Foghorn Therapeutics (FHTX) Q2 2026 earnings summary

Executive summary

• Focused on developing precision therapeutics targeting the chromatin regulatory system, with a pipeline of over seven programs and one clinical-stage candidate in Phase 1 development, including FHD-909 for SMARCA4-mutant NSCLC.

• Expanded pipeline includes selective EP300 and CBP degraders for hematological malignancies and breast cancer, and a novel oral small molecule for immunology and inflammation, with INDs targeted for 2027.

• Collaboration with Lilly includes co-development and commercialization of SMARCA2 (BRM) programs and three discovery programs, with significant milestone and royalty potential.

• No product sales to date; revenue is derived from collaboration agreements, primarily with Lilly.

Financial highlights

• Collaboration revenue for Q2 2026 was $16.1M, up from $7.6M in Q2 2025, driven by a $14.2M cumulative catch-up adjustment.

• Net loss for Q2 2026 was $7.2M, a significant improvement from $17.9M in Q2 2025.

• For the six months ended June 30, 2026, net loss was $27.1M, compared to $36.8M for the same period in 2025.

• Research and development expenses decreased to $18.5M from $21.8M year-over-year; general and administrative expenses fell to $6.4M from $6.9M.

• Cash, cash equivalents, and marketable securities totaled $167.6M as of June 30, 2026, providing runway into H1 2028.

Outlook and guidance

• Cash runway expected to fund operations and capital expenditures for at least 12 months from the reporting date, with guidance suggesting support into H1 2028.

• IND filings for selective EP300 degrader and novel oral small molecule in immunology and inflammation targeted for 2027.

• Pending successful Phase 1 results, combination studies of FHD-909 with pembrolizumab in NSCLC are anticipated.

• Ongoing need for additional funding through equity, debt, or collaborations to support long-term growth and development.

• Updated guidance for CBPd-171 program pending due to third-party operational delays.