Palisade Bio (PALI) Q2 2026 earnings summary

Executive summary

• Advanced PALI-2108, a once-daily oral PDE4 inhibitor prodrug, into Phase 2 trials for ulcerative colitis and Crohn's disease, with FDA clearance for the ASCENTRA-UC trial and IND submission for ASCENTRA-CD planned for late 2026.

• Completed Phase 1 studies with positive safety, tolerability, and pharmacodynamic results, including all UC patients achieving clinical response and 2/5 achieving remission.

• Achieved a $0.5 million milestone payment from Newsoara under a co-development agreement.

• Strengthened leadership with new Board appointments and presented scientific findings at major conferences.

Financial highlights

• License revenue of $0.5 million recognized in Q2 2026, compared to none in Q2 2025.

• Net loss of $10.6 million ($0.05/share) for Q2 2026, up from $2.8 million ($0.58/share) in Q2 2025; cash and cash equivalents totaled $125.2 million as of June 30, 2026.

• Research and development expenses rose to $7.4 million in Q2 2026 from $1.7 million in Q2 2025, driven by increased clinical and preclinical activities.

• General and administrative expenses increased to $4.8 million in Q2 2026 from $1.2 million in Q2 2025, mainly due to higher non-cash share-based compensation and professional fees.

• Other income, net, was $1.1 million in Q2 2026, up from $0.06 million in Q2 2025, reflecting higher investment income post-October 2025 equity offering.

Outlook and guidance

• Cash and cash equivalents of $125.2 million as of June 30, 2026, expected to fund operations through major clinical milestones, including Phase 2 efficacy readouts for both UC and CD trials through early 2028.

• Management anticipates continued net losses and negative cash flows as clinical development progresses.

• Primary efficacy readouts for Phase 2 ASCENTRA-UC expected in H2 2027 and for ASCENTRA-CD in early 2028.

• Additional PALI-2108 data to be presented at scientific meetings in 2026.