0001193125-26-104156
SEC filingKorro Bio, Inc. reported a net loss of $117.3 million for fiscal year 2025, a significant increase from the $83.6 million loss in 2024. The company generated $6.4 million in collaboration revenue, primarily from its agreement with Novo Nordisk, but this was offset by total operating expenses of $128.2 million. Key expense drivers included a $30.9 million long-lived asset impairment charge related to the termination of its KRRO-110 program and a strategic restructuring, a $65.6 million investment in research and development, and $28.2 million in general and administrative costs. The company ended the year with $113.5 million in total assets, including $82.4 million in current assets, and $51.4 million in stockholders' equity. Net cash used in operating activities was $78.6 million. The company's liquidity position is supported by its existing cash, cash equivalents, and marketable securities, which it expects will fund operations for at least 12 months from the financial statement issuance date.
Korro Bio, Inc. reported a net loss of $117.3 million for the fiscal year ended December 31, 2025, compared to a net loss of $83.6 million in 2024, representing a 40% year-over-year increase in losses. The company generated $6.4 million in collaboration revenue, a significant increase from $2.3 million in 2024, primarily from its agreement with Novo Nordisk. Total operating expenses were $128.2 million, up from $94.2 million in 2024, driven by a $30.9 million long-lived asset impairment charge, $65.6 million in research and development expenses, $28.2 million in general and administrative expenses, and a $3.6 million restructuring charge. Other income contributed $5.2 million, down from $8.5 million in 2024. The company's comprehensive loss was $117.3 million for 2025.
The company's revenue consists entirely of collaboration revenue, which increased to $6.4 million in 2025 from $2.3 million in 2024. This revenue is derived from the research collaboration and license agreement with Novo Nordisk, which includes a $10.0 million upfront payment and estimated research services. The company recognized revenue over time using the input method based on costs incurred. In November 2025, the company and Novo Nordisk agreed to pause the collaboration for 12 months, with the company expected to recognize remaining revenue through 2028. The company had $7.8 million in noncurrent deferred revenue as of December 31, 2025.
The company operates at a loss with no gross profit reported. Operating loss was $121.9 million in 2025, compared to $91.9 million in 2024. The significant increase in operating loss was primarily due to the $30.9 million long-lived asset impairment charge recorded in the fourth quarter of 2025, related to the termination of the KRRO-110 program and strategic restructuring. Research and development expenses remained relatively stable at $65.6 million compared to $63.6 million in 2024, while general and administrative expenses decreased slightly to $28.2 million from $30.5 million in 2024. The company's net loss margin, calculated as net loss divided by revenue, was substantial given the minimal revenue base.
Net cash used in operating activities was $78.6 million in 2025, compared to $60.1 million in 2024. The company generated $44.0 million in net cash from investing activities, primarily from maturities of marketable securities, and $0.7 million from financing activities from stock option exercises. Cash, cash equivalents, and restricted cash decreased by $33.8 million to $25.2 million at year-end. Total assets were $113.5 million, down from $226.2 million in 2024, with current assets of $82.4 million including $21.8 million in cash and $53.3 million in short-term marketable securities. Total liabilities were $62.1 million, including $40.8 million in operating lease liabilities. Stockholders' equity was $51.4 million, down from $160.4 million in 2024, with an accumulated deficit of $383.8 million.
The company's financial statements are prepared on a going concern basis, with management expecting existing cash, cash equivalents, and marketable securities to fund operations for at least 12 months from the financial statement issuance date. The company anticipates continued operating losses and negative cash flows into the foreseeable future. Future viability depends on generating cash from operations or raising additional capital. The company has implemented strategic restructuring to extend cash runway, including workforce reductions. Subsequent events include a January 2026 at-the-market equity sale generating $5.1 million and a March 2026 private placement generating approximately $85.0 million in gross proceeds. The company faces risks common to biotechnology companies, including dependence on successful research and development, regulatory approval, and additional financing.