Phio Pharmaceuticals Reports $4M Net Loss and Increased R&D Expenses in Q1 2026

Phio Pharmaceuticals Corp. reported a net loss of $4.0 million for the first quarter of 2026, compared to a net loss of $1.8 million during the same period in 2025. The company's operating expenses increased significantly to $4.2 million, up from $1.9 million year-over-year, primarily driven by a 215% rise in research and development costs, which reached $2.8 million. This increase was largely attributed to heightened clinical trial expenses associated with the development of its lead product candidate, PH-762, as well as increased personnel costs.

The company's financial position showed a decline in total assets, which decreased to $17.4 million as of March 31, 2026, from $21.5 million at the end of 2025. Cash and cash equivalents also fell to $17.0 million from $21.0 million. Total liabilities decreased to $950,000 from $1.3 million, reflecting a reduction in accounts payable and accrued expenses. The accumulated deficit increased to $159.1 million, up from $155.1 million at the end of the previous fiscal year.

In terms of strategic developments, Phio Pharmaceuticals has focused on advancing its clinical programs, particularly for PH-762, which is designed to enhance T cell efficacy against tumors. The company completed a Phase 1b clinical trial for PH-762, which enrolled 22 patients, and is currently analyzing the final data. The company has also entered into various agreements to support the manufacturing and development of PH-762, including a drug substance development services agreement and a cGMP drug product manufacturing services agreement.

Operationally, Phio Pharmaceuticals has maintained a streamlined cost structure while continuing to focus on its clinical development programs. The company has not generated any product revenues to date and does not expect to do so in the near future. As of March 31, 2026, the company had 11,617,250 shares of common stock outstanding, with no significant changes in the number of shares compared to the previous quarter. The company’s employee headcount remains stable as it continues to prioritize its research and development efforts.

Looking ahead, Phio Pharmaceuticals anticipates continued operating losses as it advances its clinical programs and seeks additional funding to support its operations. The company has established an At The Market Agreement to potentially raise up to $6.36 million through the sale of common stock, which it plans to use for the development of PH-762 and other operational needs. However, the company acknowledges the uncertainty surrounding future funding and the challenges associated with clinical development, which may impact its ability to sustain operations without additional capital.