0001193125-26-218200
SEC filingRevenue surged 332% year-over-year to $12.6 million, driven entirely by collaboration and license revenue under agreements with AbbVie and Gilead; however, operating losses widened slightly to $14.1 million as clinical development advanced, reflecting the higher costs typical of later-stage trials.
Revenue for Q1 FY2026 totaled $12.6 million, a 331.7% increase compared to $2.9 million in Q1 FY2025. This growth was entirely attributable to increased collaboration and license revenue recognized under our agreements with AbbVie and Gilead. As noted in Management’s Discussion and Analysis, such revenue recognition reflects progress against contractual milestones and deliverables, not product sales. The magnitude of the increase underscores the monetization of earlier-stage partnerships as programs mature — a core element of our capital-efficient development strategy.
Operating income for Q1 FY2026 was -$14.1 million, a modest decline from -$13.9 million in Q1 FY2025. This slight widening of the operating loss is consistent with the business context that product candidates in later stages of clinical development generally incur higher development costs due to the increased size and duration of trials. While specific expense line items are not disclosed in this filing, the directional trend aligns with anticipated resource deployment across advancing programs. Operating margin was -111.6%, reflecting the early-stage nature of our pipeline and the absence of commercial revenue.
Net income improved to -$9.5 million from -$13.3 million in Q1 FY2025, a 28.2% improvement year-over-year. This improvement was supported not only by higher revenue but also by an increase in other income, net — primarily interest income resulting from a higher average cash balance. As stated in Item 2, rising interest income contributes meaningfully to bottom-line results in periods where cash balances remain elevated, though it does not reflect operational leverage.
Net cash used in operating activities was $22.3 million, a reversal from $29.0 million provided in Q1 FY2025. This shift reflects the timing of cash receipts and payments associated with collaboration agreements — particularly the recognition of deferred revenue and milestone receipts — rather than a change in underlying operational cash burn rate. Free cash flow was -$22.9 million, calculated as operating cash flow less capital expenditures of $556,000. The low level of capital expenditures confirms no near-term investment in internal manufacturing capacity and continued reliance on external partners, including WuXi Biologics and Roche under the clinical supply agreement. As noted in Management’s Discussion, we remain subject to competitive wage pressures and inflationary cost trends, which may affect future R&D and compensation expenses.