0001193125-26-093992
SEC filingLineage Cell Therapeutics reported a net loss attributable to Lineage of $63.5 million for FY 2025, a significant increase from an $18.6 million loss in FY 2024. Total revenues grew 53% year-over-year to $14.6 million, primarily driven by a $5.5 million increase in collaboration revenues, including a $5.0 million milestone payment from Roche and $2.5 million from a new research collaboration with WDI. However, operating expenses surged 65% to $51.2 million, largely due to a $14.8 million non-cash impairment charge for the abandoned VAC platform and increased R&D spending. The company ended the year with $55.8 million in cash, cash equivalents, and marketable securities, which it believes is sufficient to fund operations for at least the next twelve months.
Lineage Cell Therapeutics reported a challenging FY 2025 with a net loss attributable to Lineage of $63.5 million, significantly wider than the $18.6 million loss in FY 2024. Total revenues increased 53% to $14.6 million, driven by collaboration revenues which grew 67% to $13.6 million. This growth was primarily due to a $5.0 million milestone payment from Roche and $2.5 million from a new research collaboration with WDI. However, operating expenses surged 65% to $51.2 million, largely due to a $14.8 million non-cash impairment charge for the abandoned VAC platform and increased R&D spending. The company's loss from operations was $36.6 million, compared to $21.5 million in the prior year.
Revenue growth was entirely driven by collaboration agreements, which accounted for $13.6 million of the $14.6 million total. The $5.5 million year-over-year increase in collaboration revenue came from multiple sources: $4.6 million recognized from the $5.0 million Roche milestone payment, $2.5 million from the WDI research collaboration, and approximately $0.7 million from remaining deferred revenue recognized upon termination of the ITI Agreement. These gains were partially offset by approximately $2.4 million in lower revenue recognized from deferred revenue under the Roche Agreement. Royalty, license and other revenues decreased 30% to $947,000. The company noted that $2.5 million of its revenues were attributed to countries outside the United States.
The company's operating margin was -251.5% as operating losses of $36.6 million far exceeded total revenues of $14.6 million. Research and development expenses increased 42% to $17.7 million, with the OpRegen program accounting for 43% ($7.7 million) of total R&D spend. General and administrative expenses remained relatively stable at $18.5 million, up only 2% year-over-year. The significant $14.8 million impairment charge for the VAC platform intangible asset represented a major non-cash expense that negatively impacted profitability. The company continues to operate at a loss as it invests in clinical development programs.
Net cash used in operating activities was $18.9 million in FY 2025, an improvement from $23.1 million in FY 2024. The company ended the year with $55.8 million in cash, cash equivalents, and marketable securities, including $40.8 million in cash and cash equivalents and $15.0 million in marketable securities. Total assets were $112.6 million, with intangible assets (net) of $31.7 million and goodwill of $10.7 million. Total liabilities were $69.2 million, including $43.9 million in warrant liabilities. Shareholders' equity was $43.3 million. The company raised $26.9 million in net cash from financing activities, primarily through equity offerings.
The company expects to continue incurring losses for at least the next several years as it advances clinical development programs. Management believes the $55.8 million in cash, cash equivalents, and marketable securities at December 31, 2025, will be sufficient to fund planned operations through at least twelve months from the issuance date of the financial statements. The company faces risks including political and economic conditions in Israel where its manufacturing operations are located, potential disruptions from regional conflicts, and the need for additional capital to fund operations. Lineage may seek additional funding through equity offerings, debt financings, government grants, or strategic alliances, though such actions could dilute existing shareholders or require unfavorable terms.