0001193125-26-103134
SEC filingCandel Therapeutics, Inc. reported a net loss of $38.2 million for the fiscal year ended December 31, 2025, an improvement from a net loss of $55.2 million in the prior year. The company generated no product revenue, with total operating expenses of $48.3 million, primarily driven by research and development costs of $30.5 million and general and administrative expenses of $17.8 million. The reduced net loss was significantly aided by a $10.1 million net gain from other income, which included a favorable $8.2 million change in the fair value of warrant liabilities and $3.9 million in interest income. The company ended the period with $119.7 million in cash and cash equivalents and total assets of $125.2 million, supported by $56.1 million in net cash provided by financing activities, including a new term loan and equity offerings.
Candel Therapeutics, Inc. is a clinical-stage biopharmaceutical company with no approved products and no revenue from product sales. For the fiscal year ended December 31, 2025, the company reported a net loss of $38.2 million, which represents an improvement from a net loss of $55.2 million in the prior year. This reduction in net loss was primarily driven by a $10.1 million net gain from other income, which included a favorable $8.2 million change in the fair value of warrant liabilities and $3.9 million in interest income, partially offset by $2.1 million in interest expense. Total operating expenses were $48.3 million, consisting of $30.5 million in research and development and $17.8 million in general and administrative expenses. The net loss per share, both basic and diluted, was $1, consistent with the prior year, based on 53.0 million weighted-average common shares outstanding.
The company has not generated any revenue from product sales and does not expect to do so in the foreseeable future. Its operations are entirely focused on the research and development of its product candidates, aglatimagene and linoserpaturev. The document does not disclose any segment or geographic revenue breakdown, as the company is pre-revenue. All financial activities are funded through equity and debt financing, as well as grant income, which amounted to $89,000 for the year.
As a pre-revenue company, traditional margin metrics like gross margin and operating margin are not applicable. The company's operating loss was $48.3 million for the year, reflecting its investment in clinical development and corporate operations. Research and development expenses increased by $11.2 million year-over-year to $30.5 million, driven by higher clinical development costs for the aglatimagene programs. General and administrative expenses increased by $3.7 million to $17.8 million, primarily due to commercial readiness costs and higher employee-related expenses. The company's accumulated deficit as of December 31, 2025, was $230.4 million.
Net cash used in operating activities was $38.3 million for the year, primarily driven by the net loss, adjusted for non-cash items including the change in warrant liabilities. Net cash used in investing activities was $560,000 for purchases of fixed assets. Net cash provided by financing activities was $56.1 million, stemming from $47.9 million in net proceeds from a term loan, $14.3 million from a registered direct offering, and other equity-related activities, partially offset by $11.7 million in principal payments on a prior loan. The company ended the period with $119.7 million in cash and cash equivalents and total assets of $125.2 million. Total liabilities were $73.3 million, including $46.1 million in term loans and $15.6 million in warrant liabilities. Stockholders' equity was $51.9 million.
The company anticipates that its existing cash and cash equivalents, together with the net proceeds from a February 2026 equity offering, will be sufficient to fund its operating plan into the first quarter of 2028. Key strategic priorities include advancing the late-stage development of aglatimagene for newly diagnosed, localized prostate cancer, with an anticipated Biologics License Application submission in the fourth quarter of 2026. The company also plans to initiate a pivotal Phase 3 trial for aglatimagene in non-small cell lung cancer in the second quarter of 2026 and continue the development of linoserpaturev for recurrent high-grade glioma. The company faces significant risks, including its dependence on the success of its lead product candidates, the need for substantial additional funding, intense competition, and the uncertainties of the regulatory approval process.