Aligos Therapeutics, Inc. (ALGS) Q2 2026 Earnings: Revenue $28M (+2778.6%)
ALGS — Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop
A $27.8M China licence fee from Amoytop shrank Aligos' Q2 2026 net loss to $1.5M, but R&D rose 72% on the Phase 2 B-SUPREME hepatitis B trial and cash lasts only into Q4 2026, a year before topline data.
Revenue
$28M
+2778.6% YoY
Net income
-$1.5M
Diluted EPS
$-0.14
This period vs a year ago
Same period last year
This period
Revenue▲+2778.6%
≈$965K
$28M
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Aligos Therapeutics' second quarter of 2026 looks almost break-even on paper: a net loss of just $1.5 million, against $15.9 million a year earlier. That improvement comes almost entirely from one payment. In May 2026 Aligos licensed the Greater China rights to its lead hepatitis B drug, pevifoscorvir sodium, to its partner Xiamen Amoytop Biotech, and booked the $27.8 million upfront fee as revenue this quarter. Underneath, spending rose 52% as the company's main Phase 2 trial ran at full tilt, and the 10-Q says the cash on hand, including that payment, lasts only into the fourth quarter of 2026. The company has formally flagged "substantial doubt" about its ability to continue as a going concern. That is accounting language for: without new money, it may not get through the next 12 months.
At a glance
$27.8 million of license revenue, booked once. The Amoytop upfront fee is the only reason the quarter's loss shrank to $1.5 million. Without it, plus a $3.0 million non-cash accounting gain on warrants and minus $2.8 million of withholding tax, the loss would have been about $29 million.
R&D spending up 72%, to $24.1 million. Most of the increase is the hepatitis B program, whose direct costs roughly tripled from $4.5 million to $13.4 million as patients were enrolled and dosed in the Phase 2 B-SUPREME trial.
About $55 million of cash against roughly $24 million a quarter of burn. Aligos held $30.4 million at June 30 and collected $25.0 million (after tax) from Amoytop in July. It used $48.1 million in operations in the first half. Management says that lasts into Q4 2026, while B-SUPREME's topline results are not due until late Q3 2027.
The quarter in numbers
Aligos has no product on the market. Its revenue comes from partners paying for licences, milestones (payments triggered when a drug reaches a set development step) and research services. So the figures that matter are spending and cash, not sales.
Metric
Q2 2026
Q2 2025
YoY Change
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Total revenue
$27.8M
$1.0M
+2,778.6%
of which license revenue (Amoytop upfront)
$27.8M
—
n/a
Research & development expense
$24.1M
$14.0M
+72%
General & administrative expense
$5.6M
$5.6M
+1%
Loss from operations
$(1.9)M
$(18.6)M
loss narrowed by $16.7M
Gain from change in fair value of 2023 warrants (non-cash)
$3.0M
$1.7M
+77%
Income tax (mostly withholding tax on the Amoytop fee)
$(2.8)M
$(0.2)M
n/a
Net loss
$(1.5)M
$(15.9)M
loss narrowed by $14.4M
Diluted EPS
$(0.14)
$(1.53)
loss narrowed by $1.39
Cash & cash equivalents (period-end)
$30.4M
—
vs $77.8M cash + investments at Dec 31, 2025
Operating cash outflow, first half
$(48.1)M
$(36.4)M
+32%
The year-ago revenue was $965,000 of research-services revenue from Amoytop, which has now stopped. The 10-Q says "the completion of the work on the original and extended Amoytop agreement" brought that line to zero this quarter. The Dec 31, 2025 comparison point is $18.3 million of cash plus $59.5 million of short-term investments. All of those investments had matured and been spent or moved to cash by June 30.
For the first half of 2026, Aligos reported a net loss of $24.5 million, against net income of $27.2 million in the first half of 2025. That year-ago "profit" was not operational: it came from a $63.2 million non-cash gain on the 2023 warrants in early 2025. Warrants are rights to buy shares at a set price, and Aligos records them as a liability that is revalued every quarter. When the share price falls, the liability shrinks and the company books a gain.
Where the money went
R&D rose by $10.1 million year on year. The 10-Q puts $8.8 million of that on third-party clinical-trial costs "as a result of the enrollment and dosing in the pevifoscorvir sodium Phase 2 B-SUPREME clinical trial."
Direct R&D by program
Q2 2026
Q2 2025
Chronic hepatitis B
$13.4M
$4.5M
MASH (fatty-liver disease)
$0.02M
$0.02M
Coronaviruses (wind-down)
$(0.02)M
$0.08M
Other early-stage programs
$0.7M
$0.7M
Indirect R&D (staff, facilities, etc.)
$9.9M
$8.7M
Almost all program spending now goes to hepatitis B. The MASH drug, ALG-055009, gets essentially nothing: $18,000 in the quarter. That fits the filing's statement that Aligos is "continuing to evaluate a variety of options to fund continued development, including potential out-licensing." In practice the MASH and obesity program is waiting for a partner rather than moving forward on Aligos's own money. Management expects R&D to "increase in future periods" as the hepatitis B trials continue.
The pipeline, briefly
Pevifoscorvir sodium (hepatitis B). This is a capsid assembly modulator: a pill designed to stop the hepatitis B virus from packaging its genetic material, which blocks it from copying itself. In a 96-week Phase 1 study, all 9 HBeAg-positive patients still on the drug had blood virus levels below the test's detection limit at week 96. So did all 11 HBeAg-negative patients by week 24 (HBeAg-positive and -negative are two forms of chronic infection with different virus levels). No resistance mutations were seen. The Phase 2 B-SUPREME trial compares it head to head with tenofovir, today's standard hepatitis B pill, over 48 weeks. Enrollment is complete, with 131 patients in the HBeAg-positive part and 114 in the HBeAg-negative part. Topline data are expected in late Q3 2027.
Amoytop licence deal (May 2026). Amoytop gets the rights to pevifoscorvir in mainland China, Taiwan, Hong Kong and Macau. Aligos gets $25.0 million upfront after tax, up to $420 million in clinical, regulatory and sales milestones, and tiered royalties in the high single digits (a percentage of any future sales). Those milestones depend on future events and are not cash Aligos can count on today.
ALG-170675 (hepatitis B, antisense drug). An antisense oligonucleotide is a short strand of genetic material built to destroy the virus's RNA messages so it makes less of its surface protein. Amoytop has IND approval in China (permission to start human trials) and is expected to start a Phase 1 study in Q3 2026, paying for it itself. A cohort of hepatitis B patients is expected to begin in Q4 2026.
ALG-055009 (MASH and obesity). In a 12-week Phase 2a study completed in 2024 it met its main goal, cutting liver fat by up to 46.2% relative to placebo (median). The latest new data are mouse studies of combinations with GLP-1-type weight-loss drugs. No new human trial is funded.
What the headline numbers hide
The near-break-even quarter is a one-off. The $27.8 million upfront fee will not come again. Strip out the fee, the $3.0 million warrant gain and the $2.8 million withholding tax, and the underlying quarterly loss is about $29 million. That is close to total operating expenses of $29.7 million, and nearly double the year-ago net loss.
Revenue was booked before the cash arrived. Accounts receivable went from zero to $27.8 million because the Amoytop payment came in July, after the quarter closed. That is why operating cash outflow in the first half ($48.1 million) is about twice the reported net loss ($24.5 million). The other reason is that the warrant gains are accounting entries, not cash. The cash did arrive in July, so this is timing, not a collection problem. It does mean the June 30 cash figure understates what Aligos had a month later.
Withholding tax cuts the deal's value. The headline $27.8 million becomes $25.0 million in the bank after $2.8 million of tax withheld in China, booked as income tax expense. Aligos had paid almost no tax in prior quarters.
Warrant gains swing the bottom line both ways. These revaluations "principally" follow the share price, according to the 10-Q. A falling stock produced the gains, and a rising one would turn them into losses. They say nothing about the business itself.
Share count: EPS uses about 10.4 million weighted shares, compared with 6.2 million common shares outstanding. The difference is mostly pre-funded warrants from the February 2025 $105 million private placement. These are already paid for and count in EPS. Any new fundraising would add to this.
No buybacks, and no tax or interest effects flattering EPS. Interest income fell to $0.2 million from $0.4 million as the investment balance was spent down.
Takeaway: The Amoytop licence made Q2 look nearly break-even, but it bought Aligos only a few months. About $55 million of cash against roughly $24 million a quarter of rising burn lasts into Q4 2026 by management's own estimate. The data that could justify the company's valuation, B-SUPREME topline results, arrive in late Q3 2027. Aligos will almost certainly have to raise money or sign another deal before its main trial reads out, on terms set by today's share price rather than by trial results.
Outlook
Management gives no revenue or expense guidance, only direction. R&D and G&A are both expected to increase, and the company says it plans to "raise substantial additional capital... including through a combination of public or private equity offerings, third-party funding, collaborations, strategic alliances, and licensing arrangements." The 10-Q states that "we do not currently have any committed external source of funds."
Our read: the science news over the next year comes mostly from partners and conferences. That includes Amoytop starting ALG-170675 in patients and possible Amoytop milestones on pevifoscorvir in China. Aligos's own catalyst, B-SUPREME, is a year away. Between now and then there are three likely paths. One is an equity raise, which would dilute existing shareholders. Another is a licence of the MASH/obesity asset ALG-055009, which management is openly shopping. The third is a deeper partnership on pevifoscorvir outside China. If none of these happens by late 2026, the filing itself names the fallback: cutting staff and delaying or stopping programs. Things to watch in the Q3 10-Q: the cash balance after the July receipt, quarterly operating cash burn (about $24 million on the first-half average), and whether the going-concern language is still there.