Avalo Therapeutics (AVTX) Q3 2026 earnings summary

Executive summary

• LOTUS results across both abdakibart dosing regimens, with potential once-monthly administration, support planning for a registrational Phase 3 HS program.

• AVTX-010, a long-acting anti-IL-1β antibody, is advancing toward an H1 2027 IND submission for potential use in HS and other inflammatory diseases.

• Cash, cash equivalents and investments totaled $462.8 million at September 30, 2026, with funding expected to support operations into 2029.

Financial highlights

• Q3 2026 net loss was $18.9 million versus $30.6 million in Q3 2025; higher operating expenses were more than offset by the derivative-liability fair-value change.

• Q3 operating expenses were $23.4 million versus $19.2 million; R&D was $15.0 million, up $1.4 million YoY, and G&A was $8.4 million, up $2.8 million.

• Nine-month net loss was $74.9 million versus $64.5 million; operating expenses were $75.8 million versus $53.2 million.

• Nine-month interest income, net, rose to $7.8 million from $3.4 million, reflecting higher average cash and investment balances.

Outlook and guidance

• FDA feedback on the proposed abdakibart development plan is expected by year-end 2026; Phase 3 initiation for HS is targeted for H1 2027.

• AVTX-010 IND submission is targeted for H1 2027.

• R&D, G&A and operating cash use are expected to increase as abdakibart advances into Phase 3, AVTX-010 progresses toward an IND, and infrastructure expands.

• Current cash, cash equivalents and investments are expected to fund operations into 2029, based on current operating plans.