Avalo Therapeutics, Inc.

Avalo Therapeutics, Inc. (AVTX) reported a net loss of $78.3 million for FY 2025, a $43.1 million increase from $35.1 million in FY 2024, driven by heightened research and development (R&D) expenses of $50.1 million (up $25.6 million YoY) tied to the Phase 2 LOTUS trial for lead candidate abdakibart (AVTX-009) in hidradenitis suppurativa (HS). Total revenues were minimal at $59K, reflecting legacy product wind-down, compared to $0.4 million in 2024. General and administrative expenses rose to $22.9 million (up $5.7 million YoY), primarily from stock-based compensation. Operating expenses totaled $73.0 million, yielding a $72.9 million operating loss. Other net expense of $5.2 million included a $9.5 million change in derivative liability fair value. Cash used in operations was $51.5 million, with $98.3 million in cash, cash equivalents, and short-term investments as of December 31, 2025, sufficient to fund operations into 2028. Balance sheet showed $116.5 million total assets and $83.0 million stockholders' equity. Forward-looking, focus remains on LOTUS topline data in Q2 2026 and Phase 3 planning, with no near-term revenue expected as a clinical-stage biotech.

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