Clinical Trial Results - Certepetide has shown a 41.5% overall response rate (ORR) across all doses in a Phase 1b/2a study for metastatic pancreatic ductal adenocarcinoma (mPDAC) patients[121]. - The median overall survival (mOS) for the certepetide-treated group in the ASCEND trial was 12.68 months, compared to 9.72 months for the placebo group[122]. - The median progression-free survival (mPFS) was 7.5 months for the certepetide-treated group in the ASCEND trial, compared to 4.7 months for the placebo group[122]. - Certepetide is currently being evaluated in multiple Phase 2 clinical studies globally for various solid tumor types[115]. - The ASCEND trial is a double-blind, randomized, placebo-controlled study evaluating two dosing regimens of certepetide in mPDAC patients[122]. - The drug has demonstrated favorable safety and tolerability profiles in ongoing clinical trials[119]. - Certepetide is designed to enhance the delivery of anti-cancer therapies by modifying the tumor microenvironment and improving drug penetration[120]. Financial Performance - The net loss for the three months ended September 30, 2025, was $4.2 million, an improvement from a net loss of $4.9 million in the same period in 2024[127]. - For the nine months ended September 30, 2025, revenue totaled $70 thousand, an increase from $0 for the same period in 2024[133]. - Net loss for the nine months ended September 30, 2025, was $13.6 million, an improvement from a net loss of $15.4 million in 2024[132]. Operating Expenses - Operating expenses decreased by $0.9 million or 17.3% to $4.4 million for the three months ended September 30, 2025, compared to $5.3 million for the same period in 2024[129]. - Operating expenses decreased by $2.3 million or 12.9%, totaling $15.2 million for the nine months ended September 30, 2025, compared to $17.5 million in 2024[134]. - General and administrative expenses were approximately $8.4 million for the nine months ended September 30, 2025, down $0.7 million or 7.6% from $9.1 million in 2024[135]. Research and Development Expenses - Research and development expenses were approximately $2.0 million for the three months ended September 30, 2025, a decrease of 22.9% from $2.5 million in the same period in 2024[130]. - Research and development expenses were approximately $6.8 million for the nine months ended September 30, 2025, a decrease of $1.6 million or 18.7% from $8.4 million in 2024[135]. Cash and Liquidity - Cash and cash equivalents as of September 30, 2025, were approximately $19.0 million, with working capital of approximately $17.0 million[139]. - Net cash used in operating activities was $12.7 million for the nine months ended September 30, 2025, compared to $14.8 million in 2024[140]. - Cash provided by investing activities totaled $15.1 million for the nine months ended September 30, 2025, primarily from net sales of marketable securities[143]. - The company expects to use existing cash balances and other means to meet short and long-term liquidity needs, including potential issuances of debt or equity securities[147]. - The company issued 197,980 shares of common stock under the ATM Agreement for net proceeds of $600,663 during the nine months ended September 30, 2025[148].

Financial Performance - Total assets decreased from $463,091,000 as of December 31, 2024, to $397,269,000 as of September 30, 2025, representing a decline of approximately 14.2%[21] - Revenue from research and development collaborations increased to $27,614,000 for the three months ended September 30, 2025, compared to $16,000,000 for the same period in 2024, marking a growth of 72.6%[22] - Net loss for the three months ended September 30, 2025, was $19,602,000, a decrease from a net loss of $29,850,000 in the same period of 2024, reflecting an improvement of 34.5%[22] - Total current liabilities decreased from $88,294,000 as of December 31, 2024, to $42,043,000 as of September 30, 2025, a reduction of approximately 52.5%[21] - Cash and cash equivalents slightly decreased from $66,103,000 as of December 31, 2024, to $64,834,000 as of September 30, 2025[21] - Operating expenses for the three months ended September 30, 2025, totaled $49,724,000, a slight decrease from $50,205,000 in the same period of 2024[22] - The company reported interest income of $3,529,000 for the three months ended September 30, 2025, compared to $4,785,000 in the same period of 2024, a decline of 26.3%[22] - Stockholders' equity decreased from $338,768,000 as of December 31, 2024, to $320,064,000 as of September 30, 2025, a decline of approximately 5.5%[21] - The company reported a comprehensive loss of $19,312,000 for the three months ended September 30, 2025, compared to a comprehensive loss of $27,945,000 in the same period of 2024, indicating an improvement of 30.9%[22] - Net loss for the nine months ended September 30, 2025, was $39,921 thousand, compared to a net loss of $99,189 thousand for the same period in 2024, indicating a significant improvement[25] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $64,834 thousand, down from $122,356 thousand at the end of September 2024, showing a decrease in liquidity[25] - The company reported a net cash used in operating activities of $22,746 thousand for the nine months ended September 30, 2025, compared to $68,548 thousand in 2024, indicating improved cash flow management[25] - The company reported a net change in cash and cash equivalents of $(1,269) thousand for the nine months ended September 30, 2025, compared to $(35,201) thousand in 2024, showing improved cash flow stability[25] - The company believes its principal sources of liquidity are sufficient to fund operations for at least the next 12 months[79] - The company anticipates that its existing cash and cash equivalents will fund its operating expenditures for at least the next twelve months[94] Stock and Equity - The weighted-average common stock outstanding for the three months ended September 30, 2025, was 75,767,778 shares, compared to 76,128,531 shares for the same period in 2024[22] - The Company repurchased 1,028,333 shares of common stock for a cost of $15,691 during the three months ended September 30, 2025, and 2,545,402 shares for $30,000 during the year ended December 31, 2024[46] - The average price paid per share for the repurchases was $15.26 for the three months ended September 30, 2025, and $11.79 for the year ended December 31, 2024[47] - As of September 30, 2025, there were 5,634,658 shares available for future award grants under the New Plan, up from 5,196,630 shares as of December 31, 2024[54] - The Company had 7,891,559 stock options outstanding as of September 30, 2025, with an average exercise price of $12.13[57] Research and Development - Research and development expenses for the three months ended September 30, 2025, were $35.6 million, a slight decrease of 2% from $36.4 million in the same period in 2024[138] - Research and development expenses increased by $8.2 million for the nine months ended September 30, 2025, totaling $105.8 million compared to $97.6 million in the same period in 2024, an 8% increase[139] - The company expects research and development expenses to increase in the future as it continues to advance and expand clinical development of its product candidates[126] - The company reported a significant decrease in expenses for zanidatamab and zanidatamab zovodotin due to reduced clinical support and program discontinuation, respectively[139] Revenue and Milestones - The Company recognized revenue of $27,614 for the three months ended September 30, 2025, compared to $16,000 for the same period in 2024, with total revenue for the nine months ended September 30, 2025, reaching $103,450[61] - The revenue for the three months ended September 30, 2025, included $25.0 million of non-refundable milestone revenue from J&J due to research milestones achieved in the Phase 3 clinical trial of pasritamig[135] - The company anticipates that collaboration revenue from strategic partnerships will be its primary source of revenue for the foreseeable future[123] - Cumulative milestone payments from Johnson & Johnson for pasritamig have reached $33.0 million, with potential future payments of up to $61.0 million in development milestones[113] Clinical Development and Approvals - The FDA granted accelerated approval for Ziihera® (zanidatamab-hrii) for the treatment of adults with previously-treated, unresectable or metastatic HER2-positive second-line biliary tract cancer in 2024[91] - The company is currently recruiting patients for a global Phase 1 study of ZW191, targeting advanced solid tumors, with an expected enrollment of approximately 145 participants[97] - ZW251, a first-in-class GPC3-targeting antibody drug conjugate, has cleared the FDA's investigational new drug application and is currently in a global Phase 1 study with an expected enrollment of approximately 100 participants[99] - The company announced the decision to discontinue the clinical development program of ZW171 in September 2025 after completing the planned cohorts of the Phase 1 trial[211] Risks and Challenges - The life sciences industry is highly competitive, with many competitors having significantly greater financial and technical resources[216] - The company may face significant setbacks in clinical trials, as many companies have experienced failures in late-stage trials after positive early results[201] - Delays in clinical trials could significantly harm the commercial prospects for product candidates and increase costs, jeopardizing the ability to generate product revenue[188] - The company may face challenges in patient enrollment for clinical trials, particularly for rare diseases, which could hinder the ability to gain marketing approval[195] - The company may need to develop companion diagnostic tests for its product candidates, which could introduce uncertainties in the regulatory process[207] Future Outlook - The company’s long-term prospects depend on successfully executing its evolving business strategy and discovering, developing, and commercializing additional product candidates[191] - The company intends to anchor its future strategy around anticipated royalty and milestone revenues from Ziihera® and other potential future indications[194] - The company anticipates requiring substantial additional funding for its product development programs[172]

Financial Performance - Consolidated net sales for Q3 2025 were $171.9 million, a decrease of $11.9 million, or 6.5%, compared to $183.8 million in Q3 2024[165]. - U.S. segment net sales for Q3 2025 were $158.1 million, down $12.1 million, or 7.1%, from $170.2 million in Q3 2024[166]. - Consolidated net sales for the nine months ended September 30, 2025 were $443.9 million, a decrease of $23.8 million, or 5.1%, compared to $467.7 million for the same period in 2024[187]. - U.S. segment net sales for the nine months ended September 30, 2025 were $406.0 million, a decrease of $25.2 million, or 5.8%, compared to $431.2 million for the same period in 2024[188]. - International segment net sales for the nine months ended September 30, 2025 were $37.9 million, an increase of $1.4 million, or 3.8%, compared to $36.5 million for the same period in 2024[192]. Gross Margin - Gross margin for Q3 2025 was $60.4 million, or 35.1%, compared to $67.4 million, or 36.7%, in Q3 2024[171]. - Gross margin for the nine months ended September 30, 2025 was $161.9 million, or 36.5%, down from $179.5 million, or 38.4%, for the same period in 2024[193]. - U.S. segment gross margin for the nine months ended September 30, 2025 was $148.9 million, or 36.7%, down from $166.5 million, or 38.6%, for the same period in 2024[194]. - International segment gross margin for the nine months ended September 30, 2025 was $13.0 million, or 34.3%, unchanged from $13.0 million, or 35.6%, for the same period in 2024[195]. Expenses - Distribution expenses for the nine months ended September 30, 2025 were $53.3 million, an increase of $2.0 million, or 3.9%, compared to $51.3 million for the same period in 2024[196]. - Selling, general and administrative expenses for the nine months ended September 30, 2025 were $104.5 million, a decrease of $12.1 million, or 10.4%, compared to $116.6 million for the same period in 2024[199]. Cash Flow and Liquidity - As of September 30, 2025, the Company had cash and cash equivalents of $12.1 million, an increase from $2.9 million at December 31, 2024, with working capital rising to $236.4 million[213]. - Net cash provided by operating activities was $3.9 million for the nine months ended September 30, 2025, compared to a net cash used of $1.7 million for the same period in 2024[243]. - Net cash used in investing activities increased to $3.1 million for the nine months ended September 30, 2025, from $1.6 million in 2024, driven by equipment purchases for the Hagerstown Facility[244]. - Net cash provided by financing activities was $8.3 million for the nine months ended September 30, 2025, compared to net cash used of $6.9 million in 2024, due to higher net proceeds from the revolving credit facility[245]. Capital Expenditures and Investments - The Hagerstown Facility will require capital expenditures of approximately $9.0 million and start-up costs of about $7.0 million[156]. - Capital expenditures for the nine months ended September 30, 2025, totaled $3.2 million[230]. Debt and Interest - Interest expense for the three months ended September 30, 2025 was $5.0 million, a decrease from $5.8 million for the same period in 2024[183]. - Interest expense decreased to $15.0 million for the nine months ended September 30, 2025, down from $16.6 million in 2024, due to lower average outstanding borrowings and interest rates[206]. - The interest rate on outstanding borrowings under the Term Loan was 9.75% as of September 30, 2025[226]. - The Company was in compliance with the covenants of the Debt Agreements at September 30, 2025, and expects to continue borrowing based on working capital needs[228]. Other Financial Metrics - Adjusted EBITDA for the trailing twelve months ended September 30, 2025, was $47.2 million[229]. - The effective income tax benefit rate for the nine months ended September 30, 2025, was 0.14%, compared to a provision rate of (8.2)% in 2024, primarily due to a partial valuation allowance on U.S. deferred tax assets[209]. Inventory and Receivables - Inventory turnover for the three months ended September 30, 2025, was 2.0 times (181 days), slightly down from 2.1 times (175 days) in the same period of 2024[214]. - As of September 30, 2025, $13.6 million of accounts receivables were available for sale to HSBC[235]. Strategic Initiatives - The company launched Project Concord in January 2025 to improve growth and streamline costs in its International operations[157].

Revenue Growth - Consolidated revenue increased by 37% to $37.2 million for Q3 2025, compared to $27.1 million in Q3 2024[4] - KSX revenue grew by 104.2% to $19.0 million in Q3 2025, up from $9.3 million in Q3 2024[4] - Extended Warranty revenue increased by 2.0% to $18.2 million in Q3 2025, compared to $17.8 million in Q3 2024[4] - The Company acquired Roundhouse Electric & Equipment Co. for $22.4 million, expected to add $16.0 million in annual revenue[5] - The acquisition of AAA Flexible Pipe Cleaning Corp. for $3.5 million is anticipated to contribute $7.0 million in annual revenue[5] - Extended Warranty cash sales increased by 14.2% year-over-year in Q3 2025[4] Profitability and Loss - Consolidated net loss was $2.4 million for Q3 2025, slightly higher than the net loss of $2.3 million in Q3 2024[4] - For the twelve months ended September 30, 2025, GAAP Operating Income for the KSX segment was $7,711,000, an increase from $4,984,000 for the same period in 2024, representing a 55% growth[16] - The Extended Warranty segment reported a GAAP Operating Income of $2,771,000 for the twelve months ended September 30, 2025, down from $6,405,000 in 2024, indicating a decline of 57%[19] EBITDA Performance - Twelve-month run-rate adjusted EBITDA for operating companies is projected between $20.5 million and $22.5 million[4] - KSX operating companies delivered twelve-month run-rate adjusted EBITDA of $15.5 million to $16.5 million, up from $9.0 million to $10.0 million in the prior year[4] - Non-GAAP adjusted EBITDA for the KSX segment for the three months ended September 30, 2025, was $2,660,000, compared to $1,401,000 for the same period in 2024, reflecting an increase of 90%[16] - Non-GAAP adjusted EBITDA for the Extended Warranty segment for the three months ended September 30, 2025, was $762,000, compared to $2,072,000 for the same period in 2024, a decrease of 63%[19] Debt and Financial Position - Total net debt increased to $61.4 million as of September 30, 2025, compared to $52.0 million as of December 31, 2024[4] Adjustments and Costs - Total Non-GAAP adjustments for the KSX segment amounted to $1,194,000 for the twelve months ended September 30, 2025, with acquisition and employee costs contributing $499,000[16] - The Extended Warranty segment's total Non-GAAP adjustments for the twelve months ended September 30, 2025, were $1,811,000, with investment income accounting for a significant portion[19] - Employee costs for the Extended Warranty segment were $352,000 for the three months ended September 30, 2025, compared to no costs reported for the same period in 2024[19] Investment Income - Investment income for the Extended Warranty segment was $1,306,000 for the three months ended September 30, 2025, compared to $1,282,000 for the same period in 2024, showing a slight increase of 2%[19] - The KSX segment's investment income for the twelve months ended September 30, 2025, was $117,000, consistent with the previous year's performance[16] Depreciation - Depreciation for the KSX segment was $578,000 for the twelve months ended September 30, 2025, compared to $378,000 in 2024, representing a 53% increase[16]

Exhibit 99.1 Tectonic Therapeutic Announces Third Quarter 2025 Financial Results and Recent Business Highlights WATERTOWN, Mass., November 6, 2025 (GLOBE NEWSWIRE) -- Tectonic Therapeutic, Inc. (NASDAQ: TECX) ("Tectonic"), a clinical stage biotechnology company focused on the discovery and development of therapeutic proteins and antibodies that modulate the activity of G-protein coupled receptors (GPCRs), today announced financial results for the third quarter ended September 30, 2025, and provided an overv ...

Financial Performance - Total revenue increased by $40.1 million, or 11%, for the six months ended September 30, 2025, compared to the same period in 2024[131]. - Net income for the six months ended September 30, 2025, was $22.1 million, a significant improvement from a net loss of $434.3 million in the same period of 2024[133]. - Non-GAAP net income for the six months ended September 30, 2025, was $69.8 million, compared to $54.1 million for the same period in 2024[140]. - Total revenue for the three months ended September 30, 2025, was $219.0 million, representing a 15% increase from $191.1 million in the same period of 2024[144]. - Total revenue for the six months ended September 30, 2025, was $405.8 million, an increase of 11% or $40.1 million compared to $365.7 million in the same period of 2024[166]. Revenue Breakdown - Product revenue increased by 17% to $94.7 million, while service revenue rose by 13% to $124.3 million compared to the previous year[144][145]. - Product revenue increased by 18% or $25.5 million to $167.7 million, driven by service assurance offerings and cybersecurity offerings[166]. - Service revenue grew by 7% or $14.6 million to $238.1 million, primarily due to maintenance contracts and cloud services[167]. - Revenue from the United States grew by 18% to $131.2 million, accounting for 60% of total revenue, driven by service assurance offerings[147][150]. - Service assurance revenue increased by 10% or $24.0 million to $262.4 million, while cybersecurity revenue rose by 13% or $16.1 million to $143.4 million[169]. Profitability Metrics - Gross profit percentage rose by 3 percentage points to 79% during the six months ended September 30, 2025, due to increased product and service revenue growth[132]. - The gross profit for the six months ended September 30, 2025, was $318.7 million, up from $279.2 million in the same period of 2024[140]. - Gross profit for the three months ended September 30, 2025, was $175.4 million, an 18% increase from $149.1 million in 2024, with a gross profit margin of 80%[152]. - The gross profit margin improved to 79% for the six months ended September 30, 2025, compared to 76% in the same period of 2024[171]. Expenses and Charges - Research and development expenses increased by 12% to $40.3 million, primarily due to higher employee-related variable incentive compensation[154][156]. - Total operating expenses rose by 6% to $142.9 million, representing 65% of total revenue[154]. - The company recorded restructuring charges of $0.3 million in the current period, significantly lower than $2.4 million in the same period last year[160]. - Total operating expenses decreased by 60% to $292.8 million, down from $728.4 million, primarily due to a significant goodwill impairment charge in the prior year[173]. Cash and Liquidity - Cash, cash equivalents, marketable securities, and investments totaled $526.9 million as of September 30, 2025, an increase of $34.4 million from $492.5 million at March 31, 2025[134]. - Net cash provided by operating activities for the six months ended September 30, 2025, was $80.2 million, a significant increase from $34.7 million in the same period of 2024[186]. - Cash used in investing activities was $12.6 million for the six months ended September 30, 2025, compared to cash provided of $0.9 million in the same period of 2024[187]. - Cash used in financing activities decreased to $46.8 million during the six months ended September 30, 2025, from $63.8 million in the same period of 2024[189]. - The company believes it has adequate liquidity to meet anticipated funding requirements for at least the next twelve months, supported by cash flows from operating activities and available cash balances[206]. Strategic Initiatives - The company ceased business operations in Russia in response to the war in Ukraine, impacting its operational strategy[128]. - The company is focused on driving product innovation and returning to annual revenue growth amid ongoing macroeconomic uncertainty[128]. - The company plans to continue investing in capital expenditures to support infrastructure through the remainder of fiscal year 2026[188]. Tax and Other Financial Metrics - The effective tax rate for the three months ended September 30, 2025, was 17.7%, down from 26.8% in the same period of 2024[163]. - The effective tax rate for the six months ended September 30, 2025, was 22.4%, compared to 1.6% for the same period in 2024, reflecting a change primarily due to sales mix and non-deductible expenses[179]. - Interest and other expense, net, decreased by 39% to $(1.8) million, attributed to a reduction in interest expense and an increase in interest income[162]. - Interest and other income (expense), net, decreased by 66% or $5.2 million to $2.6 million, mainly due to a decline in the fair value of an equity investment[178]. Market and Risk Factors - The company is not currently exposed to market risks related to interest rate fluctuations as it had no debt as of September 30, 2025[211]. - The company engages in foreign currency hedging to limit exposure to movements in exchange rates, primarily for expenses denominated in foreign currencies[212]. - Macroeconomic factors such as high inflation and interest rates could increase funding requirements or complicate access to capital[207].

Exhibit 99.1 Tectonic Therapeutic Announces Third Quarter 2025 Financial Results and Recent Business Highlights WATERTOWN, Mass., November 6, 2025 (GLOBE NEWSWIRE) -- Tectonic Therapeutic, Inc. (NASDAQ: TECX) ("Tectonic"), a clinical stage biotechnology company focused on the discovery and development of therapeutic proteins and antibodies that modulate the activity of G-protein coupled receptors (GPCRs), today announced financial results for the third quarter ended September 30, 2025, and provided an overv ...

Financial Performance - Gross revenue for Q3 2025 reached $1,176.9 million, a 29.5% increase from $909.2 million in Q3 2024[21] - Net income attributable to Shift4 Payments, Inc. for Q3 2025 was $28.1 million, down 47.8% from $53.8 million in Q3 2024[21] - Comprehensive income attributable to Shift4 Payments, Inc. for the nine months ended September 30, 2025, was $154.1 million, compared to $120.1 million in the same period of 2024, reflecting a 28.3% increase[23] - Income from operations for Q3 2025 was $114.6 million, a 42.4% increase from $80.4 million in Q3 2024[21] - The company reported a loss on extinguishment of debt of $9.2 million in Q3 2025, compared to no loss in Q3 2024[21] - Interest income for Q3 2025 was $17.5 million, up 80.4% from $9.7 million in Q3 2024[21] - Basic net income per share for Class A in Q3 2025 was $0.19, down from $0.78 in Q3 2024[21] - For the nine months ended September 30, 2025, net income was $94.0 million, compared to $155.2 million for the same period in 2024, reflecting a decrease of 39.4%[27] Cash Flow and Liquidity - Operating cash flow for the nine months ended September 30, 2025, was $410.3 million, an increase from $369.3 million in 2024[27] - Total cash and cash equivalents at the end of the period were $1,709.7 million, compared to $1,595.4 million at the end of September 2024[27] - As of September 30, 2025, Shift4 Payments, Inc. held $126.9 million in cash, compared to $52.0 million as of December 31, 2024, indicating a significant increase in liquidity[32] - Cash and cash equivalents increased to $1,511.5 million as of September 30, 2025, up from $1,211.9 million as of December 31, 2024, reflecting a growth of approximately 24.8%[53] Acquisitions and Strategic Initiatives - Shift4 Payments completed the acquisition of Global Blue Group for $2.7 billion, enhancing its payment processing capabilities[28] - The total purchase consideration for the acquisition of Global Blue was $2,718.7 million, with a net total of $2,611.9 million after accounting for cash acquired[59] - The acquisition of Global Blue is expected to diversify the company's revenue streams significantly, leveraging its payments and technology platform[58] - The company completed the acquisition of Smartpay Holdings Limited for approximately $168 million USD, enhancing its strategic presence in Australia and New Zealand[163] - The company entered exclusive negotiations to acquire Worldline's North American subsidiaries, with the transaction expected to close in Q1 2026[162] Expenses and Costs - The cost of sales for Q3 2025 was $747.9 million, an increase of 16.5% from $641.9 million in Q3 2024[21] - General and administrative expenses increased to $188.4 million in Q3 2025, compared to $118.2 million in Q3 2024, marking a 59.3% increase[21] - The company reported depreciation and amortization expenses of $298.7 million for the nine months ended September 30, 2025, up from $213.1 million in 2024[27] - Total depreciation and amortization expense for the three months ended September 30, 2025, was $125.1 million, compared to $77.3 million for the same period in 2024, representing a 62% increase[74] Equity and Stockholder Information - As of September 30, 2025, total stockholders' equity stands at $2,204.0 million, with a retained deficit of $283.4 million[24] - The company repurchased and retired Class A common stock totaling $84.8 million during the reporting period[24] - The issuance of Series A Mandatory Convertible Preferred Stock generated $973.6 million, net of issuance costs[24] - The Company has authorized a new stock repurchase program to repurchase up to $1.0 billion of shares of its Class A common stock through December 31, 2026[129] Revenue Recognition - Shift4 Payments primarily earns revenue through volume-based payment and transaction fees, as well as subscription revenue for its software and technology solutions[44] - The company recognizes payments-based revenue upon authorization of a transaction, which includes interchange and payment network costs[46] - Subscription-based revenue is recognized over the period the fee covers, typically one year or less, reflecting the ongoing service provided to merchants[50] - The Company’s revenue recognition follows ASC 606, which requires recognizing revenue as performance obligations are satisfied[43] Debt and Financing - As of September 30, 2025, the total debt amounted to $4.719 billion, an increase from $2.841 billion as of December 31, 2024[11] - The Company issued an additional $550 million of 6.750% Senior Notes due 2032 in May 2025, bringing the total to $1.65 billion[90] - Future principal payments for the Company's debt are scheduled as follows: $692.5 million in 2025, $10 million in 2026, $642.5 million in 2027, and $3.426 billion thereafter[88] - The Company entered into a Settlement Line Credit Agreement in September 2024, which was amended in September 2025 to increase the available amount from $100 million to $125 million[102] Tax and Regulatory Matters - The Company's effective tax rate for the three months ended September 30, 2025, was 45%, compared to (135)% for the same period in 2024[115] - The Tax Receivable Agreement (TRA) liability was reported at $362.1 million as of September 30, 2025, slightly down from $365.5 million at the end of 2024[32] - The company plans to adopt ASU 2023-09 for income tax disclosures starting January 1, 2025, enhancing transparency in financial reporting[54] Other Comprehensive Income - The company experienced a comprehensive income of $84.7 million, driven by various factors including foreign currency adjustments[24] - Other comprehensive income for the period was recorded at $84.7 million[24]

Financial Performance - Revenues for Q3 2025 were $6.9 million, a decrease of $1.9 million or 21.6% compared to Q3 2024[7] - Revenues for Q3 2025 were $6,884,000, a decrease of 22.1% compared to $8,839,000 in Q3 2024[38] - Net loss for Q3 2025 was $0.9 million, or $0.06 per share, compared to net income of $1.2 million, or $0.07 per diluted share, in Q3 2024[12] - Net loss for Q3 2025 was $943,000, compared to a net income of $1,215,000 in Q3 2024[38] - Adjusted EBITDA for Q3 2025 was negative $2.4 million, compared to positive $1.6 million in Q3 2024[13] - Gross profit for Q3 2025 was $2.7 million, with a gross margin of 39.1%, down from $5.2 million and 59.1% in Q3 2024[9] - Gross profit for Q3 2025 was $2,713,000, down 48.3% from $5,240,000 in Q3 2024[38] - Total operating expenses increased to $5,282,000 in Q3 2025, up 41.1% from $3,745,000 in Q3 2024[38] Inventory and Assets - The company exited Q3 2025 with nearly 100 systems in inventory, positioning it well to meet market demand[3] - Cash and cash equivalents were $24.5 million as of September 30, 2025, compared to $22.1 million at the end of 2024[14] - Cash and cash equivalents as of September 30, 2025, were $24,453,000, an increase from $22,056,000 as of December 31, 2024[36] - Total current assets decreased to $50,205,000 as of September 30, 2025, from $56,738,000 as of December 31, 2024[36] - Total stockholders' equity decreased to $51,194,000 as of September 30, 2025, down from $55,827,000 as of December 31, 2024[36] Research and Development - Research and development expenses increased to $1.8 million in Q3 2025 from $0.9 million in Q3 2024, reflecting higher costs related to billing code reimbursement and product development[11] - Research and development expenses for Q3 2025 were $1,819,000, significantly higher than $863,000 in Q3 2024, indicating increased investment in new technologies[38] Market and Expansion - The company is preparing for broader international expansion following MDSAP certification and is seeing strong interest in select markets[3] - The company shipped 16 SRT systems in Q3 2025, including three to China, down from 27 units in Q3 2024[5] Liabilities - Total liabilities increased to $7,101,000 as of September 30, 2025, compared to $6,338,000 as of December 31, 2024[36] Share Information - The weighted average number of shares used in computing net loss per share for Q3 2025 was 16,320,036[38]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39941 Sana Biotechnology, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 83-1381173 (State or other jur ...