Faeth Therapeutics, Inc. filed its quarterly report on Form 10-Q with the SEC on November 3, 2026, covering the period ended September 30, 2026, disclosing a net loss of $206.6 million for the nine months ended September 30, 2026, driven in part by a $132.957 million acquired in-process research and development charge.

Key Highlights

  • Nine-month net loss: The company reported a net loss of $206,641 thousand for the nine months ended September 30, 2026, compared to $16,368 thousand in the same prior-year period, according to the filing.
  • Third-quarter net loss: Net loss for the three months ended September 30, 2026 was $20,398 thousand, versus $4,569 thousand in Q3 2025.
  • Acquired IPR&D charge: The filing disclosed $132,957 thousand in acquired in-process research and development expense recorded during the nine-month period, with no comparable charge in 2025.
  • Total assets increased: Total assets rose to $178,949 thousand as of September 30, 2026, from $22,902 thousand as of December 31, 2025, with marketable securities growing to $160,615 thousand from $12,516 thousand.
  • Shares outstanding grew sharply: Common shares issued and outstanding were 25,842,318 as of September 30, 2026, up from 1,261,685 as of December 31, 2025.
  • Accumulated deficit: The accumulated deficit reached $489,778 thousand as of September 30, 2026, compared to $283,137 thousand at December 31, 2025.
  • Series B preferred stock issued: Series B redeemable convertible preferred stock of 502 shares was outstanding as of September 30, 2026, at a carrying value of $6,767 thousand, with a liquidation value of $0 as of that date.

Faeth Therapeutics Reports Significant Charges and Balance Sheet Expansion in First Nine Months of 2026

According to the filing, Faeth Therapeutics reported total operating expenses of $211,098 thousand for the nine months ended September 30, 2026, compared to $17,331 thousand in the corresponding prior-year period. The increase was primarily attributable to a one-time charge of $132,957 thousand for acquired in-process research and development, recorded in connection with the company's acquisition activity during the period. Research and development expenses also rose to $38,873 thousand from $8,794 thousand, and general and administrative expenses increased to $39,268 thousand from $8,537 thousand, for the nine-month periods ended September 30, 2026 and 2025, respectively.

For the three months ended September 30, 2026, total operating expenses were $22,086 thousand, compared to $4,851 thousand in Q3 2025. The company reported interest income, net, of $1,776 thousand for Q3 2026 and $4,426 thousand for the nine-month period, reflecting the growth in its marketable securities portfolio. Net loss per common share, basic and diluted, was $(0.79) for the three months ended September 30, 2026, and $(18.76) for the nine months ended September 30, 2026, based on weighted-average shares outstanding of 25,840,555 and 11,016,187, respectively.

On the balance sheet, total stockholders' equity was $161,097 thousand as of September 30, 2026, up from $18,592 thousand at December 31, 2025. The filing disclosed that additional paid-in capital increased to $651,025 thousand from $301,728 thousand, reflecting stock-based compensation expense of $12,898 thousand, along with the issuance of Series B redeemable convertible preferred stock in connection with an acquisition and a private placement. Cash and cash equivalents were $14,180 thousand as of September 30, 2026, compared to $8,668 thousand at December 31, 2025. The company is classified as a non-accelerated filer, smaller reporting company, and emerging growth company, as indicated in the filing.

What Was Disclosed

Faeth Therapeutics disclosed its unaudited condensed consolidated financial results for the quarter and nine months ended September 30, 2026, including a nine-month net loss of $206,641 thousand, a $132,957 thousand acquired in-process R&D charge, and a significant expansion of its balance sheet following preferred stock issuances and an acquisition.