Passage Bio (PASG) Q3 2026 earnings summary

Executive summary

• Strategic pivot: gene therapy programs were wound down; a merger with Remix is expected to close in Q4 2026, subject to remaining conditions. Stockholders approved the merger proposals on Nov. 5.

• Q3 2026 net loss narrowed to $4.7M from $7.7M YoY; nine-month net loss narrowed to $20.1M from $32.5M.

Financial highlights

• Q3 operating expenses were $4.9M, down from $8.7M YoY; net loss was $4.7M versus $7.7M, with other income of $0.2M versus $0.9M.

• 9M operating expenses were $21.5M versus $38.1M; reported operating loss improved to $21.5M from $35.4M, including a $2.6M lease-termination gain in 2026 and $2.6M impairment in 2025.

• Cash and cash equivalents were $20.2M at Sept. 30, 2026, down from $46.3M at Dec. 31, 2025; 9M operating cash use was $26.2M.

Outlook and guidance

• Merger expected to close in Q4 2026; expected gross proceeds from the concurrent financing are ~$100M, comprising ~$70M in shares and pre-funded warrants plus ~$30M of convertible notes.

• Current estimate of net cash at closing is $10.9M; expected post-merger ownership is ~65% for former Remix holders, ~29% for concurrent investors and ~6% for existing holders, subject to adjustments.

• R&D and G&A expenses are expected to decrease as programs wind down, staffing and consulting costs fall, and facilities are exited; near-term merger-related legal and professional fees are expected to increase.