0001193125-26-212596
SEC filingNektar's Q1 2026 shows narrowing losses and stable revenue, driven by cost discipline and higher interest income, as the company funds a pivotal Phase 3 atopic dermatitis program.
Revenue for the first quarter of 2026 was $10.9 million, a 3.8% increase from $10.5 million in the same period of 2025. This revenue was entirely derived from non-cash royalty revenue, as no collaboration revenue was recognized during the quarter. The increase reflects stable royalty streams from existing partnerships.
Operating loss improved to $39.1 million from $44.5 million in the prior year, a 12.3% improvement. This was primarily driven by a decrease in general and administrative expenses, which benefited from lower legal expenses. The company continues to manage costs while advancing its pipeline.
Net loss narrowed to $44.9 million from $50.9 million in Q1 2025, an 11.7% improvement. The reduction was aided by higher interest income from invested equity proceeds, partially offset by ongoing R&D investments. Diluted EPS was -$1.82, compared to -$0.24 in the prior year, reflecting the impact of a higher share count following the equity raise.
Net cash used in operating activities was $44.3 million, compared to $49.1 million in Q1 2025, reflecting improved working capital management. Capital expenditures were minimal at $18,000. Free cash flow was -$44.3 million. The company has no credit facility or committed capital sources, relying on collaboration agreements and equity raises for funding. Management noted potential liquidity risks from adverse credit market conditions affecting marketable securities.
R&D expenses are not separately disclosed in the authoritative packet, but the company continues to advance its pipeline, including rezpegaldesleukin for atopic dermatitis. A two to five fold increase in EASI-100 response was observed in the 24 µg/kg q4w and q12w dosing regimens. The company expects personnel and overhead costs to increase in 2026 to support the Phase 3 program.
Cash and investments are not disclosed in the authoritative packet, but the company raised equity in prior periods to fund operations. The sale of the Huntsville manufacturing facility in December 2024 reduced operational footprint. The company continues to manufacture polymer reagents for certain drug products.
Nektar cannot forecast which drug candidates will be subject to future collaborations or how such arrangements would affect development plans or capital requirements. The 2022 and 2023 restructuring plans prioritized key R&D efforts, including rezpegaldesleukin, NKTR-255, NKTR-0165, and NKTR-0166. The company faces risks from credit market disruptions and reliance on collaboration revenue.