Septerna, Inc.

Previous wording

Our net loss was $21.7 million and $46.3 million for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, we had an accumulated deficit of $188.9 million. We have incurred net losses in each year since inception, except for the year ended December 31, 2023. We expect to continue to incur net losses for the foreseeable future. Our net losses may fluctuate significantly from period to period, depending on the timing and expenditures of our operational activities.

Current wording

Our net loss was $48.3 million and $38.1 million for the nine months ended September 30, 2026 and 2025, respectively. As of September 30, 2026, we had an accumulated deficit of $215.5 million. We have incurred net losses in each year since inception, except for the year ended December 31, 2023. We expect to continue to incur net losses for the foreseeable future. Our net losses may fluctuate significantly from period to period, depending on the timing and expenditures of our operational activities.

Previous wording

During the three and six months ended June 30, 2026, we sold 380,172 shares of common stock under the ATM Program at a weighted average price of $36.34 per share, generating net proceeds of $13.8 million. Subsequently, in July 2026, the Company sold an additional 935,730 shares of common stock under the ATM Program for net proceeds of $33.7 million. Sales commissions incurred under the ATM Program were immaterial.

Current wording

During the three months ended September 30, 2026, we sold 1,551,618 shares of common stock under the ATM Program at a weighted average price of $39.43 per share, generating net proceeds of $61.0 million. During the nine months ended September 30, 2026, we sold 1,931,790 shares of common stock under the ATM Program at a weighted average price of $38.82 per share, generating net proceeds of $74.8 million. Sales commissions and issuance costs incurred under the ATM Program for the three and nine months ended September 30, 2026 were immaterial.

Previous wording

We believe our cash, cash equivalents, and marketable securities of $516.5 million as of June 30, 2026 will be sufficient to fund our operations and capital expenditure requirements at least into 2029.

Current wording

We believe our cash, cash equivalents, and marketable securities of $565.2 million as of September 30, 2026 will be sufficient to fund our operations and capital expenditure requirements at least into mid-2029.

Previous wording

We use contract research and development organizations to conduct our preclinical works and clinical trials. Additionally, we utilize third-party CMOs, to manufacture and supply our preclinical and clinical materials during the development of our product candidates. We expect to use similar contract resources for the commercialization of our products, at least until our resources and operations are at a scale that justifies investment in internal manufacturing capabilities.

Current wording

We use contract research and development organizations to conduct our preclinical work and clinical trials. Additionally, we utilize third-party CMOs, to manufacture and supply our preclinical and clinical materials during the development of our product candidates. We expect to use similar contract resources for the commercialization of our products, at least until our resources and operations are at a scale that justifies investment in internal manufacturing capabilities.

Previous wording

We conduct research and manufacturing work outside of the United States, including China, that may be affected by tariffs, including tariffs that have been or may in the future be imposed by the United States or other countries through reciprocal tariffs. While we do not currently believe tariffs will have a material impact on our business or results of operations, we will continue to carefully monitor the situation. Additionally, we continue to actively monitor macroeconomic conditions and market volatility resulting from global and national economic developments, political unrest, inflationary pressures, interest rate fluctuations, disruptions in capital markets, changes in international trade relationships, changes in or the disruptions of U.S. governmental agencies, whether from a future U.S. federal government shutdown or reduced resources, new laws and regulations or amendments to existing laws and regulations in the U.S. and foreign countries, and military conflicts, such as the ongoing conflicts in Iran, Ukraine and the Middle East. While we believe such factors have had no significant impact on our business or financial results during the periods presented, future developments and potential impacts on our business are uncertain and cannot be predicted with confidence.

Current wording

We conduct research and manufacturing work outside of the United States, including China, that may be affected by tariffs, including tariffs that have been or may in the future be imposed by the United States or other countries through reciprocal tariffs. While we do not currently believe tariffs will have a material impact on our business or results of operations, we will continue to carefully monitor the situation. Additionally, we continue to actively monitor macroeconomic conditions and market volatility resulting from global and national economic developments, political unrest, inflationary pressures, interest rate fluctuations, disruptions in capital markets, changes in international trade relationships, changes in or the disruptions of U.S. governmental agencies, whether from a future

Previous wording

In May 2025, we entered into a global Collaboration and License Agreement with Novo (the "Novo Collaboration Agreement"). Under the Novo Collaboration Agreement, we and Novo are exclusively collaborating to leverage our proprietary Native Complex Platform® to discover, develop and commercialize multiple potential oral small molecule therapies for metabolic-related diseases based on certain specified molecular targets. The collaboration objective is to discover and develop several novel mono-, dual-, or triple-acting oral small molecule drug candidates directed across five GPCRs, including the GLP-1, GIP, and glucagon receptors (the "Collaboration Targets"). The collaboration includes our most advanced preclinical metabolic program focused on developing an oral small molecule agonist to the GIP receptor. We and Novo have initially commenced four simultaneous research and development programs (each an “R&D Program”) with each pursuing one or more Collaboration Targets from discovery through development candidate selection. In July 2026, we completed our performance obligations for the first R&D Program and provided Novo with the first development candidate. Novo then exercised its right to commence another R&D Program as one of the four programs that can be pursued simultaneously under the collaboration.

Current wording

In May 2025, we entered into a global Collaboration and License Agreement with Novo (the "Novo Collaboration Agreement"). Under the Novo Collaboration Agreement, we and Novo are exclusively collaborating to leverage our proprietary Native Complex Platform® to discover, develop and commercialize multiple potential oral small molecule therapies for metabolic-related diseases based on certain specified molecular targets. The collaboration objective is to discover and develop several novel mono-, dual-, or triple-acting oral small molecule drug candidates directed across five GPCRs, including the GLP-1, GIP, and glucagon receptors (the "Collaboration Targets"). The collaboration includes our most advanced preclinical metabolic program focused on developing an oral small molecule agonist to the GIP receptor. We and Novo have initially commenced four simultaneous research and development programs (each an “R&D Program”) with each pursuing one or more Collaboration Targets from discovery through development candidate selection.

Previous wording

For the six months ended June 30, 2026, our revenue was derived solely from research activities performed for Novo under the Novo Collaboration Agreement. As of June 30, 2026, our accounts receivable was entirely attributed to Novo. See Note 3 to the unaudited condensed financial statements in this Quarterly Report for additional information.

Current wording

For the nine months ended September 30, 2026, our revenue was derived solely from research activities performed for Novo under the Novo Collaboration Agreement. As of September 30, 2026, our accounts receivable was entirely attributed to Novo. See Note 3 to the unaudited condensed financial statements in this Quarterly Report for additional information.

Previous wording

In connection with the entry into an asset purchase agreement with Vertex in September 2023, we also entered into a research service agreement with Vertex (“Vertex Research Service Agreement”) under which we agreed to perform certain exploratory research activities for Vertex. For the six months ended June 30, 2025, our revenue was derived solely from research activities performed for Vertex under the Vertex Research Service Agreement. The Vertex Research Service Agreement expired in September 2025.

Current wording

In conjunction with the Vertex Asset Purchase Agreement in September 2023, we entered into a research service agreement with Vertex under which we agreed to perform certain exploratory research activities for Vertex (“Vertex Research Service Agreement”).

Previous wording

Comparison of the Three and Six Months Ended June 30, 2026 and 2025

Current wording

Comparison of the Three and Nine Months Ended September 30, 2026 and 2025

Previous wording

Our total revenue of $26.7 million for the three months ended June 30, 2026 was generated from research activities performed for Novo, of which $14.6 million was recognized from deferred revenue associated with the upfront payment from Novo, $11.2 million of variable consideration related to estimated research services, and $0.9 million associated with the recognition of revenue for four collaboration target milestones achieved as of June 30, 2026. All of our revenue for the three months ended June 30, 2025 was generated from research activities performed for Vertex.

Current wording

Our total revenue of $72.2 million for the nine months ended September 30, 2026 was generated from research activities performed for Novo, of which $33.0 million was recognized from deferred revenue associated with the upfront payment from Novo, $32.6 million of variable consideration related to estimated research services, and $6.6 million associated with the recognition of revenue for nine Collaboration Target and Research and Development milestones achieved as of September 30, 2026. Decrease in deferred revenue is primarily due to the recognition of the upfront payment, offset by the cumulative catch up adjustment and achieved milestones discussed above.

Previous wording

Research and development expenses were $64.7 million and $41.5 million for the six months ended June 30, 2026 and 2025, respectively. The increase was primarily due to $14.7 million of higher direct costs associated with our clinical, discovery and preclinical programs, which includes $12.1 million of higher costs associated with our partnered metabolic programs as we commenced our research activities for these programs in July 2025, $1.3 million of higher costs associated with our other preclinical and discovery programs as we continue to advance these programs, and $0.7 million and $0.6 million, respectively, of higher costs associated with the advancement of our SEP-631 and PTH1R programs. The increase was also driven by (i) $8.1 million of higher employee-related costs as a result of increased headcount to support the expansion of our research and development activities, which includes $3.1 million of higher stock-based compensation expenses as a result of additional new equity grants during the period, (ii) $0.9 million in other research and development expense, and (iv) $0.4 million of higher facility-related and office costs, partially offset by $0.9 million of lower unallocated external research and development costs.

Current wording

Research and development expenses were $36.6 million and $24.3 million for the three months ended September 30, 2026 and 2025, respectively. The increase was primarily due to $7.6 million of higher direct costs associated with our clinical, discovery and preclinical programs, which includes $4.7 million of higher costs associated with our other preclinical and discovery programs as we continue to advance these programs, $3.0 million of higher costs associated with the advancement of our PTH1R program into the clinic, $2.2 million of higher costs associated with the advancement of our partnered metabolic programs, and $2.3 million of lower costs associated with our SEP-631 program mainly as a result of lower research and preclinical study costs. The increase was also driven by (i) $3.0 million of higher payroll-related costs as a result of increased headcount to support the expansion of our research and development activities, which includes $1.1 million of higher stock-based compensation expenses as a result of additional new equity grants during the period, (ii) $1.1 million of higher unallocated external research and development costs, and (iii) $0.5 million of higher other research and development expense.

Previous wording

Research and development expenses were $35.1 million and $22.2 million for the three months ended June 30, 2026 and 2025, respectively. The increase was primarily due to $9.7 million of higher direct costs associated with our clinical, discovery and preclinical programs, which includes $6.6 million of higher costs associated with our partnered metabolic programs as we commenced our research activities for these programs in July 2025, $2.4 million of higher costs associated with the advancement of our PTH1R program into the clinic, $1.4 million of higher costs associated with our other preclinical and discovery programs as we continue to advance these programs, and $0.7 million of lower costs associated with our SEP-631 program mainly as a result of lower research and preclinical study costs. The increase was also driven by (i) $3.4 million of higher employee-related costs as a result of increased headcount to support the expansion of our research and development activities, which includes $1.3 million of higher stock-based compensation expenses as a result of additional new equity grants during the period, and (ii) $0.3 million in other research and development expense, partially offset by $0.6 million of lower unallocated external research and development costs.

Current wording

Research and development expenses were $101.2 million and $65.7 million for the nine months ended September 30, 2026 and 2025, respectively. The increase was primarily due to $22.3 million of higher direct costs associated with our clinical, discovery and preclinical programs, which includes $14.3 million of higher costs associated with our partnered metabolic programs as we commenced our research activities for these programs in July 2025, $6.0 million of higher costs associated with our other preclinical and discovery programs as we continue to advance these programs, $3.6 million of higher costs associated with the advancement of our PTH1R program into the clinic, and $1.6 million of lower costs associated with our SEP-631 program mainly as a result of lower research and preclinical study costs. The increase was also driven by (i) $11.1 million of higher payroll-related costs as a result of increased headcount to support the expansion of our research and development activities, which includes $4.2 million of higher stock-based compensation expenses as a result of additional new equity grants during the period, (ii) $1.4 million of higher other research and development expense, and (iii) $0.5 million of higher facility-related and office costs.

Previous wording

General and administrative expenses were $8.5 million and $6.9 million for the three months ended June 30, 2026 and 2025, respectively, primarily due to $2.0 million of higher employee-related costs as a result of increased headcount to support the growth of our operations. This amount includes $1.9 million of higher stock-based compensation expenses as a result of additional new grants during the period.

Current wording

General and administrative expenses were $9.6 million and $7.1 million for the three months ended September 30, 2026 and 2025, respectively, primarily due to $2.7 million of higher employee-related costs as a result of increased headcount to support the growth of our operations. This amount includes $2.3 million of higher stock-based compensation expenses as a result of additional new grants during the period.

Previous wording

General and administrative expenses were $18.7 million and $13.8 million for the six months ended June 30, 2026 and 2025, respectively, primarily due to $5.5 million of higher employee-related costs as a result of increased headcount to support the growth of our operations. This amount includes $4.7 million of higher stock-based compensation expenses mainly as a result of additional new grants during the period.

Current wording

General and administrative expenses were $28.3 million and $20.9 million for the nine months ended September 30, 2026 and 2025, respectively, primarily due to $8.1 million of higher employee-related costs as a result of increased headcount to support the growth of our operations. This amount includes $7.0 million of higher stock-based compensation expenses mainly as a result of additional new grants during the period.

Previous wording

We recorded $1.0 million and $1.3 million of provision for income taxes for the three and six months ended June 30, 2026, respectively. We did not record any benefit or provision for income taxes for the three and six months ended June 30, 2025.

Current wording

We recorded $4.6 million and $5.9 million of provision for income taxes for the three and nine months ended September 30, 2026, respectively. We did not record any benefit or provision for income taxes for the three and nine months ended September 30, 2025. Our effective tax rate differs from the U.S. federal statutory rate primarily due to taxable income associated with our collaboration agreement, and the utilization of net operating loss carryforwards and research and development tax credits.

Previous wording

Our net losses were $21.7 million and $46.3 million for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, we had an accumulated deficit of $188.9 million. We expect to continue to incur net losses for the foreseeable future. Our net losses may fluctuate significantly from period to period, depending on the timing and expenditures of our operational activities.

Current wording

Our net losses were $48.3 million and $38.1 million for the nine months ended September 30, 2026 and 2025, respectively. As of September 30, 2026, we had an accumulated deficit of $215.5 million. We expect to continue to incur net losses for the foreseeable future. Our net losses may fluctuate significantly from period to period, depending on the timing and expenditures of our operational activities.

Previous wording

We have historically financed our operations primarily through the issuances of convertible promissory notes and convertible preferred stock, sales of our common stock, and strategic collaborations with other companies. In March 2026, we entered into the Sales Agreement for the ATM Program under which we may sell shares of our common stock having an aggregate offering price of up to $150.0 million. During the three and six months ended June 30, 2026, we sold 380,172 shares of common stock under the ATM Program at a weighted average price of $36.34 per share, generating net proceeds of $13.8 million. See Note 6 to the unaudited condensed financial statements in this Quarterly Report for additional information.

Current wording

We have historically financed our operations primarily through the issuances of convertible promissory notes and convertible preferred stock, sales of our common stock, and strategic collaborations with other companies. In March 2026, we entered into the Sales Agreement for the ATM Program under which we may sell shares of our common stock having an aggregate offering price of up to $150.0 million. During the three months ended September 30, 2026, we sold 1,551,618 shares of common stock under the ATM Program at a weighted average price of $39.43 per share, generating net proceeds of $61.0 million. During the nine months ended September 30, 2026, we sold 1,931,790 shares of common stock under the ATM Program at a weighted average price of $38.82 per share, generating net proceeds of $74.8 million. See Note 6 to the unaudited condensed financial statements in this Quarterly Report for additional information.

Previous wording

As of June 30, 2026, we had $516.5 million in cash, cash equivalents, and marketable securities, which, we believe, will be sufficient to fund our operations and capital expenditure requirements at least into 2029.

Current wording

As of September 30, 2026, we had $565.2 million in cash, cash equivalents, and marketable securities, which, we believe, will be sufficient to fund our operations and capital expenditure requirements at least into mid-2029.

Previous wording

Net Cash Used in Operating Activities

Current wording

Net Cash (Used in) Provided by Operating Activities

Previous wording

Net cash used in operating activities of $47.8 million for the six months ended June 30, 2026 was due to our net loss of $21.7 million and $38.0 million of net change in operating assets and liabilities, partially offset by $11.9 million of non-cash charges for depreciation and amortization, stock-based compensation, non-cash operating lease expense and accretion of discounts, net, on marketable securities.

Current wording

Net cash used in operating activities of $61.6 million for the nine months ended September 30, 2026 was due to our net loss of $48.3 million and $31.5 million of net change in operating assets and liabilities, partially offset by $18.2 million of net non-cash charges for depreciation and amortization, stock-based compensation, non-cash operating lease expense and accretion of discounts, net, on marketable securities.

Previous wording

Net cash used in operating activities of $43.6 million for the six months ended June 30, 2025 was due to our net loss of $46.3 million and $0.5 million of net change in operating assets and liabilities, partially offset by $3.2 million of non-cash charges for depreciation and amortization, stock-based compensation, non-cash operating lease expense and accretion of discounts, net, on marketable securities.

Current wording

Net cash provided by operating activities of $125.2 million for the nine months ended September 30, 2025 was due to $169.8 million of net change in operating assets and liabilities, primarily resulting from the upfront payment from the Novo Collaboration Agreement, and $6.0 million of net non-cash charges for depreciation and amortization, stock-based compensation, non-cash operating lease expense and accretion of discounts, net, on marketable securities, partially offset by $38.1 million of net loss and gain on sale of non-financial asset of $12.5 million.

Previous wording

Net cash used in investing activities of $5.4 million for the six months ended June 30, 2026 was due to $152.8 million of purchases of marketable securities and $0.8 million of purchases of property and equipment, partially offset by the maturity of $148.2 million of marketable securities.

Current wording

Net cash provided by investing activities of $28.1 million for the nine months ended September 30, 2026 was due to the maturity of $226.5 million of marketable securities, partially offset by $197.5 million of purchases of marketable securities and $1.0 million of purchases of property and equipment.

Previous wording

Net cash used in investing activities of $5.7 million for the six months ended June 30, 2025 was due to $113.6 million of purchases of marketable securities and $0.4 million of purchases of property and equipment, partially offset by the maturity of $108.3 million of marketable securities.

Current wording

Net cash used in investing activities of $44.1 million for the nine months ended September 30, 2025 was due to $223.5 million of purchases of marketable securities and $0.5 million of purchases of property and equipment, partially offset by the maturity of $167.4 million of marketable securities and the receipt of the $12.5 million milestone payment related to the Vertex Asset Purchase Agreement.

Previous wording

Net cash provided by financing activities of $17.2 million for the six months ended June 30, 2026 was due to $13.8 million in net proceeds from sales under the ATM Program, combined with $3.4 million in proceeds from the exercise of stock options and the purchase of shares under the employee stock purchase plan.

Current wording

Net cash provided by financing activities of $79.9 million for the nine months ended September 30, 2026 was due to $74.8 million in net proceeds from sales under the ATM Program, combined with $5.1 million in proceeds from the exercise of stock options and the purchase of shares under the employee stock purchase plan.

Previous wording

Net cash provided by financing activities of $0.4 million for the six months ended June 30, 2025 was due to proceeds from the exercise of stock options.

Current wording

Net cash provided by financing activities of $0.7 million for the nine months ended September 30, 2025 was primarily due to proceeds from the exercise of stock options.

Previous wording

During the six months ended June 30, 2026, there have been no material changes to our critical accounting policies and estimates as described in the 2025 Annual Report.

Current wording

During the nine months ended September 30, 2026, there have been no material changes to our critical accounting policies and estimates as described in the 2025 Annual Report.