Quantum-Si Inc

Previous wording

The following discussion and analysis provides information which management believes is relevant to an assessment and understanding of our condensed consolidated results of operations and financial condition. The discussion should be read in conjunction with (i) the unaudited Condensed Consolidated Financial Statements and notes thereto contained in this Quarterly Report on Form 10-Q, (ii) the Consolidated Financial Statements and notes thereto for the year ended December 31, 2025 contained in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on March 3, 2026, and (iii) our other public reports filed with the SEC. This discussion contains forward looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2025, this Quarterly Report on Form 10-Q and in other filings that we make with the Securities and Exchange Commission. Actual results may differ materially from those contained in any forward-looking statements. Unless the context otherwise requires, references to “we”, “us”, “our”, the “Company” or “Quantum-Si” are intended to mean the business and operations of Quantum-Si Incorporated and its consolidated subsidiaries. The unaudited Condensed Consolidated Financial Statements for the three and six months ended June 30, 2026 and 2025 present the financial position and results of operations of Quantum-Si Incorporated and its consolidated subsidiaries.

Current wording

The following discussion and analysis provides information which management believes is relevant to an assessment and understanding of our condensed consolidated results of operations and financial condition. The discussion should be read in conjunction with (i) the unaudited Condensed Consolidated Financial Statements and notes thereto contained in this Quarterly Report on Form 10-Q, (ii) the Consolidated Financial Statements and notes thereto for the year ended December 31, 2025 contained in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on March 3, 2026, and (iii) our other public reports filed with the SEC. This discussion contains forward looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2025, this Quarterly Report on Form 10-Q and in other filings that we make with the Securities and Exchange Commission. Actual results may differ materially from those contained in any forward-looking statements. Unless the context otherwise requires, references to “we”, “us”, “our”, the “Company” or “Quantum-Si” are intended to mean the business and operations of Quantum-Si Incorporated and its consolidated subsidiaries. The unaudited Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2026 and 2025 present the financial position and results of operations of Quantum-Si Incorporated and its consolidated subsidiaries.

Previous wording

We are a life sciences company focused on proteomics research, with the mission of transforming single-molecule analysis and democratizing its use by providing researchers and clinicians access to the proteome, the set of proteins expressed within a cell through single-molecule protein sequencing. We have developed a proprietary, universal, single-molecule detection platform that we are applying to proteomics to enable single-molecule protein sequencing to sequence proteins in a massively parallel fashion (rather than sequentially, one at a time), which can also be used for the study of nucleic acids. We believe the ability to sequence proteins in a massively parallel fashion and offer a fast analysis time has the potential to unlock significant biological information through improved resolution and unbiased access to the proteome at a speed and scale not available today. Traditionally, proteomic workflows to sequence proteins required days or weeks to complete. Our current platform includes our Platinum® single-molecule protein sequencing line of instruments, Platinum Analysis Software and consumable kits for use with our Platinum line of instruments. In 2021, we introduced our Platinum early access program to sites with participation from leading academic centers and key industry partners. The early access program introduced the Platinum single-molecule sequencing system to key opinion leaders across the globe for both expansion and development of applications and workflows. We began a controlled launch of the Platinum instrument and started to take orders in December 2022, subsequently began a controlled commercial launch of Platinum in January 2023 and then moved to a full commercial launch of Platinum beginning in the second quarter of 2024. In January 2025, we announced the launch of our Platinum Pro benchtop sequencer. First shipments of Platinum Pro occurred in March 2025.

Current wording

We are a life sciences company focused on proteomics research, with the mission of transforming single-molecule analysis and democratizing its use by providing researchers and clinicians access to the proteome, the set of proteins expressed within a cell through single-molecule protein sequencing. We have developed a proprietary, universal, single-molecule detection platform that we are applying to proteomics to enable single-molecule protein sequencing to sequence proteins in a massively parallel fashion (rather than sequentially, one at a time), which can also be used for the study of nucleic acids. We believe the ability to sequence proteins in a massively parallel fashion and offer a fast analysis time has the potential to unlock significant biological information through improved resolution and unbiased access to the proteome at a speed and scale not available today. Traditionally, proteomic workflows to sequence proteins required days or weeks to complete. Our current platform includes our Platinum® single-molecule protein sequencing line of instruments, Platinum Analysis Software and consumable kits for use with our Platinum line of instruments. We began a controlled launch of the Platinum instrument and started to take orders in December 2022, subsequently began a controlled commercial launch of Platinum in January 2023 and then moved to a full commercial launch of Platinum beginning in the second quarter of 2024. In January 2025, we announced the launch of our Platinum Pro benchtop sequencer. First shipments of Platinum Pro occurred in March 2025.

Previous wording

Most importantly, this roadmap includes the development of Proteus TM, our next-generation platform, which was announced in November 2024 and is estimated to be launched in the second quarter of 2027. Proteus aims to provide single-molecule, amino acid level resolution while also providing anticipated significantly higher sequencing output per sample and increased sample throughput per run, automation of the sequencing workflow and automated data analysis as compared to Platinum Pro. The Proteus platform is being developed to be a modular, scalable system that allows for expansion in the overall platform, the number of consumables that can be processed concurrently and the overall output of sample data from the platform. The first generation of Proteus and associated sequencing consumables is anticipated to include motion control, liquid handling, and a new on-board single optical system with the ability to accept a new consumable chip that has approximately 80 million features. We believe this new platform will provide much deeper insights while simplifying and significantly reducing the cost of the underlying consumable. In addition, during our presentation in November 2025, we provided data demonstrating the wide range of proteomics applications that are addressable with our proprietary, single-molecule, kinetic detection technology. As a result of the anticipated launch of Proteus, we expect some customers may delay purchasing decisions for existing products, which is expected to adversely impact revenue until Proteus becomes commercially available.

Current wording

Most importantly, this roadmap includes the development of Proteus TM, our next-generation platform, which was announced in November 2024 and is estimated to be launched in the second quarter of 2027. Proteus aims to provide single-molecule, amino acid level resolution while also providing anticipated significantly higher sequencing output per sample and increased sample throughput per run, automation of the sequencing workflow and automated data analysis as compared to Platinum Pro. The Proteus platform is being developed to be a modular, scalable system that allows for expansion in the overall platform, the number of consumables that can be processed concurrently and the overall output of sample data from the platform. The first generation of Proteus and associated sequencing consumables is anticipated to include motion control, liquid handling, and a new on-board single optical system with the ability to accept a new consumable chip that has an anticipated 80 million features. We believe this new platform will provide much deeper insights while simplifying and significantly reducing the cost of the underlying consumable. In addition, during our presentation in November 2025, we provided data demonstrating the wide range of proteomics applications that are addressable with our proprietary, single-molecule, kinetic detection technology. As a result of the anticipated launch of Proteus, we expect some customers may delay purchasing decisions for existing products, which is expected to adversely impact revenue until Proteus becomes commercially available.

Previous wording

Results of Operations for the Three and Six Months Ended June 30, 2026 as Compared to the Three and Six Months Ended June 30, 2025

Current wording

Results of Operations for the Three and Nine Months Ended September 30, 2026 as Compared to the Three and Nine Months Ended September 30, 2025

Previous wording

The following table presents the Condensed Consolidated Statements of Operations and Comprehensive Loss for thethree and six months ended June 30, 2026 and 2025 (dollars in thousands):

Current wording

The following table presents the Condensed Consolidated Statements of Operations and Comprehensive Loss for thethree and nine months ended September 30, 2026 and 2025 (dollars in thousands):

Previous wording

Revenue, Cost of revenue and Gross profit for thethree and six months ended June 30, 2026 and 2025 are as follows (dollars in thousands):

Current wording

Revenue, Cost of revenue and Gross profit for thethree and nine months ended September 30, 2026 and 2025 were as follows (dollars in thousands):

Previous wording

Total revenue for the sale of our Platinum line of instruments, related reagent kits and service maintenance contracts decreased by$0.2 million, or 41.8%, and $0.8 million, or 58.0%, for thethree and six months ended June 30, 2026, respectively, when compared to the same periods in 2025. The decrease in revenue was primarily driven by lower sales volumes of instruments and consumables as customers deferred purchasing decisions in anticipation of the expected commercial launch of Proteus. We expect revenue in 2026 to continue to be impacted as customers may delay purchases ahead of Proteus becoming commercially available.

Current wording

Total revenue for the sale of our Platinum line of instruments, related reagent kits and service maintenance contracts decreased by$0.3 million, or 61.6%, and $1.2 million, or 59.0%, for thethree and nine months ended September 30, 2026, respectively, when compared to the same periods in 2025. The decrease in revenue was primarily driven by lower sales volumes of instruments and consumables as customers deferred purchasing decisions in anticipation of the expected commercial launch of Proteus. We expect revenue in 2026 to continue to be impacted as customers may delay purchases ahead of Proteus becoming commercially available.

Previous wording

Total cost of revenue decreased$0.1 million, or 28.3%, and $0.2 million, or 40.3%, for thethree and six months ended June 30, 2026, when compared to the same periods in 2025. The change in the cost of revenue is directly correlated to the relative revenue and volume decreases for thethree and six months ended June 30, 2026 as compared to the same periods in 2025.

Current wording

Total cost of revenue decreased$0.2 million, or 61.5%, and $0.5 million, or 48.2%, for thethree and nine months ended September 30, 2026, respectively, when compared to the same periods in 2025. These decreases in cost of revenue were directly correlated to the relative revenue and volume decreases for thethree and nine months ended September 30, 2026 as compared to the same periods in 2025.

Previous wording

Gross profit margin was 50.0% and 40.9%for thethree and six months ended June 30, 2026, respectively, as compared to 59.4% and 58.4%for the same periods in 2025, respectively. This change in margin was primarily based on the mix of products sold during each period. We expect gross profit margin to be variable for the foreseeable future as we work through our continued commercialization efforts.

Current wording

Gross profit margin was 34.9% and 39.3%for thethree and nine months ended September 30, 2026, respectively, as compared to 35.1% and 51.9%for the same periods in 2025, respectively. These changes in margin were primarily based on the mix of products sold during each period. We expect gross profit margin to be variable for the foreseeable future as we work through our continued commercialization efforts.

Previous wording

Research and development expenses primarily consist of personnel costs and benefits, stock-based compensation, lab supplies, consulting and professional services, fabrication services, charges related to product without an alternative future use, facilities costs, software, and other outsourced expenses. Research and development expenses are recognized as incurred. Our research and development expenses are primarily related to developing new products and services.

Current wording

Research and development expenses primarily consist of personnel costs and benefits, stock-based compensation, lab supplies, consulting and professional services, fabrication services, charges related to product without an alternative future use, facilities costs, software, and other outsourced expenses. Research and development expenses are primarily related to developing new products and services and are recognized as incurred.

Previous wording

Research and development expenses for thethree and six months ended June 30, 2026 and 2025 are as follows (dollars in thousands):

Current wording

Research and development expenses for thethree and nine months ended September 30, 2026 and 2025 were as follows (dollars in thousands):

Previous wording

Research and development expenses increased by $0.6 million, or 4.0%, for the three months ended June 30, 2026, when compared to the same period in 2025. This increase was primarily driven by a $0.6 million increase in fabrication and outsourced services driven by efforts to support the development of our Proteus platform, $0.3 million increase in laboratory supplies and a $0.3 million increase in payroll and payroll-related costs. These increases were partially offset by a $0.6 million decrease in facility-related costs primarily driven by the New Haven lease termination that occurred in the third quarter of 2025.

Current wording

Research and development expenses decreased by $0.1 million, or 0.7%, for the three months ended September 30, 2026, when compared to the same period in 2025. This decrease was primarily driven by a $0.8 million decrease in outsourced services, a $0.6 million decrease in facility-related costs, primarily driven by the New Haven lease termination that occurred in the third quarter of 2025, and a $0.3 million decrease in tax-related expense, primarily due to higher research and development tax credits recognized. These decreases were partially offset by a $0.8 million increase in payroll and payroll-related costs, primarily due to higher severance costs related to the August 2026 restructuring that were partially offset by lower payroll, bonus, and non-restructuring severance expenses, a $0.4 million increase in laboratory supplies and a $0.4 million net increase in other research and development expenses.

Previous wording

Research and development expenses increased by $1.4 million, or 4.8%, for the six months ended June 30, 2026, when compared to the same period in 2025. This increase was primarily driven by a $1.1 million increase in laboratory supplies, $0.8 million of fabrication and outsourced services driven by efforts to support the development of our Proteus platform, a $0.6 million increase of payroll and payroll-related costs and a $0.3 million net increase in depreciation expense. These increases were partially offset by a $1.2 million decrease in facility-related costs primarily driven by the New Haven lease termination that occurred in the third quarter of 2025 and a $0.2 million decrease in professional services and consulting fees.

Current wording

Research and development expenses increased by $1.3 million, or 3.0%, for the nine months ended September 30, 2026, when compared to the same period in 2025. This increase was primarily driven by a $1.5 million increase in laboratory supplies, a $1.4 million increase in payroll and payroll-related costs, primarily due to higher severance costs related to the August 2026 restructuring that were partially offset by lower bonus and non-restructuring severance expenses, a $0.4 million increase in depreciation expense and a $0.3 million net increase in other research and development expenses. These increases were partially offset by a $1.8 million decrease in facility-related costs primarily driven by the New Haven lease termination that occurred in the third quarter of 2025, a $0.3 million decrease in tax-related expense, primarily due to higher research and development tax credits recognized, and a $0.2 million decrease in professional services and consulting fees.

Previous wording

Selling, general and administrative expenses for thethree and six months ended June 30, 2026 and 2025 are as follows (dollars in thousands):

Current wording

Selling, general and administrative expenses for thethree and nine months ended September 30, 2026 and 2025 were as follows (dollars in thousands):

Previous wording

Selling, general and administrative expenses decreased $1.9 million, or 16.1%, for the three months ended June 30, 2026, when compared to the same period in 2025. This decrease was primarily due to a $0.9 million decrease in legal fees, a $0.4 million decrease in professional services and consulting fees, a $0.3 million decrease in payroll and payroll-related costs, a $0.2 million decrease in personal property tax expense, a $0.2 million decrease in trade show and other marketing-related costs and a $0.2 million net decrease in other expenses. These decreases were partially offset by a $0.3 million increase in stock-based compensation.

Current wording

Selling, general and administrative expenses decreased $0.6 million, or 5.9%, for the three months ended September 30, 2026, when compared to the same period in 2025. This decrease was primarily due to a $0.7 million decrease in legal fees, a $0.4 million decrease in professional services and consulting fees, a $0.2 million decrease in trade show and other marketing-related costs and a $0.2 million net decrease in other selling, general and administrative expenses. These decreases were partially offset by a $0.4 million increase in payroll and payroll-related costs, primarily due to higher severance costs related to the August 2026 restructuring that were partially offset by lower payroll, bonus, and non-restructuring severance expenses, a $0.3 million increase in stock-based compensation expense and a $0.2 million increase in personal property tax expense.

Previous wording

Selling, general and administrative expenses decreased $4.2 million, or 17.5%, for the six months ended June 30, 2026, when compared to the same period in 2025. This decrease was primarily due to a $2.3 million decrease in legal fees, a $0.7 million decrease in payroll and payroll-related costs, a $0.6 million decrease in professional services and consulting fees, a $0.5 million decrease in trade show and other marketing-related costs, a $0.2 million decrease in personal property tax expense, a $0.2 million decrease in insurance expense and a $0.1 million net decrease in other expenses. These decreases were partially offset by a $0.4 million increase in stock-based compensation.

Current wording

Selling, general and administrative expenses decreased $4.8 million, or 13.9%, for the nine months ended September 30, 2026, when compared to the same period in 2025. This decrease was primarily due to a $3.0 million decrease in legal fees, a $1.0 million decrease in professional services and consulting fees, a $0.6 million decrease in trade show and other marketing-related costs, a $0.3 million decrease in payroll and payroll-related costs, primarily due to lower payroll and bonus expenses that were partially offset by higher severance costs related to the August 2026 restructuring, a $0.3 million decrease in insurance expense and a $0.3 million net decrease in other selling, general and administrative expenses. These decreases were partially offset by a $0.7 million increase in stock-based compensation.

Previous wording

For thethree and six months ended June 30, 2026 and 2025, Legal settlement expense, net of insurance proceeds is as follows (dollars in thousands):

Current wording

For thethree and nine months ended September 30, 2026 and 2025, Legal settlement expense, net of insurance proceeds was as follows (dollars in thousands):

Previous wording

Legal settlement expense, net of insurance proceeds, decreased $3.4 million, or 100.0% for both the three and six months ended June 30, 2026, as compared to the same periods in 2025. The $3.4 million of expense for the three and six months ended June 30, 2025 was related to apreliminary legal settlement being reached for the Delaware Stockholder Litigation in the second quarter of 2025. For further information on the Delaware Stockholder Litigation, please refer to Note 16. Commitments and Contingencies in the notes to the unaudited Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report on Form 10-Q.

Current wording

Legal settlement expense, net of insurance proceeds, decreased $1.8 million, or 100.0%, and $5.2 million, or 100.0%, for the three and nine months ended September 30, 2026, respectively, as compared to the same periods in 2025. The $1.8 million of expense that occurred in the three months ended September 30, 2025 was related to asettlement being paid to the prior contract manufacturer that had manufactured the Platinum and Carbon instruments. The additional $3.4 million in the nine months ended September 30, 2025, was related to thepreliminary legal settlement being reached for the Delaware Stockholder Litigation in the second quarter of 2025. For further information on these settlements, please refer to Note 17. Commitments and Contingencies in the notes to the unaudited Condensed Consolidated Financial Statements.

Previous wording

For thethree and six months ended June 30, 2026 and 2025, dividend income and interest income was derived primarily from fixed income securities and money market mutual funds, respectively.

Current wording

For thethree and nine months ended September 30, 2026 and 2025, dividend income and interest income were derived primarily from money market mutual funds and fixed income securities, respectively.

Previous wording

Dividend income and interest income for thethree and six months ended June 30, 2026 and 2025 is as follows (dollars in thousands):

Current wording

Dividend income and interest income for thethree and nine months ended September 30, 2026 and 2025 were as follows (dollars in thousands):

Previous wording

Dividend income decreased by$41.0 thousand, or 26.5%, and $0.1 million, or 34.8%, for thethree and six months ended June 30, 2026, respectively, when compared to the same periods in 2025.

Current wording

Dividend income decreased by$43.0 thousand, or 25.9%, and $0.2 million, or 32.1%, for thethree and nine months ended September 30, 2026, respectively, when compared to the same periods in 2025.

Previous wording

Interest income decreased by$0.6 million, or 28.4%, and $1.2 million, or 26.7%, for thethree and six months ended June 30, 2026, respectively, when compared to the same periods in 2025.

Current wording

Interest income decreased by$1.1 million, or 43.9%, and $2.3 million, or 32.7%, for thethree and nine months ended September 30, 2026, respectively, when compared to the same periods in 2025.

Previous wording

These decreases in dividend income and interest income are a result of lower market interest rates on invested capital as well as relative lower invested balances in both thethree and six months ended June 30, 2026.

Current wording

These decreases in dividend income and interest income were a result of lower average invested balances and changes in market interest rates and investment yields in both thethree and nine months ended September 30, 2026.

Previous wording

Change in fair value of warrant liabilities for thethree and six months ended June 30, 2026 and 2025 is as follows (dollars in thousands):

Current wording

Change in fair value of warrant liabilities for thethree and nine months ended September 30, 2026 and 2025 was as follows (dollars in thousands):

Previous wording

For the three months ended June 30, 2026, we recognized $0.4 million of income upon the expiration of all outstanding Public Warrants and Private Warrants as compared to $1.0 million of expense from the increase in the fair value of warrant liabilities for the same period in 2025. The expense recognized for the three months ended June 30, 2025 was primarily driven by the change in the underlying trading price of our Class A common stock during the period.

Current wording

For the three months ended September 30, 2026, there was no change in fair value of warrant liabilities as compared to $1.5 million of income from the decrease in the fair value of warrant liabilities for the same period in 2025. The income recognized for the three months ended September 30, 2025 was primarily driven by the change in the underlying trading price of our Class A common stock during the period.

Previous wording

For the six months ended June 30, 2026, we recognized $0.8 million of income due to the expiration of the outstanding Public Warrants and Private Warrants and the change in the underlying trading price of our Class A common stock during the period. For the six months ended June 30, 2025, we recognized $2.4 million of income from the decrease in the fair value of warrant liabilities, primarily driven by the change in the underlying trading price of our Class A common stock during the period.

Current wording

For the nine months ended September 30, 2026, we recognized $0.8 million of income due to the expiration of the outstanding Public Warrants and Private Warrants and the change in the underlying trading price of our Class A common stock during the period. For the nine months ended September 30, 2025, we recognized $3.9 million of income from the decrease in the fair value of warrant liabilities, primarily driven by the change in the underlying trading price of our Class A common stock during the period.

Previous wording

Other (expense) income, net, primarily consists of currency revaluations. Other (expense) income, net, for thethree and six months ended June 30, 2026 and 2025 is as follows (dollars in thousands):

Current wording

Other (expense) income, net, primarily consists of currency revaluations. Other (expense) income, net, for thethree and nine months ended September 30, 2026 and 2025 was as follows (dollars in thousands):

Previous wording

The following table presents a summary of our consolidated cash flows for operating, investing, and financing activities for thesix months ended June 30, 2026 and 2025 (in thousands):

Current wording

The following table presents a summary of our consolidated cash flows for operating, investing, and financing activities for thenine months ended September 30, 2026 and 2025 (in thousands):

Previous wording

Net cash used in operating activities was $44.1 million during the six months ended June 30, 2026. This cash used was primarily attributable to our net loss of $45.2 million, which resulted from continued spend on research and development and commercialization efforts. Net cash used was further impacted by $6.7 million of cash used from net changes in operating assets and liabilities, primarily due to the timing of cash receipts and payments for a legal settlement and activities in the ordinary course of business. In addition, operating cash flows were reduced by non-cash gains, including $1.6 million of accretion on marketable securities and a $0.8 million gain from changes in the fair value of warrant liabilities, primarily driven by the change in the underlying trading price of our Class A common stock. These items were partially offset by non-cash expenses, including stock-based compensation of $5.6 million, depreciation and amortization of $2.5 million, inventory write-downs of $1.4 million and non-cash lease expense of $0.8 million.

Current wording

Net cash used in operating activities was $64.6 million during the nine months ended September 30, 2026. Net cash used was primarily attributable to our net loss of $67.5 million, resulting from continued spend on research and development and commercialization efforts. Net cash used was further impacted by $8.7 million of cash used from net changes in operating assets and liabilities, primarily due to the timing of cash receipts and payments for a legal settlement and activities in the ordinary course of business. In addition, operating cash flows were reduced by non-cash gains, including $2.2 million of accretion on marketable securities and a $0.8 million gain from changes in the fair value of warrant liabilities, primarily driven by the change in the underlying trading price of our Class A common stock. These items were partially offset by non-cash expenses, including stock-based compensation of $8.5 million, depreciation and amortization of $3.6 million, inventory write-downs of $1.4 million and non-cash lease expense of $1.2 million.

Previous wording

Net cash used in operating activities was $46.4 million during the six months ended June 30, 2025. This cash used was primarily attributable to our net loss of $48.0 million resulting from continued spend on research and development and commercialization efforts. Net cash used was further impacted by $1.3 million of cash used from net changes in operating assets and liabilities, primarily due to the timing of cash receipts and payments in the ordinary course of business. In addition, operating cash flows were reduced by non-cash gains, including $4.3 million of accretion on marketable securities and a $2.4 million gain from changes in fair value of warrant liabilities, primarily driven by the change in the underlying trading price of our Class A common stock. These items were partially offset by non-cash expenses, including stock-based compensation of $5.3 million, depreciation and amortization of $2.1 million, non-cash lease expense of $1.3 million and inventory write-downs of $1.0 million.

Current wording

Net cash used in operating activities was $78.4 million during the nine months ended September 30, 2025. Net cash used was primarily attributable to our net loss of $83.7 million resulting from continued spend on research and development and commercialization efforts. Net cash used was further impacted by $2.8 million of cash used from net changes in operating assets and liabilities, primarily due to the timing of cash receipts and payments in the ordinary course of business. In addition, operating cash flows were reduced by non-cash gains, including $6.5 million of accretion on marketable securities and a $3.9 million gain from changes in fair value of warrant liabilities, primarily driven by the change in the underlying trading price of our Class A common stock. These items were partially offset by non-cash expenses, including stock-based compensation of $8.1 million, depreciation and amortization of $3.3 million, a loss on lease termination of $2.3 million and related $1.2 million write-off of construction in process for the New Haven, Connecticut lease, non-cash lease expense of $1.9 million, inventory write-downs of $1.8 million.

Previous wording

Net cash provided by investing activities was $48.4 million during the six months ended June 30, 2026 compared to net cash used in investing activities of $29.1 million during the same period in 2025. Cash provided by investing activities during the current period was primarily attributable to $138.2 million of proceeds from sales and maturities of marketable securities, partially offset by $89.0 million of purchases of marketable securities, $0.4 million of purchases of property and equipment and $0.4 million of lease security deposits paid for the lease of a new facility in San Diego, California. The net cash inflow reflected the ongoing management of our investment portfolio to optimize liquidity and align investment maturities with anticipated cash requirements, while preserving capital, minimizing exposure to market and credit risk, and supporting our ability to fund ongoing research and development initiatives and operating needs. We also expect our net invested capital balance to vary in future quarters as we fund our operating needs primarily through our investment portfolio.

Current wording

Net cash provided by investing activities was $70.8 million during the nine months ended September 30, 2026 compared to net cash used in investing activities of $35.3 million during the same period in 2025. Net cash provided by investing activities during the current period was primarily attributable to approximately $174.2 million of proceeds from sales and maturities of marketable securities, partially offset by $102.6 million of purchases of marketable securities, $0.5 million of purchases of property and equipment and $0.4 million of lease security deposits paid for the lease of a new facility in San Diego, California, which was subsequently terminated as described below under the header Contractual Obligations and Off-Balance Sheet Arrangements. The net cash inflow reflected the ongoing management of our investment portfolio to optimize liquidity and align investment maturities with anticipated cash requirements, while preserving capital, minimizing exposure to market and credit risk, and supporting our ability to fund ongoing research and development initiatives and operating needs. We also expect our net invested capital balance to vary in future quarters as we fund our operating needs primarily through our investment portfolio.

Previous wording

There was no net cash provided by financing activities during thesix months ended June 30, 2026 compared to$48.4 million of net cash provided by financing activities during the same period in 2025. There were no financing transactions during the current period. Net cash provided by financing activities during the prior‑year period was attributable to $46.8 million of net proceeds from the issuance of common stock in a net direct equity offering and $1.6 million of proceeds from the exercise of stock options. Further information regarding the direct equity offering can be found below under the header Liquidity Outlook.

Current wording

There was no net cash provided by financing activities during thenine months ended September 30, 2026 compared to$95.4 million of net cash provided by financing activities during the same period in 2025. Net cash provided by financing activities during the prior‑year period was due to approximately $93.5 million of net proceeds from the issuance of common stock from net direct equity and pre-funded warrant offerings that occurred in January and July of 2025 and approximately $1.9 million in proceeds from the exercise of stock options. Further information regarding the direct equity offering can be found below under the header Liquidity Outlook.

Previous wording

As of June 30, 2026, we had cash and cash equivalents and investments in marketable securities of$169.9 million. Our future capital requirements may vary from those currently planned and will depend on various factors including the pace and success of product commercialization.

Current wording

As of September 30, 2026, we had cash and cash equivalents and investments in marketable securities of$149.4 million. Our future capital requirements may vary from those currently planned and will depend on various factors including the pace and success of product commercialization.

Previous wording

On September 26, 2025, we entered into the Leerink Sales Agreement. We have no obligation to sell any shares under the Leerink Sales Agreement and may at any time suspend solicitation and offers under the Leerink Sales Agreement. The 2025 ATM Offering is being made pursuant to the 2025 Shelf Registration Statement and a prospectus supplement related to the 2025 ATM Offering. During the three and six months ended June 30, 2026 and the year ended December 31, 2025, there were no shares sold under the Leerink Sales Agreement. Shares offered and sold in the 2025 ATM Offering, if any, will be sold pursuant to the 2025 Shelf Registration Statement.

Current wording

On September 26, 2025, we entered into a Sales Agreement (the “Leerink Sales Agreement”) with Leerink Partners LLC, pursuant to which we may offer and sell shares of our Class A common stock having an aggregate offering price of up to $100.0 million from time to time through an “at-the-market” offering program (the “2025 ATM Offering”). We have no obligation to sell any shares under the Leerink Sales Agreement and may at any time suspend solicitation and offers under the Leerink Sales Agreement. The 2025 ATM Offering is being made pursuant to the 2025 Shelf Registration Statement and a prospectus supplement related to the 2025 ATM Offering. During the three and nine months ended September 30, 2026 and the year ended December 31, 2025, there were no shares sold under the Leerink Sales Agreement. Shares offered and sold in the 2025 ATM Offering, if any, will be sold pursuant to the 2025 Shelf Registration Statement.

Previous wording

We forecast capital expenditures in order to execute on our business plan and maintain growth; however, the actual amount and timing of such capital expenditures will ultimately be determined by the volume of business. We currently anticipate our capital expenditures for the year ended December 31, 2026 will be approximately $4.0 million. We have funded and plan to continue funding these capital expenditures with cash and financing.

Current wording

We forecast capital expenditures in order to execute on our business plan and maintain growth; however, the actual amount and timing of such capital expenditures will ultimately be determined by the volume of business. We currently anticipate our capital expenditures for the year ended December 31, 2026 will be approximately $2.0 million. We have funded and plan to continue funding these capital expenditures with cash and financing.

Previous wording

Aside from the new Lease Agreement, there have been no material changes in our contractual obligations, including those related to our other lease agreements, since December 31, 2025.

Current wording

Aside from the new Lease Agreement, subsequent Termination Agreement and our purchase order commitments, each as described below, there have been no material changes in our contractual obligations, including those related to our other lease agreements, since December 31, 2025.

Previous wording

We lease certain facilities and equipment under non-cancellable lease agreements that expire at various dates through 2029. As of June 30, 2026, future minimum lease payments were approximately$3.5 million.

Current wording

We lease certain facilities and equipment under non-cancellable lease agreements that expire at various dates through 2029. As of September 30, 2026, future minimum lease payments were approximately$3.0 million.

Previous wording

On June 18, 2026, we entered into a facility lease agreement (the “Lease Agreement”) for the lease of office, laboratory and manufacturing space located in San Diego, California. This new space is expected to replace the existing San Diego facility.

Current wording

On June 18, 2026, we entered into a facility lease agreement (the “Lease Agreement”) with Sterling City Science South Development, LLC (the “Landlord”) for the lease of approximately 54,374 square feet of office, laboratory and manufacturing space located in San Diego, California.

Previous wording

The Lease Agreement provides for an initial non-cancellable lease term of 120 months. Aggregate minimum cash lease payments under the lease are estimated to be approximately $38.3 million and are not included in future minimum lease payments as the lease had not commenced as of June 30, 2026.

Current wording

As of September 30, 2026, aggregate minimum cash lease payments under the Lease Agreement were approximately $38.3 million. These payments were not included in the future minimum lease payments as the lease had not commenced as of September 30, 2026.

Previous wording

The Lease Agreement also provides for a tenant improvement allowance of up to approximately $17.1 million. As of June 30, 2026, we had not used any portion of this allowance.

Current wording

The Lease Agreement also provided for a tenant improvement allowance of up to approximately $17.1 million. As of September 30, 2026, we had incurred approximately $0.7 million of costs eligible for reimbursement under the tenant improvement allowance.