Precision BioSciences Q2 2026 results: Warrant revaluation widens the net loss

Precision BioSciences (Nasdaq: DTIL) reported no revenue for Q2 2026, ended June 30, compared with less than $0.1 million a year earlier, while basic and diluted net loss per share narrowed to $(1.26) from $(2.13). Net loss nevertheless widened to $32.7 million from $23.5 million, mainly because of a noncash warrant-liability revaluation loss, while the company reported new clinical evidence from PBGENE-HBV and began recruiting patients for PBGENE-DMD.

Core financial results

Precision remained without meaningful revenue during the quarter; the small amount recorded in the prior-year period came from its Novartis agreement. R&D spending declined slightly as lower platform and research expenses offset rising costs for the advancing PBGENE-HBV and PBGENE-DMD clinical programs.

G&A expense fell by $2.3 million because of operational discipline and lower employee-related costs. However, these savings were outweighed by an $11.9 million increase in other expense, primarily from a noncash change in the fair value of the warrant liability.

All figures are in U.S. dollars. The warrant-related loss did not affect operating loss or the company’s stated cash runway.

Clinical and program performance

PBGENE-HBV delivers early biopsy evidence

The most consequential operational development came from the Phase 1 ELIMINATE-B trial. The May 4 data cut covered 38 doses administered to 16 patients across five cohorts.

In one patient who received two 0.4 mg/kg doses, liver biopsy data showed a 1-log reduction in cccDNA-derived transcripts, with less than 1% of cccDNA remaining after treatment. Analysis of a second patient who received three doses at the same level indicated that repeat dosing increased the anti-cccDNA effect in the liver.

PBGENE-HBV also produced sustained loss of pgRNA in 100% of evaluable patients who had detectable pgRNA before treatment. The effect remained ongoing for as long as six months at the data cutoff. Because pgRNA is produced exclusively from cccDNA, the company uses it as a blood biomarker for cccDNA elimination. Substantial declines in hepatitis B surface antigen were observed in all treated patients across the dose levels studied.

No dose-limiting toxicities were observed among the 16 patients. LNP-related hypotension occurred during dose escalation, but Precision said the cause was identified and addressed through longer infusion times and a short course of steroids during infusion.

Precision is expanding the 0.4 mg/kg and 0.65 mg/kg cohorts while collecting additional biopsy and blood-biomarker data. These results are intended to guide the dosing schedule for the trial’s Part 2 expansion, with another clinical update targeted by the end of 2026.

PBGENE-DMD moves into active recruitment

Precision activated two sites for the Phase 1/2 FUNCTION-DMD trial: Arkansas Children’s Hospital and Washington University School of Medicine. The study is recruiting boys ages 2 to 7, with initial safety data targeted for year-end 2026.

The company also presented preclinical data showing higher efficacy across key skeletal and respiratory muscles in early-juvenile mice than in late-juvenile mice over a comparable period. Those findings support the trial’s inclusion of younger patients, but human safety or efficacy results have not yet been reported.

Partnered programs provide additional activity

In April, Precision received a $7.5 million clinical milestone payment under its agreement with TG Therapeutics. That amount consisted of $5.25 million in cash and $2.25 million used by TG Therapeutics to purchase Precision common shares. TG Therapeutics is evaluating azer-cel in a Phase 1 trial for progressive multiple sclerosis.

Profitability, cash, and the balance sheet

Lower operating costs were outweighed by warrant revaluation

Combined R&D and G&A expenses were approximately $19.2 million, down from about $21.9 million in the prior-year quarter. The approximately $2.7 million reduction was more than offset by the $11.9 million increase in other expense, explaining why net loss widened even as the company reduced its principal operating cost categories.

The warrant-liability adjustment was noncash and did not affect operating loss. It does, however, create the potential for continued volatility in reported GAAP net income or loss between periods.

Cash runway depends partly on ATM availability

Precision ended June with $112.4 million in cash, cash equivalents, and restricted cash. Management expects its existing resources, continued spending discipline, and access to its at-the-market equity facility to fund operations through 2028 and cover planned PBGENE-HBV and PBGENE-DMD data milestones during that period.

Risks investors should monitor

• The PBGENE-HBV evidence remains early. The trial update covered 16 patients, while the detailed biopsy findings involved two patients. More biopsy and biomarker data are needed to select the Part 2 dosing schedule and assess consistency across a broader population.
• Infusion-related safety requires continued monitoring. No dose-limiting toxicities were reported, but LNP-related hypotension occurred during dose escalation. The effectiveness of the mitigation measures must be evaluated as enrollment and repeat dosing expand.
• PBGENE-DMD has not produced human data yet. The FUNCTION-DMD trial is recruiting, and the next planned milestone is initial safety data rather than efficacy results.
• Financing remains relevant despite the stated runway. Precision generated no revenue in Q2, and its runway estimate incorporates continued operating discipline and availability of the at-the-market facility.
• Noncash warrant accounting can distort period-to-period comparisons. Changes in the warrant liability may materially affect GAAP net loss without reflecting changes in operating spending or cash usage.

Summary

Precision BioSciences’ Q2 2026 operating expenses declined, but a noncash warrant-liability loss drove a wider GAAP net loss. The quarter’s central development was the early PBGENE-HBV biopsy and blood-biomarker evidence, while PBGENE-DMD progressed into active patient recruitment. The next major points to monitor are broader HBV data, continued safety during repeat dosing, initial DMD safety results, and whether the company maintains its projected cash runway through 2028.