Allarity Therapeutics Reports Q2 2025 Financial Results with Increased Net Loss

Allarity Therapeutics, Inc. reported its financial results for the second quarter of 2025, revealing a net loss of $2.3 million, compared to a loss of $1.6 million in the same period of 2024. For the six months ending June 30, 2025, the company recorded a net loss of $5.1 million, slightly improved from a loss of $5.5 million in the prior year. Total operating expenses for the second quarter increased to $4.1 million from $3.4 million year-over-year, primarily driven by a significant rise in research and development costs associated with the expansion of clinical trials for its lead drug candidate, stenoparib.

The company’s cash and cash equivalents stood at $17.8 million as of June 30, 2025, a decrease from $19.5 million at the end of 2024. This decline was attributed to cash used in operating activities, which totaled $8.2 million for the first half of 2025, compared to $8.7 million in the same period of 2024. Notably, Allarity's accumulated deficit reached $124 million, reflecting the ongoing costs associated with its research and development efforts. The company has indicated that it expects to continue incurring significant expenses as it advances stenoparib through clinical trials and pursues regulatory approvals.

In terms of strategic developments, Allarity initiated a share repurchase program in March 2025, under which it repurchased 2.5 million shares for approximately $2.6 million during the second quarter. The company also reported a successful At-The-Market (ATM) offering, generating $9.7 million from the sale of 9.7 million shares in the first half of 2025. However, the ATM facility was terminated at the end of March 2025. Additionally, Allarity announced a new commercial agreement with a European biotechnology company for its proprietary Drug Response Predictor (DRP®) algorithms, marking a significant step in its business development efforts.

Operationally, Allarity's research and development expenses increased by $1.3 million in the second quarter, primarily due to costs related to the manufacturing and supplies for the Phase II clinical trial of stenoparib. The company also experienced a notable foreign exchange gain of $1.6 million in the second quarter, which contributed to its overall financial performance. As of June 30, 2025, Allarity had 17.1 million shares outstanding, reflecting the impact of recent stock splits and share issuances.

Looking ahead, Allarity anticipates continued investment in its clinical programs, particularly for stenoparib, and expects to incur substantial expenses as it seeks to advance its drug candidates through the necessary regulatory processes. The company has expressed confidence that its current cash reserves will be sufficient to fund operations for at least the next 12 months, although it may need to seek additional capital to support its ongoing research and development activities.