$ARCT earnings report

Arcturus reported a quarter marked by clinical execution and sharply lower collaboration revenue. Revenue was $3.0 million, compared with $28.3 million in the comparable period last year, as revenue recognized under the CSL Seqirus collaboration declined while the parties moved toward termination of their agreement. The Company reported a net loss of $23.8 million, compared with a net loss of $9.2 million in the comparable period last year, and net loss per share was $0.84 compared with $0.34.

Operating spending was lower in research and development but general and administrative expense was modestly higher. Research and development expenses were $17.5 million, compared with $29.6 million, primarily reflecting lower research and development spending and reduced salaries, wages, benefits and facilities costs. General and administrative expenses were $11.0 million, compared with $10.3 million, with legal fees contributing to the increase partly offset by reduced salaries, wages, benefits and facilities costs. The reported expense pattern reflects prioritization of the ARCT-032 cystic fibrosis and ARCT-810 OTC deficiency programs.

Pipeline milestones are the central operating catalysts. ARCT-032 remains in an open-label Phase 2 study, with active screening and enrollment in the U.S., Israel, and Turkey, and the Company expects a decision on advancing into Phase 3 in Q4 2026. ARCT-810 has completed Phase 2 enrollment and dosing for all enrolled subjects; the Company expects to communicate data and a regulatory plan later this quarter. Thermo Fisher will provide Phase 3 manufacturing, clinical research, and related services for ARCT-032 if Phase 2 produces positive results.

The CSL Seqirus termination and settlement agreement changes the portfolio and financial backdrop. Arcturus regained global rights to KOSTAIVE® and the broader infectious disease vaccine portfolio, subject to existing arrangements with Meiji Seika Pharma for the 2026-2027 season in Japan. CSL Seqirus will make a one-time cash payment of $12 million, and Arcturus will be released from liabilities associated with an R&D credit with an aggregate value of approximately $16 million. The Company ended June 30, 2026 with cash and cash equivalents of $191.5 million, down from $230.9 million on December 31, 2025, and stated cash runway of over two and a half years through year end 2028.

The key tension is that collaboration revenue has fallen materially while the Company evaluates how to maximize the value of the returned vaccine assets and prepares for potential late-stage investment in ARCT-032. Investors will focus on ARCT-810 data and regulatory planning later this quarter, the Q4 2026 ARCT-032 Phase 3 decision, and the Company’s ability to sustain disciplined capital allocation while pursuing rare-disease milestones.