Alto Neuroscience Reports $17.7 Million Net Loss in Q2 2025, Increases Investment in Clinical Development

Alto Neuroscience, Inc. reported a net loss of $17.7 million for the second quarter of 2025, compared to a loss of $16.0 million in the same period of the previous year. For the first half of 2025, the company recorded a net loss of $32.9 million, up from $29.4 million in the first half of 2024. The increase in losses is attributed to higher general and administrative expenses, which rose to $5.6 million in Q2 2025 from $5.2 million in Q2 2024, primarily due to increased personnel costs. Research and development expenses remained relatively stable at $13.1 million for the second quarter of 2025, slightly down from $13.2 million in the prior year.

In terms of financial position, Alto's total assets decreased to $157.9 million as of June 30, 2025, down from $177.5 million at the end of 2024. The company's cash and cash equivalents also declined to $147.6 million from $168.2 million over the same period. The accumulated deficit increased to approximately $171.3 million, reflecting the ongoing investment in clinical development and operational activities. The company’s total liabilities rose to $34.5 million, primarily due to an increase in long-term debt obligations following the amendment of its loan agreement.

Strategically, Alto has made significant moves in its product pipeline, including the acquisition of ALTO-207 and ALTO-208 from Chase Therapeutics in May 2025. These acquisitions are aimed at addressing treatment-resistant depression and Parkinson's disease, respectively. The company is also advancing its clinical trials for ALTO-100 and ALTO-300, with expectations to report topline data from these studies in the coming years. The ongoing Phase 2b trials for these products are critical to Alto's strategy of developing personalized treatment options in psychiatry.

Operationally, Alto's employee headcount has increased, contributing to higher personnel-related costs. The company is focused on expanding its clinical development capabilities and enhancing its operational infrastructure to support its growing pipeline. As of June 30, 2025, the company had approximately 27,072 shares of common stock outstanding, reflecting its transition to a public company following its IPO in February 2024, which raised approximately $133 million in net proceeds.

Looking ahead, Alto anticipates continued operating losses as it invests in the development of its product candidates. The company expects to require substantial additional funding to support its operations and clinical trials. Management believes that existing cash reserves, along with anticipated proceeds from its Convertible Grant Agreement with Wellcome Trust, will be sufficient to fund operations into 2028. However, the company acknowledges the inherent risks and uncertainties in achieving its development milestones and securing future financing.