10-Q · May 13, 2026
Equillium reported disappointing financial results for the first quarter of 2026, with revenues of $0.2 million, coming in slightly above estimates, while the EPS of -$0.04 exceeded expectations of -$0.07. Despite a…
Earnings analysis · 10-Q
EQ earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
Equillium’s Q2 2026 results showed improved operating efficiency, with diluted EPS improving to $(0.04) from $(0.16) year over year, R&D expense declining by $1.334 million, and six-month operating cash burn improving…
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Equillium’s Q2 2026 results showed improved operating efficiency, with diluted EPS improving to $(0.04) from $(0.16) year over year, R&D expense declining by $1.334 million, and six-month operating cash burn improving to $8.408 million. Cash increased to $57.164 million after $35.388 million of financing inflows, and management believes the balance funds operations into 2029. However, the company has no product revenue, reported a $226.2 million accumulated deficit, expects continued losses and additional funding needs, and faces heightened clinical, dilution, supply-chain and potential cryptocurrency-strategy risks.
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.
Reported figures
- Earnings per share
- $-0.04
- Segment
- Single operating and reportable segment; no product sales have been generated. Q2 2026 R&D expense was $2.749 million and G&A expense was $2.406 million.
What stood out
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EPS Loss Narrowed Year Over Year
Diluted EPS was $(0.04) in Q2 2026 versus $(0.16) in Q2 2025, an improvement of $0.12 per share year over year. Six-month diluted EPS was $(0.10) versus $(0.40).
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R&D Spending Fell 33%
Research and development expense declined to $2.749 million from $4.083 million in Q2 2025, a $1.334 million decrease, primarily reflecting the wind-down of the EQUATOR study and lower headcount.
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Year-to-Date Loss Improved
Six-month net loss declined to $10.004 million from $14.393 million in the prior-year period, an improvement of $4.389 million.
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Cash Balance More Than Doubled
Cash and cash equivalents increased to $57.164 million at June 30, 2026 from $30.277 million at December 31, 2025, primarily supported by $35.388 million of financing cash inflows.
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Operating Cash Burn Declined
Operating cash burn improved to $8.408 million in the first six months of 2026 from $11.182 million in the prior-year period. Capital expenditures were only $74,000, versus $4,000 in the prior-year period.
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EQ504 Development Remains on Track
Management plans to initiate the EQ504 Phase 1 proof-of-mechanism study in Q4 2026, with data expected approximately six months later, while stating that existing cash should fund operations into 2029.
What to watch
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Additional Funding Remains Necessary
The company states it will require substantial additional funding to complete development and commercialization. The March 2026 financing generated approximately $35.0 million gross proceeds, but the company still had an accumulated deficit of $226.2 million and expects continued operating losses.
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Uninitiated Crypto Strategy Adds Risk
The filing newly highlights a potential cryptocurrency treasury reserve strategy, although the company has not initiated it. The company states it may use proceeds from future offerings to purchase cryptocurrencies, which could expose capital to substantial volatility and liquidity risk.
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Tariff and BIOSECURE Supply Risk
The filing adds specific exposure to international trade restrictions, including potential tariffs on pharmaceutical products and ingredients and restrictions under the BIOSECURE Act. Management states tariffs could increase R&D expenses and disrupt supply, while principal suppliers of critical materials are located in the U.S., Europe and China.
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Clinical and Revenue Execution Risk
Development remains concentrated in pre-commercial assets: the company has not generated product sales and expects product revenue is unlikely within the next 12 months, if ever. EQ504 Phase 1 initiation is planned for Q4 2026, but management provides no assurance that the study will begin on time or produce favorable data.
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Significant Future Dilution
Potential dilution is substantial: 48,515,298 pre-funded warrant shares were reserved as of June 30, 2026, and up to 35,087,717 additional shares or pre-funded warrants may be issued upon achievement of milestones under the August 2025 financing.
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Persistent Operating Losses
The company continues to report negative cash generation and losses, including $8.408 million of operating cash used in the first six months of 2026 and a $226.2 million accumulated deficit at June 30, 2026.
Management's outlook
No numeric revenue or EPS guidance was provided. Management expects to initiate an EQ504 Phase 1 proof-of-mechanism study in Q4 2026, with data expected approximately six months thereafter, and expects cash and cash equivalents as of June 30, 2026 to fund operations into 2029.
Earlier filings 4
10-K · March 25, 2026
Equillium is a preclinical-stage biopharma focused on two lead programs: EQ504 (AhR modulator) and EQ302 (oral IL-15/IL-21 inhibitor). The company plans to initiate a Phase 1 proof‑of‑mechanism study for EQ504 in…
10-Q · November 13, 2025
Equillium reported $0 revenue for the three months ended September 30, 2025 (vs $12,161 in Q3 2024) while cutting R&D spend sharply to $1,301 for the quarter (from $9,562). The company completed an equity financing…
10-Q · August 14, 2025
Equillium reported Q2 2025 revenue of $0 and a net loss of $5.739 million (diluted EPS -$0.16), versus revenue of $13.853 million and net income of $0.468 million in Q2 2024. Management paused R&D during Q2 pending…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.