Q3 FY2026
Filed Nov 9, 2026Foghorn reports Q3 2026 net income of $58.2 million on $83.5 million collaboration revenue, which includes a $74.1 million cumulative catch-up adjustment
Reported net income and operating income were driven by collaboration revenue of $83.5 million, which the company attributes mainly to a $74.1 million cumulative catch-up adjustment. Operating expenses were roughly flat at $26.9 million including $2.3 million of restructuring costs, cash and marketable securities declined modestly to $156.2 million, and the company states runway into the second half of 2029.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Collaboration revenue (three months ended Sep 30, 2026)GAAP | $83.54M | – | $75.4 million increase |
| Research and development expenses (three months ended Sep 30, 2026)GAAP | $18.84M | – | $1.2 million decrease |
| General and administrative expenses (three months ended Sep 30, 2026)GAAP | $5.80M | – | $0.9 million decrease |
| Restructuring costs (three months ended Sep 30, 2026)GAAP | $2.27M | – | – |
| Total operating expenses (three months ended Sep 30, 2026)GAAP | $26.90M | – | – |
| Income (loss) from operations (three months ended Sep 30, 2026)GAAP | $56.64M | – | – |
| Total other income, net (three months ended Sep 30, 2026)GAAP | $1.51M | – | – |
| Net income (loss) (three months ended Sep 30, 2026)GAAP | $58.15M | – | – |
| Net income (loss) per share, basic (three months ended Sep 30, 2026)GAAP | 0.81 | – | – |
| Net income (loss) per share, diluted (three months ended Sep 30, 2026)GAAP | 0.80 | – | – |
| Cash, cash equivalents and marketable securities (as of Sep 30, 2026)GAAP | $156.2M | – | – |
| Total assets (as of Sep 30, 2026)GAAP | $191.0M | – | – |
| Total stockholders' deficit (as of Sep 30, 2026)GAAP | −$14.08M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Collaboration revenueThe company states the $75.4 million increase was driven by a $74.1 million cumulative catch-up adjustment primarily related to updated estimated future costs for the decision to not advance FHD-909 and the SMARCA2 selective degrader. | $83,543 thousand (three months ended Sep 30, 2026) | – | $75.4 million increase |
Capital returns
- No share repurchases or dividends are reported in the filing.
What drove it
- The company states the collaboration revenue increase was driven by a $74.1 million cumulative catch-up adjustment primarily related to updated estimated future costs for the decision to not advance FHD-909 and the SMARCA2 selective degrader.
- The company attributes the $1.2 million decrease in research and development expenses to decreases in Lilly-partnered program costs, facilities and IT-related expenses, and personnel-related costs, partially offset by an increase in early development and other external costs.
- The company attributes the $0.9 million decrease in general and administrative expenses to decreases in personnel related costs, professional and consulting costs, and facilities and IT-related expenses.
- Restructuring costs of $2,272 thousand are reported in the quarter. The filing does not describe their cause in the release text.
Concerns
- Reported net income of $58,150 thousand and income from operations of $56,639 thousand are set against collaboration revenue that the company links to a $74.1 million cumulative catch-up adjustment. The filing does not give the revenue excluding this adjustment.
- Deferred revenue, total fell from $249,154 thousand at December 31, 2025 to $146,272 thousand at September 30, 2026.
- Restructuring costs of $2,272 thousand were recorded in the quarter, with no prior-year amount.
- The company still reports a total stockholders' deficit of $(14,084) thousand as of September 30, 2026.
- Cash, cash equivalents and marketable securities declined from $158,894 thousand to $156,222 thousand between December 31, 2025 and September 30, 2026.
What to watch
- Dose-range finding studies for the novel oral I&I program are expected to begin in the fourth quarter of 2026.
- Potential first-in-human studies for the oral I&I program by the end of 2027.
- IND for the Selective EP300 degrader targeted in 2027, with a focus in MM and DLBCL.
- Whether future collaboration revenue continues to reflect cumulative catch-up adjustments.
- Cash runway, which the company states extends into the second half of 2029.
Balance sheet and cash flow
- Cash, cash equivalents and marketable securities were $156,222 thousand as of September 30, 2026, compared with $158,894 thousand as of December 31, 2025.
- Total assets were $190,952 thousand as of September 30, 2026, compared with $198,103 thousand as of December 31, 2025.
- Deferred revenue, total was $146,272 thousand as of September 30, 2026, compared with $249,154 thousand as of December 31, 2025.
- Total liabilities were $205,036 thousand as of September 30, 2026, compared with $306,603 thousand as of December 31, 2025.
- Total stockholders' deficit was $(14,084) thousand as of September 30, 2026, compared with $(108,500) thousand as of December 31, 2025.
- The company states cash runway into the second half of 2029.
- Operating cash flow and free cash flow are not reported in the filing.
Analysis
Foghorn reported collaboration revenue of $83,543 thousand for the three months ended September 30, 2026, up from $8,153 thousand in the same quarter of 2025. The company states that the $75.4 million increase was driven by a $74.1 million cumulative catch-up adjustment primarily related to updated estimated future costs for the decision to not advance FHD-909 and the SMARCA2 selective degrader. The filing does not provide collaboration revenue excluding this adjustment, and no prior-quarter revenue figure is printed in the release, so the underlying run-rate of collaboration revenue cannot be read from the document.
Operating expenses were $26,904 thousand against $26,654 thousand a year earlier. Research and development fell to $18,836 thousand from $20,002 thousand, and general and administrative fell to $5,796 thousand from $6,652 thousand. The company attributes these decreases to lower Lilly-partnered program costs, lower facilities, IT and personnel costs, and lower professional and consulting costs. A new line, restructuring costs of $2,272 thousand, appears this quarter with no prior-year amount printed. Income from operations was $56,639 thousand against a loss of $(18,501) thousand in the prior-year quarter, and total other income, net was $1,511 thousand against $2,652 thousand.
Net income was $58,150 thousand, or $0.81 per basic share and $0.80 per diluted share, compared with a net loss of $(15,849) thousand, or $(0.25) per share, a year earlier. The release presents only GAAP figures. Diluted weighted average shares rose to 72,590,923 from 63,029,293, a difference the filing does not explain.
On the balance sheet, total stockholders' deficit narrowed to $(14,084) thousand from $(108,500) thousand at December 31, 2025. This movement coincides with a fall in total deferred revenue to $146,272 thousand from $249,154 thousand and a fall in total liabilities to $205,036 thousand from $306,603 thousand. Cash, cash equivalents and marketable securities were $156,222 thousand, compared with $158,894 thousand at year-end 2025. The company states cash runway into the second half of 2029.
On the pipeline, the company reports that dose-range finding studies for the novel oral I&I program are expected to begin in the fourth quarter of 2026, with potential first-in-human studies by the end of 2027. The Selective EP300 degrader has an IND targeted in 2027, with a focus in MM and DLBCL. The filing gives no financial guidance for 2026 or later periods. The release contains no operating cash flow, free cash flow, share repurchase or dividend figures.
Management, verbatim
Our focus is on advancing our wholly owned portfolio, including our novel, oral I&I program in IBD, with potential for first-in-human trials by the end of 2027, and our Selective EP300 degrader which has an IND targeted for next year
Adrian Gottschalk, President and Chief Executive Officer, Foghorn Therapeutics
With cash runway into the second half of 2029, we are well positioned to deliver on this strategy.
Adrian Gottschalk, President and Chief Executive Officer, Foghorn Therapeutics
Not in the filing
stated, not guessed- No financial guidance for revenue, operating expenses or other metrics is provided.
- Prior-quarter (Q2 2026) comparatives are not printed in the release.
- The percentage change for net income, operating income, EPS and total operating expenses is not printed.
- Collaboration revenue excluding the $74.1 million cumulative catch-up adjustment is not disclosed.
- Operating cash flow and free cash flow are not reported.
- Share repurchases and dividends are not reported.
- Prior-year comparison for restructuring costs is shown only as a dash in the release.
- Prior-period comparatives for total assets, total stockholders' deficit and cash are only available at December 31, 2025, not as a quarter-over-quarter comparison.
- Explanation for the increase in weighted average diluted shares is not provided.
- Non-GAAP figures are not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.