Form type: 10-Q
Period end: 2026-03-31
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | |
|---|---|---|
| Total Revenue | ||
| Total COGS | ||
| Gross Profit | ||
| General and administrative | 6,444,000.00 | 4,114,000.00 |
| Other income (expense), net | -7,423,000.00 | -15,509,000.00 |
| Research and development | 9,840,000.00 | 4,016,000.00 |
| Total Expenses | - | |
| Net Income | - | |
| Basic earnings per share | - |
| March 31, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | 194,834,000.00 | 119,731,000.00 |
| Operating lease right-of-use assets | 1,569,000.00 | 1,661,000.00 |
| Other assets (derived) | 108,000.00 | 87,000.00 |
| Prepaid expenses and other current assets | 2,918,000.00 | 1,658,000.00 |
| Property, plant and equipment | 2,075,000.00 | 1,642,000.00 |
| Restricted cash and equivalents | 416,000.00 | 416,000.00 |
| Total Assets | ||
| Liabilities | ||
| Accounts payable | 3,036,000.00 | 1,129,000.00 |
| Accrued compensation | 1,355,000.00 | 3,384,000.00 |
| Accrued liabilities | 3,473,000.00 | 7,334,000.00 |
| Deferred revenue, noncurrent | 67,000.00 | 89,000.00 |
| Operating lease liabilities, current | 453,000.00 | 445,000.00 |
| Operating lease liabilities, noncurrent | 1,343,000.00 | 1,459,000.00 |
| Other accrued liabilities | 490,000.00 | 464,000.00 |
| Other current liabilities | 89,000.00 | 89,000.00 |
| Other liabilities (derived) | 53,585,000.00 | 58,880,000.00 |
| Total Liabilities | ||
| Equity | ||
| Stockholders equity | 138,029,000.00 | 51,922,000.00 |
| Total Equity | ||
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | |
|---|---|---|
| Operating activities | ||
| Net income | -8,861,000.00 | 7,379,000.00 |
| Stock-based compensation | 1,452,000.00 | 314,000.00 |
| Changes in operating assets and liabilities, net | -10,628,000.00 | -16,309,000.00 |
| Net cash from operating activities | - | - |
| Investing activities | ||
| Investing activities, net | -675,000.00 | -3,000.00 |
| Net cash from investing activities | - | - |
| Financing activities | ||
| Financing activities, net | 93,815,000.00 | -1,870,000.00 |
| Net cash from financing activities | - | |
| Net change in cash | - | |
| Cash at beginning of period | 102,920,000.00 | |
| Cash at end of period | 92,431,000.00 | |
| Amount | |
|---|---|
| Balance at beginning of period | 51,922,000.00 |
| Net income | -8,861,000.00 |
| Other equity movements | 94,968,000.00 |
| Balance at end of period | 138,029,000.00 |
| Current | Prior | |
|---|---|---|
| Operating lease liabilities, current | 453,000.00 | 445,000.00 |
| Operating lease liabilities, noncurrent | 1,343,000.00 | 1,459,000.00 |
| Total debt | 1,796,000.00 | 1,904,000.00 |
| Current | Prior | |
|---|---|---|
| Property, plant and equipment | 2,075,000.00 | 1,642,000.00 |
| Total property and equipment | 2,075,000.00 | 1,642,000.00 |
| Current | Prior | |
|---|---|---|
| Stockholders equity | 138,029,000.00 | 51,922,000.00 |
| Total stockholders' equity | 138,029,000.00 | 51,922,000.00 |
Candel Therapeutics, Inc. is a public reporting company classified under Biological Products, (No Diagnostic Substances) Candel Therapeutics, Inc. is a public reporting company classified under Biological Products, (No Diagnostic Substances). We have incurred significant operating losses since our inception and anticipate that we will incur continued losses for the foreseeable future. Substantially all of our operating losses have resulted from costs incurred in connection with our research and development programs and from general and administrative costs associated with our operations. We have not obtained regulatory approvals for any of our product candidates, and even if our clinical development efforts result in positive data, our product candidates may not receive regulatory approval or be successfully introduced and marketed at prices that would permit us to operate profitably. We did not record any revenue for the three months ended March 31, 2026.
Research and development expenses were $9.8 million for the three months ended March 31, 2026, compared to $4.0 million for the comparable prior-year period, an increase of 145.0%, driven by [COMPLETE: specific drivers of the increase in research and development expenses]. We expect our research and development expenses to significantly increase in connection with the commencement and continuation of clinical trials of our product candidates. General and administrative expenses were $6.4 million for the three months ended March 31, 2026, compared to $4.1 million for the comparable prior-year period, an increase of 56.6%, driven by [COMPLETE: specific drivers of the increase in general and administrative expenses]. Other income, net was $7.4 million for the three months ended March 31, 2026, compared to $15.5 million for the comparable prior-year period, a decrease of 52.1%, reflecting [COMPLETE: drivers of the change in other income, net]. As a result, we reported a net loss of $8.9 million, or $(0.14) per basic share, based on weighted-average basic shares outstanding of 62,361,897 for the period.
As of March 31, 2026, we had cash and cash equivalents of $194.8 million, compared to $92.2 million at the end of the comparable prior-year period, an increase of 111.4%, as well as restricted cash and equivalents of $0.4 million. During the period, we repaid or otherwise eliminated our current debt, which decreased to zero from $9.2 million in the prior period, and stockholders' equity increased 84.8% to $138.0 million from $74.7 million. Total liabilities were $63.9 million as of March 31, 2026. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments. We expect to continue to incur significant expenses and operating losses over the next several years and for the foreseeable future, and our prior losses, combined with expected future losses, have had and will continue to have an adverse effect on our stockholders' equity and working capital. Management believes that our existing cash and cash equivalents will be sufficient to fund our operating expenses and capital expenditure requirements for at least the next twelve months from the date of this filing [COMPLETE: confirm management's assessment of the sufficiency of resources for at least the next twelve months].
We are a clinical stage biopharmaceutical company focused on developing off-the-shelf viral immunotherapies that elicit an individualized, systemic anti-tumor immune response to help patients fight cancer. Our primary market risk exposure is interest rate risk on our cash, cash equivalents, and short-term investments. As of March 31, 2026, we held cash and cash equivalents of $194.8 million, compared to $92.2 million as of the prior period end, together with restricted cash and equivalents of $0.4 million. Because these holdings consist of instruments whose returns fluctuate with prevailing interest rates, changes in market interest rates affect the interest income we earn on these balances. [COMPLETE: description of the estimated impact of a hypothetical change in interest rates on the value of the portfolio and on interest income]
Our exposure to interest rate risk on borrowings has been reduced during the period. As of March 31, 2026, we had no current debt outstanding, compared to $9.2 million of current debt outstanding as of the prior period end. Accordingly, we do not believe our results of operations are currently subject to material risk from changes in interest rates on outstanding indebtedness.
We do not have material foreign currency or commodity price exposure. We do not currently engage in hedging transactions to manage our exposure to market risks, although we may consider doing so in the future if our exposures change.
Our management, with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2026, the end of the period covered by this Quarterly Report. Disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports we file or submit under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission, and that such information is accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Based on that evaluation, management concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period.
In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Accordingly, our disclosure controls and procedures are designed to provide reasonable, rather than absolute, assurance of achieving their control objectives.
There were no changes in our internal control over financial reporting during the quarter ended March 31, 2026 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
[NOTE: The conclusion language regarding the effectiveness of disclosure controls and procedures set forth in this section must be reviewed and adopted by management before filing.]
From time to time, we may be involved in legal proceedings arising in the ordinary course of our business. Such matters can include claims relating to commercial, employment, intellectual property, and other matters incidental to the operation of our business. The outcome of litigation is inherently uncertain, and an unfavorable resolution of any pending or future matter could have an adverse effect on our business, financial condition, or results of operations.
Management does not currently believe that any pending legal matter is material to our condensed consolidated financial statements. Regardless of outcome, however, litigation can be costly and time-consuming, may divert the attention of management and other resources, and could otherwise adversely affect us.
We have never generated revenue from product sales and have incurred significant losses since inception, and we expect to continue to incur substantial losses for the foreseeable future. We have no products approved for commercial sale and therefore have never generated any revenue from product sales, and we do not expect to do so in the foreseeable future. We had an accumulated deficit of $230.4 million as of December 31, 2025, and for the years ended December 31, 2025 and 2024, we reported net losses of $38.2 million and $55.2 million, respectively. For the three months ended March 31, 2026, we recognized no revenue and incurred a net loss of $8.9 million. Our losses may fluctuate significantly from period to period as we advance our development programs, and our failure to achieve or sustain profitability could adversely affect the value of our common stock.
Our operating expenses have increased and may continue to increase as we expand our research and development activities. Research and development expenses were $9.8 million for the current period, compared to $4.0 million in the prior period, an increase of 145.0%, and general and administrative expenses were $6.4 million, compared to $4.1 million in the prior period, an increase of 56.6%. Although we held cash and cash equivalents of $194.8 million as of March 31, 2026, compared to $92.2 million in the prior period, we may require substantial additional capital to complete the development and, if approved, commercialization of our product candidates, and such capital may not be available on acceptable terms, or at all. If we are unable to raise capital when needed, we may be required to delay, limit, reduce or terminate our development programs or other operations.
Our indebtedness could adversely affect our financial condition and restrict our operating flexibility. On October 14, 2025, we entered into a Loan and Security Agreement, as amended by that certain First Amendment to Loan and Security Agreement dated as of March 10, 2026 (the Trinity LSA), with the lenders party thereto and Trinity Capital Inc. (Trinity), as administrative agent and collateral agent, and in October 2025 we borrowed $50.0 million under the Trinity LSA pursuant to the First Tranche at closing. We used a portion of the proceeds from the First Tranche of the Trinity LSA to repay the SVB Loan Agreement in full on October 14, 2025. As of March 31, 2026, our total liabilities were $63.9 million and our total stockholders' equity was $138.0 million. Our obligations under the Trinity LSA may limit our ability to obtain additional financing and require us to dedicate a portion of our cash resources to debt service, which could reduce funds available for our development programs.
We are also exposed to market and other risks in the ordinary course of our business. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure. In addition, we are involved in legal proceedings arising in the ordinary course of business from time to time, and while management does not currently believe any pending matter is material to the financial statements, an adverse outcome in any such matter could harm our business, financial condition and results of operations.
Pursuant to Item 408(a) of Regulation S-K, the following discloses information regarding Rule 10b5-1 trading arrangements of the Company's directors and officers for the quarterly period ended March 31, 2026. [COMPLETE: Rule 10b5-1 trading arrangement adoptions and terminations from the D&O questionnaires]