Q3 FY2026
Filed Nov 9, 2026Surrozen reports Q3 2026 net loss of $129.7 million with no revenue; first DUET Phase 1b patient dosed and Phase 2a expansion to 150 patients planned
No revenue was recorded in the quarter, operating expenses rose 49% on the printed totals, and the net loss widened to $129,724 thousand, which the company attributes mainly to non-cash fair value changes on the tranche and warrant liabilities. Pro forma cash of approximately $220.3 million and the company's statement of runway into 2029 are the main offsets.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, Q3 2026GAAP | — | – | – |
| Research service revenue, related party, Q3 2026GAAP | — | – | – |
| Collaboration and license revenue, Q3 2026GAAP | — | – | – |
| Total revenue, nine months 2026GAAP | $10M | – | – |
| Collaboration and license revenue, nine months 2026GAAP | $10M | – | – |
| Research service revenue, related party, nine months 2026GAAP | — | – | – |
| Research and development expenses, Q3 2026GAAP | $10.84M | – | – |
| Research and development expenses, nine months 2026GAAP | $28.65M | – | – |
| General and administrative expenses, Q3 2026GAAP | $6.80M | – | – |
| General and administrative expenses, nine months 2026GAAP | $19.82M | – | – |
| Total operating expenses, Q3 2026GAAP | $17.64M | – | – |
| Total operating expenses, nine months 2026GAAP | $48.47M | – | – |
| Loss from operations, Q3 2026GAAP | −$17.64M | – | – |
| Loss from operations, nine months 2026GAAP | −$38.47M | – | – |
| Interest income, Q3 2026GAAP | $912K | – | – |
| Interest income, nine months 2026GAAP | $2.76M | – | – |
| Loss on change in fair value of tranche liability, Q3 2026GAAP | −$73.85M | – | – |
| Gain (loss) on change in fair value of tranche liability, nine months 2026GAAP | −$111.5M | – | – |
| Other income (expense), net, Q3 2026GAAP | −$39.14M | – | – |
| Other income (expense), net, nine months 2026GAAP | −$59.89M | – | – |
| Net loss and comprehensive loss, Q3 2026GAAP | −$129.7M | – | – |
| Net loss and comprehensive loss, nine months 2026GAAP | −$207.1M | – | – |
| Net loss per share, basic and diluted, Q3 2026GAAP | $(11.02) | – | – |
| Net loss per share, basic and diluted, nine months 2026GAAP | $(18.06) | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $100.4M | – | – |
| Pro forma cash and cash equivalents, September 30, 2026other | approximately $220.3 million | – | – |
Capital returns
- No share repurchases or dividends are reported in the filing.
- The company closed the second and final tranche of its March 2025 private placement in October 2026 for approximately $95.1 million in gross proceeds before placement agent fees and other offering expenses.
- The company raised approximately $29.8 million in net proceeds through its at-the-market offering program in October 2026.
- The company received approximately $1.1 million in net proceeds from the exercise of common stock warrants after quarter end.
What drove it
- Research and development expenses rose to $10.8 million from $7.8 million, primarily reflecting a $2.1 million increase in research and manufacturing costs for the ophthalmology programs and a $0.9 million increase in employee-related expenses primarily related to stock-based compensation, as stated by the company.
- General and administrative expenses rose to $6.8 million from $4.1 million, due to a $1.7 million increase in employee-related expenses primarily related to stock-based compensation and a $0.9 million increase in professional service fees, primarily related to intellectual property portfolio legal fees, as stated by the company.
- Research service revenue from a related party was zero in the quarter compared with $1.0 million a year earlier, as a result of the termination of the research collaboration with TCGFB, Inc., effective November 2025, according to the company.
- The loss on change in fair value of tranche liability was attributed by the company to the non-cash change in fair value of the tranche liability, which it states was primarily driven by the increase in the Company's stock price over the period.
- The other expense, net line was described by the company as primarily driven by the non-cash change in fair value of warrant liabilities.
- Nine-month 2026 revenue of $10,000 thousand is shown as collaboration and license revenue; the filing does not describe its source in the quarterly commentary.
- Clinical progress: first patient dosed in the open-label Phase 1b single-ascending-dose portion of DUET; Phase 2a planned expansion from approximately 60 to 150 patients.
Concerns
- No revenue was recorded in Q3 2026, compared with $983 thousand in Q3 2025.
- Net loss for Q3 2026 was $(129,724) thousand against $(71,643) thousand a year earlier; for nine months it was $(207,052) thousand against $(58,867) thousand.
- The loss on change in fair value of tranche liability was $(73,853) thousand in Q3 2026 and $(111,460) thousand for nine months 2026, against a nine-month gain of $7,112 thousand in 2025.
- Total liabilities rose to $444,657 thousand and the stockholders' deficit widened to $(335,622) thousand at September 30, 2026.
- Operating expenses rose on both R&D and G&A lines, and loss from operations widened to $(17,642) thousand from $(10,885) thousand in Q3.
- The company's pro forma cash figure of approximately $220.3 million includes proceeds received after quarter end and is not a reported balance sheet figure at September 30, 2026.
What to watch
- Enrollment and dosing progress in the Phase 1b portion of DUET and the expansion of Phase 2a from approximately 60 to 150 patients.
- Topline data from DUET Phase 1b, expected in the second half of 2027, and Phase 2a topline data, expected in 2028.
- Movement in the tranche liability and warrant liabilities, which the company links to its stock price and which drove most of the Q3 net loss.
- Delivery of the cash runway into 2029 as the expanded DUET study and initial SZN-8143 Phase 1b development proceed.
- Any revenue from collaboration or license arrangements, since no revenue was recorded in Q3 2026 and the nine-month revenue line is a single collaboration and license item.
Balance sheet and cash flow
- Cash and cash equivalents were $100,353 thousand at September 30, 2026, against $89,245 thousand at December 31, 2025 (balance sheet).
- Total assets were $109,035 thousand at September 30, 2026, against $98,726 thousand at December 31, 2025.
- Tranche liability was $270,122 thousand at September 30, 2026, against $158,662 thousand at December 31, 2025.
- Warrant liabilities were $157,136 thousand at September 30, 2026, against $112,547 thousand at December 31, 2025.
- Total liabilities were $444,657 thousand at September 30, 2026, against $286,488 thousand at December 31, 2025.
- Total stockholders' deficit was $(335,622) thousand at September 30, 2026, against $(187,762) thousand at December 31, 2025.
- Accumulated deficit was $(734,337) thousand at September 30, 2026, against $(527,285) thousand at December 31, 2025.
- The company anticipates its cash, cash equivalents and marketable securities will provide cash runway into 2029, including funding for completion of the expanded DUET Phase 1b/2a study of SZN-8141 and initial Phase 1b clinical development of SZN-8143.
- The company states that the non-cash loss of $113.0 million on changes in fair value of tranche liability and warrant liabilities is included in the Q3 2026 net loss of $129.7 million.
Analysis
Surrozen reported a Q3 2026 with no revenue in the quarter, against $983 thousand of related-party research service revenue a year earlier. The company ties that decline to the termination of its research collaboration with TCGFB, Inc., effective November 2025. Nine-month 2026 revenue of $10,000 thousand is a single collaboration and license line, against $2,949 thousand of related-party research service revenue in the prior-year nine months, so the revenue base is not comparable period to period on a recurring basis. The filing does not state the source of the 2026 collaboration and license revenue.
Operating costs moved up in both lines. Research and development expenses were $10,837 thousand in Q3 2026 against $7,774 thousand, and general and administrative expenses were $6,805 thousand against $4,094 thousand. The company attributes the R&D increase mainly to research and manufacturing costs for the ophthalmology programs and employee-related expenses, and the G&A increase mainly to employee-related expenses and intellectual property legal fees. Loss from operations widened to $(17,642) thousand from $(10,885) thousand. Interest income was flat at $912 thousand against $911 thousand.
The net loss is dominated by non-cash fair value items. The loss on change in fair value of tranche liability was $(73,853) thousand in Q3 2026 against $(40,748) thousand, and other expense, net was $(39,141) thousand against $(20,921) thousand. The company states that the tranche liability change was primarily driven by the increase in its stock price over the period, and that other expense was primarily driven by the non-cash change in fair value of warrant liabilities. The company reports a non-cash loss of $113.0 million on these liabilities within the $129.7 million Q3 net loss. Net loss per share was $(11.02) against $(8.36), on a weighted-average share count of 11,774 thousand against 8,571 thousand.
On the balance sheet, cash and cash equivalents were $100,353 thousand at September 30, 2026, against $89,245 thousand at December 31, 2025. The company states that subsequent to quarter end it raised approximately $95.1 million in gross proceeds from the second and final tranche of the March 2025 private placement, $29.8 million in net proceeds through its at-the-market program, and $1.1 million from warrant exercises, bringing pro forma cash to approximately $220.3 million. The tranche liability ($270,122 thousand) and warrant liabilities ($157,136 thousand) both rose from their December 31, 2025 balances, and the stockholders' deficit widened to $(335,622) thousand. The company says this cash supports runway into 2029, including the expanded DUET Phase 1b/2a study and initial Phase 1b work on SZN-8143.
Clinically, the company reports that it dosed its first patient in the open-label Phase 1b portion of DUET for SZN-8141 in diabetic macular edema, and that it plans to expand the randomized Phase 2a portion from approximately 60 to 150 patients. Topline Phase 1b data are expected in the second half of 2027 and Phase 2a topline data in 2028. The filing contains no revenue guidance, margin guidance or operating expense guidance, and no prior outlook was supplied for comparison.
Management, verbatim
We have made important progress advancing Surrozen into its next stage of development, with the first patient dosed in the SZN-8141 DUET study and plans to significantly expand Phase 2a enrollment from approximately 60 to 150 patients,
Craig Parker, President and Chief Executive Officer, Surrozen
The additional capital raised in October positions us to generate a more robust clinical dataset across a broader DME population, while maintaining anticipated cash runway into 2029.
Craig Parker, President and Chief Executive Officer, Surrozen
Not in the filing
stated, not guessed- No forward financial guidance for revenue, operating expenses or cash burn is provided in the filing.
- No prior-quarter (Q2 2026) income statement is printed, so quarter-on-quarter changes cannot be shown.
- Prior-year and sequential percentage changes are not printed for any line; they were not calculated.
- Q3 2025 cash and cash equivalents balance is not printed; the June 30, 2026 cash balance of $102.0 million is printed in text only and is not a prior-year figure.
- No cash flow statement or operating, investing or financing cash flow totals are included.
- Free cash flow is not reported.
- Gross margin is not applicable because no cost of sales line is printed.
- Segment reporting is not provided.
- Share count at the period end is not printed; weighted-average shares are printed for both periods.
- Pro forma cash of approximately $220.3 million is a post-quarter figure and has no reported prior-year or prior-quarter comparison.
- Consensus estimates, analyst expectations and share price reaction are not in the filing.
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.