92 Expand Energy 0 3 14 2 2.95 Expand Energy has a consensus target price of $131.95, suggesting a potential upside of 36.83%. Given Expand Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Expand Energy is more favorable than Siemens Energy.

Summary Expand Energy beats Siemens Energy on 10 of the 16 factors compared between the two stocks.

About Siemens Energy (Get Free Report)

Siemens Energy AG operates as an energy technology company worldwide. It operates through Gas Services, Grid Technologies, Transformation of Industry, and Siemens Gamesa segments. The company provides gas and steam turbines, generators, and heat pumps, as well as performance enhancement, maintenance, customer training, and professional consulting services for central and distributed power generation; and high voltage direct current transmission systems, offshore windfarm grid connections, transformers, flexible alternating current transmission systems, high voltage substations, air and gas-insulated switchgears, digital grid solutions and components, and storage solutions. It also offers electrolyzers, industrial steam turbines, industrial generators, turbo and reciprocating compressors, compressor trains, and other systems and solutions; onshore and onshore wind turbines; design, engineering, manufacturing, and installation solutions for onshore markets; offshore wind turbine equipment design, manufacturing, and installation solutions; and operation and maintenance services for wind farms. The company serves utilities, independent power producers, project developers, oil and gas, transmission and distribution system operators, and industrial and infrastructure customers. Siemens Energy AG was founded in 1866 and is based in Munich, Germany.

About Expand Energy (Get Free Report)

Expand Energy Corporation is an independent natural gas producer principally in the United States. Expand Energy Corporation, formerly known as Chesapeake Energy Corporation, is based in OKLAHOMA CITY.

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SPRING, Texas, April 28, 2026 (GLOBE NEWSWIRE) -- Expand Energy Corporation (NASDAQ: EXE) (“Expand Energy” or the “Company”) today reported first quarter 2026 financial and operating results.

Net cash provided by operating activities of $2,402 million, reflecting continued strong cash generation from operationsNet income of $1,159 million, or $4.81 per fully diluted share; adjusted net income (1) of $923 million, or $3.83 per diluted shareAdjusted EBITDAX(1) of $1,968 millionNet production of ~7.44 Bcfe/d (93% natural gas), reaffirming full-year 2026 guidance of ~7.5 Bcfe/dTotal debt of $5.0 billion as of quarter-end reduced by ~$1.3 billion from senior note redemption during April 2026Reported quarter-end net debt (1) of $2.8 billion, down $1.6 billion from year-end 2025Repurchased $150 million of common stock through April 24, 2026, complementing debt reduction with meaningful shareholder returnsSigned 20-year Sales and Purchase Agreement (SPA) with Delfin FLNG Vessel 1 for ~1.15 million tonnes of LNG offtake per year, further extending market reach to growing global demand centers (1) Definitions of non-GAAP financial measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure are included at the end of this release.

“The world critically needs natural gas supply to meet rapidly rising power demand, growing industrial activity, and global LNG expansion to address a global reset in energy security,” said Mike Wichterich, Interim President and Chief Executive Officer of Expand Energy. “We’re built for this future as the largest, low-cost, market-connected natural gas producer in America, with differentiated opportunity to grow free cash flow and enhance returns for shareholders. Our scale, direct access to rapidly expanding global markets, and operational discipline aren’t aspirations, they’re the foundation we’re building upon.”

Operations Update

Expand Energy operated an average of 13 rigs during the first quarter, drilling 60 wells and turning 49 wells in line, resulting in net production of approximately 7.44 Bcfe/d (93% natural gas). A detailed breakdown of first quarter production, capital expenditures and activity can be found in the supplemental slides which have been posted at https://investors.expandenergy.com/events-presentations.

2026 Capital and Operating Outlook

In 2026, Expand Energy expects to run 11 to 12 rigs and invest approximately $2.85 billion yielding an estimated daily production of approximately 7.5 Bcfe/d.

A detailed breakdown of 2026 annual capital and operating outlook can be found in the supplemental slides.

Delfin Sales and Purchase Agreement

On April 22, 2026, we executed a Sales and Purchase Agreement (“SPA”) for long-term liquefaction offtake with Delfin FLNG 1 LLC, subject to final investment decision. Under the SPA, we will purchase approximately 1.15 million tonnes of LNG per annum from Delfin FLNG 1 LLC at a Henry Hub price with a contract targeted start date in 2031. The previously announced SPAs with Delfin and Gunvor Group Ltd have been terminated.

Shareholder Returns Update

Expand Energy expects to utilize free cash flow generated during 2026 to further strengthen its balance sheet in order to create more capacity at cycle lows while also returning cash to shareholders through the base dividend and share repurchases. Year-to-date through April 24, 2026, the Company has redeemed approximately $1.3 billion of gross debt and executed $150 million of share repurchases. The Company plans to pay its quarterly base dividend of $0.575 per share on June 4, 2026 to shareholders of record at the close of business on May 14, 2026.

Conference Call Information

A conference call to discuss Expand Energy's first quarter 2026 financial and operating results and 2026 outlook has been scheduled for 9 a.m. EDT on April 29, 2026. Participants can access the live webcast at https://edge.media-server.com/mmc/p/adko8s9u/. Participants who would like to ask a question, can register at https://register-conf.media-server.com/register/BIcd20025e35ec46838c4e137bd3a96deb, and will receive the dial-in info and a unique PIN to join the call. Links to the conference call will be provided at https://investors.expandenergy.com/. A replay will be available on the website following the call.

Financial Statements, Non-GAAP Financial Measures and 2026 Guidance and Outlook Projections

This news release contains the non-GAAP financial measures described below in the section titled “Non-GAAP Financial Measures.” Reconciliations of each non-GAAP financial measure used in this news release to the most directly comparable GAAP financial measure are provided below. Additional detail on the Company’s 2026 first quarter financial and operational results, along with non-GAAP measures that adjust for items typically excluded by securities analysts, are available on the Company’s website. Non-GAAP measures should not be considered as an alternative to, or more meaningful than, GAAP measures. Management’s guidance for 2026 can be found on the Company’s website at www.expandenergy.com/.

Expand Energy Corporation (NASDAQ: EXE) is North America’s largest natural gas producer, powered by dedicated and innovative employees focused on expanding the value of natural gas by connecting global scale to growing markets. Expand Energy’s returns-driven strategy strives to create sustainable value for its stakeholders by leveraging its advantaged portfolio, financial strength and operational excellence. Expand Energy is committed to expanding America’s energy reach to fuel a more affordable, reliable, lower carbon future.

Forward-Looking Statements

This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include our current expectations or forecasts of future events, including matters relating to armed conflict between Russia and Ukraine, instability the Middle East and Venezuela and changes in China-Taiwan relations, along with the effects of the current global economic environment, and the impact of each on our business, financial condition, results of operations and cash flows, actions by, or disputes among or between, members of OPEC+ and other foreign oil-exporting countries, market factors, market prices, our ability to meet debt service requirements, our ability to continue to pay cash dividends, the amount and timing of any cash dividends and our sustainability initiatives. Forward-looking and other statements in this news release regarding our environmental, social and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the Securities and Exchange Commission ("SEC"). In addition, historical, current, and forward-looking environmental, social and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Forward-looking statements often address our expected future business, financial performance and financial condition, and often contain words such as "aim", "predict", "should", "expect," “could,” “may,” "anticipate," "intend," "plan," “ability,” "believe," "seek," "see," "will," "would," “estimate,” “forecast,” "target," “guidance,” “outlook,” “opportunity” or “strategy.” The absence of such words or expressions does not necessarily mean the statements are not forward-looking.

Although we believe the expectations and forecasts reflected in our forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include:

Reduced demand for natural gas, oil, and natural gas liquids (“NGLs”);negative public perceptions of our industry;competition in the natural gas and oil exploration and production industry;the volatility of natural gas, oil and NGL prices, which are affected by general economic and business conditions, as well as increased demand for (and availability of) alternative fuels and electric vehicles;risks from regional epidemics or pandemics and related economic turmoil, including supply chain constraints;write-downs of our natural gas and oil asset carrying values due to low commodity prices;significant capital expenditures are required to replace our reserves and conduct our business;our ability to replace reserves and sustain production;uncertainties inherent in estimating quantities of natural gas, oil and NGL reserves and projecting future rates of production and the amount and timing of development expenditures;drilling and operating risks and resulting liabilities;our ability to generate profits or achieve targeted results in drilling and well operations;leasehold terms expiring before production can be established;risks from our commodity price risk management activities;uncertainties, risks and costs associated with natural gas and oil operations;our need to secure adequate supplies of water for our drilling operations and to dispose of or recycle the water used;pipeline and gathering system capacity constraints and transportation interruptions;risks related to our plans to participate in the global LNG value chain;terrorist activities and/or cyber-attacks adversely impacting our operations;risks from failure to protect personal information and data and compliance with data privacy and security laws and regulations;disruption of our business by natural or human causes beyond our control;a deterioration in general economic, business or industry conditions;the impact of inflation and commodity price volatility, including as a result of decisions made by OPEC+ and armed conflict between Russia and Ukraine, instability in the Middle East and Venezuela, and changes in China-Taiwan relations, along with the effects of the current global economic environment, on our business, financial condition, employees, contractors, vendors and the global demand for natural gas and oil and on U.S. and global financial markets;our inability to access the capital markets on favorable terms;the limitations on our financial flexibility due to our level of indebtedness and restrictive covenants from our indebtedness;challenges with employee recruitment and retention and an increasingly competitive labor market;risks related to acquisitions or dispositions, or potential acquisitions or dispositions;security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, or from breaches of information technology systems of third parties with whom we transact business;our ability to achieve and maintain sustainability certifications, goals and commitments;environmental and sustainability legislation and regulatory initiatives, including those addressing the impact of climate change or further regulating hydraulic fracturing, greenhouse gas emissions, flaring or water disposal;federal and state tax proposals affecting our industry;risks related to an annual limitation on the utilization of our tax attributes, which was triggered upon the completion of our merger with Southwestern Energy Company, as well as trading in our common stock, additional issuance of common stock, and certain other stock transactions, which could lead to an additional, potentially more restrictive, annual limitation; andother factors that are described under Risk Factors in Item 1A of Part I of our Annual Report on Form 10-K filed with the SEC. We caution you not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of the filing date, and we undertake no obligation and have no intention to update any forward-looking statement, except as required by law. We urge you to carefully review and consider the disclosures in this news release and our filings with the SEC that attempt to advise interested parties of the risks and factors that may affect our business.

All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.

 CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
 ($ in millions, except per share data)March 31, 2026 December 31, 2025Assets   Current assets:   Cash and cash equivalents$2,220  $616 Restricted cash 85   80 Accounts receivable, net 1,290   1,599 Derivative assets 429   264 Other current assets 363   357 Total current assets 4,387   2,916 Property and equipment:   Natural gas and oil properties, successful efforts method   Proved natural gas and oil properties 27,336   26,606 Unproved properties 5,429   5,478 Other property and equipment 528   509 Total property and equipment 33,293   32,593 Less: accumulated depreciation, depletion and amortization (8,978)  (8,278)Property and equipment held for sale, net —   40 Total property and equipment, net 24,315   24,355 Long-term derivative assets 127   47 Deferred income tax assets —   168 Other long-term assets 692   801 Total assets$29,521  $28,287     Liabilities and stockholders' equity   Current liabilities:   Accounts payable$881  $753 Current maturities of long-term debt, net 875   — Accrued interest 59   100 Derivative liabilities —   3 Other current liabilities 2,135   2,045 Total current liabilities 3,950   2,901 Long-term debt, net 4,133   5,009 Long-term derivative liabilities —   1 Asset retirement obligations, net of current portion 703   688 Long-term contract liabilities 911   975 Other long-term liabilities 278   135 Total liabilities 9,975   9,709 Contingencies and commitments   Stockholders' equity:   Common stock, $0.01 par value, 450,000,000 shares authorized: 240,085,572 and 239,249,874 shares issued 2   2 Additional paid-in capital 13,759   13,746 Retained earnings 5,785   4,830 Total stockholders' equity 19,546   18,578 Total liabilities and stockholders' equity$29,521  $28,287   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
  Three Months Ended March 31,($ in millions, except per share data) 2026   2025 Revenues and other:   Natural gas, oil and NGL$3,315  $2,300 Marketing 1,212   910 Losses on derivatives (129)  (1,014)Losses on sales of assets (1)  — Total revenues and other 4,397   2,196 Operating expenses:   Production 185   147 Gathering, processing and transportation 690   563 Severance and ad valorem taxes 60   48 Exploration 14   7 Marketing 1,121   919 General and administrative 63   47 Separation and other termination costs 9   — Depreciation, depletion and amortization 711   711 Other operating expense, net 13   22 Total operating expenses 2,866   2,464 Income (loss) from operations 1,531   (268)Other income (expense):   Interest expense (59)  (59)Other income, net 17   8 Total other income (expense) (42)  (51)Income (loss) before income taxes 1,489   (319)Income tax expense (benefit) 330   (70)Net income (loss)$1,159  $(249)Earnings (loss) per common share:   Basic$4.83  $(1.06)Diluted$4.81  $(1.06)Weighted average common shares outstanding (in thousands):   Basic 239,900   234,434 Diluted 240,759   234,434   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
  Three Months Ended March 31,($ in millions) 2026   2025 Cash flows from operating activities:   Net income (loss)$1,159  $(249)Adjustments to reconcile net income (loss) to net cash provided by operating activities:   Depreciation, depletion and amortization 711   711 Deferred income tax expense (benefit) 319   (37)Derivative losses, net 129   1,014 Cash payments on derivative settlements, net (386)  (45)Share-based compensation 10   9 Losses on sales of assets 1   — Contract amortization (30)  (52)Other 35   (4)Changes in assets and liabilities 454   (251)Net cash provided by operating activities 2,402   1,096 Cash flows from investing activities:   Capital expenditures (707)  (563)Property acquisitions (4)  — Receipts of deferred consideration 60   60 Contributions to investments (1)  (4)Distributions from investments 10   — Proceeds from divestitures of property and equipment 41   — Net cash used in investing activities (601)  (507)Cash flows from financing activities:   Proceeds from credit facility —   725 Payments on credit facility —   (725)Proceeds from warrant exercise 15   21 Cash paid to repurchase and retire common stock (66)  — Cash paid to purchase debt —   (436)Cash paid for common stock dividends (141)  (142)Net cash used in financing activities (192)  (557)Net increase in cash, cash equivalents and restricted cash 1,609   32 Cash, cash equivalents and restricted cash, beginning of period 696   395 Cash, cash equivalents and restricted cash, end of period$2,305  $427     Cash and cash equivalents$2,220  $349 Restricted cash 85   78 Total cash, cash equivalents and restricted cash$2,305  $427   NATURAL GAS, OIL AND NGL PRODUCTION AND AVERAGE SALES PRICES (unaudited)
  Three Months Ended March 31, 2026 Natural Gas Oil NGL Total MMcf
per day $/Mcf MBbl
per day $/Bbl MBbl
per day $/Bbl MMcfe
per day $/McfeHaynesville3,148 4.40 — — — — 3,148 4.40Northeast Appalachia2,785 5.70 — — — — 2,785 5.70Southwest Appalachia981 4.42 15 64.37 72 25.49 1,503 4.74Total6,914 4.92 15 64.37 72 25.49 7,436 4.95                Average NYMEX Price  5.04   71.93        Average Realized Price (including realized derivatives)  4.28   64.77   25.49   4.35  Three Months Ended March 31, 2025 Natural Gas Oil NGL Total MMcf
per day $/Mcf MBbl
per day $/Bbl MBbl
per day $/Bbl MMcfe
per day $/McfeHaynesville2,617 3.48 — — — — 2,617 3.48Northeast Appalachia2,668 3.75 — — — — 2,668 3.75Southwest Appalachia969 3.38 14 63.40 75 30.54 1,503 4.28Total6,254 3.58 14 63.40 75 30.54 6,788 3.76                Average NYMEX Price  3.65   71.42        Average Realized Price (including realized derivatives)  3.51   63.76   29.35   3.69  CAPITAL EXPENDITURES ACCRUED (unaudited)
  Three Months Ended March 31,($ in millions)2026
 2025
Drilling and completion capital expenditures:   Haynesville$296 $286Northeast Appalachia 116  103Southwest Appalachia 156  165Total drilling and completion capital expenditures 568  554Non-drilling and completion - field 106  56Non-drilling and completion - corporate 42  52Total capital expenditures$716 $662 NON-GAAP FINANCIAL MEASURES

As a supplement to the financial results prepared in accordance with U.S. GAAP, Expand Energy’s quarterly earnings releases contain certain financial measures that are not prepared or presented in accordance with U.S. GAAP. These non-GAAP financial measures include Adjusted Net Income, Adjusted Diluted Earnings Per Common Share, Adjusted EBITDAX, Free Cash Flow, Adjusted Free Cash Flow and Net Debt. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below. Management believes these adjusted financial measures are a meaningful adjunct to earnings and cash flows calculated in accordance with GAAP because (a) management uses these financial measures to evaluate the Company’s trends and performance, (b) these financial measures are comparable to estimates provided by securities analysts, and (c) items excluded generally are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the Company generally excludes information regarding these types of items.

Expand Energy's definitions of each non-GAAP measure presented herein are provided below. Because not all companies or securities analysts use identical calculations, Expand Energy’s non-GAAP measures may not be comparable to similarly titled measures of other companies or securities analysts.

Adjusted Net Income: Adjusted Net Income is defined as net income (loss) adjusted to exclude unrealized (gains) losses on derivatives, separation and other termination costs, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Net Income facilitates comparisons of the Company's period-over-period performance, by excluding the impact of items that, in the opinion of management, do not reflect Expand Energy's core operating performance. Adjusted Net Income should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.

Adjusted Diluted Earnings Per Common Share: Adjusted Diluted Earnings Per Common Share is defined as diluted earnings (loss) per common share adjusted to exclude the per diluted share amounts attributed to unrealized (gains) losses on derivatives, separation and other termination costs, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Diluted Earnings Per Common Share facilitates comparisons of the Company's period-over-period performance, by excluding the impact of items that, in the opinion of management, do not reflect Expand Energy's core operating performance. Adjusted Diluted Earnings Per Common Share should not be considered an alternative to, or more meaningful than, earnings (loss) per common share as presented in accordance with GAAP.

Adjusted EBITDAX: Adjusted EBITDAX is defined as net income (loss) before interest expense, income tax expense (benefit), depreciation, depletion and amortization expense, exploration expense, unrealized (gains) losses on derivatives, separation and other termination costs, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results. Adjusted EBITDAX is presented as it provides investors an indication of the Company's ability to internally fund exploration and development activities and service or incur debt. Adjusted EBITDAX should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.

Free Cash Flow: Free Cash Flow is defined as net cash provided by operating activities less cash capital expenditures. Free Cash Flow is a liquidity measure that provides investors additional information regarding the Company's ability to service or incur debt and return cash to shareholders. Free Cash Flow should not be considered an alternative to, or more meaningful than, net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP.

Adjusted Free Cash Flow: Adjusted Free Cash Flow is defined as net cash provided by operating activities less cash capital expenditures and cash contributions to investments, adjusted to exclude certain items management believes affect the comparability of operating results. Adjusted Free Cash Flow is a liquidity measure that provides investors additional information regarding the Company's ability to service or incur debt and return cash to shareholders. Adjusted Free Cash Flow should not be considered an alternative to, or more meaningful than, net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP.

Net Debt: Net Debt is defined as GAAP total debt excluding premiums, discounts, and deferred issuance costs less cash and cash equivalents. Net Debt is useful to investors as a widely understood measure of liquidity and leverage, but this measure should not be considered as an alternative to, or more meaningful than, total debt presented in accordance with GAAP.

 RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (unaudited)
  Three Months Ended March 31,($ in millions) 2026   2025 Net income (loss) (GAAP)$1,159  $(249)    Adjustments:   Unrealized (gains) losses on derivatives (279)  969 Separation and other termination costs 9   — Losses on sales of assets 1   — Other operating expense, net 10   26 Contract amortization (30)  (52)Other (12)  (4)Tax effect of adjustments(a) 65   (203)Adjusted net income (Non-GAAP)$923  $487  (a)The three month periods ended March 31, 2026 and March 31, 2025 include a tax effect attributed to the reconciling adjustments using a statutory rate of 22%.
 RECONCILIATION OF EARNINGS (LOSS) PER COMMON SHARE TO ADJUSTED DILUTED EARNINGS PER COMMON SHARE (unaudited)
  Three Months Ended March 31,($/share) 2026   2025 Earnings (loss) per common share (GAAP)$4.83  $(1.06)Effect of dilutive securities (0.02)  — Diluted earnings (loss) per common share (GAAP)$4.81  $(1.06)    Adjustments:   Unrealized (gains) losses on derivatives (1.16)  4.14 Separation and other termination costs 0.04   — Losses on sales of assets —   — Other operating expense, net 0.04   0.11 Contract amortization (0.12)  (0.22)Other (0.05)  (0.02)Tax effect of adjustments(a) 0.27   (0.87)Effect of dilutive securities —   (0.06)Adjusted diluted earnings per common share (Non-GAAP)$3.83  $2.02  (a)The three month periods ended March 31, 2026 and March 31, 2025 include a tax effect attributed to the reconciling adjustments using a statutory rate of 22%.  RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDAX (unaudited)
  Three Months Ended March 31,($ in millions) 2026   2025 Net income (loss) (GAAP)$1,159  $(249)    Adjustments:   Interest expense 59   59 Income tax expense (benefit) 330   (70)Depreciation, depletion and amortization 711   711 Exploration 14   7 Unrealized (gains) losses on derivatives (279)  969 Separation and other termination costs 9   — Losses on sales of assets 1   — Other operating expense, net 10   26 Contract amortization (30)  (52)Other (16)  (6)Adjusted EBITDAX (Non-GAAP)$1,968  $1,395   RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW (unaudited)
  Three Months Ended March 31,($ in millions) 2026   2025 Net cash provided by operating activities (GAAP)$2,402  $1,096 Cash capital expenditures (707)  (563)Free cash flow (Non-GAAP) 1,695   533 Cash distributions from investments 10   — Cash contributions to investments (1)  (4)Cash paid for merger expenses —   48 Adjusted free cash flow (Non-GAAP)$1,704  $577   RECONCILIATION OF TOTAL DEBT TO NET DEBT (unaudited)
 ($ in millions)March 31, 2026 December 31, 2025Total debt (GAAP)$5,008  $5,009 Premiums, discounts and issuance costs on debt 17   16 Principal amount of debt 5,025   5,025 Cash and cash equivalents (2,220)  (616)Net debt (Non-GAAP)$2,805  $4,409    INVESTOR CONTACT:MEDIA CONTACT:Brittany RaifordBrooke Coe(405) 935-8870(405) [email protected]@expandenergy.com

Expand Energy (EXE - Free Report) came out with quarterly earnings of $3.83 per share, beating the Zacks Consensus Estimate of $3.69 per share. This compares to earnings of $2.02 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +3.84%. A quarter ago, it was expected that this oil and gas company would post earnings of $1.89 per share when it actually produced earnings of $2, delivering a surprise of +5.82%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Expand Energy, which belongs to the Zacks Alternative Energy - Other industry, posted revenues of $3.32 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 6.90%. This compares to year-ago revenues of $2.3 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Expand Energy shares have lost about 12.7% since the beginning of the year versus the S&P 500's gain of 4.8%.

What's Next for Expand Energy?While Expand Energy has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Expand Energy was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.30 on $2.05 billion in revenues for the coming quarter and $8.90 on $9.98 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Alternative Energy - Other is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Ormat Technologies (ORA - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.

This geothermal company is expected to post quarterly earnings of $0.92 per share in its upcoming report, which represents a year-over-year change of +35.3%. The consensus EPS estimate for the quarter has been revised 10.8% lower over the last 30 days to the current level.

Ormat Technologies' revenues are expected to be $349.29 million, up 52% from the year-ago quarter.

Expand Energy Corporation (EXE) Q1 2026 Earnings Call Transcript

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Stock to Watch: Expand Energy (EXE - Free Report) Expand Energy Corporation is a leading U.S.-based natural gas producer formed through the merger of Chesapeake Energy Corporation and Southwestern Energy Company. The all-stock merger, completed on Oct. 1, 2024, established a premier natural gas-focused company with leading positions in the Haynesville and Appalachian basins, premium drilling inventory and proximity to key liquefied natural gas (LNG) and domestic demand markets. The merger strengthened scale, operational efficiencies and financial resilience, supporting an investment-grade balance sheet, enhanced credit capacity and significant shareholder returns, while positioning the company to meet growing global energy demand.

EXE is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. EXE has a Growth Style Score of B, forecasting year-over-year earnings growth of 47.4% for the current fiscal year.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.98 to $8.99 per share. EXE also boasts an average earnings surprise of +4.1%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, EXE should be on investors' short list.

MARKHAM, Ontario, May 07, 2026 (GLOBE NEWSWIRE) -- Extendicare Inc. (“Extendicare” or the “Company”) (TSX: EXE) today reported results for the three months ended March 31, 2026.

First Quarter 2026 Highlights

Adjusted EBITDA(1), excluding out-of-period items, increased by $15.2 million or 52.2% from Q1 2025 to $44.2 million, driven primarily by continued organic growth in the home health care segment and contributions from the acquisitions of Closing the Gap and nine Class C LTC homes.Home health care average daily volume (“ADV”) increased by 10,333 or 32.7% from Q1 2025 to 41,936, driven by organic growth and the acquisition of Closing the Gap.Third-party and joint venture beds serviced by SGP reached 157,100 beds, reflecting organic growth of 6.0% from Q1 2025.5.0% increase in the monthly dividend to $0.0441 per common share.Completed the sale of the vacated West End Villa Class C property for proceeds of $12.1 million resulting in a pre-tax gain after closing costs of $10.0 million ($9.8 million after tax).
Subsequent to Q1

On April 1, 2026, completed the acquisition of CBI Home Health for $570.0 million, plus customary adjustments and the assumption of certain lease liabilities.On April 14, 2026, completed the Company’s inaugural offering of $450.0 million 4.345% senior unsecured notes due April 2031 (rated BBB stable by Morningstar DBRS), and amended and restated the existing senior secured credit facilities to a $250.0 million senior unsecured revolving credit facility ranking pari passu with the senior unsecured notes.
“Our first quarter results demonstrate the synergistic potential of the various components of our strategy in action: strong organic growth in home health care augmented by acquisitions, LTC redevelopment and organic growth in SGP and the operating leverage that comes with a technology enabled back office,” said Dr. Michael Guerriere, President and Chief Executive Officer. “Subsequent to the quarter, we closed the CBI acquisition and restructured our debt, setting the stage for further growth and value creation as we continue our mission to meet the growing care needs of the aging demographic.”

Completed the Acquisition of CBI Home Health for $570 Million

On April 1, 2026, the Company, through its wholly owned home health care subsidiary ParaMed Inc., completed its previously announced acquisition of CBI Home Health LP and CBI (GP) 3 Inc. and their respective subsidiaries (collectively, “CBI Home Health”) from CBI Health LP and CBI GP Holdco Inc. (the “CBI Acquisition”) for a cash purchase price of $570.0 million, subject to customary adjustments, plus approximately $17.3 million in estimated lease liabilities. The CBI Acquisition was funded using a combination of the net proceeds of approximately $191.5 million from the Company’s private placement of common shares that was completed on December 3, 2025, aggregate draws of approximately $308.2 million under the Company’s existing senior secured credit facility ($154.5 million delayed draw term facility and $153.7 million revolving credit facility), and cash on hand.

Completed $450 million Inaugural Offering of Investment Grade Senior Unsecured Notes

On April 14, 2026, the Company completed its offering of $450.0 million aggregate principal amount of 4.345% senior unsecured notes due April 14, 2031 (the “2031 Notes”). The 2031 Notes have been assigned a final rating of BBB, with a stable trend, by Morningstar DBRS. The Company used approximately $427.7 million of the net proceeds of the offering to repay in full the indebtedness owing under its term credit facility, and a portion of the indebtedness owing under its revolving credit facility, with the balance to be used for working capital and other general corporate purposes, including the repayment of other existing indebtedness.

In conjunction with the debt repayments, the existing senior secured credit facilities were amended and restated to reflect an investment grade credit rating structure, including the release of all security previously granted to the lenders, such that the Company’s remaining $250 million revolving credit facility (the “Unsecured Revolving Facility”) is senior unsecured debt that ranks pari passu with the 2031 Notes.

Q1 2026 Financial Highlights (all comparisons with Q1 2025)

Revenue increased $90.6 million to $374.7 million; excluding a reduction in out-of-period funding in both periods, revenue increased by $92.0 million or 25.3%, driven primarily by the acquisition of nine Class C LTC homes (the “LTC Acquisition”), LTC funding increases, and home health care ADV organic growth augmented by the acquisition of Closing the Gap, partially offset by the closure of a Class C LTC home that was vacated following the opening of a newly developed LTC home in Axium JV.NOI(1) increased $18.8 million to $69.0 million; excluding the impact of out-of-period items in both periods, NOI improved by $16.7 million or 38.3% to $60.3 million, reflecting revenue growth, partially offset by higher operating costs.Adjusted EBITDA(1) increased $17.3 million to $52.9 million; excluding the impact of out-of-period items, Adjusted EBITDA increased by $15.2 million or 52.2% to $44.2 million (9.7% of revenue) from $29.0 million (8.0% of revenue), reflecting the increase in NOI, partially offset by higher administrative costs of $1.5 million, largely due to higher wages, benefits and technology costs, partially offset by lower professional fees.Other income was $7.5 million compared with an expense of $3.2 million, reflecting a gain on sale of assets of $10.0 million in Q1 2026 and lower transaction-related professional fees and integration costs in Q1 2026 compared to strategic transformation costs in Q1 2025.Share of profit from joint ventures was $0.3 million compared to a loss of $0.1 million in Q1 2025, reflecting the opening of a new home in Axium JV and the favourable impact of a $0.2 million fair value adjustment on interest rate swaps.Net earnings increased $25.7 million to $40.7 million, largely driven by the increase in Adjusted EBITDA, an increase in other income and lower net finance costs, partially offset by higher depreciation and amortization costs related to the acquisitions.AFFO(1) increased to $32.7 million ($0.343 per basic share) from $19.8 million ($0.235 per basic share); excluding the impact of out-of-period items, AFFO improved by $11.4 million or 76.2% to $26.4 million ($0.276 per basic share) from $15.0 million ($0.177 per basic share), largely reflecting the improvement in Adjusted EBITDA, partially offset by increased current income taxes, and an unfavourable change in the adjustment for non-cash share-based compensation. Business Updates

The following is a summary of Extendicare’s revenue, NOI(1) and NOI margins(1) by business segment for the three months ended March 31, 2026 and 2025.

 Three months ended March 31(unaudited)2026
 2025
(millions of dollars unless otherwise noted)Revenue NOI Margin Revenue NOI MarginLong-term care243.5 32.2 13.2% 197.8 21.2 10.7%Home health care205.4 27.9 13.6% 158.3 19.1 12.0%Managed services16.2 8.9 54.6% 18.6 10.0 53.4% 465.2 69.0 14.8% 374.7 50.2 13.4%Note: Totals may not sum due to rounding.
Long-term Care

LTC average occupancy at 97.5% in Q1 2026 was unchanged from Q1 2025.

Revenue increased by $45.8 million or 23.2% to $243.5 million in Q1 2026. Excluding out-of-period funding recognized in Q1 2026 of $7.9 million, revenue increased by $37.9 million, largely driven by approximately $32.5 million from the LTC Acquisition, funding increases, timing of spend and improved preferred occupancy, partially offset by the closure of a Class C LTC home replaced by a newly opened LTC home in Axium JV.

NOI and NOI margin were $32.2 million and 13.2%, respectively, in Q1 2026, compared to $21.2 million and 10.7% in Q1 2025. Excluding the impact of out-of-period items of $5.2 million, NOI improved by $5.8 million or 31.4% to $24.3 million (10.3% of revenue) in Q1 2026 from $18.5 million (9.4% of revenue) in Q1 2025. This increase reflects approximately $3.5 million from the LTC Acquisition, funding enhancements, timing of spend, and improved preferred occupancy, partially offset by higher operating costs, and the closure of a redeveloped Class C LTC home.

Home Health Care

Home health care ADV of 41,936 in Q1 2026 increased by 32.7% from Q1 2025, driven by organic growth and the acquisition of Closing the Gap in July 2025.

Revenue increased to $205.4 million in Q1 2026, an increase of 29.8% from Q1 2025. Excluding a reduction in retroactive funding of $9.3 million, revenue increased by $56.5 million, primarily due to the 32.7% increase in ADV, driven by organic growth and the acquisition of Closing the Gap. The reduction in retroactive funding of $9.3 million ($1.7 million in Q1 2026 compared to $11.0 million in Q1 2025) largely related to changes in the recovery of increased wages, benefits and technology costs.

NOI and NOI margin were $27.9 million and 13.6%, respectively, in Q1 2026, an increase from $19.1 million and 12.0% in Q1 2025. Excluding a year-over-year decrease of $3.1 million related to out-of-period items, NOI increased by $12.0 million to $27.1 million (13.3% of revenue) in Q1 2026 from $15.2 million (10.3% of revenue) in the prior year period, reflecting revenue growth, partially offset by increased wages and benefits. The out-of-period items of $3.1 million related to retroactive funding of $0.8 million recognized in Q1 2026, offset by workers’ compensation rebates of $3.9 million recognized in Q1 2025.

Managed Services

At the end of Q1 2026, the number of third-party and joint venture beds served by SGP increased to approximately 157,100, an increase of 6.0% from the prior year period. Extendicare Assist held management contracts for 40 homes comprising 6,237 beds and provided a further 27 homes with consulting and other services.

Revenue decreased by $2.4 million or 12.9% to $16.2 million in Q1 2026 due primarily to the sale by Revera of 30 Class C LTC homes that had been operated by Extendicare Assist under management contracts, nine of which were acquired by the Company, partially offset by changes in the mix of Extendicare Assist services, management fees from a newly opened home in Axium JV and growth in SGP clients. NOI decreased by $1.1 million or 11.0% to $8.9 million (54.6% of revenue).

Financial Position

Extendicare had strong liquidity at March 31, 2026, with cash and cash equivalents on hand, excluding restricted cash, of $320.9 million, and access to a further $154.4 million under its revolving credit facility.

Following the CBI Acquisition in April 2026 for the cash purchase price of $570.0 million and the issuance of the 2031 Notes, of which approximately $427.7 million of the net proceeds were used to repay the delayed draw term loan in full and the revolving credit facility in part, the Company had access to $160.7 million under its Unsecured Revolving Facility and approximately $67.0 million in cash and cash equivalents.

Select Financial Information

The following is a summary of the Company’s consolidated financial information for the three months ended March 31, 2026 and 2025.

(unaudited)Three months ended
March 31(thousands of dollars unless otherwise noted)2026 2025 Revenue465,224 374,654 Operating expenses396,200 324,426 NOI(1)69,024 50,228 NOI margin(1)14.8%13.4%Administrative costs16,166 14,622 Adjusted EBITDA(1)52,858 35,606 Adjusted EBITDA margin(1)11.4%9.5%Other income (expense)7,472 (3,170)Share of profit (loss) from investment in joint ventures344 (126)Net earnings40,732 15,031 per basic share ($)0.427 0.178 per diluted share ($)0.422 0.176 AFFO(1)32,746 19,807 per basic share ($)0.343 0.235 per diluted share ($)0.339 0.232 Maintenance capex2,771 2,709 Cash dividends declared per share0.1281 0.1220 Payout ratio(1)37%51%Weighted average number of shares (000’s)  Basic95,371 84,345 Diluted96,600 85,468 
Extendicare’s disclosure documents, including its Management’s Discussion and Analysis (“MD&A”), may be found on SEDAR+ at www.sedarplus.ca under the Company’s issuer profile and on the Company’s website at www.extendicare.com under the “Investors/Financial Reports” section.

2025 Environmental, Social and Governance (“ESG”) Report Published

In May 2026, Extendicare published its 2025 Environmental, Social and Governance (ESG) report, which outlines how the Company’s mission — providing people with the care they need, wherever they call home — informs its approach to sustainability as it strives to increase access to care for Canadians. The report highlights priorities, including quality of care, a strong and supported workforce, the responsible stewardship of resources, effective governance and long-term operational resilience. It also describes Extendicare’s ongoing efforts to enhance the identification, management and reporting of sustainability-related risks and opportunities. The report is available at www.extendicare.com under the “ESG” section.

May Dividend Declared

The Board of Directors of Extendicare today declared a cash dividend of $0.0441 per share for the month of May 2026, which is payable on June 15, 2026, to shareholders of record at the close of business on May 29, 2026. This dividend is designated as an “eligible dividend” within the meaning of the Income Tax Act (Canada).

Conference Call and Webcast

Extendicare will hold a conference call to discuss its 2026 first quarter results on May 8, 2026, at 11:30 a.m. (EDT). The call will be webcast live and archived online at www.extendicare.com under the “Investors/Events & Presentations” section. Alternatively, the call-in number is 1-833-752-3395. A replay of the call will be available approximately two hours after completion of the live call until midnight on May 22, 2026, by dialing 1-855-669-9658 followed by the passcode 1923796#.

About Extendicare

Extendicare is a leading provider of care and services for seniors across Canada, operating under the Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Network brands. We are committed to delivering quality care to meet the needs of the growing seniors’ population, inspired by our mission to provide people with the care they need, wherever they call home. We operate a network of 99 long-term care homes (59 owned, 40 under management contracts), deliver approximately 24.5 million hours of home health care services annually, and provide group purchasing services to third parties representing approximately 157,100 beds across Canada. Extendicare proudly employs approximately 31,500 individuals and manages an additional 5,000 joint venture employees, all of whom are highly qualified, trained and dedicated team members and passionate about providing high-quality care and services to help people live better.

Non-GAAP Measures

Certain measures used in this press release, such as “net operating income”, “NOI”, “NOI margin”, “Adjusted EBITDA”, “Adjusted EBITDA margin”, “AFFO”, and “payout ratio”, including any related per share amounts, are not measures recognized under GAAP and do not have standardized meanings prescribed by GAAP. These measures may differ from similar computations as reported by other issuers and, accordingly, may not be comparable to similarly titled measures as reported by such issuers. These measures are not intended to replace earnings (loss) from continuing operations, net earnings (loss), cash flow, or other measures of financial performance and liquidity reported in accordance with GAAP. Such items are presented in this document because management believes that they are relevant measures of Extendicare’s operating performance and ability to pay cash dividends.

Management uses these measures to exclude the impact of certain items, because it believes doing so provides investors a more effective analysis of underlying operating and financial performance and improves comparability of underlying financial performance between periods. The exclusion of certain items does not imply that they are non-recurring or not useful to investors.

Detailed descriptions of these measures can be found in Extendicare’s Q1 2026 MD&A (refer to “Non-GAAP Measures”), which is available on SEDAR+ at www.sedarplus.ca and on Extendicare’s website at www.extendicare.com.

Reconciliations for certain non-GAAP measures included in this press release are outlined below.

The following table provides a reconciliation of AFFO to “net cash from operating activities”, which the Company believes is the most comparable GAAP measure to AFFO.

(unaudited) Three months ended
March 31(thousands of dollars)2026 2025 Net cash from operating activities(4,744)18,421 Add (Deduct):  Net change in operating assets and liabilities, including interest, and taxes37,368 1,226 Other expense2,551 3,170 Current income tax on items excluded from AFFO(408)(843)Depreciation for office leases(783)(732)Depreciation for FFEC (maintenance capex)(2,300)(1,888)Additional maintenance capex(233)(697)Principal portion of government capital funding417 403 AFFO for joint ventures878 747 AFFO32,746 19,807 
The following table provides a reconciliation of “earnings before income taxes” to Adjusted EBITDA and “net operating income”.

(unaudited) Three months ended
 March 31
(thousands of dollars)2026 2025 Earnings before income taxes49,370 18,919 Add (Deduct):   Depreciation and amortization10,100 8,273 Net finance costs1,204 5,118 Other (income) expense(7,472)3,170 Share of (profit) loss from investment in joint ventures(344)126 Adjusted EBITDA52,858 35,606 Administrative costs16,166 14,622 Net operating income69,024 50,228 
Forward-looking Statements

This press release contains forward-looking statements concerning anticipated future events, results, circumstances, economic performance or expectations with respect to Extendicare and its subsidiaries, including, without limitation: statements regarding its dividend levels, business operations, business strategy, growth strategy, results of operations and financial condition, including anticipated timelines and costs in respect of development projects. Forward-looking statements can often be identified by the expressions “anticipate”, “believe”, “estimate”, “expect”, “intend”, “objective”, “plan”, “project”, “will”, “may”, “should” or other similar expressions or the negative thereof. These forward-looking statements reflect the Company’s current expectations regarding future results, performance or achievements and are based upon information currently available to the Company and on assumptions that the Company believes are reasonable. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to differ materially from those expressed or implied in the statements. For further information on the risks, uncertainties and assumptions that could cause Extendicare’s actual results to differ from current expectations, refer to “Risks and Uncertainties” and “Forward-looking Statements” in Extendicare’s Q1 2026 MD&A and latest Annual Information Form filed by Extendicare with the securities regulatory authorities, available at www.sedarplus.ca and on Extendicare’s website at www.extendicare.com. Given these risks and uncertainties, readers are cautioned not to place undue reliance on Extendicare’s forward-looking statements. Except as required by applicable securities laws, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Extendicare contact:
David Bacon, Executive Vice President and Chief Financial Officer
T: (905) 470-4000
E: [email protected]
www.extendicare.com

Endnote(1) See the “Non-GAAP Measures” section of this press release and the Company’s Q1 2026 MD&A, which includes the reconciliation of such non-GAAP measures to the most directly comparable GAAP measures.

May 12, 2026 10:06 ET  | Source: Extendicare Inc.

MARKHAM, Ontario, May 12, 2026 (GLOBE NEWSWIRE) -- Extendicare Inc. (“Extendicare” or the “Company”) (TSX: EXE) has filed a Business Acquisition Report on Form 51-102F4 (the “BAR”) on SEDAR+ (www.sedarplus.ca) in connection with the Company’s acquisition on April 1, 2026 of CBI Home Health LP and CBI (GP) 3 Inc. and their respective subsidiaries (collectively, “CBI Home Health”).

As required under applicable securities laws, the BAR contains the following financial statements and related notes thereto:

Audited combined and carve-out financial statements of CBI Home Health as at and for the year ended December 31, 2025, together with the independent auditor’s report thereon; andUnaudited pro forma consolidated financial statements of the Company, including the unaudited pro forma consolidated statement of financial position of the Company for the year ended December 31, 2025 and the unaudited pro forma consolidated statement of earnings of the Company for the year ended December 31, 2025. Pro Forma Fiscal 2025 Financial Highlights

As reflected in the unaudited pro forma consolidated financial statements of the Company included in the BAR:

Extendicare’s pro forma consolidated revenue for the year ended December 31, 2025 is $2.164 billion, including $504.0 million of CBI Home Health’s standalone revenue. This compares to the approximately $477.9 million standalone revenue of CBI Home Health for the twelve-month period ending July 31, 2025 previously reported by the Company in its management’s discussion and analysis for the year ended December 31, 2025 (the “2025 MD&A”).Extendicare’s pro forma consolidated Adjusted EBITDA(1) for the year ended December 31, 2025 is $263.5 million, including $87.9 million of CBI Home Health’s standalone Adjusted EBITDA. Included in CBI Home Health’s standalone Adjusted EBITDA for the year ended December 31, 2025 are out-of-period items totalling approximately $15.0 million related to retroactive funding amounts and workers’ compensation rebates. These amounts relate to prior periods and are not reflective of CBI Home Health’s actual results for the year ended December 31, 2025. Additionally, as previously reported in the 2025 MD&A, the Company identified certain adjustments related to differences in estimates and timing matters identified by the Company’s Quality of Earnings (“QoE”) due diligence of $3.3 million. Excluding the out-of-period items and including the QoE adjustments, CBI Home Health’s standalone Adjusted EBITDA for the year ended December 31, 2025 was $69.6 million, as compared to the $61.9 million for the twelve-months ended July 31, 2025 previously reported in the 2025 MD&A. About Extendicare
Extendicare is a leading provider of care and services for seniors across Canada, operating under the Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Network brands. We are committed to delivering quality care to meet the needs of the growing seniors’ population, inspired by our mission to provide people with the care they need, wherever they call home. We operate a network of 99 long-term care homes (59 owned, 40 under management contracts), deliver approximately 24.5 million hours of home health care services annually, and provide group purchasing services to third parties representing approximately 157,100 beds across Canada. Extendicare proudly employs approximately 31,500 individuals and manages an additional 5,000 joint venture employees, all of whom are highly qualified, trained and dedicated team members and passionate about providing high-quality care and services to help people live better.

Non-GAAP Measures
“Adjusted EBITDA” is not a measure recognized under GAAP and does not have a standardized meaning prescribed by GAAP. This measure may differ from similar computations as reported by other issuers and, accordingly, may not be comparable to similarly titled measures as reported by such issuers. This measure is not intended to replace earnings (loss) from continuing operations, net earnings (loss), cash flow, or other measures of financial performance and liquidity reported in accordance with GAAP. Such items are presented in this document because management believes that they are relevant measures of Extendicare’s and CBI Home Health’s operating performance and the Company’s ability to pay cash dividends.

Management uses these measures to exclude the impact of certain items, because it believes doing so provides investors a more effective analysis of underlying operating and financial performance and improves comparability of underlying financial performance between periods. The exclusion of certain items does not imply that they are non-recurring or not useful to investors.

Detailed descriptions of this measure can be found in Extendicare’s Q1 2026 MD&A (refer to “Non-GAAP Measures”), which is available on SEDAR+ at www.sedarplus.ca and on Extendicare’s website at www.extendicare.com.

Extendicare contact:
David Bacon, Executive Vice President and Chief Financial Officer
T: (905) 470-4000
E: [email protected]
www.extendicare.com

Endnote(1)
See the “Non-GAAP Measures” section of this press release and the Company’s Q1 2026 MD&A, which includes the reconciliation of such non-GAAP measure to the most directly comparable GAAP measure.  

Key Takeaways Gas slid under $3 as a 101 Bcf injection lifted inventories to 2,391 Bcf, 7% above 5-yr avg.AR is gas/NGL-heavy in Marcellus/Utica with ~515,000 net acres and support from its midstream tie.LNG's Corpus Christi saw near-record feedgas as trains ramped, though maintenance cut overall LNG flows. U.S. natural gas prices struggled to hold above the key $3 level last week as traders weighed rising storage levels against uneven weather-driven demand. Cooler forecasts heading into early June reduced expectations for stronger power-sector consumption, even as liquefied natural gas (“LNG”) exports remained active.

At this time, investors may want to keep a close watch on natural gas-focused companies such as Antero Resources (AR - Free Report) , Expand Energy (EXE - Free Report) and Cheniere Energy (LNG - Free Report) as the market moves into the critical summer demand season.

Storage Growth Keeps Prices in Check

The biggest pressure point for natural gas last week came from another large inventory build. The U.S. Energy Information Administration reported a 101 billion cubic feet (Bcf) storage injection for the week ending May 15. That was above market expectations and also higher than the five-year average injection for the same period.

Working gas inventories climbed to 2,391 Bcf, leaving storage levels about 7% above the five-year average. Strong supply growth has kept the market comfortably supplied, limiting bullish momentum despite periods of hotter weather.

U.S. dry gas production also stayed resilient above 103 Bcf per day. That steady output has made it difficult for prices to sustain rallies.

Natural Gas Prices Swing Through the Week

Natural gas futures experienced sharp swings throughout the week before ending under pressure. Prices began the week with strong momentum as hotter temperatures across parts of the eastern United States lifted cooling demand expectations. June futures climbed above $3 and briefly reached a seven-week high near $3.11 per million British thermal units (MMBtu).

However, sentiment weakened later in the week after cooler forecasts emerged and the larger-than-expected storage build reinforced oversupply concerns. By Thursday and Friday, futures slipped back below the important $3 level, with June gas settling near $2.91 per MMBtu. Overall, natural gas posted a weekly loss as traders focused more on rising inventories and softer near-term weather demand than on temporary heat-driven consumption gains.

LNG Exports Offer Support, But Not Enough Yet

LNG exports continued to provide some support to the market. Cheniere Energy’s Corpus Christi facility reported near-record feedgas flows during the week as new expansion trains continued ramping up operations.

Still, overall LNG feedgas demand softened because of maintenance activity at several export plants, including Golden Pass and Freeport LNG. Average flows to major U.S. LNG terminals declined from April’s record highs, reducing one of the market’s key balancing forces.

That left domestic supply levels too large for current demand conditions. Mild early June forecasts are also expected to limit near-term electricity demand for air conditioning.

Summer Heat Could Shift the Market

Despite recent weakness, the outlook for natural gas is not entirely negative. The market is entering the most weather-sensitive period of the year, and any prolonged heat wave could quickly tighten supply-demand balances. Stronger cooling demand would increase power-sector gas consumption and slow the pace of storage injections.

Hurricane risks also remain an important wildcard during the summer months. Any disruption to Gulf Coast production or LNG operations could rapidly shift sentiment and lift prices.

3 Natural Gas Stocks Worth a Closer Look

For long-term investors, this remains a market driven by timing and weather. Companies such as Antero Resources, Expand Energy and Cheniere Energy could benefit if stronger summer demand eventually helps absorb today’s oversupply conditions.

Antero Resources:It is an independent energy producer focused on natural gas and liquids in the Appalachian Basin. Headquartered in Denver, this Zacks Rank #3 (Hold) company develops low-cost assets in the Marcellus and Utica shales, holding about 515,000 net acres. Antero Resources’ production mix is weighted toward natural gas and NGLs, with minimal oil exposure. AR is also one of the largest U.S. suppliers of natural gas and LPG to export markets. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Antero Resources is supported by its midstream affiliate, Antero Midstream, in which it owns roughly 29%. This integrated setup secures transportation and market access from Appalachia to the Gulf Coast. A low debt profile and steady drilling results provide flexibility and support long-term growth. The Zacks Consensus Estimate for Antero Resources’ 2026 earnings per share indicates a 152.1% year-over-year surge.

Expand Energy:Expand Energy has emerged as the largest natural gas producer in the United States after completing the Chesapeake-Southwestern merger. With a strong footprint in the Haynesville and Marcellus basins, the company is well-positioned to benefit from rising natural gas demand fueled by LNG exports, growing AI and data-center power needs, EV adoption and broader electrification trends.

The Zacks Consensus Estimate for Expand Energy’s 2026 earnings per share indicates a 44.3% year-over-year improvement. The firm, with a Zacks Rank of 3, has a trailing four-quarter earnings surprise of roughly 4.1%, on average.

Cheniere Energy:It is a leading U.S. LNG producer and exporter, operating large-scale facilities along the Gulf Coast. Since starting exports in 2016, it has grown into the largest LNG producer in the United States, supplying customers across more than 40 global markets with reliable and cleaner-burning energy.

Backed by firm gas supply agreements for its Sabine Pass and Corpus Christi facilities, this Zacks #3 Ranked company enjoys strong cash flow visibility and solid long-term growth prospects. The Zacks Consensus Estimate for Cheniere Energy’s 2026 earnings per share indicates 36.1% year-over-year growth.

A month has gone by since the last earnings report for Expand Energy (EXE - Free Report) . Shares have lost about 8.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Expand Energy due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Expand Energy Corporation before we dive into how investors and analysts have reacted as of late.

Expand Energy Q1 Earnings Beat Estimates on Strong ProductionExpand Energy reported first-quarter 2026 adjusted earnings per share of $3.83, beating the Zacks Consensus Estimate of $3.69. The company’s bottom line increased from the year-ago adjusted profit of $2.02, fueled by strong production and higher natural gas price realization.

Expand Energy’s ‘natural gas, oil and NGL’ revenues of $3.3 billion surpassed the Zacks Consensus Estimate of $3.1 billion. The top line was also higher than the year-ago figure of $2.3 billion.

During the first quarter of 2026, Expand Energy signed a 20-year Sales and Purchase Agreement (SPA) with Delfin FLNG Vessel 1 for about 1.15 million tons of LNG offtake per year, extending the company’s market reach to growing global demand centers.

Production & Price RealizationsThe company reported the average first-quarter daily production (comprising 93% natural gas) of 7,436 million cubic feet of gas equivalent (MMcfe/day), increasing 9.5% from the year-ago level of 6,788 MMcfe/day. The daily production levels surpassed the Zacks Consensus Estimate of 7,431 MMcfe/day. Natural gas volume for the period came in at 6,914 MMcfe/day, up 10.6% year over year. The consensus mark called for 6,864 MMcf/day of natural gas. EXE’s oil production was 15 thousand barrels per day (MBbl/d), while NGL output totaled 72 MBbl/d.

The average sales price for natural gas during the first quarter was $4.92 per Mcf, up 37.4% from the prior-year realization of $3.58 per Mcf, and it was also above the consensus mark of $4.75. The average realized oil price was $64.37 per barrel compared with the consensus mark of $62. Meanwhile, the average realized NGL price was $25.49 per barrel, above the Zacks Consensus Estimate of$25.36.

Costs & ExpensesTotal operating expenses in the quarter rose to $2.9 billion from the year-ago quarter’s $2.5 billion. This was mainly due to an increase in gathering, processing and transportation, exploration and marketing expenses. The company’s gathering, processing and transportation, exploration and marketing costs of $690 million, $14 million and $1.1 billion during the first quarter of 2026 rose from the year-ago levels of $563 million, $7 million and $919 million, respectively.

Dividend & Share RepurchasesIn the first quarter, the company plans to pay its quarterly base dividend of 57.5 cents per share on June 04, 2026, to its shareholders of record on May 14. Furthermore, Expand Energy plans to focus on reducing debt in 2026 to reinforce its balance sheet and enhance financial flexibility during market lows while continuing to reward shareholders through its base dividend and share buybacks.

Year-to-date through April 24, 2026, Expand Energy has redeemed approximately $1.3 billion of gross debt and executed $150 million of share repurchases.

Financial PositionCash flow from operations totaled $2.4 billion, which almost doubled from the prior-year quarter levels of $1.1 billion, while Expand Energy’s capital expenditure totaled $707 million, leading to a free cash flow of $1.7 billion. It also paid out $141 million in dividends during the period.

As of March 31, 2026, the company had $2.2 million in cash and cash equivalents. Expand Energy had a long-term debt of $4.1 billion, reflecting a debt-to-capitalization of 17.5%.

Guidance for Q2 & 2026Expand Energy is targeting an average daily production in the range of 7,400-7,500 MMcfe for the second quarter of 2026 and 7,400-7,600 MMcfe for full-year 2026. The company has budgeted its capital spending between $770 million and $845 million for the upcoming quarter, while for 2026, the figure is projected to be between $2.75 billion and $2.95 billion.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -7.12% due to these changes.

VGM ScoresAt this time, Expand Energy has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Expand Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

An updated edition of the March 26, 2026, article.

The global oncology market is undergoing rapid transformation, driven by rising cancer incidence, aging population and ongoing scientific advances. According to the American Cancer Society, the United States alone is expected to see nearly 2.1 million new cancer cases and more than 626,000 deaths in 2026. Globally, growing exposure to lifestyle-related risk factors such as smoking, obesity and physical inactivity, along with demographic changes, is increasing cancer prevalence and supporting long-term growth in oncology healthcare spending.

At the same time, innovation is reshaping cancer care. Advances in immunotherapy, targeted treatments and personalized cancer vaccines have significantly broadened options beyond traditional chemotherapy and radiation. Immune-based approaches — including checkpoint inhibitors, CAR-T therapies, therapeutic vaccines and oncolytic viruses — are leveraging the body’s immune system to fight cancer more effectively. Meanwhile, targeted therapies are improving precision by addressing specific genetic and molecular abnormalities, while personalized vaccines are advancing individualized treatment strategies.

Emerging technologies such as genomic sequencing, artificial intelligence and machine learning are accelerating biomarker discovery, improving patient selection, and enabling earlier and more accurate diagnosis. Although a universal cure remains elusive, steady gains in survival rates and patient outcomes across multiple cancer types underscore the impact of these advances, particularly when paired with earlier detection and intervention.

Pharmaceutical companies continue to increase investment and strategic focus in oncology. Industry leaders such as Novartis (NVS - Free Report) , AstraZeneca (AZN - Free Report) , J&J (JNJ - Free Report) , Pfizer (PFE - Free Report) , AbbVie, Merck, Bristol Myers Squibb and Eli Lilly are expanding oncology pipelines with advanced modalities such as antibody-drug conjugates (ADCs), bispecific antibodies and next-generation immuno-oncology therapies. Smaller biotech firms also remain critical innovation drivers, often developing novel platforms and targets that support partnerships, licensing deals and M&A activity.

Backed by continuous innovation, supportive reimbursement trends and expanding treatment options, oncology remains one of the most resilient and attractive areas of the global healthcare sector for long-term investors.

With our thematic screens, you can easily spot stocks tied to trends shaping the future of investing. For those looking to gain exposure to the oncology space, companies such as Summit Therapeutics (SMMT - Free Report) , Verastem Oncology (VSTM - Free Report) and Xilio Therapeutics (XLO - Free Report) may be worth evaluating as part of a forward-looking portfolio strategy.

Explore 36 cutting-edge investment themes with Zacks Thematic Investing Screens and uncover your next big opportunity.

3 Cancer Stocks in FocusSummit Therapeutics’ lead pipeline candidate is ivonescimab, a dual PD-1/VEGF inhibitor that inhibits both the PD-1 pathway and the VEGF pathway at once. They are designed to overcome the limitations of single-target therapies like Keytruda. Summit in-licensed rights to develop and commercialize ivonescimab in most major global markets outside China from China-based Akeso in early 2023.

Summit Therapeutics is evaluating this drug in multiple late-stage studies across different settings in non-small cell lung cancer (NSCLC) and colorectal cancer (CRC). Ivonescimab is currently approved only in China for two distinct NSCLC indications. 

For the NSCLC indication, the drug has already generated multiple positive phase III datasets. In January, the FDA accepted a biologics license application seeking approval of ivonescimab plus chemotherapy in patients with EGFR-mutated, locally advanced or metastatic non-squamous NSCLC who had progressed after treatment with an EGFR-TKI. The BLA filing was based on encouraging results from the phase III HARMONi study. The FDA’s decision is expected on Nov. 14, 2026.

Per Summit Therapeutics, ivonescimab has the potential to replace PD-L1 inhibitors like Keytruda and Tevimbra as the next standard of care across multiple NSCLC settings. 

SMMT has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy)  stocks here.

Verastem Oncology is a precision oncology company focused on targeting key signaling pathways—particularly the RAS/MAPK pathway, which is affected in a large proportion of cancers.  Its novel combination regimen of avutometinib plus defactinib was approved by the FDA in early May 2025 for treating KRAS mutant recurrent low-grade serous ovarian cancer (LGSOC), a rare and distinct type of ovarian cancer. The approval was granted under the FDA’s accelerated approval pathway. It is commercialized in the U.S. market as an oral combination co-pack with the two prescription products, known as Avmapki Fakzynja Co-Pack. The launch is off to a strong start. The innovative combination therapy generated $30.9 million in sales in 2025 and $18.7 million in the first quarter of 2026.

Avmapki Fakzynja Co-Pack became the first and only FDA-approved treatment for the LGSOC indication. Per Verastem Oncology, the combo sets a new standard of care for women with recurrent LGSOC with a KRAS mutation.

The company is also evaluating avutometinib plus defactinib in combination studies in first-line metastatic pancreatic cancer, non-small cell lung cancer (NSCLC) and other RAS-driven tumors. The company recently initiated three phase II registration-directed studies on VS-7375, an oral, KRAS G12D (ON/OFF) inhibitor, in pancreatic, non-small cell lung, and colorectal cancers.

VSTM has a relatively active pipeline calendar through 2026 and 2027.

Verastem has a Zacks Rank #2.

Xilio Therapeutics has an exclusive license agreement with Gilead to develop and commercialize its investigational tumor-activated IL-12 inhibitor, efarindodekin alfa, as a monotherapy in a phase II study in patients with advanced solid tumors. 

Another key candidate in its pipeline is XTX501, a novel bispecific PD-1 / masked IL-2. For this candidate, Xilio plans to submit an investigational new drug (IND) application in mid-2026 to begin clinical studies. Xilio plans to begin a phase I study for XTX501 in the second half of 2026, subject to the FDA clearing the IND application. Xilio Therapeutics plans to initially evaluate XTX501 in NSCLC, with the goal of subsequently expanding development into additional solid tumor types, including those that are less responsive or resistant to PD-1–based therapies. The company sees XTX501 as a potential foundational “backbone” therapy.

In addition, Xilio is advancing a suite of preclinical “masked” T-cell engagers targeting tumor antigens such as PSMA, CLDN18.2 and STEAP1, with plans to enter clinical development by 2027, including a collaboration with AbbVie.

Xilio has a Zacks Rank #2

Key Takeaways SMMT filed ivonescimab's FDA application after phase III NSCLC data. The decision is expected in November.SMMT is enrolling patients in phase III NSCLC and CRC studies, with HARMONi-3 data expected in 2H 2026.SMMT expanded ivonescimab's development through collaborations with GSK, Pfizer and other partners. Summit Therapeutics (SMMT - Free Report) has emerged as one of the most closely watched oncology biotech companies following the rapid advancement of its lead cancer candidate, ivonescimab. Summit in-licensed rights to develop and commercialize ivonescimab in most major global markets outside China from China-based Akeso in early 2023.

Since in-licensing rights to ivonescimab, Summit Therapeutics has transformed from a small biotech player into a late-stage oncology company with a growing global development program centered around the candidate.

Ivonescimab is a dual PD-1/VEGF inhibitor being evaluated in multiple late-stage studies across different settings in non-small cell lung cancer (NSCLC) and colorectal cancer (CRC). Unlike currently marketed immuno-oncology therapies that target only the PD-1 pathway, ivonescimab simultaneously targets both PD-1 and VEGF, a differentiated mechanism that management believes could redefine the treatment landscape and emerge as the next standard of care in NSCLC.

Year to date, shares of SMMT have declined 0.1% compared with the industry’s 6.4% fall.

Image Source: Zacks Investment Research

Investor attention remains focused on the company’s expanding late-stage pipeline and upcoming regulatory milestones.

SMMT Rides on Ivonescimab’s Development ProgressBuilding on the success of the Akeso-sponsored studies in China, Summit Therapeutics is sponsoring multiple global and multi-regional clinical studies to support regulatory approvals in its licensed territories.

In May 2025, SMMT reported encouraging results from the phase III HARMONi study, which evaluated ivonescimab plus chemotherapy in patients with EGFR-mutated, locally advanced or metastatic non-squamous NSCLC who had progressed after treatment with an EGFR-TKI. The study met one of its two primary endpoints — progression-free survival (PFS). Although the study did not meet the overall survival (OS) endpoint, the data showed a favorable trend toward OS. Based on these results, Summit Therapeutics submitted a biologics license application with the FDA in January 2026. A final decision on ivonescimab’s approval is expected by Nov. 14, 2026.

The company is currently enrolling patients in three late-stage studies on ivonescimab — two in NSCLC (HARMONi-3 and HARMONi-7) and one in CRC (HARMONi-GI3).

HARMONi-3 is evaluating ivonescimab against Merck’s (MRK - Free Report) blockbuster drug Keytruda, as first-line treatment for metastatic squamous and non-squamous NSCLC, while HARMONi-7 is evaluating ivonescimab monotherapy in patients with first-line metastatic NSCLC whose tumors have high PD-L1 expression. A data readout from the squamous cohort of the HARMONi-3 study is expected in the second half of 2026, which could be an important catalyst for the stock.

Enrollment in the non-squamous NSCLC cohort is expected to be completed by the end of second-quarter 2026, with PFS data anticipated in the first half of 2027.

Beyond lung cancer, Summit Therapeutics has expanded development into gastrointestinal cancers through the HARMONi-GI3 study, the company’s first late-stage study outside NSCLC. The study is evaluating the candidate in combination with chemotherapy against bevacizumab plus chemotherapy in first-line unresectable metastatic colorectal cancer.

Like HARMONi-GI3, Summit plans to start more late-stage studies on ivonescimab and intends to provide updates in the near future.

Strategic Collaborations Expand Development PotentialSummit Therapeutics expanded the potential of ivonescimab through a collaboration with drug giant GSK plc (GSK - Free Report) to evaluate the candidate in combination with GSK’s investigational B7-H3-targeting antibody drug conjugate, risvutatug rezetecan, across multiple solid tumors, including small cell lung cancer (SCLC). The company has partnered with GORTEC, MD Anderson Cancer Center, Pfizer and Revolution Medicines to accelerate ivonescimab’s preclinical and clinical development across several solid tumor indications beyond its current core development plan.

SMMT's Zacks Rank & EstimatesSummit Therapeutics currently has a Zacks Rank #2 (Buy). Over the past 30 days, estimates for SMMT’s 2026 loss per share have narrowed from $1.31 to $1.17, and 2027 estimates for loss per share have improved from $1.38 to $1.21.

Positive regulatory updates and the successful development of ivonescimab could support the further momentum for the stock in 2026.

Encouraging Global Phase II Ivonescimab Data in First-Line Metastatic Colorectal Cancer Presented at ASCO 2026 Summit Therapeutics Inc. (NASDAQ: SMMT) today presented new results from the AK112-206 trial (NCT05382442), a global, open-label, multicenter Phase II study in first-line metastatic colorectal cancer (mCRC) co-sponsored by Summit and Akeso, featuring the novel, potential first-in-class investigational bispecific antibody ivonescimab. The data were presented today at the 2026 American Society of Clinical Oncology (ASCO) Annual Meeting in Chicago.

The presentation, entitled “Ivonescimab with Oxaliplatin + Fluorouracil + Leucovorin Calcium for Patients with Unresectable Metastatic Colorectal Cancer: A Phase 2 Study,” detailed interim results of the multiregional extension portion of the study evaluating ivonescimab combined with mFOLFOX6 chemotherapy in patients with unresectable microsatellite stable (MSS) mCRC who were previously untreated for metastatic disease. Patients (n=49) were randomized (1:1) to receive ivonescimab (10 or 20 mg/kg; n=24, n=25, respectively) plus mFOLFOX6 once every two weeks. The data cut-off for this analysis was March 31, 2026 (10 or 20 mg/kg median follow-up: 9.9 months, 9.8 months, respectively).

In this U.S.- and China-based Phase II cohort of treatment-naïve patients with mCRC, patients receiving ivonescimab in combination with standard-of-care doublet chemotherapy mFOLFOX6 demonstrated an objective response rate (ORR) of 70.8% across both arms in evaluable patients (n=48). This result is encouraging compared to historical performance of standard-of-care regimens combining bevacizumab with FOLFOX chemotherapy from prior studies. Treatment responses in the ivonescimab 20 mg/kg arm were more durable than in the ivonescimab 10 mg/kg arm, with a duration of response landmark estimate at 9 months of 79.1% vs. 41.5%, respectively. While progression-free survival (PFS) analysis is still immature in this study, the landmark 9-month PFS rate was 76.1% for those patients receiving 20 mg/kg of ivonescimab.

The safety profile of ivonescimab combined with chemotherapy in this study is comparable to rates observed in historical studies with chemotherapy and anti-VEGF antibodies. In total including both arms, 20.4% of patients experienced serious treatment-related adverse events (TRAEs) associated with either ivonescimab or chemotherapy. There were no ivonescimab-related deaths and one ivonescimab-related discontinuation, supporting the tolerability and ability to manage adverse events.

“In this expansion cohort of treatment-naïve patients with metastatic colorectal cancer, the addition of ivonescimab to mFOLFOX6 delivered deep and durable response rates that compare favorably to historical benchmarks seen with chemotherapy alone or in combination with anti-VEGF therapies,” said David Berz, M.D., Ph.D., medical oncologist, Founder of Valkyrie Clinical Trials and an investigator in the AK112-206 study. “While progression-free survival remains immature, the high proportion of patients who were progression-free at nine months is encouraging, and the safety profile was consistent with established standards of care. These results support the potential of this dual-targeted approach to improve outcomes in this difficult-to-treat population and warrant further investigation.”

Ivonescimab continues to demonstrate an acceptable and manageable safety profile with no new safety signals observed in this study. This was consistent with previous studies of ivonescimab, including Phase II data in mCRC, and evidencing the potential for a favorable benefit-risk profile for ivonescimab plus mFOLFOX6 in this setting. In this study, adverse events were manageable: all patients experienced at least one treatment-emergent adverse event (TEAE) related to either ivonescimab or chemotherapy with the most common events on both dosing arms being decreased neutrophil count, decreased white blood cell count, and anemia.

“Metastatic colorectal cancer remains a significant area of unmet need, where many patients continue to face limited durable treatment options,” said Allen S. Yang, M.D., Ph.D., Chief R&D Strategy Officer of Summit. “These data add to the growing body of evidence supporting the potential of ivonescimab as a differentiated PD-1 / VEGF bispecific, and we are committed to advancing its development across multiple tumor types where we believe it may meaningfully improve patient outcomes.”

Summit is currently conducting HARMONi-GI3 (NCT07228832), a global Phase III clinical trial evaluating ivonescimab in combination with mFOLFOX6 chemotherapy compared with bevacizumab plus mFOLFOX6 chemotherapy in patients with first-line unresectable mCRC. This study is featured at this year’s ASCO Annual Meeting in a Trials-in-Progress (TiP) presentation entitled, “A Randomized, Active-Controlled Phase 3 Study of Ivonescimab + FOLFOX Versus Bevacizumab + FOLFOX as First-Line Treatment of Metastatic Colorectal Cancer: HARMONi-GI3.”

About Colorectal Cancer
Colorectal cancer (CRC), which includes cancers of the colon and rectum, is the third most commonly diagnosed cancer worldwide and the second leading cause of cancer-related death, with approximately 1.9 million new cases and more than 900,000 deaths reported globally in 2022.1 In the U.S., CRC remains a significant health burden, with an estimated 158,850 new cases and 55,230 deaths projected in 2026.2 Prognosis is highly dependent on stage at diagnosis: while overall 5-year survival is approximately 65%, patients with metastatic disease have substantially poorer outcomes, with 5-year survival rates of approximately 13% for metastatic colon cancer and 18% for metastatic rectal cancer.2,3 These data underscore the urgent need for improved treatment options for patients with metastatic CRC (mCRC).

CRC is biologically heterogeneous, with tumors broadly classified based on microsatellite status. Approximately 80–85% of colorectal cancers are microsatellite stable (MSS), also referred to as mismatch repair–proficient (pMMR) tumors.4 MSS/pMMR colorectal tumors are typically characterized by lower tumor mutational burden and an immune-cold phenotype, with limited responsiveness to immune checkpoint inhibitors.5,6 In metastatic disease, they represent the overwhelming majority of cases, accounting for approximately 95% of tumors.5 As a result, most patients with mCRC are not eligible for currently approved immunotherapy monotherapies and are treated with chemotherapy-based regimens, often in combination with targeted therapies such as anti-VEGF and anti-EGFR agents.

About Ivonescimab
Ivonescimab, known as SMT112 in Summit’s license territories, North America, South America, Europe, the Middle East, Africa, and Japan, and as AK112 outside of Summit’s license territories, is a novel, potential first-in-class investigational bispecific antibody combining the effects of immunotherapy via a blockade of PD-1 with the anti-angiogenesis effects associated with blocking VEGF into a single molecule. By design, ivonescimab displays unique cooperative binding to each of its intended targets with multifold higher affinity to PD-1 when in the presence of VEGF.

This is intended to differentiate ivonescimab as there is potentially higher expression (presence) of both PD-1 and VEGF in tumor tissue and the tumor microenvironment (TME) as compared to normal tissue in the body. Summit believes ivonescimab’s specifically engineered tetravalent structure (four binding sites) enables higher avidity (accumulated strength of multiple binding interactions) in the TME (Zhong, et al, iScience, 2025). This tetravalent structure, the intentional novel design of the molecule, and bringing these two targets into a single bispecific antibody with cooperative binding qualities have the potential to direct ivonescimab to the tumor tissue versus healthy tissue. The intent of this design, together with a half-life of 6 to 7 days after the first dose (Zhong, et al, iScience, 2025) increasing to approximately 10 days at steady state dosing, is to improve upon previously established efficacy thresholds, side effects, and safety profiles associated with prior approved drugs to these targets.

Ivonescimab was engineered by Akeso Inc. (HKEX Code: 9926.HK) and is currently utilized in multiple Phase III clinical trials. Over 4,000 patients have been treated with ivonescimab in clinical studies globally, and over 70,000 patients when considering those treated in a commercial setting in China, as noted by Akeso.

There are currently 15 Phase III clinical studies that are either announced, ongoing, or have been completed studying ivonescimab, four of which are Summit-sponsored global studies, one of which is a multiregional study sponsored by a cooperative group, and 10 of which are being or have been conducted in China by Akeso. Summit began its clinical development of ivonescimab in NSCLC, commencing enrollment in 2023 in two multiregional Phase III clinical trials, HARMONi and HARMONi-3. In 2025, Summit began enrolling patients in HARMONi-7. Summit expanded its Phase III clinical development program into CRC in the fourth quarter of 2025 by initiating enrollment in HARMONi-GI3.

HARMONi is a Phase III clinical trial evaluating ivonescimab combined with chemotherapy compared to placebo plus chemotherapy in patients with EGFR-mutated, locally advanced or metastatic non-squamous NSCLC who were previously treated with a third- generation EGFR TKI (e.g., osimertinib). Detailed results of the study were provided in September 2025, and a Biologics License Application (BLA) was submitted to the United States Food and Drug Administration (FDA) for marketing authorization, which the FDA accepted for filing in January 2026; the goal Prescription Drug User Fee Act (PDUFA) date is November 14, 2026.

HARMONi-3 is a Phase III clinical trial evaluating ivonescimab combined with chemotherapy compared to pembrolizumab combined with chemotherapy in patients with first-line metastatic, squamous or non-squamous NSCLC, irrespective of PD-L1 expression. The clinical trial is evaluating the two histologies as individual, separately powered cohorts with independent statistical powering.

HARMONi-7 is a Phase III clinical trial evaluating ivonescimab monotherapy compared to pembrolizumab monotherapy in patients with first-line metastatic NSCLC whose tumors have high PD-L1 expression.

HARMONi-GI3 is a Phase III clinical trial evaluating ivonescimab in combination with chemotherapy compared with bevacizumab plus chemotherapy in patients with first-line unresectable metastatic CRC.

ILLUMINE is a Phase III study being conducted by GORTEC, a cooperative group dedicated to Head and Neck Oncology, in recurrent / metastatic head and neck squamous cell carcinoma (r/m HNSCC). ILLUMINE is a three-arm Phase III clinical trial designed to evaluate ivonescimab monotherapy, as well as ivonescimab in combination with ligufalimab, Akeso’s proprietary anti-CD47 monoclonal antibody, compared to monotherapy pembrolizumab in patients with PD-L1 positive r/m HNSCC.

In addition, Akeso has recently had positive read-outs in three single-region (China), randomized Phase III clinical trials, HARMONi-A, HARMONi-2, and HARMONi-6, for ivonescimab in NSCLC, including a statistically significant overall survival benefit in HARMONi-A, with a manageable safety profile in each study.

HARMONi-A was a Phase III clinical trial evaluating ivonescimab combined with chemotherapy compared to placebo plus chemotherapy in patients with EGFR-mutated, locally advanced or metastatic non-squamous NSCLC who have progressed after treatment with an EGFR TKI.

HARMONi-2 is a Phase III clinical trial evaluating monotherapy ivonescimab against monotherapy pembrolizumab in patients with locally advanced or metastatic NSCLC whose tumors have positive PD-L1 expression.

HARMONi-6 is a Phase III clinical trial evaluating ivonescimab in combination with platinum-based chemotherapy compared with tislelizumab, an anti-PD-1 antibody, in combination with platinum-based chemotherapy in patients with locally advanced or metastatic squamous NSCLC, irrespective of PD-L1 expression.

Akeso is actively conducting multiple Phase III clinical studies in settings outside of NSCLC, including biliary-tract cancer, triple-negative breast cancer, head and neck squamous cell carcinoma, small cell lung cancer, colorectal cancer, and pancreatic cancer.

Ivonescimab is an investigational therapy that is not approved by any regulatory authority in Summit’s license territories, including the United States and Europe. Ivonescimab was initially approved for marketing authorization in China in May 2024.

About Summit Therapeutics Inc.
Summit Therapeutics Inc. is a biopharmaceutical oncology company focused on the discovery, development, and commercialization of patient-, physician-, caregiver- and societal-friendly medicinal therapies intended to improve quality of life, increase potential duration of life, and resolve serious unmet medical needs.

Summit was founded in 2003 and the company’s shares are listed on the Nasdaq Global Market (symbol "SMMT"). Summit is headquartered in Miami, Florida, with additional offices in Palo Alto, California, Princeton, New Jersey, Dublin, Ireland, and Oxford, UK.

For more information, please visit https://www.smmttx.com and follow Summit on X @SMMT_TX.

References:

World Health Organization. Colorectal cancer fact sheet. February 13, 2026. Accessed May 19, 2026. National Cancer Institute, Surveillance, Epidemiology, and End Results (SEER) Program. Cancer Stat Facts: Colorectal Cancer. Accessed May 19, 2026. American Cancer Society. Survival Rates for Colorectal Cancer (based on SEER 2014–2020 data). January 13, 2026. Accessed May 19, 2026. Colorectal Cancer Alliance. Microsatellite Stability Biomarker (MSS). Accessed May 19, 2026. Lieu CH. The use of immunotherapy in metastatic microsatellite-stable colorectal cancer. Hematol Oncol. 2022;20(12). Han YJ, Shao CY, Yao Y, et al. Immunotherapy of microsatellite stable colorectal cancer: resistance mechanisms and treatment strategies. Postgrad Med J. 2024;100:373–381. Summit Forward-Looking Statements
Any statements in this press release about the Company’s future expectations, plans and prospects, including but not limited to, statements about the clinical and preclinical development of the Company’s product candidates, entry into and actions related to the Company’s partnership with Akeso Inc. and other collaborations, the intended use of the net proceeds from the private placements, the Company's anticipated spending and cash runway, the therapeutic potential of the Company’s product candidates, the potential commercialization of the Company’s product candidates, the timing of initiation, completion and availability of data from clinical trials, the potential submission of applications for marketing approvals, the expected timing of BLA submissions or FDA decisions, potential acquisitions, statements about the previously disclosed At-The-Market equity offering program (“ATM Program”), the expected proceeds and uses thereof, the Company’s estimates regarding stock-based compensation, and other statements containing the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "would," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the Company’s ability to sell shares of our common stock under the ATM Program, the conditions affecting the capital markets, general economic, industry, or political conditions, including the effects of geopolitical developments, domestic and foreign trade policies, and monetary policies, the results of our evaluation of the underlying data in connection with the development and commercialization activities for ivonescimab, the outcome of discussions with regulatory authorities, including the Food and Drug Administration, the uncertainties inherent in the initiation of future clinical trials, availability and timing of data from ongoing and future clinical trials, the results of such trials, and their success, global public health crises, that may affect timing and status of our clinical trials and operations, whether preliminary results from a clinical trial will be predictive of the final results of that trial or whether results of early clinical trials or preclinical studies will be indicative of the results of later clinical trials, whether business development opportunities to expand the Company’s pipeline of drug candidates, including without limitation, through potential acquisitions of, and/or collaborations with, other entities occur, expectations for regulatory approvals, laws and regulations affecting government contracts and funding awards, availability of funding sufficient for the Company’s foreseeable and unforeseeable operating expenses and capital expenditure requirements and other factors discussed in the "Risk Factors" and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of filings that the Company makes with the Securities and Exchange Commission. Summit defines a “positive study” as a clinical study that with one or more prespecified primary endpoints in which one of those endpoints achieves a statistically significant benefit according to the protocol or statistical analysis plan. Any change to our ongoing trials could cause delays, affect our future expenses, and add uncertainty to our commercialization efforts, as well as to affect the likelihood of the successful completion of clinical development of ivonescimab. Accordingly, readers should not place undue reliance on forward-looking statements or information. In addition, any forward-looking statements included in this press release represent the Company’s views only as of the date of this release and should not be relied upon as representing the Company’s views as of any subsequent date. The Company specifically disclaims any obligation to update any forward-looking statements included in this press release.

Summit Therapeutics and the Summit Therapeutics logo are registered trademarks of Summit Therapeutics Inc. and/or its affiliates. Copyright 2026, Summit Therapeutics Inc. All Rights Reserved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260530544179/en/

Ivonescimab Plus Chemotherapy Reduced the Risk of Death by 34% Compared to Tislelizumab Plus Chemotherapy; Hazard Ratio 0.66

First Regimen to Achieve a Statistically Significant and Clinically Meaningful Overall Survival Benefit over an anti-PD-(L)1 Antibody Combined with Chemotherapy in a Phase III Clinical Trial in 1L NSCLC

Tolerable Safety Profile Consistent with Prior Clinical Trial Results

Simultaneous Publication of Latest Ivonescimab HARMONi-6 Results in The Lancet

Summit Conference Call to Be Held at 7:00 a.m. ET on Monday, June 1, 2026

MIAMI--(BUSINESS WIRE)--Summit Therapeutics Inc. (NASDAQ: SMMT) today announced positive overall survival (OS) results from the Phase III HARMONi-6 trial, conducted in China and sponsored by Summit’s partner Akeso, Inc. (HKEX Code: 9926.HK), will be presented today as part of the Plenary Session at the 2026 American Society of Clinical Oncology (ASCO) Annual Meeting in Chicago.

The presentation is entitled “Ivonescimab plus chemotherapy versus tislelizumab plus chemotherapy in previously untreated advanced squamous non-small cell lung cancer: Overall survival results of the phase 3 HARMONi-6 trial.” HARMONi-6 is evaluating ivonescimab in combination with platinum-based chemotherapy compared to tislelizumab, a PD-1 inhibitor, in combination with platinum-based chemotherapy in patients with locally advanced or metastatic squamous non-small cell lung cancer (NSCLC) irrespective of PD-L1 expression. HARMONi-6 is a single region, multi-center, Phase III study conducted in China and sponsored by Akeso, with all relevant data exclusively generated, managed, and analyzed by Akeso. The trial’s primary endpoint is progression-free survival (PFS), and OS is a key secondary endpoint.

The trial results will be presented by Dr. Shun Lu, MD, PhD, Chief of Shanghai Lung Cancer Center at Shanghai Chest Hospital, Professor of Medicine at Shanghai Jiaotong University, and associate editor for the Journal of Thoracic Oncology.

In major markets globally, first-line therapy for patients with advanced NSCLC without driver mutations is most commonly a PD-1 inhibitor plus platinum-based chemotherapy. Prior to HARMONi-6, there were no known Phase III clinical trials in advanced NSCLC which have shown a statistically significant and clinically meaningful improvement in OS when compared to PD-(L)1 inhibitor therapy in combination with chemotherapy in a head-to-head setting. Examples of PD-(L)1 inhibitors include pembrolizumab, nivolumab, tislelizumab, and atezolizumab.

Clinically Meaningful Efficacy

In the HARMONi-6 planned interim analysis of OS, ivonescimab in combination with chemotherapy demonstrated a statistically significant improvement when compared to tislelizumab in combination with chemotherapy, with a hazard ratio (HR) of 0.66 (95% CI: 0.50, 0.87; p=0.0017). A clinically meaningful benefit was demonstrated across clinical subgroups, including those with either PD-L1 negative or positive expression. OS rates at 24 months were 64.7% for those patients receiving ivonescimab plus chemotherapy compared to 48.6% for those receiving tislelizumab plus chemotherapy. Median follow-up time of the current data cut was 21.4 months.

HARMONi-6 ITT (n=532):

Median Follow-up: 21.36 mos.

Ivonescimab + Chemo

(n=266)

Tislelizumab + Chemo

(n=266)

Median OS

27.89 mos.

(95% CI: 27.89, NE)

23.69 mos.

(95% CI: 20.11, NE)

24-Month OS Rates

64.7%

48.6%

OS Stratified HR

0.66

(95% CI: 0.50, 0.87; p= 0.0017)

mos.: months; NE: not established

“For the first time, a Phase III clinical study has demonstrated a statistically significant overall survival benefit in front-line driver-mutation-negative non-small cell lung cancer compared to anti-PD-1 therapy in combination with chemotherapy,” said Dr. Maky Zanganeh, President and Co-Chief Executive Officer of Summit. “While this represents another study where ivonescimab has demonstrated a significant OS benefit, these data represent the answer to the question regarding ivonescimab and its ability to translate PFS benefits into the extension of lives for patients with cancer in the front-line setting compared to immunotherapy-based regimens.”

The HARMONi-6 study met its primary endpoint as announced in April 2025, showing a statistically significant and clinically meaningful improvement in PFS. Detailed results for efficacy and safety were presented at the European Society of Medical Oncology 2025 Congress (ESMO 2025) last October and published in The Lancet simultaneously.

Safety Profile

In this analysis, ivonescimab continued to demonstrate an acceptable and manageable safety profile in the HARMONi-6 study, which was consistent with previous Phase III studies of ivonescimab plus chemotherapy. No additional safety signals were noted in the HARMONi-6 study in this current data cut compared to the previous data cut presented.

Treatment-related serious adverse events occurred in 41.4% of patients receiving ivonescimab in combination with chemotherapy and 34.3% of patients receiving tislelizumab in combination with chemotherapy. Most of the possibly VEGF-related adverse events occurring in the ivonescimab-plus-chemotherapy arm were classified as Grade 1 or 2; Grade 3 or higher hemorrhage events were observed in 2.6% of patients in the ivonescimab-plus-chemotherapy arm compared to 0.8% of patients in the tislelizumab-plus-chemotherapy arm in this study. Treatment-related adverse events (TRAEs) leading to discontinuation in this study occurred in 5.3% of patients receiving ivonescimab plus chemotherapy compared to 4.5% for those receiving tislelizumab plus chemotherapy.

In squamous NSCLC, VEGF-A monoclonal antibodies have had limited clinical development based on historical data demonstrating significant risks of toxicity, including life-threatening hemorrhage and other bleeding complications. The results of this study further validate the unique mechanism of action of ivonescimab, including apparent key differences as compared to historical clinical studies where an anti-PD-1 monoclonal antibody and an anti-VEGF monoclonal antibody were administered separately.

HARMONi-6 Clinical Trial Results Published in The Lancet

The Lancet simultaneously published these findings in a manuscript titled, “Ivonescimab plus Chemotherapy for Squamous Non-small-cell Lung Cancer.”

“A heartfelt congratulations to our partner, Akeso, for their continuing, tremendous efforts to make a significant difference in the lives of patients with cancer,” said Robert W. Duggan, Chairman and Co-Chief Executive Officer of Summit. “The decision we made in December 2022 to enter into a partnership specifically with Akeso and accelerate the global clinical development plan of this potentially landscape-changing compound in ivonescimab is further validated with these groundbreaking results for patients facing high unmet medical needs. We look forward to continuing this positive momentum.”

Conference Call

Summit will host a conference call and live webcast to discuss recent updates related to ivonescimab, including data released at ASCO, on Monday, June 1, 2026, at 7:00 a.m. ET. Conference call and webcast information is accessible through the company’s website, www.smmttx.com. An archived edition of the webcast will be available on the website later in the day on Monday.

About Ivonescimab
Ivonescimab, known as SMT112 in Summit’s license territories, North America, South America, Europe, the Middle East, Africa, and Japan, and as AK112 outside of Summit’s license territories, is a novel, potential first-in-class investigational bispecific antibody combining the effects of immunotherapy via a blockade of PD-1 with the anti-angiogenesis effects associated with blocking VEGF into a single molecule. By design, ivonescimab displays unique cooperative binding to each of its intended targets with multifold higher affinity to PD-1 when in the presence of VEGF.

This is intended to differentiate ivonescimab as there is potentially higher expression (presence) of both PD-1 and VEGF in tumor tissue and the tumor microenvironment (TME) as compared to normal tissue in the body. Summit believes ivonescimab’s specifically engineered tetravalent structure (four binding sites) enables higher avidity (accumulated strength of multiple binding interactions) in the TME (Zhong, et al, iScience, 2025). This tetravalent structure, the intentional novel design of the molecule, and bringing these two targets into a single bispecific antibody with cooperative binding qualities have the potential to direct ivonescimab to the tumor tissue versus healthy tissue. The intent of this design, together with a half-life of 6 to 7 days after the first dose (Zhong, et al, iScience, 2025) increasing to approximately 10 days at steady state dosing, is to improve upon previously established efficacy thresholds, side effects, and safety profiles associated with prior approved drugs to these targets.

Ivonescimab was engineered by Akeso Inc. (HKEX Code: 9926.HK) and is currently utilized in multiple Phase III clinical trials. Over 4,000 patients have been treated with ivonescimab in clinical studies globally, and over 70,000 patients when considering those treated in a commercial setting in China, as noted by Akeso.

There are currently 15 Phase III clinical studies that are either announced, ongoing, or have been completed studying ivonescimab, four of which are Summit-sponsored global studies, one of which is a multiregional study sponsored by a cooperative group, and 10 of which are being or have been conducted in China by Akeso. Summit began its clinical development of ivonescimab in NSCLC, commencing enrollment in 2023 in two multiregional Phase III clinical trials, HARMONi and HARMONi-3. In 2025, Summit began enrolling patients in HARMONi-7. Summit expanded its Phase III clinical development program into CRC in the fourth quarter of 2025 by initiating enrollment in HARMONi-GI3.

HARMONi is a Phase III clinical trial is evaluating ivonescimab combined with chemotherapy compared to placebo plus chemotherapy in patients with EGFR-mutated, locally advanced or metastatic non-squamous NSCLC who were previously treated with a third-generation EGFR TKI (e.g., osimertinib). Detailed results of the study were provided in September 2025, and a Biologics License Application (BLA) was submitted to the United States Food and Drug Administration (FDA) for marketing authorization, which the FDA accepted for filing in January 2026; the goal Prescription Drug User Fee Act (PDUFA) date is November 14, 2026.

HARMONi-3 is a Phase III clinical trial evaluating ivonescimab combined with chemotherapy compared to pembrolizumab combined with chemotherapy in patients with first-line metastatic, squamous or non-squamous NSCLC, irrespective of PD-L1 expression. The clinical trial is evaluating the two histologies as individual, separately powered cohorts with independent statistical powering.

HARMONi-7 is a Phase III clinical trial evaluating ivonescimab monotherapy compared to pembrolizumab monotherapy in patients with first-line metastatic NSCLC whose tumors have high PD-L1 expression.

HARMONi-GI3 is a Phase III clinical trial evaluating ivonescimab in combination with chemotherapy compared with bevacizumab plus chemotherapy in patients with first-line unresectable metastatic CRC.

ILLUMINE is a Phase III study being conducted by GORTEC, a cooperative group dedicated to Head and Neck Oncology, in recurrent / metastatic head and neck squamous cell carcinoma (r/m HNSCC). ILLUMINE is a three-arm Phase III clinical trial designed to evaluate ivonescimab monotherapy, as well as ivonescimab in combination with ligufalimab, Akeso’s proprietary anti-CD47 monoclonal antibody, compared to monotherapy pembrolizumab in patients with PD-L1 positive r/m HNSCC.

In addition, Akeso has recently had positive read-outs in three single-region (China), randomized Phase III clinical trials, HARMONi-A, HARMONi-2, and HARMONi-6, for ivonescimab in NSCLC, including a statistically significant overall survival benefit in both the HARMONi-A and HARMONi-6 studies, and a manageable safety profile in each study.

HARMONi-A was a Phase III clinical trial which evaluated ivonescimab combined with chemotherapy compared to placebo plus chemotherapy in patients with EGFR-mutated, locally advanced or metastatic non-squamous NSCLC who have progressed after treatment with an EGFR TKI.

HARMONi-2 is a Phase III clinical trial evaluating monotherapy ivonescimab against monotherapy pembrolizumab in patients with locally advanced or metastatic NSCLC whose tumors have positive PD-L1 expression.

HARMONi-6 is a Phase III clinical trial evaluating ivonescimab in combination with platinum-based chemotherapy compared with tislelizumab, an anti-PD-1 antibody, in combination with platinum-based chemotherapy in patients with locally advanced or metastatic squamous NSCLC, irrespective of PD-L1 expression.

Akeso is actively conducting multiple Phase III clinical studies in settings outside of NSCLC, including biliary-tract cancer, triple-negative breast cancer, head and neck squamous cell carcinoma, small cell lung cancer, colorectal cancer, and pancreatic cancer.

Ivonescimab is an investigational therapy that is not approved by any regulatory authority in Summit’s license territories, including the United States and Europe. Ivonescimab was initially approved for marketing authorization in China in May 2024.

About Summit Therapeutics Inc.
Summit Therapeutics Inc. is a biopharmaceutical oncology company focused on the discovery, development, and commercialization of patient-, physician-, caregiver- and societal-friendly medicinal therapies intended to improve quality of life, increase potential duration of life, and resolve serious unmet medical needs.

Summit was founded in 2003 and the company’s shares are listed on the Nasdaq Global Market (symbol "SMMT"). Summit is headquartered in Miami, Florida, with additional offices in Palo Alto, California, Princeton, New Jersey, Dublin, Ireland, and Oxford, UK.

For more information, please visit https://www.smmttx.com and follow Summit on X @SMMT_TX.

Summit Forward-Looking Statements
Any statements in this press release about the Company’s future expectations, plans and prospects, including but not limited to, statements about the clinical and preclinical development of the Company’s product candidates, entry into and actions related to the Company’s partnership with Akeso Inc. and other collaborations, the intended use of the net proceeds from the private placements, the Company's anticipated spending and cash runway, the therapeutic potential of the Company’s product candidates, the potential commercialization of the Company’s product candidates, the timing of initiation, completion and availability of data from clinical trials, the potential submission of applications for marketing approvals, the expected timing of BLA submissions or FDA decisions, potential acquisitions, statements about the previously disclosed At-The-Market equity offering program (“ATM Program”), the expected proceeds and uses thereof, the Company’s estimates regarding stock-based compensation, and other statements containing the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "would," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the Company’s ability to sell shares of our common stock under the ATM Program, the conditions affecting the capital markets, general economic, industry, or political conditions, including the effects of geopolitical developments, domestic and foreign trade policies, and monetary policies, the results of our evaluation of the underlying data in connection with the development and commercialization activities for ivonescimab, the outcome of discussions with regulatory authorities, including the Food and Drug Administration, the uncertainties inherent in the initiation of future clinical trials, availability and timing of data from ongoing and future clinical trials, the results of such trials, and their success, global public health crises, that may affect timing and status of our clinical trials and operations, whether preliminary results from a clinical trial will be predictive of the final results of that trial or whether results of early clinical trials or preclinical studies will be indicative of the results of later clinical trials, whether business development opportunities to expand the Company’s pipeline of drug candidates, including without limitation, through potential acquisitions of, and/or collaborations with, other entities occur, expectations for regulatory approvals, laws and regulations affecting government contracts and funding awards, availability of funding sufficient for the Company’s foreseeable and unforeseeable operating expenses and capital expenditure requirements and other factors discussed in the "Risk Factors" and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of filings that the Company makes with the Securities and Exchange Commission. Summit defines a “positive study” as a clinical study that with one or more prespecified primary endpoints in which one of those endpoints achieves a statistically significant benefit according to the protocol or statistical analysis plan. Any change to our ongoing trials could cause delays, affect our future expenses, and add uncertainty to our commercialization efforts, as well as to affect the likelihood of the successful completion of clinical development of ivonescimab. Accordingly, readers should not place undue reliance on forward-looking statements or information. In addition, any forward-looking statements included in this press release represent the Company’s views only as of the date of this release and should not be relied upon as representing the Company’s views as of any subsequent date. The Company specifically disclaims any obligation to update any forward-looking statements included in this press release.

Summit Therapeutics and the Summit Therapeutics logo are registered trademarks of Summit Therapeutics Inc. and/or its affiliates. Copyright 2026, Summit Therapeutics Inc. All Rights Reserved.

For most of the past three decades, U.S.-listed biotech companies were fair proxies for homemade American science. But now, that assumption is fraying. By one estimate from investment bank Jefferies, roughly a third of the industry's licensing spending in 2025 went toward drugs and candidates that originated in China, where lower costs and faster regulators have turned its labs into a firehose of ready-to-license molecules and programs.

In antibody-drug conjugates (ADCs) -- an increasingly sophisticated class of targeted therapies -- Chinese biotechs now supply close to 90% of global licensing activity. The question is, when you buy a U.S. biotech stock whose most promising programs were invented elsewhere, by another company, what are you actually holding?

In some cases, the answer to that question might contain an unpleasant surprise for investors, which is why this trend of importing innovation is also an emerging risk worth understanding.

Image source: Getty Images.

It's dangerous to bet that American biotechs will replicate foreign results Summit Therapeutics (SMMT +2.57%) is a biotech with an investment thesis that's almost entirely dependent on the success of ivonescimab, an antibody therapy for various cancers that it licensed from China's Akeso in 2022, paying $500 million up front and low-double-digit royalties on sales. Summit didn't discover the molecule; it bought the right to sell it in the U.S., Europe, and Japan.

In May 2025, according to the first peek, investors were given data from ivonescimab's global phase 3 trial for patients with previously treated, EGFR-mutated non-small cell lung cancer (NSCLC). Treatment with ivonescimab plus chemotherapy led to an impressive 48% gain in progression-free survival (PFS). But the data for overall survival (how long patients lived) did not pass the threshold for statistical significance.

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After the full trial data were presented later in the year, there was another, even larger issue: The cohorts of patients from Western countries saw only a 33% reduction in the risk of progression or death, versus a 45% reduction in Chinese patients, with the Western group's benefit not being statistically significant. And that's precisely the kind of discrepancy that regulators at the U.S. Food and Drug Administration (FDA) are likely to take issue with before they decide whether to approve ivonescimab, slated for mid-November of this year.

Similarly, shortly before that readout, an FDA panel ruled that a largely Asian data set supporting another cancer drug was inapplicable to U.S. patients, a precedent that now shadows every China-heavy trial and, by extension, nearly all trials of candidates licensed from China. Summit filed with the FDA for a narrower second-line use indication in early 2026, giving up some of its grander ambitions for ivonescimab.

Investors who bet that Akeso's data would be easy for Summit to replicate, leading to a low-risk, easy approval process for ivonescimab in the U.S., have not fared well. The biotech's stock is down 35% in the last 12 months. This emerging risk contributed to that decline, alongside a broadly weak biotech market and ivonescimab's survival shortfall.

Big pharma is vulnerable, too This risk applies to major pharma companies and stocks as well.

For instance, Merck (MRK +2.75%) has leaned hard on Chinese innovation, including with a seven-drug deal with Kelun-Biotech worth $175 million up front and up to $9.3 billion in milestones. It hasn't experienced any of the same problems as Summit did, at least not yet.

Still, this problem is not a passing phase; China's latest five-year plan, approved in 2026, names biotechnology a "frontier" priority. The supply of licensable assets will only grow from here. Many of the U.S. biopharmas that rely on those assets will satisfy the FDA that their candidates are safe and effective. Others will hit the same wall Summit did: Global populations and the way clinical trial sites operate from one country to the next vary enough that some mismatches are inevitable.

The best way for investors to protect themselves is to ask where a company's value comes from before buying any shares. A business that discovers, develops, and manufactures its own drugs deserves a richer valuation than a stack of licensed-in bets because the licensee carries extra risks related to royalties going to the originator and whether foreign data clears the FDA.

That doesn't make Summit or its peers uninvestable, but it does mean that many clinical-stage stocks will look cheap because someone else has built most of their underlying value, which can be problematic.

Shares of Summit Therapeutics PLC (SMMT - Free Report) have gained 8.8% over the past four weeks to close the last trading session at $17.54, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $29.31 indicates a potential upside of 67.1%.

The mean estimate comprises 15 short-term price targets with a standard deviation of $12.01. While the lowest estimate of $7.70 indicates a 56.1% decline from the current price level, the most optimistic analyst expects the stock to surge 156.6% to reach $45.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.

However, an impressive consensus price target is not the only factor that indicates a potential upside in SMMT. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why SMMT Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current year, four estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 10.4%.

Moreover, SMMT currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much SMMT could gain, the direction of price movement it implies does appear to be a good guide.

Summit Therapeutics Inc. (SMMT) Discusses Plenary Session Updates and Recent Clinical Data Following Major Oncology Congress Transcript

MIAMI--(BUSINESS WIRE)--Summit Therapeutics Inc. (NASDAQ: SMMT) today announced that it will participate in and present at the 47th Annual Goldman Sachs Global Healthcare Conference in Miami, Florida on Monday, June 8, 2026. Members of the Summit management team will participate in a fireside chat presentation at 10:00 AM ET, providing a corporate overview and update on recent progress, including the development of its innovative investigational bispecific antibody, ivonescimab.

The presentation will be available live through the company’s website: www.smmttx.com. An archived version of the presentation will be available on the website following the presentation.

About Summit Therapeutics Inc.

Summit Therapeutics Inc. is a biopharmaceutical oncology company focused on the discovery, development, and commercialization of patient-, physician-, caregiver- and societal-friendly medicinal therapies intended to improve quality of life, increase potential duration of life, and resolve serious unmet medical needs.

Summit was founded in 2003 and the company’s shares are listed on the Nasdaq Global Market (symbol "SMMT"). Summit is headquartered in Miami, Florida, with additional offices in Palo Alto, California, Princeton, New Jersey, Dublin, Ireland, and Oxford, UK.

For more information, please visit https://www.smmttx.com and follow Summit on X @SMMT_TX.

Summit Forward-Looking Statements

Any statements in this press release about the Company’s future expectations, plans and prospects, including but not limited to, statements about the clinical and preclinical development of the Company’s product candidates, entry into and actions related to the Company’s partnership with Akeso Inc. and other collaborations, the intended use of the net proceeds from the private placements, the Company's anticipated spending and cash runway, the therapeutic potential of the Company’s product candidates, the potential commercialization of the Company’s product candidates, the timing of initiation, completion and availability of data from clinical trials, the potential submission of applications for marketing approvals, the expected timing of BLA submissions or FDA decisions, potential acquisitions, statements about the previously disclosed At-The-Market equity offering program (“ATM Program”), the expected proceeds and uses thereof, the Company’s estimates regarding stock-based compensation, and other statements containing the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "would," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the Company’s ability to sell shares of our common stock under the ATM Program, the conditions affecting the capital markets, general economic, industry, or political conditions, including the effects of geopolitical developments, domestic and foreign trade policies, and monetary policies, the results of our evaluation of the underlying data in connection with the development and commercialization activities for ivonescimab, the outcome of discussions with regulatory authorities, including the Food and Drug Administration, the uncertainties inherent in the initiation of future clinical trials, availability and timing of data from ongoing and future clinical trials, the results of such trials, and their success, global public health crises, that may affect timing and status of our clinical trials and operations, whether preliminary results from a clinical trial will be predictive of the final results of that trial or whether results of early clinical trials or preclinical studies will be indicative of the results of later clinical trials, whether business development opportunities to expand the Company’s pipeline of drug candidates, including without limitation, through potential acquisitions of, and/or collaborations with, other entities occur, expectations for regulatory approvals, laws and regulations affecting government contracts and funding awards, availability of funding sufficient for the Company’s foreseeable and unforeseeable operating expenses and capital expenditure requirements and other factors discussed in the "Risk Factors" and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of filings that the Company makes with the Securities and Exchange Commission. Summit defines a “positive study” as a clinical study that with one or more prespecified primary endpoints in which one of those endpoints achieves a statistically significant benefit according to the protocol or statistical analysis plan. Any change to our ongoing trials could cause delays, affect our future expenses, and add uncertainty to our commercialization efforts, as well as to affect the likelihood of the successful completion of clinical development of ivonescimab. Accordingly, readers should not place undue reliance on forward-looking statements or information. In addition, any forward-looking statements included in this press release represent the Company’s views only as of the date of this release and should not be relied upon as representing the Company’s views as of any subsequent date. The Company specifically disclaims any obligation to update any forward-looking statements included in this press release.

Summit Therapeutics and the Summit Therapeutics logo are registered trademarks of Summit Therapeutics Inc. and/or its affiliates. Copyright 2026, Summit Therapeutics Inc. All Rights Reserved.

© ipopba / iStock via Getty Images

After years of lagging the market, healthcare may be taking on a new role in investor portfolios.

Speaking on CNBC, Mizuho healthcare strategist Jared Holz reframed the sector, arguing that years of underperformance have turned drug stocks from a defensive holding into something more interesting for growth-heavy portfolios. “I think you just have to look at health care as almost like a value sector,” Holz said, pointing to drug pricing pressure and managed care headwinds that have dragged on large-cap pharma while tech ripped higher.

The performance gap is hard to argue with. The Nasdaq-100 is up 63.91% over the past two years, while Merck stock has slipped 4.32% over the same window.

The Case for Healthcare as Value Many investors have spent the past several years concentrating heavily in technology, particularly AI-related stocks. As those positions have grown, healthcare has increasingly become the place where valuations appear more reasonable, and expectations have fallen.

“If you’re very, very full to the gills with growth and you want to take a little bit off and you’re trying to find some names that have underperformed, that’s really what it’s come down to,” Holz said.

He stopped short of predicting a major healthcare rally: “It’s sort of like it’s cheap. I’m not sure what it’s going to do. But if you want to take a small position as an offset, I guess.”

Holz is suggesting healthcare may serve as a counterbalance for investors whose portfolios have become heavily tilted toward growth and AI-related names.

Merck Could Be Interesting for Its Keytruda Franchise For investors looking at large-cap pharmaceuticals, Holz pointed to Merck (NYSE:MRK | MRK Price Prediction) as one of the clearest examples of a value opportunity. The stock trades at a forward P/E of 23 and carries a 2.74% dividend yield, while Wall Street’s average analyst price target of $129.74 sits above the current $115.17 price.

The bigger story, however, remains Merck’s flagship immunotherapy drug, Keytruda. “The thing that is sort of most resonating, maybe, is just the power of Merck’s Keytruda and the fact that there are so many companies that are using Keytruda as the backbone for their therapy. No one can seem to get the results that they want in monotherapy,” Holz said at ASCO. That dynamic forces would-be challengers into partnership rather than head-on competition.

Merck’s Q1 2026 revenue came in at $16.29 billion, beating the $15.82 billion estimate, with Keytruda franchise sales of $8.03 billion, up 12%. Merck raised its 2026 guidance to $65.8 billion to $67.0 billion in revenue and $5.04 to $5.16 in non-GAAP EPS.

Summit Represents a Higher-Risk Alternative Summit Therapeutics (NASDAQ:SMMT) sits at the other end of the spectrum, as a $12.48 billion market cap clinical-stage biotech trying to build a Keytruda challenger with ivonescimab, a bispecific PD-1/VEGF antibody licensed from Akeso. Shares are down 13.75% over the past year, with the analyst average target at $28.47 against a $15.71 close.

Summit presented HARMONi-6 overall survival data at the ASCO 2026 Plenary on May 31, and an FDA PDUFA decision on ivonescimab for EGFR-mutated NSCLC is set for November 14, 2026. Holz highlighted one of the key debates surrounding the story. Much of the company’s strongest data has come from studies conducted in China, raising questions about how those results will translate to Western patient populations and regulators. With $598.7 million in cash against a quarterly burn of $114.7 million, the runway is adequate, but the binary risk is real.

What to Watch Analyst Jared Holz sees value emerging after years of underperformance.

For investors whose portfolios have become increasingly concentrated in AI, software, and mega-cap technology stocks, healthcare offers exposure to a different set of drivers at valuations that often look more reasonable. Merck represents the higher-quality, cash-generating version of that idea, while Summit represents the higher-risk, catalyst-driven version.