Second Quarter 2026
Filed Aug 5, 2026Revolution Medicines reported a larger second-quarter net loss as it funded late-stage development and launch readiness for daraxonrasib, while the FDA accepted its NDA for previously treated metastatic pancreatic cancer.
The company reported major regulatory and clinical progress, including FDA acceptance of the daraxonrasib NDA and Breakthrough Therapy Designation in NSCLC, alongside a strengthened cash position. However, operating expenses and net loss increased substantially from the prior-year quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Research and development expenses, three months ended June 30GAAP | $ 394,919 | – | – |
| General and administrative expenses, three months ended June 30GAAP | $ 110,213 | – | – |
| Total operating expenses, three months ended June 30GAAP | $ 505,132 | – | – |
| Loss from operations, three months ended June 30GAAP | $(505,132) | – | – |
| Interest income, three months ended June 30GAAP | $ 35,579 | – | – |
| Interest expense, three months ended June 30GAAP | $(23,781) | – | – |
| Change in fair value of warrant liability, three months ended June 30GAAP | $(151,031) | – | – |
| Other expense, net, three months ended June 30GAAP | $(6) | – | – |
| Total non-operating income (expense), net, three months ended June 30GAAP | $(139,239) | – | – |
| Net loss, three months ended June 30GAAP | $ (644,371) | – | – |
| Net loss per share attributable to common stockholders - basic and diluted, three months ended June 30GAAP | $ (3.06) | – | – |
| Weighted-average common shares used to compute net loss per share, basic and diluted, three months ended June 30GAAP | 210,893,604 | – | – |
| Research and development expenses, six months ended June 30GAAP | $ 738,889 | – | – |
| General and administrative expenses, six months ended June 30GAAP | $ 211,465 | – | – |
| Total operating expenses, six months ended June 30GAAP | $ 950,354 | – | – |
| Loss from operations, six months ended June 30GAAP | $(950,354) | – | – |
| Interest income, six months ended June 30GAAP | $ 55,087 | – | – |
| Interest expense, six months ended June 30GAAP | $(35,978) | – | – |
| Change in fair value of warrant liability, six months ended June 30GAAP | $(166,819) | – | – |
| Other expense, net, six months ended June 30GAAP | $(123) | – | – |
| Total non-operating income (expense), net, six months ended June 30GAAP | $(147,833) | – | – |
| Net loss, six months ended June 30GAAP | $ (1,098,187) | – | – |
| Net loss per share attributable to common stockholders - basic and diluted, six months ended June 30GAAP | $ (5.37) | – | – |
| Weighted-average common shares used to compute net loss per share, basic and diluted, six months ended June 30GAAP | 204,531,173 | – | – |
full year 2026 outlook
- Operating expenses$2.1 to $2.2 billion
- Noteincludes estimated non-cash stock-based compensation expense of between $270 and $290 million
What drove it
- The FDA accepted for review the NDA for daraxonrasib for the treatment of patients with previously treated metastatic PDAC.
- The company opened an FDA-cleared Expanded Access Program in May and stated that daraxonrasib has been distributed to physicians on behalf of more than 2,000 patients through participating academic cancer centers and community oncology practices across nearly all 50 U.S. states and Puerto Rico.
- FDA granted Breakthrough Therapy Designation to daraxonrasib for patients with previously treated metastatic NSCLC harboring KRAS mutations other than G12C who have received prior platinum-based chemotherapy and anti-PD-(L)1 therapy.
- Zoldonrasib plus standard of care in first-line RAS G12D NSCLC included 38 patients, with efficacy evaluable in 28 patients who had at least 8 weeks of follow-up. As of May 11, 2026, median follow-up was 3.4 months, ORR was 82%, and DCR was 100%.
- Elironrasib plus standard of care in first-line RAS G12C NSCLC included 39 patients who had at least 14 weeks of follow-up. As of May 11, 2026, median follow-up was 8.7 months, confirmed ORR was 85%, DCR was 97%, and 95% of patients were progression-free at 6 months.
- The increase in research and development expenses was primarily driven by higher clinical trial and manufacturing expenses for daraxonrasib and zoldonrasib, increased personnel-related costs due to additional headcount, and higher stock-based compensation expense.
- The increase in general and administrative expenses was primarily driven by higher stock-based compensation expense, increased personnel-related costs associated with additional headcount, increased commercial preparation activities, and higher administrative costs.
Concerns
- Net loss for the quarter ended June 30, 2026 included a non-cash charge of $151.0 million related to a change in the fair value of warrants assumed as part of the acquisition of EQRx, Inc.
- The company has no approved product candidates for commercial use in any indication.
- The additional Royalty Pharma capital is subject to the achievement of specific milestones.
- The reported NSCLC combination data were described as preliminary and are based on limited follow-up.
What to watch
- Regulatory review of the daraxonrasib NDA for previously treated metastatic PDAC and the EMA phased review process.
- Completion of enrollment in the global Phase 3 RASolve 301 trial this year and the anticipated initial readout in 2027.
- Initiation of the global Phase 3 RASolve 307 study in the fourth quarter of 2026.
- Updated clinical data and additional visibility into the CRC development strategy during the fourth quarter of 2026.
- Identification of a recommended Phase 2 dose for RMC-5127 during the second half of 2026 and planned initial clinical data in 2027.
- Initiation of a first-in-human clinical trial evaluating RM-055 during the fourth quarter of 2026.
- Full-year 2026 GAAP operating expense within the guided range of $2.1 to $2.2 billion.
Balance sheet and cash flow
- Cash, cash equivalents and marketable securities: $ 3,937,969 as of June 30, 2026; $ 2,025,679 as of December 31, 2025.
- Working capital: 3,674,277 as of June 30, 2026; 1,784,613 as of December 31, 2025.
- Total assets: 4,323,270 as of June 30, 2026; 2,354,508 as of December 31, 2025.
- Total liabilities: 1,717,032 as of June 30, 2026; 723,211 as of December 31, 2025.
- Total stockholders' equity: 2,606,238 as of June 30, 2026; 1,631,297 as of December 31, 2025.
- In April 2026, the company completed concurrent upsized public offerings of $1,725.0 million of common stock and $500.0 million aggregate principal amount of 0.50% convertible senior notes due 2033.
- Total gross proceeds from the offerings, before deducting underwriting discounts, commissions and other offering expenses, were $2,225.0 million.
- In May 2026, the company received a $250.0 million payment from Royalty Pharma.
- There remains up to an additional $1.5 billion in committed, flexible capital under the Royalty Pharma funding arrangements, subject to the achievement of specific milestones.
Analysis
Revolution Medicines' second-quarter report centered on regulatory execution for daraxonrasib and further expansion of its RAS-targeted clinical portfolio. The FDA accepted the daraxonrasib NDA for previously treated metastatic PDAC, while the company also began an FDA-cleared Expanded Access Program in May. The company stated that daraxonrasib had been distributed on behalf of more than 2,000 patients through participating sites across nearly all 50 U.S. states and Puerto Rico. It also reported U.S. commercial launch readiness, if approved, and began EMA submissions under a phased review process.
The income statement reflects the cost of advancing late-stage trials, manufacturing, personnel, and commercialization preparation. Research and development expenses were $ 394,919 for the three months ended June 30, compared with $ 224,134 in the prior-year quarter. General and administrative expenses were $ 110,213, compared with $ 40,580. Total operating expenses were $ 505,132, and net loss was $ (644,371), compared with $ (247,787). The quarter's net loss included a non-cash charge of $151.0 million from the change in fair value of warrants assumed in the EQRx acquisition.
The company materially increased its financial resources during the quarter. Cash, cash equivalents and marketable securities were $ 3,937,969 as of June 30, 2026, compared with $ 2,025,679 as of December 31, 2025. The balance reflected April offerings that generated $2,225.0 million of gross proceeds and a $250.0 million Royalty Pharma payment received in May. The company also cited up to an additional $1.5 billion in committed, flexible capital under the Royalty Pharma arrangements, subject to milestone achievement. No capital returns were reported.
Clinical momentum extended into NSCLC. Zoldonrasib plus standard of care reported an ORR of 82% and DCR of 100% in the disclosed first-line RAS G12D NSCLC analysis, while elironrasib plus standard of care reported a confirmed ORR of 85%, DCR of 97%, and 95% of patients progression-free at 6 months in first-line RAS G12C NSCLC. These data support the company's Phase 3 plans, including planned initiation of RASolve 307 in the fourth quarter of 2026. The FDA also granted Breakthrough Therapy Designation to daraxonrasib in certain previously treated metastatic RAS mutant NSCLC.
For full-year 2026, Revolution Medicines updated GAAP operating expense guidance to $2.1 to $2.2 billion, including estimated non-cash stock-based compensation expense of between $270 and $290 million. The principal operational focus is now execution across the daraxonrasib regulatory review and potential launch, completion and initiation of planned Phase 3 studies, and continued investment in the broader RAS(ON) portfolio. The filing did not provide revenue guidance, profitability guidance, operating cash flow, free cash flow, or a prior outlook for comparison.
Management, verbatim
This has been a transformational period for Revolution Medicines, as we rapidly translated unprecedented Phase 3 results for daraxonrasib into an active Expanded Access Program and the filing of our first New Drug Application to the U.S. Food and Drug Administration on behalf of patients with previously treated metastatic pancreatic cancer.
Mark A. Goldsmith, M.D., Ph.D., chief executive officer and chairman of Revolution Medicines
We achieved U.S. launch readiness, advanced regulatory activities globally, and expanded our pancreatic cancer development programs across multiple lines of therapy.
Mark A. Goldsmith, M.D., Ph.D., chief executive officer and chairman of Revolution Medicines
Not in the filing
stated, not guessed- Total revenue
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- Net income
- Non-GAAP financial measures, including non-GAAP EPS
- Prior-quarter comparisons for reported operating metrics
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- Free cash flow
- Capital-return activity, including share repurchases and dividends
- Debt balance as of June 30, 2026
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AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.