Rallybio (RLYB) Q2 2026 earnings summary

Executive summary

• Entered into a merger agreement with Avenzo Therapeutics, with closing expected before year-end 2026; Rallybio will change its name to Avenzo Therapeutics, Inc. upon completion.

• Received a $50 million termination fee from Candid Therapeutics after a previously planned merger was canceled in May 2026.

• Discontinued the RLYB212 program in April 2025 due to failure to meet efficacy targets; focus shifted to RLYB116 and preclinical RLYB332.

• Sold interest in REV102 to Recursion Pharmaceuticals, receiving $20 million and eligibility for future milestone and royalty payments.

Financial highlights

• Net income for Q2 2026 was $43.7 million, compared to a net loss of $9.7 million in Q2 2025, driven by the $50 million termination fee.

• For the six months ended June 30, 2026, net income was $35.4 million versus a net loss of $19.1 million in the prior year period.

• Operating expenses for Q2 2026 were $5.7 million, down from $10.3 million in Q2 2025, reflecting lower R&D and personnel costs.

• Cash and cash equivalents as of June 30, 2026, were $92.8 million, up from $31.4 million at year-end 2025.

• Accumulated deficit decreased to $266.6 million as of June 30, 2026.

Outlook and guidance

• Cash position expected to fund operations for more than 12 months from the reporting date, but not sufficient to bring any product candidate through regulatory approval.

• Anticipates closing the Avenzo merger before the end of 2026, with significant changes to ownership structure and business focus.

• Additional capital will be required for further development and commercialization of product candidates.