Arbutus Biopharma (ABUS) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $169.7 million, reversing a net loss of $24.5 million in Q1 2025, driven by $178.7 million in license revenue from a settlement with Moderna.

• Operating expenses decreased to $10.2 million from $27.5 million year-over-year, reflecting cost reductions and restructuring.

• Strategic focus remains on advancing imdusiran (AB-729) and AB-101 for chronic hepatitis B, with imdusiran receiving FDA Fast Track designation in April 2026.

• Settlement with Moderna resolves all patent litigation, with a $950 million noncontingent payment expected by July 2026 and a potential $1.3 billion contingent payment pending appeal outcome.

• Cash, cash equivalents, and marketable securities totaled $95.2 million as of March 31, 2026.

Financial highlights

• Total revenue for Q1 2026 was $179.1 million, up from $1.8 million in Q1 2025, primarily due to the Moderna settlement.

• Research and development expenses fell to $4.1 million from $9.0 million year-over-year, reflecting workforce reductions and lower clinical trial costs.

• General and administrative expenses were $5.9 million, up slightly due to litigation-related legal fees.

• No restructuring costs in Q1 2026, compared to $12.4 million in Q1 2025.

• Net income per share was $0.88 basic and $0.87 diluted, compared to a loss of $0.13 per share in Q1 2025.

Outlook and guidance

• Evaluating a potential return of capital to shareholders in Q3 2026 following receipt of the Moderna settlement payment.

• Sufficient cash resources to fund operations for at least the next 12 months.

• Ongoing cost management expected to maintain reduced net cash burn in 2026.

• Fast Track designation for imdusiran may enable accelerated regulatory pathways, including potential for rolling review and priority approval.

• Anticipates receiving $178.7 million from the Moderna settlement in July 2026, with an additional $1.3 billion contingent on appellate ruling.