OVID · Ovid Therapeutics Inc.

Ovid Therapeutics Inc., focused on discovering and developing differentiated small molecule medicines for neurological and neuropsychiatric disorders with significant unmet need, reported results for the quarter ended March 31, 2026 that underscore the capital-intensive nature of our clinical-stage operations.

Revenue fell to $0 from $130 thousand in the prior-year quarter, a -100% change, consistent with our pre-commercial profile where we generate no product sales and rely on external funding to advance our pipeline. This absence of revenue highlights our strategic emphasis on R&D over near-term commercialization, as our team leverages deep experience in epilepsies and other neurological conditions to target molecular mechanisms underlying patient symptoms.

Operating income declined to -$17.8 million from -$12.6 million, worsening by 42.2%. This deepening loss stems from our primary uses of capital—compensation, third-party clinical research and development services, clinical trial costs, legal and regulatory expenses, and general overhead—which we expect to continue driving negative operating results. General and administrative expenses encompass costs of operating as a public company, professional fees for auditing, tax and legal services, travel, conferences, and facilities, all of which contribute to our expense base amid inflationary pressures on clinical materials, supplies, interest rates, and overhead.

Net income followed suit, reaching -$17.0 million compared to -$10.2 million last year, a -66.0% deterioration. These results align with our history of recurring losses and negative operating cash flows, as significant cash resources are required to execute business plans in brain disorders with substantial unmet need. Net cash provided by operating activities was -$14.0 million, up from -$10.3 million used, reflecting heightened activity in our cohesive focus on scaling infrastructure to positively impact patients and create long-term stockholder value.

As of March 31, 2026, we maintained no long-term debt and no material non-cancelable purchase commitments, contracting generally on a cancellable purchase order basis to preserve flexibility. However, our failure to raise capital as needed could materially adversely affect our financial condition and business strategy. We may need additional cost preservation measures, such as further reducing operating expenses, delaying or altering R&D activities, or exploring strategic options, to address liquidity needs while advancing our pipeline.

This quarter's performance reinforces our belief in developing multiple novel medicines for disorders where we continue gaining insights into symptom-impacting pathways, even as losses deepen to fuel progress.