CRIS — Q2 2026 Financial Report Analysis

Overview

Curis is a one-drug biotech: almost everything it does is aimed at emavusertib, an experimental pill for blood cancers that it is testing alongside existing BTK-inhibitor drugs (ibrutinib in a rare brain lymphoma, zanubrutinib in chronic lymphocytic leukemia). It has no approved product, and since it sold its last royalty stream (on Roche/Genentech's skin-cancer drug Erivedge) in November 2025, it now has no revenue at all.

In the quarter ended June 30, 2026, Curis lost $8.6 million, almost exactly the same as a year earlier ($8.6 million). That flat number is misleading: the business spent less, but it also lost $2.7 million of royalty revenue, and the loss only stayed flat because of a $1.3 million non-cash accounting gain on warrants. The real story of this 10-Q is money. Curis ended June with $5.1 million of cash, raised another roughly $4.8 million (after fees) in August at $1.50 a share, and says that together this only funds operations "into the fourth quarter of 2026" — which is now.

At a glance

• $5.1 million cash, about one quarter of spending. Q2 operating expenses were $9.9 million; even with the August raise, the company states it is funded only into Q4 2026 and that there is "substantial doubt" about its ability to continue as a going concern.
• Share count up ~3.4x in a year. Average shares in Q2 were 2.14 million vs 0.63 million a year earlier (after the July 1-for-20 reverse split). That is why loss per share fell from $13.61 to $4.02 even though the dollar loss did not shrink.
• The August deal could more than double the share count again. It sold 335,001 shares plus 3.40 million pre-funded warrants (shares in all but name, exercisable at $0.01) and 3.73 million further warrants at $1.75 — against 2.09 million shares outstanding on August 11.

The numbers

Figures in US dollars, from the condensed consolidated statements in the 10-Q. Share and per-share figures are adjusted for the 1-for-20 reverse stock split effective July 6, 2026. There was no separate Q2 earnings-release 8-K; this analysis is from the 10-Q itself.

Takeaway: The $18.6 million Curis raised in January was spent in six months — operating cash burn for the half was also $18.6 million, and cash ended June at $5.1 million, the same as in December. The August raise of about $4.8 million was priced at $1.50 a share and adds warrants for up to 7.1 million shares, so each new round is buying less time at a steeper cost to existing holders. Until Curis finds a partner or a larger financing, any trial progress comes with a dilution bill attached.

Where the money went

With no revenue, the income statement is simply a list of costs. Research and development (R&D — the cost of running the clinical trials, making the drug and paying the scientists) fell 10% to $6.7 million. The breakdown matters:

• Direct trial and program costs rose 6% to $4.5 million, which the company attributes partly to "an increase in manufacturing costs."
• R&D staff costs fell 33% to $1.9 million, and facility costs fell 25%. The company said in January 2026 that it was narrowing its focus to two studies (brain lymphoma and CLL), and the savings show up here, in people rather than in trial spending.

For the first half, R&D was down 18% to $13.2 million, which the 10-Q attributes to "lower employee related, clinical, manufacturing, and research costs."

General and administrative costs (running the company: executives, legal, accounting, insurance) fell 9% in the quarter to $3.2 million. Staff costs dropped 42%, but professional, legal and consulting fees rose 60% to $1.3 million. For the half year, G&A actually rose 10% to $8.3 million, which the company attributes to costs of the January financing and higher legal costs. In other words, a growing share of overhead is the cost of repeatedly raising money and staying listed.

Trial progress

• Brain lymphoma (TakeAim Lymphoma, Phase 1/2). Emavusertib plus ibrutinib in patients whose primary central nervous system lymphoma (PCNSL) has come back or stopped responding. The company presented further data in July 2026 (the 10-Q does not repeat the results). It has already had feedback from both the FDA and European regulators that this single-arm study could support a fast-track filing — Accelerated Approval in the US, a Conditional Marketing Authorization in Europe — but both regulators require an agreed confirmatory study design first, and the FDA wants an analysis of 100 mg vs 200 mg dosing and of how much each drug contributes to the effect. Those requirements cost money Curis does not currently have.
• CLL (TakeAim CLL, Phase 2). Emavusertib plus zanubrutinib as a first treatment for chronic lymphocytic leukemia. Curis announced on July 30, 2026 that the first five patients had been dosed. Early-stage, so no efficacy data yet.
• AML. Studies in acute myeloid leukemia are "substantially complete"; the company says it would continue them only "with additional funding."

What the headline numbers hide

• The flat loss is flattered by an accounting gain. The January 2026 financing came with three series of warrants that had to be booked as liabilities and marked to market each quarter. In Q2 the remaining (Series B) warrants lost value as the share price fell, producing a $1.3 million non-cash gain. Strip that out and the Q2 loss would have been about $9.9 million, roughly 15% wider than a year ago. In Q1 the same mechanism ran the other way: the first-half loss of $32.8 million includes an $11.5 million non-cash warrant loss, which is why it is 71% bigger than last year's even though spending fell.
• Cash burn is the better measure, and it went up. Operating cash used in the first half was $18.6 million versus $15.3 million a year earlier, a 22% increase the company puts down to "timing of payments" — even though reported expenses fell. Unpaid bills are also large: accounts payable and accrued liabilities totalled $12.6 million at June 30, more than twice the cash balance.
• The lost revenue was worth less than it looks. Last year's $2.7 million of quarterly revenue was Erivedge royalties, but a large part of those royalties went to Oberland Capital, which had bought rights to them in 2019 (in the first half of 2025 Curis paid it $4.0 million). Curis sold its remaining Erivedge rights to an Oberland-managed entity in November 2025 for $2.5 million upfront plus release of that liability. So the revenue line went to zero, but the cash cost of losing it is much smaller.
• Per-share figures are not comparable year over year. Loss per share fell 70% only because the average share count more than tripled. On a per-share basis the business did not improve.
• Equity is thin and mostly goodwill. Stockholders' equity was $4.7 million at June 30, down from $12.7 million at March 31, and the balance sheet carries $9.0 million of goodwill (an accounting asset from a past acquisition, not cash). Minimum stockholders' equity is one of the Nasdaq listing standards the company flags.
• The share price fell sharply after the quarter. The company's own warrant valuation used a share price of $6.57 at June 30; the August offering was priced at $1.50 per share with warrant, about 77% lower. The Series B warrants from January can only reset to an exercise price of $7.50 at the lowest (50% of $15), so — our read — they are unlikely to bring in cash at current prices.
• No guidance changed, because there is none. Curis gives no financial guidance beyond its cash-runway statement, which it repeats: funded "into the fourth quarter of 2026," and not for 12 months from the filing date.

Listing status

After falling out of compliance with Nasdaq's minimum bid price rule, Curis effected a 1-for-20 reverse stock split on July 6, 2026, and Nasdaq confirmed on July 24 that it had regained compliance. It is now under a one-year "Discretionary Panel Monitor": if it breaches any listing rule before July 2027, it gets no grace period to fix it and goes straight to a delisting hearing. A delisting would make further fundraising harder, as the company itself warns.

Outlook

Management gives no revenue or expense guidance. Its own statement is that cash plus the August proceeds lasts "into the fourth quarter of 2026," and that it will seek money through equity sales, warrant exercises, collaborations or "other strategic transactions" — while also warning that, if it cannot raise capital, it may have to consider liquidation or bankruptcy. As of mid-October 2026, EDGAR showed no filing from Curis after this 10-Q (filed August 14) announcing new funding.

Our read: the science and the money are on different clocks. The brain-lymphoma program has a regulator-endorsed path to an accelerated filing, but getting there requires a confirmatory-study design, dose analysis and more patients — all of which cost more than Curis holds. The CLL study only just started dosing. Over the next quarter, the things to watch are (1) whether Curis announces another financing or a partnership before the Q3 10-Q (likely due around mid-November, based on its past filing dates), and on what terms; (2) whether the share count — already set to rise by about 3.4 million when the August pre-funded warrants are exercised — grows further; and (3) whether the PCNSL program reaches agreement with the FDA and European regulators on a confirmatory study. Absent a partner, the likeliest path is more small, heavily discounted equity raises, each diluting existing shareholders further.