0001534120-26-000011
SEC filingAvalo 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.
Avalo Therapeutics reported FY2025 net loss of $78.3M, widening from $35.1M in FY2024 by $43.1M, primarily due to R&D escalation for the Phase 2 LOTUS trial of abdakibart (AVTX-009). Revenues dropped to $59K from $0.4M YoY amid legacy product phase-out. Total operating expenses hit $73.0M (up significantly YoY), with R&D at $50.1M (+$25.6M) and G&A $22.9M (+$5.7M). Operating loss was $72.9M. Other net expense $5.2M reflected derivative liability changes. Cash burn from operations was $51.5M, offset by $14.6M financing inflows; ending cash position $98.3M supports runway into 2028.
Revenues were negligible at $59K in FY2025, down from $0.4M in 2024, stemming from adjustments to legacy Millipred® commercial liabilities post-expiration of its license in September 2023. No ongoing product sales; focus is clinical-stage with no segmented revenue breakdown disclosed. Future revenues hinge on abdakibart commercialization, absent in current period.
Minimal revenues yielded no meaningful gross margin (cost of sales $0). Operating margin deeply negative at approximately -123,729% implicitly, driven by high fixed R&D costs. No YoY margin comparability due to low revenue base. Profitability elusive pre-commercialization; net loss per share stable at -$6 on 13.4M shares.
Operating cash outflow $51.5M reflected trial investments. Investing outflow $81.7M from $113.7M investment purchases (net of $32.0M maturities). Financing inflow $14.6M via ATM sales. Total cash/restricted/decrease $118.6M, ending $15.9M cash + $82.5M short-term investments. Balance sheet: $116.5M assets (current $105.3M), liabilities $33.4M (current $12.9M), equity $83.0M. No debt; liquidity solid.
Management eyes LOTUS topline Q2 2026, Phase 3 planning. Cash funds to 2028 barring acceleration. Risks: trial outcomes, funding needs for Phase 3. No guidance on revenues; strategic focus on HS pipeline advancement, potential expansions.