Starling Oncology revenue rises 24.3% to $169.8 million in third quarter
Key Facts
Starling Oncology reported a 24.3% year-over-year increase in consolidated revenue to $169.8 million in the third quarter of 2026, alongside a narrower net loss and a positive adjusted earnings measure. In a statement published via GlobeNewswire, the company said basic and diluted loss per share was $0.13, compared with a loss of $0.14 in the same period of 2025. Net loss was $15.7 million, versus $16.5 million a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization, meanwhile, were $3.4 million, following a loss of $3.5 million in the third quarter of 2025. The company said the result exceeded its previous quarterly forecast range of $0.5 million to $1.5 million.
Gross profit rose 62.1% to $30.7 million, indicating that the measure improved faster than revenue during the quarter. The specialty pharmacy was a key sales driver, with revenue up 44% year over year to $109 million. Its gross margin was 24%, according to the company statement. Starling attributed the pharmacy's revenue growth primarily to increased capture of prescriptions written by its physicians. The results also came alongside expansion in its capitated care revenue, which posted year-over-year growth during the quarter.
Capitated care revenue grew 40% year over year, while the medical loss ratio improved to 81.0% in the third quarter from 85.5% in the second quarter. The ratio measures medical losses within the care business and moved in the opposite direction from the same period last year, when it was 67.8%. The company said the ratio improved sequentially, but its outlook points to a range of 85% to 90% in 2027 as new members are added. It also expects about $110 million in revenue from this business during 2026. Cash and cash equivalents totaled $36.9 million as of September 30, 2026.
The company kept its 2026 revenue range at $650 million to $660 million, compared with the previous range of $650 million to $670 million. At the same time, it raised its expected gross profit range to $107 million to $110 million, from $105 million to $110 million previously. It lowered its adjusted earnings before interest, taxes, depreciation and amortization range to $4 million to $6 million, compared with the prior range of $2 million to $7 million. It also narrowed its free cash flow outlook to $5 million to $10 million, from $5 million to $15 million. The revisions reflect a mixed reassessment of the annual outlook: narrower ranges for revenue, adjusted earnings and cash flow, alongside a higher floor for gross profit.
Starling said it expects adjusted earnings before interest, taxes, depreciation and amortization of $3 million to $5 million in the fourth quarter of 2026. The forecast takes into account, according to the company, the onboarding and expansion of referred members in Florida. The third quarter was the company's second consecutive quarter of positive adjusted earnings, the chief executive said. The company also announced that its Starling Nexus portal is available to in-network physicians in markets where it has delegated capitated payment arrangements. The portal allows physicians to submit prior authorization requests for review, the company said.
In the background to the results, Starling reported consolidated revenue of $161.3 million in the second quarter of 2026, up 34.6% from the same period a year earlier, and adjusted earnings before interest, taxes, depreciation and amortization of $229,000. The company said at the time that the quarter marked a turning point after the measure turned positive. It also announced that it had signed its first delegated capitated payment contracts outside Florida, in Nevada and Oregon. STLN shares closed at $6.94 in the November 4, 2026 session, according to EL7 data. Available data did not include a documented comparison with analysts' estimates for loss per share.