CARGO Therapeutics Reports $84.5 Million Net Loss and Major Restructuring Efforts

CARGO Therapeutics, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending March 31, 2025. The company recorded a net loss of $84.5 million, a substantial increase from the $35.8 million loss reported in the same period last year. This resulted in a net loss per share of $1.77, compared to $0.87 in the prior year. Total operating expenses surged to $88.4 million, up from $40.8 million, primarily driven by a $46.3 million restructuring charge associated with workforce reductions and the suspension of various development programs.

The company's financial position has also deteriorated, with total assets decreasing to $362.0 million from $414.1 million at the end of 2024. Current assets fell to $324.8 million, largely due to a decline in short-term marketable securities, which dropped from $275.3 million to $257.1 million. CARGO's accumulated deficit has now reached $397.1 million, reflecting ongoing operational losses since its inception. The company reported cash and cash equivalents of $61.8 million, down from $64.4 million, indicating a tightening liquidity position.

Strategically, CARGO has undergone significant organizational changes, including a workforce reduction of approximately 90% announced in March 2025, following an earlier 50% reduction in January. These layoffs were part of a broader restructuring plan aimed at suspending pipeline development efforts and exploring strategic alternatives, including potential mergers or business combinations. The company has engaged TD Cowen as a strategic financial advisor to assist in this evaluation process.

Operationally, CARGO's research and development expenses remained relatively stable at $30.6 million, compared to $30.5 million in the previous year. However, the company has suspended its Phase 2 study of firicabtagene autoleucel (firi-cel) and is focusing on its investigational tri-specific CAR T therapy, CRG-023, which received FDA clearance for a Phase 1 study in January 2025. The company is also developing a novel allogeneic platform aimed at enhancing the efficacy and availability of CAR T-cell therapies.

Looking ahead, CARGO anticipates continued operational challenges as it navigates its restructuring and evaluates strategic options. The company expects to incur ongoing costs related to its streamlined operations and potential strategic transactions. Despite the current financial strain, CARGO believes its existing cash and marketable securities will be sufficient to support operations through mid-2028, although this estimate is subject to change based on future developments.