Zymeworks (ZYME) Q2 2026 earnings summary

Executive summary

• Reported a net loss of $89.2M for the six months ended June 30, 2026, with an accumulated deficit of $1,171.2M.

• Revenue decreased 91% year-over-year to $7.0M for the six months, mainly due to the absence of significant non-recurring collaboration revenue recognized in 2025.

• Announced a proposed acquisition of Theravance Biopharma, expected to close in the second half of 2026, to be financed with cash and $350M in new debt.

• Strong balance sheet with $322.5M in cash, cash equivalents, and marketable securities as of June 30, 2026.

• August 25, 2026, is the U.S. PDUFA target action date for zanidatamab, potentially unlocking a $250M milestone and up to $190M in additional global regulatory milestones.

Financial highlights

• Revenue for Q2 2026 was $4.6M, down from $48.7M in Q2 2025; six-month revenue was $7.0M, down from $75.8M.

• Net loss for Q2 2026 was $45.1M, compared to net income of $2.4M in Q2 2025.

• Operating expenses decreased 12% year-over-year to $96.3M for the first half of 2026, with R&D and G&A expenses both declining.

• Operating cash flow was negative $77.7M for the first half of 2026, compared to positive $8.7M in 2025.

• Repurchased $128.1M of common stock under 2025 and 2026 repurchase programs in the first half of 2026.

Outlook and guidance

• Management expects existing cash and marketable securities to fund operations for at least the next twelve months.

• Anticipates continued operating losses in the near to medium term as the company executes its strategic plan.

• Royalty revenue from Ziihera (zanidatamab) expected to increase as additional regulatory approvals are obtained.

• Proposed Theravance acquisition expected to close in H2 2026, subject to customary conditions.

• Expects to provide updated financial outlook post-acquisition reflecting the combined business.