Rafael Holdings Reports $4.2 Million Net Loss and Declining Revenue for April 2026 Quarter

Rafael Holdings, Inc. reported a consolidated net loss of $4.2 million for the three months ended April 30, 2026, a decrease from a net loss of $4.8 million in the same period last year. Total revenue for the quarter was $179,000, a significant decline from $362,000 in the prior year, primarily due to a drop in product revenue, which fell to $89,000 from $243,000. The company attributed the decrease in revenue to reduced activity in its Infusion Technology segment, which saw no revenue compared to $42,000 in the previous year. For the nine months ended April 30, 2026, the net loss was $20.5 million, compared to a loss of $18.4 million for the same period in 2025, with total revenue decreasing to $630,000 from $567,000.

The company experienced a notable reduction in cash and cash equivalents, which decreased to $30.5 million from $52.8 million as of July 31, 2025. This decline was attributed to cash used in operating activities amounting to $21.6 million, significantly higher than the $8.5 million used in the same period last year. The increase in cash outflow was primarily driven by higher research and development expenses, which rose to $16.9 million from $5.3 million, reflecting intensified efforts in the development of its lead candidate, Trappsol® Cyclo™, for the treatment of Niemann-Pick Disease Type C1.

Strategically, Rafael Holdings has focused on consolidating its investments and enhancing its operational efficiency. The company completed the acquisition of Cyclo Therapeutics in March 2025, which has since become a wholly-owned subsidiary. This merger is expected to bolster Rafael's capabilities in developing cyclodextrin-based products. Additionally, Rafael Medical Devices received FDA clearance for its VECTR System, which is designed for minimally invasive surgeries, marking a significant milestone in its product development efforts.

Operationally, the company reported a decrease in general and administrative expenses, which fell to $2.1 million from $3.1 million year-over-year, primarily due to reduced payroll and professional fees. However, the company also noted an increase in research and development expenses, reflecting its commitment to advancing clinical trials and product development. As of April 30, 2026, Rafael Holdings had a total of 51.2 million shares outstanding, with a basic and diluted loss per share of $0.08, compared to a loss of $0.19 per share in the prior year.

Looking ahead, Rafael Holdings anticipates that its cash reserves will be sufficient to meet its obligations for at least the next 12 months. The company is focused on completing the pivotal Phase 3 clinical trial for Trappsol® Cyclo™ and plans to submit a New Drug Application (NDA) to the FDA in the second half of 2026. The company is also evaluating its other holdings to ensure that resources are allocated effectively towards its core assets and development efforts.