0001193125-26-205434
SEC filingSeres Therapeutics posted a net loss of $19.9M in Q1 2026, reflecting ongoing clinical-stage losses, but operating expenses declined as cost-cutting measures took effect.
Operating loss for Q1 2026 was $20.9 million, a 23% improvement from $27.2 million in Q1 2025. This narrowing reflects the impact of cost-cutting measures, including workforce reductions and the conclusion of the Transition Services Agreement (TSA) as of December 31, 2025. General and administrative expenses are expected to continue decreasing in 2026 as these initiatives take full effect. Research and development expenses may increase if the company resumes development of clinical or preclinical programs, but no such increases have occurred in the current quarter.
Net income was a loss of $19.9 million in Q1 2026, compared to a gain of $32.7 million in Q1 2025. The prior-year period benefited from the gain on sale of the VOWST business, which did not recur. The diluted EPS was $(2.08) versus $3.75 in the prior year, reflecting the swing to a net loss.
Net cash used in operating activities was $16.4 million in Q1 2026, compared to $26.9 million provided by operations in Q1 2025, which included proceeds from the VOWST sale. Capital expenditures were zero. Free cash flow was negative $16.4 million. Management has stated that based on currently available cash resources, the company will require additional funding after the third quarter of 2026, raising substantial doubt about its ability to continue as a going concern.
Revenue of $358,000 was entirely from a CARB-X grant supporting the development of SER-428, a liquid formulation for ICU patients. The company has no approved products following the sale of VOWST in September 2024, and all pipeline candidates are in early-stage clinical or preclinical development. No product revenue is expected in the near term.
Seres is prioritizing its inflammatory and immune disease programs, particularly SER-603 for IBD, which is in IND-enabling studies. The SER-155 Phase 2 study in allo-HSCT has been paused due to funding constraints, though the company continues to seek capital to restart it. An investigator-sponsored trial of SER-155 in immune checkpoint-related enterocolitis is fully enrolled, with initial data expected soon. The company's ability to advance any program depends on securing additional funding, which management acknowledges is uncertain. The outlook is heavily contingent on business development transactions or equity financing, with no guarantee of success.