0001193125-26-214816
SEC filingDecoy Therapeutics reported deeper operating and net losses in Q1 FY2026 versus Q1 FY2025, with operating income at -$2.3M and net income at -$2.2M — reflecting continued pre-revenue investment and a significant year-over-year decline in diluted EPS to $-4.18.
Since inception, Decoy Therapeutics has incurred operating losses and anticipates continuing to incur losses for the foreseeable future. This structural dynamic underpins all financial results in Q1 FY2026. The Company’s cash, cash equivalents, and restricted cash balance decreased during the three months ended March 31, 2026, primarily due to cash used in operating activities — a pattern consistent with its pre-revenue, clinical-stage development profile.
Operating income for Q1 FY2026 was -$2.3M, compared to -$1.7M in Q1 FY2025 — a 32.9% deterioration on a percentage basis. Net income was -$2.2M, versus -$1.7M in the prior-year quarter, representing a 30.1% increase in loss magnitude. These results reflect the absence of revenue and the sustained investment required to advance the Company’s pipeline. Diluted EPS was $-4.18, down sharply from $-1.03 in Q1 FY2025; this decline stems from both the larger net loss and an expanded weighted-average share count, including shares issued in connection with prior corporate actions.
Net cash used in operating activities was -$2.9M for Q1 FY2026, compared to -$1.2M in Q1 FY2025. This increase in outflow is directly tied to the Company’s operational scale-up and reflects the timing and magnitude of expenditures necessary to support development activities. Management confirms this use of cash is the primary driver behind the reduction in cash and cash equivalents during the period.
The Company reiterates that it will need to raise additional capital to continue funding the further development of product candidates and its operations. There is no anticipated near-term revenue path, and the business remains fully dependent on external financing. Management notes its intention to file an IND application with the FDA or a CTA in Europe during the first half of 2027 — a milestone that will require continued investment and further capital deployment. Given the current trajectory of operating losses and cash consumption, liquidity planning remains tightly coupled to capital-raising execution.