CABA · Cabaletta Bio, Inc.

Cabaletta Bio reported a wider Q1 2026 operating loss of $44.3 million compared to $37.1 million in the prior year, driven by escalating research and development investments as the company advances its clinical pipeline. This expansion aligns with management's stated expectation that R&D expenses will continue to rise to support ongoing development activities, including a phase-appropriate manufacturing supply strategy featuring Process A for early clinical phases, Process B for initial commercial scalability, and Process C as a fully automated iteration. The absence of detailed expense breakdowns highlights the focus on clinical acceleration, which has intensified cash utilization without capital expenditures, dropping to zero from $0.8 million year-over-year to preserve liquidity.

Net income reflected a similar trajectory, reaching a $43.5 million loss versus $35.9 million last year, with diluted EPS showing improvement to -$0.39 from -$0.71 due to share count expansion. This per-share mitigation occurs even as absolute losses grow, illustrating the trade-off between scaling operations and shareholder dilution in a pre-revenue biotech context. Operating cash flows deteriorated to -$42.6 million from -$30.8 million, mirroring the net loss expansion and working capital needs, with free cash flow equivalent at -$42.6 million given no capex. The company maintains no credit facility or committed capital sources, emphasizing reliance on equity markets and careful cash management, where excess funds are invested prioritizing liquidity and preservation per policy.