Starling Oncology Posts Second Straight Positive Adjusted EBITDA, Raises Low End of FY26 Outlook
STLN has more than doubled off its 52-week low of $2.32.
Summary
Starling delivered Q3 revenue of $169.8 million, up 24.3% year over year, with specialty pharmacy revenue up 44% and capitated revenue up 40%. Adjusted EBITDA came in at positive $3.4 million versus a $3.5 million loss a year ago — the second consecutive positive quarter and well above the $0.5-$1.5 million outlook management had given. The medical loss ratio improved to 81.0% from 85.5% in Q2, though it remains far above the 67.8% of a year ago as the capitated mix grows. Guidance was tightened rather than broadly raised: FY26 revenue now $650-$660 million (from $650-$670 million), Adjusted EBITDA $4-$6 million (from $2-$7 million), and free cash flow $5-$10 million (from $5-$15 million). Q4 Adjusted EBITDA is guided to $3-$5 million as Florida delegated lives onboard, and management flagged MLR of 85%-90% for 2027 as new lives ramp. Net loss was still $15.7 million, or $(0.13) per share, and the balance sheet carries a $37.4 million stockholders' deficit with $72.5 million of long-term debt.
At the time of this announcement, STLN was trading at $6.41 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $669.9M. The 52-week trading range was $2.32 to $7.13. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.