10-Q · May 7, 2026
Stoke Therapeutics reported a significant decrease in revenue for Q1 2026, totaling $6.2 million, compared to $158.6 million in Q1 2025, primarily due to lower revenue recognized from collaboration agreements. The…
Earnings analysis · 10-Q
STOK earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
Stoke delivered Q2 2026 collaboration revenue of $9.325 million, up $3.1 million sequentially and above the $5.384 million consensus estimate, but down $4.492 million year over year. The loss widened to $61.618 million…
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Stoke delivered Q2 2026 collaboration revenue of $9.325 million, up $3.1 million sequentially and above the $5.384 million consensus estimate, but down $4.492 million year over year. The loss widened to $61.618 million as R&D rose to $49.501 million and SG&A reached $25.253 million, producing an operating margin of negative 701.7%. Clinical execution progressed with 162-patient EMPEROR enrollment completed, but the principal catalyst is not expected until Q3 2027 and six-month operating cash use reached $117.167 million. Liquidity of $354.3 million plus $65.7 million raised after quarter-end is expected to fund operations through a potential early-2028 U.S. launch.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Reported figures
- Earnings per share
- $-0.93
- Segment
- Single reportable segment; Q2 2026 collaboration revenue: $9.325 million (Biogen $6.5 million; Acadia $2.8 million).
What stood out
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Revenue beat consensus but declined year over year
Q2 revenue rose $3.1 million sequentially from $6.2 million in Q1 2026 to $9.325 million, and exceeded the $5.384 million consensus estimate by $3.941 million. Revenue nevertheless fell $4.492 million, or 32.5%, from $13.817 million in Q2 2025 as collaboration revenue normalization continued.
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Pivotal Dravet trial enrollment completed
EMPEROR completed enrollment of 162 patients in the U.S., UK and Japan in June 2026. Management anticipates Phase 3 data in Q3 2027, supporting a planned rolling U.S. NDA submission beginning in Q1 2027.
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ADOA Phase 1 advanced with initial safety signal
STK-002's OSPREY Phase 1 had all 8 planned sites active as of August 2026; the first cohort of 3 patients completed dosing with no serious safety events observed to date. The second cohort is expected to begin dosing in August 2026.
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Liquidity runway extends through potential 2028 launch
Liquidity was $354.3 million at June 30, 2026, versus $390.9 million at December 31, 2025. An additional $65.7 million of net ATM proceeds raised after quarter-end supports management's runway through potential U.S. commercialization in early 2028.
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Investment supports pivotal and launch preparation
Zorevunersen R&D spending increased $12.8 million year over year to $22.222 million in Q2, reflecting pivotal-trial and related development activity. Commercial-readiness costs also drove a $6.6 million increase in SG&A facilities and other costs.
What to watch
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Losses widened sharply and EPS missed
The Q2 net loss widened by $38.135 million to $61.618 million from $23.483 million a year earlier, while operating loss expanded to $65.429 million. Reported EPS of negative $0.93 missed the negative $0.78 consensus estimate by $0.15.
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Expense base is rising ahead of product revenue
R&D expense rose $23.646 million year over year to $49.501 million and SG&A increased $9.991 million to $25.253 million. Management expects both R&D and SG&A expenses to continue increasing, particularly as development and commercialization activities advance.
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Operating cash burn accelerated
Six-month operating cash flow swung to an outflow of $117.167 million from inflow of $106.405 million in the prior-year period. After $2.3 million of property and equipment purchases, six-month free cash flow was approximately negative $119.5 million.
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Dilution and future-financing dependence remain
Cash, cash equivalents and marketable securities declined $36.6 million from $390.9 million at December 31, 2025 to $354.3 million at June 30, 2026, despite $80.7 million of ATM proceeds during the first half. The company sold another 2.1 million shares for $65.7 million after quarter-end, indicating continued equity-financing dependence and dilution risk.
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Late-stage clinical and regulatory outcome risk
The key value driver remains unproven: EMPEROR data are not expected until Q3 2027 despite enrollment of 162 patients. The filing notes that early open-label results may not be replicated in later-stage trials and that the FDA had previously placed a partial clinical hold on certain zorevunersen doses.
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Long-term facility commitment increases fixed costs
The 2026 headquarters lease covers approximately 98,500 square feet through March 31, 2038, with aggregate estimated base rent of $86.6 million. This adds a material long-dated fixed commitment while the company has no product sales.
Management's outlook
No numeric revenue or EPS guidance. Management expects $354.3 million of June 30 cash, cash equivalents and marketable securities plus $65.7 million of subsequent ATM proceeds to fund operations through potential U.S. commercialization in early 2028. EMPEROR data are anticipated in Q3 2027, with rolling NDA submission planned to begin in Q1 2027; STK-002 Phase 1 safety/efficacy readout is anticipated in H1 2027.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.