Xilio Therapeutics, Inc.
For the period ended Sep 30, 2026. Filed Nov 10, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 10, 2026
XLO$8.53-5.2%Stored close · as of Nov 10, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-12.
0001193125-26-345759
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsOverviewFinancial Operations OverviewResults of OperationsContractual ObligationsCritical Accounting Policies and Use of EstimatesEmerging Growth Company and Smaller Reporting Company StatusCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-10.
0001193125-26-454453
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsOverviewFinancial Operations OverviewResults of OperationsContractual ObligationsCritical Accounting Policies and Use of EstimatesEmerging Growth Company and Smaller Reporting Company StatusThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 134 previous paragraphs and 137 current paragraphs.
90 unchanged; 39 reworded; 8 added; 4 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
XTX602: dual-masked CLDN18.2-targeting multi-specific TCE with co-stimulation
Current report
XTX602 is a potential first-in-class, dual-masked CLDN18.2-targeting multi-specific TCE with built-in CD2 co-stimulation. CLDN18.2 is a TAA expressed in gastrointestinal cancers (gastric, pancreatic and esophageal). By incorporating masks for both the CLDN18.2 and the CD3 binding domain, XTX602 is designed to overcome potential gastrointestinal toxicity associated with non-masked CLDN18.2 targeting molecules. In addition, the CD2 co-stimulatory domain is built directly into the molecule to enable enhanced T cell activation, expansion and durability of T cell response. Investigational new drug application, or IND, enabling studies for XTX602 are ongoing, and we plan to submit an IND for XTX602 in the fourth quarter of 2027.
Current report
XTX701: masked PSMAxSTEAP1 targeting multi-specific TCE with co-stimulation
Current report
XTX701 is a potential first-in-class, masked PSMAxSTEAP1-targeting multi-specific TCE with built-in CD2 co-stimulation. PSMA and STEAP1 are TAAs collectively expressed in approximately 95% of metastatic castration-resistant prostate cancer. Targeting these two TAAs is intended to address heterogeneity of expression of PSMA and STEAP1 across prostate tumors and limit resistance and lack of durability of response due to antigen escape. By incorporating a mask for the CD3 binding domain, XTX701 is designed to minimize toxicity due to peripheral T cell activation and on-target, off-tumor engagement associated with non-masked molecules. In addition, the CD2 co-stimulatory domain is built directly into the molecule to enable enhanced T cell activation, expansion and durability of T cell response. IND-enabling studies for XTX701 are ongoing, and we plan to submit an IND for XTX701 in the fourth quarter of 2027.
Current report
Other income (expense), net, was $1.0 million in other income for each of the three months ended September 30, 2026 and 2025, which primarily consisted of interest income on our cash balance for both periods.
Current report
personnel-related costs increased by $0.6 million, primarily driven by a $0.8 million increase in stock-based compensation, partially offset by a $0.2 million decrease in salaries, bonuses and benefits; and
Current report
professional and consulting fees decreased by $1.1 million, primarily driven by a $1.6 million decrease in legal fees, partially offset by a $0.6 million increase in consulting and other professional costs.
Removed paragraphs (4)
Previous report
We are advancing IND-enabling studies for a potential first-in-class masked TCE program targeting CLDN18.2 and a potential first-in-class multi-specific, masked TCE program targeting PSMA and STEAP1 with built-in co-stimulatory signaling. CLDN18.2 is a TAA expressed in gastrointestinal cancers (gastric, pancreatic and esophageal), and PSMA and STEAP1 are TAAs expressed in prostate cancer. We plan to submit INDs for our CLDN18.2 and PSMA+STEAP1 programs in the second half of 2027.
Previous report
personnel-related costs increased by $0.3 million, primarily driven by an increase in salary, severance and recruiting costs, partially offset by a decrease in discretionary bonus costs; and
Previous report
professional and consulting fees increased by $0.2 million, primarily driven by an increase in other professional costs.
Reworded paragraphs (39)
Previous wording
We are a clinical-stage biotechnology company discovering and developing masked immuno-oncology, or I-O, therapies with the goal of significantly improving outcomes for people living with cancer. Leveraging our clinically-validated masking technology and capabilities, we are developing I-O therapies designed to selectively activate within the tumor microenvironment to achieve durable efficacy without the severe side effects associated with systemically active I-O agents. Our integrated biology and protein engineering approach enables us to design and develop highly potent, masked biologics that are activated, or unmasked, by tumor-specific proteases within the tumor microenvironment. We are currently advancing multiple programs in preclinical and clinical development, including: XTX501, a bispecific PD-1 / masked IL-2; multi-specific masked T cell engagers, or TCEs; and efarindodekin alfa, a masked IL-12. Our clinically-validated masking technology has enabled us to establish top-tier strategic partnerships, including with AbbVie Group Holdings Limited, or AbbVie, and Gilead Sciences, Inc., or Gilead.
Current wording
We are a clinical-stage biotechnology company discovering and developing masked immuno-oncology, or I-O, therapies with the goal of significantly improving outcomes for people living with cancer. Leveraging our clinically-validated masking technology and capabilities, we are developing I-O therapies designed to selectively activate within the tumor microenvironment to achieve durable efficacy without the severe side effects associated with systemically active I-O agents. Our integrated biology and protein engineering approach enables us to design and develop highly potent, masked biologics that are activated, or unmasked, by tumor-specific proteases within the tumor microenvironment. We are currently advancing multiple programs in preclinical and clinical development, including: XTX501, a PD-1/masked IL-2 bispecific; masked, multi-specific T cell engagers, or TCEs; and efarindodekin alfa, a masked IL-12. Our clinically-validated masking technology has enabled us to establish top-tier strategic partnerships, including with AbbVie Group Holdings Limited, or AbbVie, and Gilead Sciences, Inc., or Gilead.
Previous wording
XTX501 is a novel bispecific PD-1 / masked IL-2 that has the potential to be a foundational backbone therapy for solid tumors, including in combination with other agents. XTX501 is designed to selectively stimulate PD-1 positive, antigen-experienced T cells and enhance their function while overcoming IL-2 receptor-mediated clearance, peripheral activity and tolerability issues associated with non-masked IL-2 agents. We received clearance from the U.S. Food and Drug Administration, or FDA, for our investigational new drug application, or IND, to proceed to a first-in-human, multi-center, open-label Phase 1/2 clinical trial for XTX501. We expect to initiate dosing in the Phase 1 portion of the trial in patients with metastatic non-small cell lung cancer, or NSCLC, and select advanced solid tumors in the second half of 2026, and we plan to report initial Phase 1 data in patients with metastatic NSCLC in the second half of 2027.
Current wording
XTX501 is a novel, investigational PD-1/masked IL-2 (alpha-optimized) bispecific antibody fusion protein that combines two complementary mechanisms in a single molecule: selective inhibition of the PD-1/PD-L1 pathway and potent IL-2-driven expansion of T cells. The PD-1 binding arm is designed to selectively direct IL-2 activity to PD-1 positive, antigen-experienced T cells and enhance their function. The IL-2 binding arm incorporates a masked, high potency IL-2 variant with an alpha-optimized receptor binding profile. By leveraging our proprietary masking technology, XTX501 aims to overcome IL-2 receptor-mediated clearance, peripheral activity, and tolerability challenges associated with non-masked IL-2 therapies. We are currently evaluating XTX501 as a monotherapy in patients with metastatic non-small cell lung cancer, or NSCLC, and select advanced solid tumors who have previously received anti-PD(L)-1 therapy in a first-in-human, multi-center, open-label Phase 1/2 clinical trial at multiple sites in the United States. We recently initiated patient dosing in the trial, and we plan to report initial Phase 1 data in patients with metastatic NSCLC in the fourth quarter of 2027.
Previous wording
We are leveraging our proprietary, clinically-validated masking technology and modular TCE architectures to advance two wholly-owned masked TCE programs, as well as an additional masked TCE program in collaboration with AbbVie. Our masked TCEs are designed with a masked CD3 targeting domain and one or more tumor-associated antigen, or TAA, binding domains as part of the core molecule design. In addition, our modular architecture enables the incorporation of a co-stimulatory domain designed to further enhance potency and durability of T cell response, as well as the potential to mask the TAA binding domain(s) and/or mask the co-stimulatory signaling domain. Upon tumor-selective activation, our TCE molecules are designed to release a potent, short half-life TCE in the tumor microenvironment.
Current wording
We are leveraging our proprietary, clinically-validated masking technology and modular TCE architecture to advance two wholly-owned masked TCE programs, as well as an additional masked TCE program in collaboration with AbbVie. As part of the core design, our TCEs incorporate a masked CD3 binding domain, a tumor-associated antigen, or TAA, binding domain and built-in co-stimulation. Our modular architecture enables the flexibility to incorporate additional TAA binding domains and mask the TAA binding domain(s) and/or co-stimulatory signaling domain. Upon tumor-selective activation, the molecules are designed to release the mask(s) and deliver a potent TCE with a short half-life in the tumor microenvironment.
Previous wording
Since inception, we have incurred significant operating losses, including net losses of $15.9 million and $29.1 million for the six months ended June 30, 2026 and 2025, respectively, and a net loss of $35.0 million for the year ended December 31, 2025. As of June 30, 2026, we had an accumulated deficit of $434.7 million. We expect to continue to incur significant expenses and operating losses for the foreseeable future, particularly to the extent we:
Current wording
Since inception, we have incurred significant operating losses, including net losses of $21.9 million and $45.4 million for the nine months ended September 30, 2026 and 2025, respectively, and a net loss of $35.0 million for the year ended December 31, 2025. As of September 30, 2026, we had an accumulated deficit of $440.6 million. We expect to continue to incur significant expenses and operating losses for the foreseeable future, particularly to the extent we:
Previous wording
As a result, we will need substantial additional capital to support our continuing operations and pursue our strategy. As of June 30, 2026, we had cash and cash equivalents of $136.0 million. In the second quarter of 2026, we achieved a $6.0 million development milestone related to the collaboration agreement with AbbVie, which we received in the third quarter of 2026. Based on our current operating plans, we anticipate that our existing cash and cash equivalents as of June 30, 2026, together with the $6.0 million development milestone achieved under the AbbVie collaboration in the second quarter of 2026, will be sufficient to enable us to fund our operating expenses and capital expenditure requirements into the first quarter of 2028. This estimate excludes up to $36.2 million in additional gross proceeds in the second half of 2026 if all outstanding Series C warrants are exercised at their current exercise price and any potential additional milestone payments, option-related fees or other contingent payments under our collaboration and license agreements with AbbVie and Gilead, including up to $31.0 million in near-term milestones and option extension fees that could be achieved under the AbbVie collaboration through the first half of 2027.
Current wording
As a result, we will need substantial additional capital to support our continuing operations and pursue our strategy. As of September 30, 2026, we had cash and cash equivalents of $122.2 million. Based on our current operating plans, we anticipate that our existing cash and cash equivalents as of September 30, 2026 will be sufficient to enable us to fund our operating expenses and capital expenditure requirements into the first quarter of 2028. This estimate excludes up to $36.2 million in additional gross proceeds in the fourth quarter of 2026 if all outstanding Series C warrants are exercised at their current exercise price and any potential additional milestone payments, option-related fees or other contingent payments under our collaboration and license agreements with AbbVie and Gilead, including up to $31.0 million in near-term milestones and option extension fees that could be achieved under the AbbVie collaboration through the first half of 2027.
Previous wording
our ability to successfully complete clinical trials with safety, potency and purity profiles that are satisfactory to the FDA or any comparable foreign regulatory authority;
Current wording
our ability to successfully complete clinical trials with safety, potency and purity profiles that are satisfactory to the U.S. Food and Drug Administration, or FDA, or any comparable foreign regulatory authority;
Previous wording
Other income (expense), net consists primarily of interest income earned from our cash and cash equivalents, and for the three and six months ended June 30, 2025 also consists of the portion of the issuance costs we incurred in connection with the June 2025 follow-on offering, which were allocated to the common stock warrant liabilities.
Current wording
Other income (expense), net consists primarily of interest income earned from our cash and cash equivalents, and for the three and nine months ended September 30, 2025 also consists of the portion of the issuance costs we incurred in connection with the June 2025 follow-on offering, which were allocated to the common stock warrant liabilities.
Previous wording
Collaboration and license revenue increased by $10.6 million from $8.1 million for the three months ended June 30, 2025 to $18.7 million for the three months ended June 30, 2026. The increase was due to an increase in collaboration and license revenue recognized under our collaboration and license agreements with AbbVie and Gilead.
Current wording
Collaboration and license revenue decreased by $9.1 million from $19.1 million for the three months ended September 30, 2025 to $10.0 million for the three months ended September 30, 2026 due to a decrease in collaboration and license revenue recognized under our collaboration and license agreements with AbbVie and Gilead.
Previous wording
Research and development expenses decreased by $0.8 million from $15.3 million for the three months ended June 30, 2025 to $14.6 million for the three months ended June 30, 2026. The changes in research and development expenses were primarily due to the following:
Current wording
Research and development expenses increased by $0.5 million from $14.3 million for the three months ended September 30, 2025 to $14.8 million for the three months ended September 30, 2026. The changes in research and development expenses were primarily due to the following:
Previous wording
other early programs and indirect research and development costs increased by $1.7 million, primarily driven by an increase in external expenses related to preclinical research and development activities, including costs related to our masked TCE programs targeting CLDN18.2 and PSMA+STEAP1 and our AbbVie collaboration;
Current wording
other early programs and indirect research and development costs increased by $2.0 million, primarily driven by an increase in preclinical research and development activities related to our masked TCE programs, partially offset by a decrease in preclinical research and development activities related to our AbbVie collaboration;
Previous wording
personnel-related costs increased by $0.8 million, primarily driven by a $0.6 million increase in salaries, bonuses and benefits due to higher research and development headcount and a $0.2 million increase in stock-based compensation;
Current wording
personnel-related costs increased by $0.8 million, primarily driven by a $0.6 million increase in salaries, bonuses and benefits due to higher research and development headcount and a $0.3 million increase in stock-based compensation;
Previous wording
XTX501 costs decreased by $0.3 million, primarily driven by a $0.3 million decrease in manufacturing activities related to IND-enabling studies and a $0.2 million decrease in preclinical development activities, partially offset by a $0.2 million increase in clinical trial startup activities related to our Phase 1/2 clinical trial for XTX501; and
Current wording
XTX501 costs decreased by $0.6 million, primarily driven by a $0.9 million decrease in preclinical development activities and a $0.9 million decrease in manufacturing activities related to IND-enabling studies, partially offset by a $1.1 million increase in clinical trial startup activities related to our Phase 1/2 clinical trial for XTX501;
Previous wording
vilastobart costs decreased by $1.5 million, primarily driven by a decrease in clinical development activities related to our Phase 1/2 clinical trial evaluating vilastobart in combination with atezolizumab.
Current wording
vilastobart costs decreased by $0.8 million, primarily driven by a decrease in clinical development activities related to our Phase 1/2 clinical trial evaluating vilastobart in combination with atezolizumab; and
Previous wording
efarindodekin alfa costs decreased by $0.2 million, primarily driven by a decrease in clinical development activities related to our ongoing Phase 2 clinical trial;
Current wording
efarindodekin alfa costs decreased by $0.9 million, primarily driven by a decrease in clinical development activities related to our ongoing Phase 2 clinical trial.
Previous wording
General and administrative expenses decreased by $1.1 million from $15.6 million for the six months ended June 30, 2025 to $14.6 million for the six months ended June 30, 2026. The changes in general and administrative expenses were primarily due to a decrease of $1.0 million in legal fees and other professional costs.
Current wording
General and administrative expenses increased by $0.3 million from $6.7 million for the three months ended September 30, 2025 to $6.9 million for the three months ended September 30, 2026. The changes in general and administrative expenses were primarily due to an increase in stock-based compensation and recruiting costs.
Previous wording
The change in fair value of common stock warrant liabilities for the three months ended June 30, 2026 was due to a loss of $3.9 million resulting from the increase in the fair value of the common stock warrant liabilities between March 31, 2026 and June 30, 2026, which was primarily driven by an, increase in the price per share of our common stock.
Current wording
The change in fair value of common stock warrant liabilities for the three months ended September 30, 2026 was due to a gain of $4.8 million resulting from the decrease in the fair value of the common stock warrant liabilities between June 30, 2026 and September 30, 2026, which was primarily driven by a decrease in the price per share of our common stock.
Previous wording
The following table summarizes our results of operations for the six months ended June 30, 2026 and 2025 (in thousands):
Current wording
The following table summarizes our results of operations for the nine months ended September 30, 2026 and 2025 (in thousands):
Previous wording
Collaboration and license revenue increased by $20.3 million from $11.0 million for the six months ended June 30, 2025 to $31.3 million for the six months ended June 30, 2026. The increase was due to an increase in collaboration and license revenue recognized under our collaboration and license agreements with AbbVie and Gilead.
Current wording
Collaboration and license revenue increased by $11.2 million from $30.1 million for the nine months ended September 30, 2025 to $41.3 million for the nine months ended September 30, 2026 due to an increase in collaboration and license revenue recognized under our collaboration and license agreement with AbbVie, partially offset by a decrease in collaboration and license revenue recognized under our license agreement with Gilead.
Previous wording
The following table summarizes our research and development expenses for the six months ended June 30, 2026 and 2025 (in thousands):
Current wording
The following table summarizes our research and development expenses for the nine months ended September 30, 2026 and 2025 (in thousands):
Previous wording
Research and development expenses increased by $10.8 million from $23.6 million for the six months ended June 30, 2025 to $34.4 million for the six months ended June 30, 2026. The changes in research and development expenses were primarily due to the following:
Current wording
Research and development expenses increased by $11.3 million from $37.9 million for the nine months ended September 30, 2025 to $49.2 million for the nine months ended September 30, 2026. The changes in research and development expenses were primarily due to the following:
Previous wording
other early programs and indirect research and development costs increased by $4.5 million, primarily driven by an increase in external expenses related to preclinical research and development activities, including costs related to our masked TCE programs targeting CLDN18.2 and PSMA+STEAP1 and our AbbVie collaboration;
Current wording
other early programs and indirect research and development costs increased by $6.5 million, primarily driven by an increase in preclinical research and development activities related to our masked TCE programs, partially offset by a decrease in preclinical research and development activities related to our AbbVie collaboration;
Previous wording
XTX501 costs increased by $5.4 million, primarily driven by a $2.6 million increase in manufacturing activities related to IND-enabling studies, a $1.6 million increase related to clinical trial startup activities for our Phase 1/2 clinical trial for XTX501 and a $1.0 million increase in preclinical development activities;
Current wording
XTX501 costs increased by $4.8 million, primarily driven by a $2.7 million increase related to clinical trial startup activities for our Phase 1/2 clinical trial for XTX501 and a $1.8 million increase in manufacturing activities related to IND-enabling studies;
Previous wording
personnel-related costs increased by $2.2 million, primarily driven by a $1.6 million increase in salaries, bonuses and benefits due to higher research and development headcount and a $0.6 million increase in stock-based compensation;
Current wording
personnel-related costs increased by $2.9 million, primarily driven by a $2.2 million increase in salaries, bonuses and benefits due to higher research and development headcount and a $0.9 million increase in stock-based compensation;
Previous wording
efarindodekin alfa costs increased by $0.2 million, primarily driven by an increase in clinical development activities related to our ongoing Phase 2 clinical trial; and
Current wording
efarindodekin alfa costs decreased by $0.6 million, primarily driven by a decrease in clinical development activities related to our ongoing Phase 2 clinical trial; and
Previous wording
vilastobart costs decreased by $2.8 million, primarily driven by a decrease in clinical development activities related to our Phase 1/2 clinical trial evaluating vilastobart in combination with atezolizumab.
Current wording
vilastobart costs decreased by $2.3 million, primarily driven by a decrease in clinical development activities related to our Phase 1/2 clinical trial evaluating vilastobart in combination with atezolizumab.
Previous wording
The following table summarizes our general and administrative expenses for the six months ended June 30, 2026 and 2025 (in thousands):
Current wording
The following table summarizes our general and administrative expenses for the nine months ended September 30, 2026 and 2025 (in thousands):
Previous wording
General and administrative expenses increased by $0.5 million from $7.1 million for the three months ended June 30, 2025 to $7.6 million for the three months ended June 30, 2026. The changes in general and administrative expenses were primarily due to the following:
Current wording
General and administrative expenses decreased by $0.8 million from $22.3 million for the nine months ended September 30, 2025 to $21.5 million for the nine months ended September 30, 2026. The changes in general and administrative expenses were primarily due to:
Previous wording
The change in fair value of common stock warrant liabilities for the six months ended June 30, 2026 was due to a loss of $0.6 million resulting from the increase in the fair value of the common stock warrant liabilities between December 31, 2025 and June 30, 2026, which was primarily driven by an increase in the price per share of our common stock.
Current wording
The change in fair value of common stock warrant liabilities for the nine months ended September 30, 2026 was due to a gain of $4.2 million resulting from a decrease in the fair value of the common stock warrant liabilities between December 31, 2025 and September 30, 2026, which was primarily driven by a decrease in the remaining term of the common stock warrants.
Previous wording
Other income (expense), net, increased by $3.2 million from other expense of $0.8 million for the six months ended June 30, 2025 to other income of $2.3 million for the six months ended June 30, 2026. The increase in other income (expense), net was primarily due to an increase in interest income due to a higher average cash balance, partially offset by the $2.3 million in issuance costs we incurred in connection with the June 2025 follow-on offering, which were allocated to the common stock warrant liabilities, for which there was no comparable cost for the three months ended June 30, 2026.
Current wording
Other income (expense), net, increased by $3.1 million from other income of $0.2 million for the nine months ended September 30, 2025 to other income of $3.3 million for the nine months ended September 30, 2026. The increase in other income was primarily due to an increase in interest income due to a higher average cash balance, partially offset by the $2.3 million in issuance costs we incurred in connection with the June 2025 follow-on offering, which were allocated to the common stock warrant liabilities, for which there was no comparable cost for the nine months ended September 30, 2026.
Previous wording
In March 2025, we filed a universal shelf registration statement on Form S-3 with the SEC to register for sale up to $250.0 million of our common stock, preferred stock, debt securities, units and warrants, which we may issue and sell from time to time in one or more offerings, which became effective on May 8, 2025 (333-285703). In March 2025, we entered into a sales agreement with Leerink Partners, LLC, under which we could initially issue and sell shares of our common stock from time to time at an aggregate offering price of up to $50.0 million. In February 2026, we filed a prospectus supplement to our prospectus dated May 8, 2025 (333-285793) to reduce the amount of common stock we may offer and sell under the sales agreement to an aggregate offering price of up to $9.5 million.
Current wording
In March 2025, we filed a universal shelf registration statement on Form S-3 with the SEC to register for sale up to $250.0 million of our common stock, preferred stock, debt securities, units and warrants, which we may issue and sell from time to time in one or more offerings, which became effective on May 8, 2025 (333-285703). In March 2025, we entered into a sales agreement with Leerink Partners, LLC, or Leerink, under which we could initially issue and sell shares of our common stock from time to time at an aggregate offering price of up to $50.0 million. In February 2026, we filed a prospectus supplement to our prospectus dated May 8, 2025 (333-285703) to reduce the amount of common stock we may offer and sell under the sales agreement to an aggregate offering price of up to $9.5 million.
Previous wording
During the three months ended June 30, 2026, we issued and sold 592,300 shares of our common stock pursuant to the sales agreement with Leerink at a weighted average price of $7.76 per share for aggregate gross proceeds of $4.6 million, before deducting underwriting discounts and commissions and any offering expenses.
Current wording
During the second quarter of 2026, we issued and sold 592,300 shares of our common stock pursuant to the sales agreement with Leerink at a weighted average price of $7.76 per share for aggregate gross proceeds of $4.6 million, before deducting underwriting discounts and commissions and any offering expenses. We did not issue any shares of our common stock pursuant to the sales agreement with Leerink during the third quarter of 2026.
Previous wording
During the six months ended June 30, 2026, net cash used in operating activities of $41.1 million was primarily driven by net changes in operating assets and liabilities of $30.3 million and our net loss of $15.9 million, partially offset by $3.8 million of stock-based compensation expense, the $0.6 million loss recorded on the change in fair value of our common stock warrant liabilities and $0.6 million of depreciation and amortization expense.
Current wording
During the nine months ended September 30, 2026, net cash used in operating activities of $54.9 million was primarily driven by net changes in operating assets and liabilities of $35.6 million, our net loss of $21.9 million and the $4.2 million gain recorded on the change in fair value of our common stock warrant liabilities, partially offset by $5.7 million of stock-based compensation expense and $1.0 million of depreciation and amortization expense.
Previous wording
During the six months ended June 30, 2025, net cash provided by operating activities of $14.5 million was primarily driven by net changes in operating assets and liabilities of $37.5 million, which includes the $49.1 million recorded as deferred revenue in connection with our collaboration, license and option agreement and stock purchase agreement with AbbVie, and net non-cash expenses of $6.1 million, partially offset by our net loss of $29.1 million.
Current wording
During the nine months ended September 30, 2025, net cash used in operating activities of $3.0 million was primarily driven by net changes in operating assets and liabilities of $19.5 million, which includes the $49.1 million received from AbbVie under the collaboration, license and option agreement and stock purchase agreement that was recorded as deferred revenue at the outset of the arrangement, and net non-cash expenses of $22.9 million, which includes the $15.4 million loss recorded on the change in fair value of our common stock warrant liabilities, partially offset by our net loss of $45.4 million.
Previous wording
During the six months ended June 30, 2026 and 2025, net cash used in investing activities consisted of purchases of property and equipment.
Current wording
During the nine months ended September 30, 2026 and 2025, net cash used in investing activities consisted of purchases of property and equipment.
Previous wording
During the six months ended June 30, 2026, net cash provided by financing activities of $40.2 million primarily consisted of proceeds from the sale of prefunded warrants through a follow-on offering and proceeds from the sale and issuance of common stock through our ATM program.
Current wording
During the nine months ended September 30, 2026, net cash provided by financing activities of $40.2 million primarily consisted of proceeds from the sale of prefunded warrants through a follow-on offering and proceeds from the sale and issuance of common stock through our ATM program.
Previous wording
During the six months ended June 30, 2025, net cash provided by financing activities of $52.2 million consisted of proceeds from the sale of prefunded warrants and common stock warrants through our June 2025 follow-on offering, proceeds from the sale and issuance of common stock to AbbVie in a private placement and proceeds from the sale and issuance of common stock through our ATM program.
Current wording
During the nine months ended September 30, 2025, net cash provided by financing activities of $51.9 million consisted of proceeds from the sale of prefunded warrants and common stock warrants through our June 2025 follow-on offering, proceeds from the sale and issuance of common stock to AbbVie in a private placement and proceeds from the sale and issuance of common stock through our ATM program.
Previous wording
As of June 30, 2026, we had cash and cash equivalents of $136.0 million. In the second quarter of 2026, we achieved a $6.0 million development milestone related to the collaboration agreement with AbbVie, which we received in the third quarter of 2026. Based on our current operating plans, we anticipate that our existing cash and cash equivalents as of June 30, 2026, together with the $6.0 million development milestone achieved under our AbbVie collaboration in the second quarter of 2026, will be sufficient to enable us to fund our operating expenses and capital expenditure requirements into the first quarter of 2028. This estimate excludes up to $36.2 million in additional gross proceeds in the second half of 2026 if all outstanding Series C warrants are exercised at their current exercise price and any potential additional milestone payments, option-related fees or other contingent payments under our collaboration and license agreements with AbbVie and Gilead, including up to $31.0 million in near-term milestones and option extension fees that could be achieved under the AbbVie collaboration through the first half of 2027.
Current wording
As of September 30, 2026, we had cash and cash equivalents of $122.2 million. Based on our current operating plans, we anticipate that our existing cash and cash equivalents as of September 30, 2026 will be sufficient to enable us to fund our operating expenses and capital expenditure requirements into the first quarter of 2028. This estimate excludes up to $36.2 million in additional gross proceeds in the fourth quarter of 2026 if all outstanding Series C warrants are exercised at their current exercise price and any potential additional milestone payments, option-related fees or other contingent payments under our collaboration and license agreements with AbbVie and Gilead, including up to $31.0 million in near-term milestones and option extension fees that could be achieved under the AbbVie collaboration through the first half of 2027.
Previous wording
the potential receipt of up to $36.2 million in additional gross proceeds in the second half of 2026 if all of the outstanding Series C common stock warrants issued in connection with our June 2025 follow-on offering are exercised at their current exercise price of $10.50 per warrant;
Current wording
the potential receipt of up to $36.2 million in additional gross proceeds in the fourth quarter of 2026 if all of the outstanding Series C common stock warrants issued in connection with our June 2025 follow-on offering are exercised at their current exercise price of $10.50 per warrant;
Previous wording
During the six months ended June 30, 2026, there have been no material changes to our contractual obligations as reported in our Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
During the nine months ended September 30, 2026, there have been no material changes to our contractual obligations as reported in our Annual Report on Form 10-K for the year ended December 31, 2025.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Other income (expense), net, increased by $2.5 million from other expense of $1.4 million for the three months ended June 30, 2025 to other income of $1.1 million for the three months ended June 30, 2026. The increase in other income (expense), net was primarily due to an increase in interest income due to a higher average cash balance and the $2.3 million in issuance costs we incurred in connection with the June 2025 follow-on offering, which were allocated to the common stock warrant liabilities, for which there was no comparable cost for the three months ended June 30, 2026.