10-K · March 23, 2026
Avalo is a clinical-stage biotech focused on IL‑1β biology with its lead candidate abdakibart (AVTX‑009) — enrollment for the Phase 2 LOTUS HS trial (~250 patients) was completed in October 2025 and topline data are…
Earnings analysis · 10-Q
AVTX earnings analysis
Filed May 13, 2026 · Our reading of the company's report
The latest report
Avalo Therapeutics reported a net loss of $19.6 million for Q1 2026 with no revenue being generated, consistent with its ongoing clinical development phase for abdakibart. The company secured $431.3 million in funding…
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Avalo Therapeutics reported a net loss of $19.6 million for Q1 2026 with no revenue being generated, consistent with its ongoing clinical development phase for abdakibart. The company secured $431.3 million in funding from a recent equity offering and reported strong Phase 2 trial results, setting a positive outlook for advancing abdakibart into Phase 3 trials.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Positive Phase 2 Trial Results
The LOTUS trial for abdakibart achieved primary endpoint success rates of 42.2% and 42.9%, establishing it as a significant advancement in the clinical program.
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Strong Cash Position
Avalo secured approximately $431.3 million in gross proceeds from a recent equity financing, enhancing its liquidity.
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Operational Cash Flow Improvement
Net cash used in operating activities increased by $8.2 million, from $9.5 million in Q1 2025 to $17.7 million in Q1 2026.
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Research and Development Increase
R&D expenses grew from $9.1 million in Q1 2025 to $14.0 million in Q1 2026, reflecting advancements towards a Phase 3 program.
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General and Administrative Expense Growth
G&A expenses rose from $5.5 million in Q1 2025 to $6.9 million in Q1 2026, driven by increased salaries and stock-based compensation.
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High Cash and Cash Equivalents
As of March 31, 2026, Avalo held $82.0 million in cash and cash equivalents, sufficient to fund operations into 2029.
What to watch
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Increased Operating Losses
Net loss for Q1 2026 was $19.6 million, which may impact future funding and operational strategy.
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Rising Operating Expenses
Operating expenses rose significantly, with total expenses growing due to headcount increases and clinical trial costs.
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Regulatory Approval Risks
Advancing abdakibart into Phase 3 trials involves significant risks and uncertainties regarding FDA approval.
Management's outlook
Outlook includes potential advancements in product development, but no explicit numeric guidance is provided.
Earlier filings 4
10-Q · November 6, 2025
Avalo reported zero revenue and a third-quarter net loss of $30,625,000 (net loss per share -$2.19) with operating loss of $19,198,000. Management states it has $111.6 million of cash and short-term investments and…
10-Q · May 12, 2025
Avalo reported Q1 2025 GAAP loss per share of $(1.25) driven by a net loss of $(13.15) million, an improvement from a $(121.29) million loss in Q1 2024. The company recognized no revenue in the quarter, ended March 31,…
10-K · March 20, 2025
Avalo Therapeutics is a clinical‑stage biotech centered on AVTX-009 (anti‑IL‑1β), having dosed the first patient in its Phase 2 LOTUS trial in October 2024 (≈180 patients, randomized 1:1:1, 16‑week treatment with…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.