Sutro Biopharma Reports $38.5 Million Net Loss in Q1 2026, Revenue Declines 17%

Sutro Biopharma, Inc. reported a net loss of $38.5 million for the first quarter of 2026, a significant improvement compared to a net loss of $76.0 million in the same period last year. The company's revenue for the quarter was $14.5 million, down 17% from $17.4 million in the first quarter of 2025. This decline was primarily attributed to decreased revenue from collaboration agreements, particularly with Astellas Pharma, which saw a reduction of $2.4 million due to ongoing performance on partially unsatisfied obligations and a decrease in research and development services.

Operating expenses for Sutro Biopharma decreased by 49% to $44.2 million, down from $85.9 million in the prior year. This reduction was driven by a 29% decrease in research and development expenses, which fell to $36.6 million, and a 43% decrease in general and administrative expenses, which totaled $7.6 million. The company also reported minimal restructuring costs of $42,000, a significant drop from $21.0 million in the previous year, reflecting the completion of its strategic restructuring plans aimed at prioritizing its product pipeline.

Sutro Biopharma's total assets increased to $242.0 million as of March 31, 2026, compared to $173.8 million at the end of 2025, largely due to an increase in cash and cash equivalents, which rose to $73.7 million from $58.1 million. The company also reported marketable securities of $128.9 million, up from $83.3 million. The increase in cash reserves was bolstered by a successful public offering in February 2026, which generated approximately $110 million in gross proceeds.

The company continues to focus on advancing its product candidates, particularly STRO-004, which is currently in a Phase 1 clinical trial for the treatment of solid tumors. Sutro Biopharma has also prioritized its preclinical programs, including STRO-006 and STRO-227, and plans to submit IND applications for these candidates in 2026. Despite the positive developments, the company acknowledged the need for additional funding to support ongoing research and development activities, as it has incurred significant losses and has a substantial accumulated deficit of $1.02 billion.

Looking ahead, Sutro Biopharma expects to continue incurring losses as it advances its clinical programs and seeks regulatory approvals. The company anticipates that its operating expenses will increase as it progresses through clinical development and expands its pipeline. Management believes that its current cash and marketable securities will sustain operations for at least the next 12 months, but additional capital will be necessary to support its long-term objectives.