Grayscale Investments (GRAY) Q1 2026 earnings summary

Executive summary

• Clinical-stage biopharma focused on CRAC channel inhibitors for acute and chronic inflammatory diseases, with lead candidate Auxora in multiple Phase 2 trials and preclinical pipeline expansion underway.

• Paused enrollment in KOURAGE Phase 2 trial for Auxora in AKI/AHRF due to safety concerns, with FDA feedback pending; AP pivotal program design feedback expected in Q2 2026.

• Net income of $5.0 million for Q1 2026, driven by non-cash gains from fair value adjustments to warrant liability and promissory note.

• Accumulated deficit of $184.4 million as of March 31, 2026; cash and equivalents of $8.2 million, expected to fund operations into Q4 2026.

Financial highlights

• Q1 2026 net income: $5.0 million, compared to net loss of $5.0 million in Q1 2025.

• Total operating expenses decreased 14% year-over-year to $5.6 million, with R&D down 17% and G&A down 6%.

• Other income rose to $10.6 million, mainly from $10.8 million in non-cash gains on fair value adjustments.

• Cash used in operations: $4.9 million for Q1 2026.

• No product revenue generated to date; all income from financing and fair value adjustments.

Outlook and guidance

• Cash runway expected into Q4 2026; substantial doubt about ability to continue as a going concern without additional capital.

• Additional funding required to advance product candidates through regulatory approval and commercialization.

• Ongoing engagement with FDA for pivotal AP program and future development of Auxora in AKI.