Quince Therapeutics Reports $35.9 Million Net Income Turnaround in Latest Quarter

Quince Therapeutics, Inc. reported a significant financial turnaround in its latest quarterly results, with a net income of $35.9 million for the three months ended March 31, 2026, compared to a net loss of $15.0 million during the same period in 2025. This shift was primarily driven by a $31.1 million fair value adjustment related to warrants and a $12.2 million adjustment for debt, following the settlement of an outstanding loan with the European Investment Bank. Total operating expenses for the quarter decreased slightly to $14.6 million from $14.9 million year-over-year, reflecting a reduction in research and development costs as the company ceased clinical development of its lead drug candidate, eDSP, after its Phase 3 NEAT trial did not meet primary or secondary endpoints.

The company’s cash and cash equivalents increased to $18.2 million as of March 31, 2026, up from $5.8 million at the end of the previous fiscal year. This increase was bolstered by approximately $15 million raised through its at-the-market (ATM) program, which allowed the issuance of 8 million shares of common stock. However, Quince cautioned that its current cash reserves may not be sufficient to fund operations for the next twelve months, necessitating additional funding through public or private financing options.

Operationally, Quince has undergone significant changes, including the engagement of LifeSci Capital as a financial advisor to explore strategic alternatives, including a potential reverse merger. The company has no other product candidates in development following the discontinuation of eDSP, which was intended to treat Ataxia-Telangiectasia (A-T). The decision to halt development was based on the trial results, which indicated that the treatment did not demonstrate statistical significance in efficacy compared to placebo.

In terms of employee metrics, Quince's workforce has been impacted by restructuring efforts, which included severance costs. The company reported a personnel-related expense increase of $0.7 million, attributed to severance payments and stock-based compensation. As of March 31, 2026, Quince had a total of 13.8 million shares outstanding following a 1-for-10 reverse stock split that took effect on April 10, 2026. The company is currently focused on preserving cash while evaluating its strategic options, with substantial doubt raised regarding its ability to continue as a going concern without securing additional funding.