DMAC — Q2 2026 Financial Report Analysis

DiaMedica Therapeutics has no product on the market and no revenue, so its quarterly report is really about three things: how fast it is spending, how long the money lasts, and whether its trials are moving. In the second quarter of 2026 (April–June), the net loss widened to $10.1 million from $7.7 million a year earlier, almost entirely because research and development (R&D) spending rose 40%. The company ended June with $43.5 million in cash and short-term investments, down from $59.9 million at the start of the year. Its stroke trial is approaching the point where an independent board takes a first look at the data, now expected in the first quarter of 2027.

At a glance

• $43.5 million in cash and investments at June 30, down $16.4 million in six months: at the first half's pace (about $8.2 million a quarter) that lasts roughly five more quarters, before the spending increase management says is coming.
• R&D up 40% to $8.2 million in the quarter: more clinical staff, a wider stroke trial in Europe, and extra animal safety studies the FDA asked for before it will allow a US pregnancy trial.
• Loss per share up only 6% (to $0.19) while the loss itself grew 32%: the difference is the 25% larger share count after the 2025 share sales, so each existing shareholder owns a smaller slice.

What DiaMedica is developing

The company has one main drug candidate, DM199 (rinvecalinase alfa), a lab-made version of a human enzyme called kallikrein-1 (KLK1). Versions of KLK1 extracted from human urine or pig pancreas have been used in Asia for decades to treat stroke and high blood pressure; DM199 is made with recombinant DNA technology instead. It is being tested in two areas:

• Acute ischemic stroke (a stroke caused by a blocked blood vessel), in the ReMEDy2 trial. This is a "Phase 2/3" trial: a combined mid- and late-stage study, where the late stage is the kind of evidence regulators use to decide on approval. It compares DM199 with a placebo, with neither patients nor doctors knowing who gets which.
• Preeclampsia (dangerously high blood pressure during pregnancy) and fetal growth restriction (a baby not growing properly in the womb because the placenta is not working well). Neither condition has an approved drug in the US or Europe.

The numbers

All figures are in US dollars, from the company's 10-Q for the quarter ended June 30, 2026.

For the first six months, the net loss was $20.2 million against $15.4 million a year earlier, and R&D was $16.1 million against $11.5 million (+40.6%). The company has lost $192.9 million in total since it was founded in 2000. Spending was flat from the first quarter to the second: the net loss was $10.0 million in Q1 and $10.1 million in Q2.

Where the money went

The filing gives a specific list for the R&D increase: "the expansion of our clinical team, our ongoing ReMEDy2 clinical trial, including our global expansion; costs related to additional reproductive toxicity testing being performed in support of our PE program in the United States, increased manufacturing development activity and increases in non-cash share-based compensation."

Two of those items are the strategy, and one is a cost imposed from outside:

• Bringing trial work in-house. Enrollment in ReMEDy2 has been slower than planned for years. The company blames hospital staffing shortages, strict enrollment rules, earlier blood-pressure-drop safety events, and smaller hospitals using telemedicine to keep stroke patients who would once have gone to the large stroke centres that run the trial. Its answer has been to hire its own clinical staff for work that contract research firms used to do, such as finding, opening and monitoring trial sites. That shows up as higher R&D payroll.
• Europe. Site openings and enrollment began this year in six European countries, adding to the US, Canada and UK.
• The FDA's animal-study request. Before allowing a US preeclampsia trial, the FDA asked for an extra reproductive safety study in rabbits. The rabbits developed antibodies against DM199 (it is a human protein), so that study could not be completed. In June 2026 the FDA said the rat study the company already completed may be enough, if DiaMedica can show the drug was present and active in those rats. A new rat study measuring drug levels is expected to finish in October 2026, after which the company plans to send the data to the FDA.

General and administrative costs barely moved (+7.3%), and management expects them to "remain steady."

What the headline numbers hide

• The per-share loss understates how much more the company is spending. Spread over 25% more shares, a 32% bigger loss becomes a 6% bigger loss per share. The new shares come from the July 2025 private placement (8.6 million shares at $3.50, $30.0 million net) and at-the-market sales (shares sold gradually into the market; 1.7 million shares for $13.3 million net). That money pays for today's trials, but it also means each existing share's claim on any future success was diluted.
• Cash burn looks a little better than it is. The six-month operating cash outflow ($17.2 million) was $3.0 million smaller than the net loss ($20.2 million). About $1.9 million of that gap is stock-based pay, which is a real cost to shareholders (through dilution) but not a cash payment. Another $1.3 million is a rise in unpaid supplier bills (accounts payable). Those bills still have to be paid, so the underlying cash cost is closer to $18.5 million for the half.
• Interest income is shrinking as a cushion. Interest on the cash pile added $0.37 million in the quarter, up slightly from a year ago. As the balance falls it will shrink, so the net loss will tend to grow a bit even if spending stays flat.
• No going-concern warning, but a short margin. The filing does not contain a "substantial doubt" going-concern warning (the formal flag auditors use when a company may run out of money within a year). Management says cash is enough for "at least the next 12 months" from August 2026, and expects quarterly cash outflows to "increase moderately." It has no credit facility, and $86.2 million remained available under its at-the-market share-sale program as of June 3, 2026. That means more stock sales are the likeliest source of new money.
• No one-off items. The quarter had no one-time gains or charges, and the loss reflects running costs.

Takeaway: DiaMedica's main stroke data point, the ReMEDy2 interim analysis, is now expected in Q1 2027, and the company will have roughly two quarters of cash left at the current burn rate when that result arrives. Whatever the interim look shows, it is likely to set the terms of the next share sale, and so how much existing shareholders get diluted.

What to watch next

• ReMEDy2 interim analysis (expected Q1 2027). The trial is designed for about 300 patients at up to 100 sites. After the first 200 patients complete the study, an independent data safety monitoring board (a panel of outside experts who can see unblinded results) will either stop the trial for futility, meaning the drug is unlikely to show a benefit, or set the final size somewhere between 300 and 728 patients. As of August 1, 2026, enrollment had reached 85% of the 200 needed. A futility stop would remove the company's most advanced program. A larger final size would mean a longer and more expensive trial.
• The FDA's response on the rat data. The drug-level study is due in October 2026. If the FDA accepts it, the US arm of a global Phase 2 preeclampsia trial can go ahead. Canada approved that trial in March 2026, and the company plans to begin opening sites by the end of 2026.
• South Africa preeclampsia study. In the doctor-led trial at Tygerberg Hospital, Part 1a dose-finding finished in June 2026. In the 15 highest-dose patients, DM199 produced statistically significant drops in blood pressure, with no sign of the drug crossing the placenta. Parts 1b and 2 were expected to start enrolling in September or October 2026. The fetal growth restriction study (Part 3) began in June, and its first six patients have been enrolled. The FDA may not accept data from trials run outside the US, which could mean more patients or more trials.
• Next filing. The Q3 2026 10-Q should arrive around mid-November (last year's came on November 12). Check whether cash fell by more than about $8–9 million in the quarter, and whether the company sold shares through its at-the-market program.

Our read: spending rose for reasons the company could explain, and the quarter-to-quarter loss was flat. The investment question is mostly about timing. The cash lasts about as long as the path to the stroke interim result, with little room for delay. ReMEDy2 enrollment has slipped repeatedly, so the main risk is a Q1 2027 target that turns into mid-2027 while the cash balance keeps falling.