Werewolf Therapeutics | 10-Q: FY2026 Q1 Revenue: USD 0

Revenue: As of FY2026 Q1, the actual value is USD 0.

EPS: As of FY2026 Q1, the actual value is USD -0.28, beating the estimate of USD -0.295.

EBIT: As of FY2026 Q1, the actual value is USD -12.34 M.

Werewolf Therapeutics, Inc. operates as a single reportable segment focused on the discovery and development of cancer therapeutics .

Consolidated Financial Performance (Three Months Ended March 31, 2026 vs. 2025)

• Net Loss: The company reported a net loss of - $13,532 thousand for the three months ended March 31, 2026, improving from - $18,089 thousand in the prior-year period .
• Operating Expenses: Total operating expenses decreased to $13,271 thousand in 2026 from $17,991 thousand in 2025 .
  • Research and Development (R&D) Expenses: R&D expenses decreased by $4,939 thousand, from $13,120 thousand in 2025 to $8,181 thousand in 2026, primarily due to a reduction in force and curtailed spending .
  • General and Administrative (G&A) Expenses: G&A expenses increased by $219 thousand, from $4,871 thousand in 2025 to $5,090 thousand in 2026, mainly due to higher professional services fees .
• Operating Loss: The operating loss was - $13,271 thousand in 2026, compared to - $17,991 thousand in 2025 .
• Interest Income: Interest income decreased from $997 thousand in 2025 to $433 thousand in 2026 .
• Interest Expense: Interest expense increased from - $1,263 thousand in 2025 to - $1,368 thousand in 2026 .
• Other Income, Net: Other income, net, increased from $168 thousand in 2025 to $674 thousand in 2026 .

Cash Flow (Three Months Ended March 31, 2026 vs. 2025)

• Net Cash Used in Operating Activities: Net cash used in operating activities significantly decreased to - $10,597 thousand in 2026 from - $18,948 thousand in 2025, a reduction of $8,351 thousand, due to cost reduction efforts .
• Net Decrease in Cash, Cash Equivalents and Restricted Cash: The total net decrease was - $10,597 thousand in 2026, compared to - $18,948 thousand in 2025 .

Balance Sheet Highlights (As of March 31, 2026 vs. December 31, 2025)

• Cash and Cash Equivalents: Cash and cash equivalents decreased from $57,050 thousand at December 31, 2025, to $46,450 thousand at March 31, 2026 .
• Accumulated Deficit: The accumulated deficit increased to - $488,942 thousand at March 31, 2026, from - $475,410 thousand at December 31, 2025 .

External Development Costs by Product Candidate (Three Months Ended March 31, 2026 vs. 2025)

• Total External Development Costs: Total costs decreased to $3,376 thousand in 2026 from $6,927 thousand in 2025 .
  • WTX-330: Costs were $1,414 thousand in 2026, down from $1,454 thousand in 2025 .
  • WTX-124: Costs decreased significantly to $1,174 thousand in 2026 from $4,795 thousand in 2025 .
  • WTX-1011: Costs were $71 thousand in 2026, up from $0 thousand in 2025 .
  • WTX-2022: Costs were $50 thousand in 2026, up from $0 thousand in 2025 .
  • WTX-712: Costs decreased to $6 thousand in 2026 from $87 thousand in 2025 .
  • WTX-921: Costs were $0 thousand in 2026, down from $9 thousand in 2025 .
  • WTX-518: Costs were $0 thousand in 2026, down from $1 thousand in 2025 .
  • Pre-development candidates: Costs increased to $661 thousand in 2026 from $581 thousand in 2025 .

Restructuring Costs (Three Months Ended March 31, 2026)

• Werewolf Therapeutics, Inc. recognized $4,305 thousand in restructuring costs as part of the 2026 Restructuring plan . An additional $2,100 thousand in costs are estimated to complete the restructuring by the end of 2026 .

Outlook and Strategy

Werewolf Therapeutics, Inc. is exploring a full range of strategic alternatives, including a potential sale, business combination, asset sales, or licensing arrangements, to maximize stockholder value and advance its pipeline . The company anticipates that its existing cash and cash equivalents will be insufficient to fund operations for at least twelve months, indicating a need for additional capital through financing or strategic agreements . The Phase 1/1b clinical trial for WTX-124 and Part A of the Phase 1b/2 clinical trial for WTX-330 are expected to conclude in Q3 2026, with further development requiring additional funding and strategic partnerships .