Key Highlights

  • Third-quarter 2026 net loss was USD 3.9 million, against USD 17.5 million.
  • Research and development expenses were USD 17.8 million, against USD 15.0 million.
  • Change in Fair Value of Warrant liabilities was a USD 17.0 million gain.
  • Cash and short-term investments totaled USD 69.7 million as of September 30, 2026.

Eledon Pharmaceuticals (NASDAQ:ELDN) reported a net loss of USD 3.9 million for the third quarter ended September 30, 2026, against a net loss of USD 17.5 million in the third quarter of 2025. Net loss per common share was USD 0.03, against an estimate of a loss of USD 0.19. The clinical-stage biotechnology company is developing tegoprubart, its lead product candidate, and reported no Revenue line.

Quarterly Financial Results

Research and development expenses were USD 17.8 million, against USD 15.0 million a year earlier. General and administrative expenses were USD 3.9 million, against USD 4.1 million. Total operating expenses were USD 21.7 million, against USD 19.1 million, and loss from operations was USD 21.7 million, against USD 19.1 million.

Other income, net was USD 0.7 million, against USD 1.0 million. The change in fair value of warrant liabilities was USD 17.0 million, against USD 0.6 million in the third quarter of 2025, and the filing shows it as the item bringing the quarter's net loss below the loss from operations. Comprehensive loss was USD 3.9 million, against USD 17.4 million.

Net loss available to common stock was USD 3.8 million, against USD 16.1 million, or USD 0.03 per share, against USD 0.21. Net loss per share of Series X and Series X-1 non-voting convertible preferred stock was USD 1.83, against USD 11.61.

Total stock-based compensation expense for the quarter was USD 1.9 million, against USD 2.4 million, with USD 0.9 million in Research and Development and USD 1.0 million in general and administrative expenses.

Nine-Month Results and Liquidity

For the nine months ended September 30, 2026, the company recorded a net loss of USD 74.6 million, against USD 35.2 million in the prior-year period. Net loss per common share was USD 0.63, against USD 0.42. The filing cites a USD 11.6 million loss from the change in fair value of warrant liabilities and USD 7.3 million of stock-based compensation among non-cash items.

Operating activities used USD 64.3 million of cash, against USD 48.3 million a year earlier. Investing activities provided USD 48.5 million, mainly from proceeds from maturities of short-term investments of USD 117.3 million, partly offset by purchases of USD 68.8 million. Financing activities used USD 0.2 million.

Cash and cash equivalents were USD 6.9 million as of September 30, 2026, against USD 22.8 million at December 31, 2025. Short-term investments were USD 62.8 million, against USD 110.5 million. Total current Assets were USD 73.7 million, against USD 135.7 million, and total assets were USD 106.6 million, against USD 169.0 million.

Balance Sheet and Disclosures

Total current liabilities were USD 11.7 million, against USD 18.3 million. Warrant liabilities were USD 22.9 million, against USD 11.4 million at the end of 2025. In-process research and development remained at USD 32.4 million.

On July 27, 2026, the company issued 129,870 shares of common stock upon the cash exercise of common warrants to purchase the same number of shares. The filing also reports a cashless conversion of Series X-1 non-voting convertible preferred stock into common stock valued at USD 16.7 million in the nine-month period.

The risk factors in the filing state that the company's financial condition raises substantial doubt about its ability to continue as a Going Concern if it is unable to raise additional financing to fund operations. They also state that tegoprubart remains in clinical development, that the company has no products approved for commercial sale, and that it has incurred significant operating losses since inception.