ANTX — Q2 2026 Financial Report Analysis

AN2 Therapeutics, a drug developer with no products on the market and no sales, lost $8.2 million in the second quarter of 2026, up from $6.5 million a year earlier. The bigger loss was not caused by more spending. A year ago the U.S. government covered $3.7 million of AN2's costs through a research contract; this quarter that support was down to $0.4 million. Before those reimbursements, research spending actually fell slightly. A $40 million share sale in March raised cash to $79.9 million. The company says that money lasts into 2029, while it starts three mid-stage (Phase 2) trials of drugs built on boron chemistry.

At a glance

• Net loss of $8.2 million, up 27%. Most of the increase comes from a $3.3 million drop in government cost reimbursement, not from new spending.
• Loss per share of $0.18, down from $0.21. Each share carries less of the loss only because there are about 48% more shares after this year's stock sale. The loss in dollars got bigger.
• $79.9 million in cash and investments, up from $60.0 million at the end of 2025. The $37.5 million net raised in March more than covered the $19.1 million of cash the business used in the first half.

Where the company stands now

AN2 has had serious setbacks. Its lead drug, epetraborole, was being tested in a large trial for MAC lung disease, a hard-to-treat lung infection caused by bacteria related to tuberculosis. In August 2024 the Phase 2 part of that trial (EBO-301) failed to show a clear benefit on sputum culture conversion, a key secondary goal that measures whether the bacteria are cleared from the lungs. The trial was later terminated.

The company is still a working drug developer, not an empty shell: it has active clinical programs and a research platform. Its plan now has four strands:

The first program is a sharp change of direction: an anti-infective drug being repurposed for a blood cancer. The PV trial is the company's main near-term focus. The press release says it is "our near-term focus." Separately, epetraborole for melioidosis (a deadly bacterial infection that the U.S. treats as a biothreat) is waiting on government funding for a Phase 2 trial.

The numbers

For the first half of the year, the net loss was $18.2 million, against $17.1 million in the first half of 2025. R&D was $12.8 million against $10.9 million, and G&A was $6.7 million against $7.9 million.

R&D: the 10-Q says the $2.8 million increase came from higher manufacturing (chemistry, manufacturing and controls), consulting, preclinical and clinical-trial costs. It adds that a large part of the manufacturing, consulting and "other" increases reflects "melioidosis program expense offsets." AN2 finished manufacturing the melioidosis drug product in 2025. In Q2 2025, NIAID (the U.S. National Institute of Allergy and Infectious Diseases) reimbursed $3.2 million of those costs, which was recorded as a reduction in R&D expense. This quarter the NIAID credit was "negligible." Spending that is actually new: clinical-trial costs rose $0.3 million because of the Chagas, M. abscessus and PV trials (partly offset by the ended EBO-301 trial), and early-stage research rose $0.5 million. Personnel costs fell $0.7 million, mostly because of lower stock-based compensation, meaning pay in shares and options rather than cash.

G&A: overhead fell $1.1 million: $0.6 million less on professional and outside services and $0.5 million less on staff costs, again because of lower stock-based pay.

What the headline numbers hide

• Reported R&D overstates how much spending grew. AN2 records government and foundation funding as a reduction in expenses, not as revenue. Adding the reimbursements back (the 10-Q books them as reductions in operating expenses, chiefly R&D) gives gross R&D of about $6.4 million this quarter ($6.0M + $0.4M), compared with about $6.9 million a year ago ($3.2M + $3.7M). That is roughly a 7% decline, not the 88% increase shown in reported R&D. For the first half, gross R&D was about $13.8 million against $15.0 million. The underlying business is spending somewhat less, and it is getting less outside funding. This has a lasting effect: in June 2025 NIAID declined to exercise $9.0 million of remaining contract options under a federal cost-cutting order, and the 10-Q says funding for the options already exercised is "currently estimated to complete in September 2026." After that, unless new government money arrives for melioidosis, all development costs land in AN2's own loss.
• Loss per share improved only because of dilution. The net loss rose 27%, while the loss per share fell 14%. The gap comes from the March 2026 private placement: 8.25 million shares at $2.85, plus pre-funded warrants for another 5.79 million shares at $2.84999. Pre-funded warrants are rights to buy shares that are almost fully paid upfront; their exercise price is $0.00001. Together they raised $40.0 million gross and $37.2 million net. About 8.7 million pre-funded warrants are outstanding in total, so falling loss per share is not a sign the business is improving.
• Cash burn is close to the accounting loss, with no hidden drain. First-half cash used in operations was $19.1 million against a net loss of $18.2 million. Non-cash stock pay of $2.4 million was more than offset by $3.6 million of payables, accrued expenses and accrued compensation being paid down. That is ordinary bill-paying, not anything unusual.
• Two different runway statements. The press release says cash lasts "into 2029 under the current operating plan." The 10-Q itself commits only to "at least twelve months" from the filing date, the minimum the accounting rules require. The arithmetic: excluding stock pay and working-capital timing, the first-half cash loss was about $16 million, or roughly $32 million a year. $79.9 million covers about 2.5 years at that rate, which reaches about the start of 2029. So "into 2029" holds only if spending stays near today's level. Running three Phase 2 trials at once (PV, M. abscessus, Chagas) with the NIAID support gone points to spending rising, not falling. The M. abscessus trial being run and paid for largely through an academic investigator may be part of how AN2 keeps costs down.
• Interest income is shrinking. It fell to $0.7 million from $0.8 million because of lower average balances and lower interest rates. It is a small cushion now, not a meaningful offset to the burn.

Takeaway: The bigger loss in Q2 came from losing government reimbursement, not from spending more. Before reimbursements, AN2 spent about 7% less on R&D than a year ago. The $40 million March raise, sold at $2.85 a share, buys roughly two and a half years at the current burn rate. That covers the first PV data in 2027 and the M. abscessus readout in late 2027. With three Phase 2 trials running at once, it is unlikely to cover much beyond that without new funding or a partner.

What to watch next

• The PV program's next steps. The IND filing is expected in Q3 2026, so the Q3 10-Q should confirm whether it was filed, and enrollment is meant to start in Q4 2026. This is the biggest swing factor for the company. Epetraborole has never been tested in PV patients, and the trial opens with a sub-therapeutic dose group to check safety and drug levels before the 28-week Part 1 begins. Data are only promised "periodically throughout 2027."
• Chagas Phase 2 start by year-end 2026. The primate result (100% parasite clearance after 28 days) is a strong preclinical signal. Primate results do not always carry over to humans, and the 10-Q's risk factors say exactly that.
• Whether quarterly R&D rises after NIAID funding ends in September. If gross R&D climbs well above about $6.5–7 million a quarter, the "into 2029" runway will start to look stretched.
• Melioidosis funding. The company says discussions with the U.S. government to fund a Phase 2 are "underway." A new contract would restore the kind of expense offsets that kept the 2025 loss down. No award has been announced.
• More share sales. AN2 sold $1.4 million of stock through its at-the-market program in the first half; this lets a company sell new shares gradually on the open market. With the share price near the $2.85 private-placement level, further sales would add dilution.

Our read: AN2 has a cash runway that covers its next round of clinical results. Its value now depends on trials that are new for the company (a blood cancer, a different lung infection, and a parasitic disease) rather than the MAC program it was built around. Expect losses to stay around $8–10 million a quarter, rising as the three Phase 2 trials enroll. The first data that could change the outlook arrive in 2027.