Coherus Oncology Q2 2026 Earnings: LOQTORZI Growth Narrows the Loss

Coherus Oncology (Nasdaq: CHRS) reported fiscal Q2 2026 net revenue of $14.3 million, up about 40% from $10.3 million a year earlier, while diluted loss per share from continuing operations narrowed to $0.22 from $0.39. LOQTORZI volume growth and lower operating expenses reduced the GAAP continuing-operations loss, but net cash used in operating activities increased to $62.1 million. Several pipeline readouts are expected in the second half of 2026, with sufficiently mature datasets projected for public disclosure in early October.

Core financial results

LOQTORZI accounted for most of the revenue increase, while combined R&D and SG&A expenses declined by about $10.0 million. Cost of goods sold rose with LOQTORZI volume, but calculated gross profit and gross margin both increased.

The expense reductions helped narrow operating and continuing-operations losses. The cash-flow result moved in the opposite direction, with operating cash use rising about 33% year over year.

Gross profit and gross margin are approximate calculations based on reported net revenue and cost of goods sold. The operating and per-share figures above focus on continuing operations. Including discontinued operations, Coherus recorded a total net loss of $20.6 million versus net income of $297.8 million a year earlier, but that comparison was dominated by the decline in discontinued-operations income from $342.6 million to $12.7 million.

LOQTORZI and pipeline performance

LOQTORZI generated Q2 net revenue of $13.6 million, up 37% from $10.0 million a year earlier and 15% from $11.8 million in Q1. It represented approximately 95% of total quarterly revenue. Coherus attributed the sequential improvement to strong demand, a record number of new patient starts since launch, normalized discontinuation rates after seasonal Q1 trends, and longer therapy duration.

Management said Q1 had been affected by severe weather and normal seasonality. LOQTORZI remains the only FDA-approved and available U.S. treatment for recurrent, locally advanced or metastatic nasopharyngeal carcinoma.

Clinical development remains the other major component of the company’s strategy. Coherus described the observed tagmokitug activity in head and neck cancer as preliminary, while reporting completed enrollment in several programs.

The company projects that datasets with sufficient maturity will be publicly disclosed in early October 2026. These are clinical milestones rather than quantitative financial guidance.

Lower expenses narrowed the loss, but cash use increased

R&D expense declined to $21.4 million from $26.3 million. Coherus attributed the reduction to lower headcount and infrastructure spending, as well as lower clinical-trial and R&D manufacturing costs. SG&A expense fell to $21.0 million from $26.0 million, primarily due to lower headcount and operating costs following the company’s 2025 exit from the biosimilar business.

Total costs and expenses consequently decreased about 16% to $46.6 million, allowing revenue growth to translate into a smaller operating loss. However, Q2 operating cash use increased to $62.1 million from $46.6 million, and the release did not provide a specific explanation for the divergence between the narrower accounting loss and higher cash consumption.

Cash, cash equivalents and marketable securities totaled $105.3 million at June 30, down $66.8 million from $172.1 million at December 31, 2025. First-half operating cash use reached $120.0 million, compared with $72.5 million in the prior-year period, even as first-half financing cash flow included $53.7 million of net proceeds from a public offering.

The reported liquidity balance included TSA-related collections that will be applied against associated obligations. TSA payables and accrued liabilities stood at $22.7 million at quarter-end. Inventory also rose to $14.1 million from $3.2 million at the end of 2025, with no explanation for that increase provided in the earnings release.

Recent insider transactions

The supplied insider data showed no open-market insider purchases or sales during the latest six-month period. The recent transaction list mainly consisted of direct stock awards reported at zero transaction value; it also included one earlier indirect sale.

The reported transactions do not by themselves establish insiders’ views about the company’s outlook.

Risks investors should monitor

• Revenue concentration: LOQTORZI generated approximately 95% of Q2 revenue, leaving overall results highly dependent on continued patient starts, therapy duration and commercial execution for one product.
• Cash consumption and financing needs: Operating cash use increased despite lower expenses, while cash and securities declined substantially during the first half. Coherus also identifies dependence on its ability to raise future funding as a business risk.
• Clinical data uncertainty: The HNSCC activity cited by management remains preliminary. Upcoming tagmokitug and casdozokitug readouts may affect development plans and potential partnership opportunities, and their timing or results could differ from current expectations.
• Working-capital obligations: TSA-related collections must be considered alongside the associated payables, while the unexplained increase in inventory warrants monitoring in future balance-sheet updates.

Summary

Coherus Oncology’s Q2 2026 results showed higher LOQTORZI revenue and lower R&D and SG&A spending, which narrowed the loss from continuing operations. The main counterweight was increased operating cash use and a lower liquidity balance. The next important operating evidence will be whether LOQTORZI sustains its sequential growth and whether the second-half pipeline disclosures validate the preliminary clinical activity described by management.