Legend Biotech (NASDAQ: LEGN) flips to a quarterly profit as CARVYKTI sales climb 36%

What happened

Legend Biotech Corporation (NASDAQ: LEGN) reported third-quarter net income of $51.7 million, reversing a $39.6 million loss a year earlier. Earnings were $0.13 a share, against a loss of $0.11.

Sales of the multiple myeloma treatment CARVYKTI drove the top line. Net trade sales rose 36% from the third quarter of 2025 to approximately $710 million. U.S. sales rose 19% and sales outside the U.S. rose 86%. The treatment is now available at 373 sites in 20 markets.

Under its agreement with Janssen, Legend books its 50% share of those sales as collaboration revenue. That revenue was $353.2 million, up $91.4 million from $261.8 million a year earlier, a 34.9% rise by OptimistFi's calculation. Total revenue was $359.5 million.

The quarter also brought a leadership change. Ingrid Zhang became chief executive officer effective Sept. 15. She succeeds Alan Bash, who had been interim CEO since July and returned to his role as President, CARVYKTI.

Key numbers

Metric	Latest	Change	Source
CARVYKTI net trade sales, Q3 2026	approximately $710 million	+36%	SEC 6-K, Exhibit 99.1
Collaboration revenue, Q3 2026	$353.2 million	from $261.8 million, +34.9%	Calculated from SEC 6-K
Operating income (loss), Q3 2026	$46.8 million	from -$43.3 million, +$90.1 million	SEC 6-K, Exhibit 99.1
Net income (loss), Q3 2026	$51.7 million	from -$39.6 million, +$91.3 million	SEC 6-K, Exhibit 99.1
Cash and cash equivalents, Sept. 30, 2026 (prior figure is Dec. 31, 2025)	$460.7 million	from $901.9 million, -48.9%	Calculated from SEC 6-K
Net cash used in operating activities, nine months	-$141.9 million	from -$88.0 million, -$53.9 million	Calculated from SEC 6-K

Read more: Legend Biotech (LEGN) company research

Where the profit came from

Operating income was $46.8 million, compared with an operating loss of $43.3 million in the third quarter of 2025. The company credits higher gross profit from CARVYKTI, lower research and development expenses and lower administrative expenses. It says net income rose $91.3 million, mainly because of that operating improvement.

Cost of collaboration revenue rose $33.8 million to $147.0 million, reflecting Legend's share of CARVYKTI cost of sales. That is a slower rise than collaboration revenue posted.

Research and development spending fell to $95.3 million from $113.2 million as patient dosing in major cilta-cel trials substantially concluded. More work on in vivo CAR-T programs partly offset the decline.

Administrative expenses fell to $14.8 million from $34.7 million. The main reason was lower share-based compensation, after certain unvested equity awards were forfeited and expense booked earlier was reversed. Higher professional fees partly offset that. The $19.9 million drop equals 22.1% of the $90.1 million operating swing, so part of the improvement comes from that reversal rather than from CARVYKTI sales.

Adjusted net income, a non-IFRS measure, was $55.6 million against an adjusted net loss of $18.7 million. That $74.3 million improvement is smaller than the net income swing because of a lower share-based compensation adjustment, the company says.

Over nine months, Legend earned $30.6 million against a $266.0 million loss a year earlier. The 2025 period included an unrealized foreign exchange loss of $162.6 million, according to the company's reconciliation.

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Guideline and trial support for CARVYKTI

Updated NCCN guidelines say current data suggest CAR-T is preferred when both BCMA CAR-T therapy and T-cell engagers are viable options. The guidelines also recommend that all multiple myeloma patients be referred to a T-cell therapy capable center at first relapse.

In the CARTITUDE-2 Cohort A study, 10 of 20 patients (50%) remained alive and progression-free without further anti-myeloma treatment five years after one infusion. Median follow-up was 60.7 months. Since the earlier analysis, one patient developed acute myeloid leukemia and two patients died, one from progressive disease and one from new cancer.

Separately, the FDA cleared an IND application for LB2501, an in vivo CAR-T therapy for relapsed or refractory B-cell malignancies. Early data presented in June support a planned Phase I/II trial in the U.S.

What the cash shows

Cash and cash equivalents fell to $460.7 million at Sept. 30 from $901.9 million at Dec. 31, 2025. Time deposits rose to $391.8 million from $46.7 million. The company puts cash plus time deposits at approximately $853 million.

Operating activities used $141.9 million in cash over nine months, against $88.0 million used a year earlier. In the third quarter alone they used $35.9 million, against $28.8 million provided in the third quarter of 2025.

Legend raised $211.6 million, net, from issuing ordinary shares this year. It also repaid $89.3 million of debt in cash and $196.1 million in a non-cash repayment.

Why it matters

OptimistFi has argued that Legend is a bet on CARVYKTI staying a preferred, scalable BCMA CAR-T therapy long enough to produce durable profits. The quarter supports both halves. The NCCN preference and faster growth outside the U.S. speak to preference and scale, and operating income turned positive.

Two caveats limit that read. Operations used cash even in a profitable quarter, and the compensation reversal lifted reported profit. The quarter shows momentum, not yet proof of self-funded profitability.

What's next

Legend's next quarterly report will show whether CARVYKTI sales growth, operating profit and cash use hold. Among its forward-looking statements, the company lists achieving profitability in 2026 and funding operations beyond 2026.

Another profitable quarter with smaller operating cash outflows would strengthen the case. A return to operating losses or a faster drop in cash would weaken it.

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