Arcturus Therapeutics Reports 90% Revenue Decline and $23.8 Million Net Loss in Latest Quarter

Arcturus Therapeutics Holdings Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2026. The company generated total revenue of $2.96 million, a sharp decline of 90% compared to $28.3 million in the same quarter of the previous year. This decrease was primarily attributed to a substantial drop in collaboration revenue, which fell to $880,000 from $24.5 million, and a reduction in grant revenue from $3.79 million to $2.08 million. For the first half of 2026, total revenue was $5.02 million, down 91% from $57.68 million in the first half of 2025.

Operating expenses also decreased, totaling $28.5 million for the second quarter, down 29% from $39.9 million a year earlier. Research and development expenses were $17.5 million, a 41% decrease from $29.6 million, reflecting reduced clinical trial costs and lower payroll expenses due to a decrease in headcount. General and administrative expenses saw a slight increase of 6% to $11 million. Despite these reductions, the company reported a net loss of $23.8 million for the quarter, compared to a loss of $9.2 million in the same period last year.

Strategically, Arcturus underwent significant changes, including the termination of its collaboration agreement with CSL Seqirus, which was finalized on August 3, 2026. This termination allowed Arcturus to regain control over its vaccine portfolio, including its COVID-19 vaccine KOSTAIVE®, and resulted in a one-time cash payment of $12 million from CSL Seqirus. The company is now obligated to pay royalties on future vaccine products that incorporate CSL Seqirus intellectual property. Additionally, Arcturus entered into a new agreement with Thermo Fisher Scientific for contract development and manufacturing services related to its investigational mRNA therapeutic for cystic fibrosis, ARCT-032.

As of June 30, 2026, Arcturus had cash and cash equivalents of $191.5 million, down from $230.9 million at the end of 2025. The company reported net cash used in operating activities of $39.4 million for the first half of 2026, a slight improvement from $40.9 million in the same period of 2025. Looking ahead, Arcturus anticipates continued losses as it progresses with its clinical trials and seeks regulatory approvals for its product candidates. The company emphasized the need for additional capital to fund its operations and support its long-term plans, indicating that it may pursue further financing options in the future.