Upstream Bio, Inc.

Previous wording

You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report and with our audited consolidated financial statements and related notes for the year ended December 31, 2025 included in our Annual Report on Form 10-K. Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in the “Risk Factors” section of this Quarterly Report and our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, our actual results could differ materially from the results described in, or implied by, the forward-looking statements contained in the following discussion and analysis. Please also see the section titled “Special note regarding forward-looking statements” included elsewhere in this Quarterly Report.

Current wording

You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report and with our audited consolidated financial statements and related notes for the year ended December 31, 2025 included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (our “Annual Report”). Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in the “Risk Factors” section of this Quarterly Report and our Annual Report, our actual results could differ materially from the results described in, or implied by, the forward-looking statements contained in the following discussion and analysis. Please also see the section titled “Special Note Regarding Forward-Looking Statements” included elsewhere in this Quarterly Report.

Previous wording

We are a clinical-stage biotechnology company developing treatments for inflammatory diseases, with an initial focus on severe respiratory disorders. We are developing verekitug, the only known antagonist currently in clinical development that targets the receptor for Thymic Stromal Lymphopoietin (“TSLP”), a cytokine which is a clinically validated driver of inflammatory response positioned upstream of multiple signaling cascades that affect a variety of immune mediated diseases. Preclinical and clinical data to date demonstrate verekitug’s highly potent inhibition of the TSLP receptor, which we believe will translate to a differentiated product profile, including improved clinical outcomes, substantially extended dosing intervals and the potential to treat a broad spectrum of patients. We have advanced this highly potent monoclonal antibody into separate Phase 2 trials for the treatment of severe asthma, including a long-term safety and efficacy extension study (“Phase 2 LTE”), chronic rhinosinusitis with nasal polyps (“CRSwNP”), and chronic obstructive pulmonary disease (“COPD”). We reported positive top-line results in our CRSwNP Phase 2 trial in September 2025 and positive top-line results in our severe asthma Phase 2 trial in February 2026. We initiated our Phase 2 COPD trial in July 2025 and expect to report data from this trial in the second half of 2027. We plan to initiate dosing in Phase 3 trials in both severe asthma and CRSwNP in the first quarter of 2027, prioritizing a Phase 3 development strategy that focuses on maximizing efficacy in both indications, without biomarker restriction, with quarterly at-home administration. Our experienced team is committed to maximizing verekitug’s unique attributes to address the substantial unmet needs for patients underserved by today’s standard of care.

Current wording

We are a clinical-stage biotechnology company developing treatments for severe inflammatory respiratory diseases. We are developing verekitug, the only known antagonist currently in clinical development that targets the receptor for Thymic Stromal Lymphopoietin (“TSLP”), a cytokine which is a clinically validated driver of inflammatory response positioned upstream of multiple signaling cascades that affect a variety of immune mediated diseases. Preclinical and clinical data to date demonstrate verekitug’s highly potent inhibition of the TSLP receptor, which we believe will translate to a differentiated product profile, including improved clinical outcomes, substantially extended dosing intervals and the potential to treat a broad spectrum of patients. We have advanced this highly potent monoclonal antibody into separate Phase 2 trials for the treatment of severe asthma, including a long-term safety and efficacy extension study (“Phase 2 LTE”), chronic rhinosinusitis with nasal polyps (“CRSwNP”), and chronic obstructive pulmonary disease (“COPD”). We reported positive top-line results in our CRSwNP Phase 2 trial in September 2025 and positive top-line results in our severe asthma Phase 2 trial in February 2026, and we expect to report data from our Phase 2 LTE in the second half of 2027. We have completed enrollment in our Phase 2 COPD trial and expect to report data from this trial in the second half of 2027. We plan to initiate dosing in Phase 3 trials in both severe asthma and CRSwNP in the first quarter of 2027, prioritizing a Phase 3 development strategy that focuses on maximizing efficacy in both indications, without biomarker restriction, with quarterly at-home administration. Our experienced team is committed to maximizing verekitug’s unique attributes to address the substantial unmet needs for patients underserved by today’s standard of care.

Previous wording

Since our inception, we have devoted substantially all of our resources to organizing and staffing our company, business planning, raising capital, establishing licensing, building our proprietary platform technologies, developing verekitug, establishing our intellectual property portfolio, conducting research, preclinical studies, and clinical trials, establishing arrangements with third parties for the manufacture of verekitug and related raw materials, and providing general and administrative support for these operations. To date, we have financed our operations primarily through equity financings and the proceeds from our initial public offering (“IPO”). As of March 31, 2026, we have received an aggregate of $668.8 million from such transactions, including gross proceeds of $400.0 million from the issuance and sale of our redeemable convertible preferred stock and $268.8 million in net proceeds from the closing of our IPO.

Current wording

Since our inception, we have devoted substantially all of our resources to organizing and staffing our company, business planning, raising capital, establishing licensing, building our proprietary platform technologies, developing verekitug, establishing our intellectual property portfolio, conducting research, preclinical studies, and clinical trials, establishing arrangements with third parties for the manufacture of verekitug and related raw materials, and providing general and administrative support for these operations. To date, we have financed our operations primarily through equity financings and the proceeds from our initial public offering (“IPO”). As of June 30, 2026, we have received an aggregate of $670.9 million from such transactions, including gross proceeds of $400.0 million from the issuance and sale of our redeemable convertible preferred stock, $268.8 million in net proceeds from the closing of our IPO and $2.1 million in net proceeds from sales of common stock under our ATM Program (as defined below).

Previous wording

We have incurred significant net operating losses and negative cash flows since our inception. Our ability to generate product revenue sufficient to achieve profitability, if ever, will depend on the successful development, regulatory approval and eventual commercialization of verekitug and any other potential future product candidates, which we expect will take a number of years. For the three months ended March 31, 2026 and 2025, we reported net losses of $40.6 million and $27.3 million, respectively. Our net losses have resulted principally from costs incurred in our research and development activities. As of March 31, 2026, we had an accumulated deficit of $374.8 million, and we had cash, cash equivalents and short-term investments of $294.6 million. Based on our current operating plan, we believe that our existing cash and cash equivalents and short-term investments will be sufficient to fund our operating expenses and capital expenditure requirements through 2027.

Current wording

We have incurred significant net operating losses and negative cash flows since our inception. Our ability to generate product revenue sufficient to achieve profitability, if ever, will depend on the successful development, regulatory approval and eventual commercialization of verekitug and any other potential future product candidates, which we expect will take a number of years. For the three months ended June 30, 2026 and 2025, we reported net losses of $39.7 million and $40.0 million, respectively, and for the six months ended June 30, 2026 and 2025, we reported net losses of $80.3 million and $67.2 million, respectively. Our net losses have resulted principally from costs incurred in our research and development activities. As of June 30, 2026, we had an accumulated deficit of $414.5 million, and we had cash, cash equivalents and short-term investments of $261.3 million. Based on our current operating plan, we believe that our existing cash, cash equivalents and short-term investments will be sufficient to fund our operating expenses and capital expenditure requirements through 2027.

Previous wording

continue to conduct our ongoing clinical trials of verekitug, including our global Phase 2 clinical trials, as well as initiate and complete additional clinical trials of verekitug in new indications or patient populations;

Current wording

continue to conduct our ongoing clinical trials of verekitug, including our global Phase 2 and planned Phase 3 clinical trials, as well as initiate and complete additional clinical trials of verekitug in new indications or patient populations;

Previous wording

Below is a summary of the key terms for certain of our asset purchase and license agreements. For a more detailed description of these agreements, see the section titled “Business—Asset purchase and license agreements” included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Current wording

Below is a summary of the key terms for certain of our asset purchase and license agreements. For a more detailed description of these agreements, see the section titled “Business—Asset purchase and license agreements” included in our Annual Report.

Previous wording

During the three months ended March 31, 2026 and 2025, we received payments from Maruho in the amount of $0.7 million and $0.6 million, respectively.

Current wording

During the six months ended June 30, 2026 and 2025, we received payments from Maruho in the amount of $1.7 million and $1.2 million, respectively.

Previous wording

In October 2021, in connection with the Astellas Asset Purchase Agreement, we entered into a license agreement with Lonza Sales AG (“Lonza”) (as amended, the “Lonza License Agreement”). Pursuant to the Lonza License Agreement, we obtained a worldwide, non-exclusive, sublicensable (subject to Lonza’s right of pre-approval with respect to any sublicense of manufacturing activities) license to certain intellectual property rights owned by Lonza. Lonza was the originator of the master cell bank for the Compound developed by Astellas. As consideration for the rights and licenses granted to us under the Lonza License Agreement, we agreed to pay Lonza certain royalties and annual payments, both payable in Swiss francs, in respect of the manufacturing and sale of the Compound, such amounts to be determined by the party manufacturing the Compound, and range from no annual payment to up to a mid-six figure annual payment, and a less-than-one percent to a low-single-digit percentage royalty on net sales of the Compound. In accordance with the Lonza License Agreement, we entered into a sublicense with WuXi Biologics (Hong Kong) Limited to manufacture the Compound, requiring us to pay a mid-six-figure annual fee to Lonza pursuant to this provision. Any royalties due under the Lonza License Agreement are payable on a country-by-country basis until ten years from the first commercial sale of the Compound in that particular country. The Lonza agreement continues for an indefinite period of time unless otherwise terminated. We have the right to terminate the Lonza License Agreement at any time by providing prior written notice to Lonza. During each of the three months ended March 31, 2026 and 2025, we had $0.5 million included in accounts payable in connection with the annual payment pursuant to the Lonza License Agreement. These payments are recognized as research and development expense in the consolidated statements of operations and comprehensive loss. To date, we have not made any royalty payments to Lonza under the Lonza License Agreement.

Current wording

In October 2021, in connection with the Astellas Asset Purchase Agreement, we entered into a license agreement with Lonza Sales AG (“Lonza”) (as amended, the “Lonza License Agreement”). Pursuant to the Lonza License Agreement, we obtained a worldwide, non-exclusive, sublicensable (subject to Lonza’s right of pre-approval with respect to any sublicense of manufacturing activities) license to certain intellectual property rights owned by Lonza. Lonza was the originator of the master cell bank for the Compound developed by Astellas. As consideration for the rights and licenses granted to us under the Lonza License Agreement, we agreed to pay Lonza certain royalties and annual payments, both payable in Swiss francs, in respect of the manufacturing and sale of the Compound, such amounts to be determined by the party manufacturing the Compound, and range from no annual payment to up to a mid-six figure annual payment, and a less-than-one percent to a low-single-digit percentage royalty on net sales of the Compound. In accordance with the Lonza License Agreement, we entered into a sublicense with WuXi Biologics (Hong Kong) Limited to manufacture the Compound, requiring us to pay a mid-six-figure annual fee to Lonza pursuant to this provision. Any royalties due under the Lonza License Agreement are payable on a country-by-country basis until ten years from the first commercial sale of the Compound in that particular country. The Lonza agreement continues for an indefinite period of time unless otherwise terminated. We have the right to terminate the Lonza License Agreement at any time by providing prior written notice to Lonza. During each of the six months ended June 30, 2026 and 2025, we made an annual payment to Lonza in the amount of $0.5 million pursuant to the Lonza License Agreement. These payments are recognized as research and development expense in the consolidated statements of operations and comprehensive loss. To date, we have not made any royalty payments to Lonza under the Lonza License Agreement.

Previous wording

Collaboration revenue for the three months ended March 31, 2026 and 2025 was $1.0 million and $0.6 million, respectively. Revenue during each of the three months ended March 31, 2026 and 2025 was related to the work performed associated with our Phase 2 clinical trial and Phase 2 LTE study in patients with severe asthma under the Maruho License Agreement.

Current wording

Collaboration revenue for the three months ended June 30, 2026 and 2025 was $0.8 million and $0.9 million, respectively. Revenue during each of the three months ended June 30, 2026 and 2025 was related to the work performed associated with our Phase 2 clinical trial and Phase 2 LTE study in patients with severe asthma under the Maruho License Agreement.

Previous wording

The increase in direct costs of $5.3 million related to the COPD indication was primarily due to the continued progress associated with our Phase 2 clinical trial during the three months ended March 31, 2026, compared to the same period in 2025. The increase in direct costs of $0.7 million related to the asthma indication was primarily due to the continued progress associated with our Phase 2 LTE study in patients with severe asthma and the initiation of planning activities for our Phase 3 clinical trial during the three months ended March 31, 2026, partially offset by a decrease in direct costs due to wind down activities associated with our severe asthma Phase 2 clinical trial, compared to the same period in 2025. The decrease in direct costs of $1.7 million related to the CRSwNP indication was primarily due to wind down activities associated with our Phase 2 clinical trial during the three months ended March 31, 2026 compared to the same period in 2025.

Current wording

The increase in direct costs of $1.5 million related to the COPD indication was primarily due to the continued progress associated with our Phase 2 clinical trial during the three months ended June 30, 2026, compared to the same period in 2025. The decrease in direct costs of $0.3 million related to the asthma indication was primarily due to wind down activities associated with our severe asthma Phase 2 clinical trial, compared to the same period in 2025, partially offset by an increase in direct costs due to the continued progress associated with our Phase 2 LTE study in patients with severe asthma and the initiation of planning activities for our Phase 3 clinical trial during the three months ended June 30, 2026. The decrease in direct costs of $0.2 million related to the CRSwNP indication was primarily due to wind down activities associated with our Phase 2 clinical trial during the three months ended June 30, 2026 compared to the same period in 2025, partially offset by an increase in direct costs related to the initiation of planning activities for our Phase 3 clinical trial during the three months ended June 30, 2026.

Previous wording

General and administrative expenses were $8.1 million for the three months ended March 31, 2026 compared to $6.8 million for the three months ended March 31, 2025. The increase of $1.3 million was primarily driven by an increase in personnel expenses of $0.7 million due to increased headcount in our general and administrative functions. Personnel expenses for the three months ended March 31, 2026 and 2025 included stock-based compensation expense of $2.7 million and $2.2 million, respectively. Additionally, there was an increase of $0.5 million in professional fees primarily related to consulting costs and legal fees.

Current wording

General and administrative expenses were $7.1 million for the three months ended June 30, 2026 compared to $7.4 million for the three months ended June 30, 2025. The decrease of $0.3 million was primarily driven by a decrease of $0.9 million in professional fees primarily related to market research costs and legal fees during the three months ended June 30, 2026, compared to the same period in 2025, partially offset by an increase in personnel expenses of $0.6 million due to increased headcount in our general and administrative functions. Personnel expenses for the three months ended June 30, 2026 and 2025 included stock-based compensation expense of $2.4 million and $1.9 million, respectively.

Previous wording

Interest income was $3.1 million and $4.7 million for the three months ended March 31, 2026 and 2025, respectively, representing a decrease of $1.6 million. The decrease in interest income was due to decreased balances in our U.S. treasury securities, corporate debt securities and government agency bonds held during the three months ended March 31, 2026, as compared to the three months ended March 31, 2025.

Current wording

Interest income was $2.7 million and $4.4 million for the three months ended June 30, 2026 and 2025, respectively, representing a decrease of $1.8 million. The decrease in interest income was due to decreased balances in our U.S. treasury securities, corporate debt securities and government agency bonds held during the three months ended June 30, 2026, as compared to the three months ended June 30, 2025.

Previous wording

Research and development expenses were $36.6 million for the three months ended March 31, 2026 compared to $25.8 million for the three months ended March 31, 2025. The increase of $10.8 million was primarily driven by an increase of $4.3 million in expenses directly related to our verekitug program and $6.5 million of unallocated research and development expenses.

Current wording

Research and development expenses were $72.7 million for the six months ended June 30, 2026 compared to $63.7 million for the six months ended June 30, 2025. The increase of $9.0 million was primarily driven by an increase of $5.3 million in expenses directly related to our verekitug program and $3.7 million of unallocated research and development expenses.

Previous wording

The increase in personnel expenses of $3.5 million was primarily due to increased headcount in our research and development function. Personnel expenses for each of the three months ended March 31, 2026 and 2025 included stock-based compensation expense of $1.9 million and $0.5 million, respectively. The increase in manufacturing costs of $2.8 million was primarily attributable to an increase in CMO costs in support of the development of Phase 3 clinical material during the three months ended March 31, 2026, compared to the same period in 2025. The increase of $0.6 million in professional fees was primarily related to clinical consulting services to support our verekitug program.

Current wording

The increase in personnel expenses of $5.9 million was primarily due to increased headcount in our research and development function. Personnel expenses for each of the six months ended June 30, 2026 and 2025 included stock-based compensation expense of $3.9 million and $1.2 million, respectively. The decrease in manufacturing costs of $3.1 million was primarily attributable to a decrease in CMO costs in support of the development of Phase 3 clinical material during the six months ended June 30, 2026, compared to the same period in 2025. The increase of $1.4 million in professional fees was primarily related to preclinical and clinical consulting services to support our verekitug program.

Previous wording

We begin to separately track program expenses at development candidate nomination. Through March 31, 2026, we have incurred approximately $109.4 million, $48.6 million and $22.6 million in direct external expenses for the development of verekitug for severe asthma, COPD and CRSwNP, respectively, since their development candidate nominations.

Current wording

We begin to separately track program expenses at development candidate nomination. Through June 30, 2026, we have incurred approximately $122.3 million, $57.0 million and $24.6 million in direct external expenses for the development of verekitug for severe asthma, COPD and CRSwNP, respectively, since their development candidate nominations.

Previous wording

Since our inception, we have incurred significant operating losses. We have not yet commercialized verekitug and we do not expect to generate revenue from product sales of verekitug for the next several years, if at all. To date, we have funded our operations primarily through equity financings and the proceeds from our IPO. Through March 31, 2026, we have received an aggregate of $668.8 million from such transactions, including gross proceeds of $400.0 million from the issuance and sale of our redeemable convertible preferred stock and $268.8 million in net proceeds from the closing of our IPO. As of March 31, 2026, we had cash, cash equivalents and short-term investments of $294.6 million.

Current wording

Since our inception, we have incurred significant operating losses. We have not yet commercialized verekitug and we do not expect to generate revenue from product sales of verekitug for the next several years, if at all. To date, we have funded our operations primarily through equity financings, proceeds from our IPO and sales of our common stock pursuant to the ATM Program. Through June 30, 2026, we have received an aggregate of $670.9 million from such transactions, including gross proceeds of $400.0 million from the issuance and sale of our redeemable convertible preferred stock, $268.8 million in net proceeds from the closing of our IPO and $2.1 million from sales of common stock under the ATM Program. As of June 30, 2026, we had cash, cash equivalents and short-term investments of $261.3 million.

Previous wording

On November 5, 2025, we filed an automatic shelf registration statement on Form S-3ASR (the “2025 Shelf”), including the base prospectus included therein (File No. 333-291267), with the SEC, pursuant to which we may issue shares of our common stock, preferred stock, debt securities, warrants and/or units, which became automatically effective upon filing pursuant to Rule 462(e) of the Securities Act. On March 26, 2026, we entered into a Sales Agreement (the “Sales Agreement”) with Leerink Partners LLC, acting as our sales agent and/or principal (the “Sales Agent”), with respect to an “at-the-market offering” program under which we may, from time to time, at our sole discretion, offer and sell shares of our common stock having an aggregate offering price of up to $150.0 million through the Sales Agent (the “ATM Program”). In connection with the ATM Program, we filed a prospectus supplement with the SEC on March 26, 2026 (the “ATM Prospectus”) for the offer and sale of up to $150.0 million of shares of our common stock from time to time through the Sales Agent (the “ATM Shares”). The Sales Agent has agreed to use its commercially reasonable efforts consistent with its normal trading and sales practices to sell the ATM Shares based upon our instructions. We are not obligated to make any sales of the ATM Shares under the Sales Agreement. Pursuant to the Sales Agreement, the offer and sale, if any, of the ATM Shares will be made pursuant to the 2025 Shelf, as supplemented by the ATM Prospectus, including the base prospectus contained therein. As of March 31, 2026 and as of the date these condensed consolidated financial statements are issued, we have not sold any shares under the ATM Program.

Current wording

On November 5, 2025, we filed an automatic shelf registration statement on Form S-3ASR (the “2025 Shelf”), including the base prospectus included therein (File No. 333-291267), with the SEC, pursuant to which we may issue shares of our common stock, preferred stock, debt securities, warrants and/or units, which became automatically effective upon filing pursuant to Rule 462(e) of the Securities Act. On March 26, 2026, we entered into a Sales Agreement (the “Sales Agreement”) with Leerink Partners LLC, acting as our sales agent and/or principal (the “Sales Agent”), with respect to an “at-the-market offering” program under which we may, from time to time, at our sole discretion, offer and sell shares of our common stock having an aggregate offering price of up to $150.0 million through the Sales Agent (the “ATM Program”). In connection with the ATM Program, we filed a prospectus supplement with the SEC on March 26, 2026 (the “ATM Prospectus”) for the offer and sale of up to $150.0 million of shares of our common stock from time to time through the Sales Agent (the “ATM Shares”). The Sales Agent will be entitled to a commission of up to 3.0% of the gross proceeds from each sale of the ATM Shares effectuated through or to the Sales Agent selling the ATM Shares. We are not obligated to make any sales of the ATM Shares under the Sales Agreement. As of June 30, 2026, we have sold 239,797 shares of common stock under the ATM Program for aggregate net proceeds of approximately $2.1 million, after deducting approximately $0.1 million of commissions paid to the Sales Agent.

Previous wording

During the three months ended March 31, 2025, operating activities used $41.2 million of cash, resulting primarily from our net loss of $27.3 million, changes in operating assets and liabilities of $15.0 million and non-cash amortization of premiums and accretion of discounts on short-term investments of $1.7 million, partially offset by non-cash stock-based compensation expense of $2.6 million. Net cash used in changes in operating assets and liabilities was primarily driven by a $13.7 million increase in prepaid expenses and other current assets due to upfront payments to CROs for planning activities associated with our COPD Phase 2 trial and our Phase 2 LTE study in patients with severe asthma and a $1.9 million decrease in accrued expenses and other current liabilities, partially offset by a $0.7 million increase in accounts payable.

Current wording

During the six months ended June 30, 2026, operating activities used $83.5 million of cash, resulting primarily from our net loss of $80.3 million, changes in operating assets and liabilities of $11.8 million and non-cash amortization of premiums and accretion of discounts on short-term investments of $0.8 million, partially offset by non-cash stock-based compensation expense of $9.0 million. Net cash used in changes in operating assets and liabilities was primarily driven by a $7.9 million increase in prepaid expenses and other current assets largely due to upfront payments to CROs for activities associated with our COPD Phase 2 trial and a $3.1 million decrease in accrued expenses and other current liabilities.

Previous wording

During the three months ended March 31, 2026, operating activities used $47.9 million of cash, resulting primarily from our net loss of $40.6 million, changes in operating assets and liabilities of $11.4 million and non-cash amortization of premiums and accretion of discounts on short-term investments of $0.8 million, partially offset by non-cash stock-based compensation expense of $4.6 million. Net cash used in changes in operating assets and liabilities was primarily driven by a $11.0 million increase in prepaid expenses and other current assets due to upfront payments to CROs for activities associated with our COPD Phase 2 trial and our Phase 2 LTE study in patients with severe asthma, a $1.0 million decrease in accounts payable and a $0.4 million increase in accounts receivable, partially offset by a $1.2 million increase in accrued expenses and other current liabilities.

Current wording

During the six months ended June 30, 2025, operating activities used $80.4 million of cash, resulting primarily from our net loss of $67.2 million, changes in operating assets and liabilities of $16.0 million and non-cash amortization of premiums and accretion of discounts on short-term investments of $2.7 million, partially offset by non-cash stock-based compensation expense of $5.2 million. Net cash used in changes in operating assets and liabilities was primarily driven by a $15.7 million increase in prepaid expenses and other current assets due to upfront payments to CROs for planning activities associated with our COPD Phase 2 trial and our Phase 2 LTE study in patients with severe asthma, a $1.5 million increase in accounts payable, a $0.3 million increase in accounts receivable, and a $0.3 million decrease in operating lease liabilities, partially offset by a $1.7 million increase in accrued expenses and other current liabilities.

Previous wording

During the three months ended March 31, 2026, net cash provided by investing activities was $42.4 million, consisting primarily of maturities of short-term investments of $56.8 million, net of purchases of short-term investments of $14.4 million.

Current wording

During the six months ended June 30, 2026, net cash provided by investing activities was $58.2 million, consisting primarily of maturities of short-term investments of $123.5 million, net of purchases of short-term investments of $65.4 million.

Previous wording

During the three months ended March 31, 2025, net cash used in investing activities was $213.4 million, consisting of purchases of short-term investments of $266.1 million, net of maturities of short-term investments of $52.7 million.

Current wording

During the six months ended June 30, 2025, net cash used in investing activities was $200.6 million, consisting primarily of purchases of short-term investments of $323.1 million, net of maturities of short-term investments of $122.6 million.

Previous wording

During the three months ended March 31, 2026, net cash provided by financing activities was $0.6 million, consisting of net proceeds from the exercise of stock options.

Current wording

During the six months ended June 30, 2025, net cash provided by financing activities was $0.6 million, consisting primarily of $0.6 million in net proceeds from the exercise of stock options.

Previous wording

During each of the three months ended March 31, 2026 and 2025, we did not make any royalty payments to Lonza under the Lonza License Agreement. The Lonza agreement continues for an indefinite period of time unless otherwise terminated. We have the right to terminate the Lonza License Agreement at any time by providing prior written notice to Lonza.

Current wording

During each of the six months ended June 30, 2026 and 2025, we did not make any royalty payments to Lonza under the Lonza License Agreement. The Lonza agreement continues for an indefinite period of time unless otherwise terminated. We have the right to terminate the Lonza License Agreement at any time by providing prior written notice to Lonza.

Previous wording

During each of the three months ended March 31, 2026 and 2025, we had $0.5 million included in accounts payable in connection with the annual license payment pursuant to the Lonza License Agreement. These payments were recognized as research and development expense in the condensed consolidated statements of operations and comprehensive loss.

Current wording

During each of the six months ended June 30, 2026 and 2025, we made an annual payment to Lonza in the amount of $0.5 million pursuant to the Lonza License Agreement. These payments were recognized as research and development expense in the condensed consolidated statements of operations and comprehensive loss.

Previous wording

During the three months ended March 31, 2026, there were no material changes to our critical accounting policies and significant judgments described under Management’s Discussion and Analysis of Financial Conditions and Results of Operations—Critical accounting estimates and significant judgments included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Current wording

During the six months ended June 30, 2026, there were no material changes to our critical accounting policies and significant judgments described under Management’s Discussion and Analysis of Financial Conditions and Results of Operations—Critical accounting estimates and significant judgments included in our Annual Report.

Previous wording

A description of recently issued accounting pronouncements that may potentially impact our financial position and results of operations is disclosed in Note 2 to our consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Current wording

A description of recently issued accounting pronouncements that may potentially impact our financial position and results of operations is disclosed in Note 2 to our consolidated financial statements included in our Annual Report.