Summary of Arcturus Therapeutics Q2 2026 Earnings Call

1Key Financial Results and Metrics

Cash and Cash Equivalents: $191.5 million as of June 30, 2026, down from $230.8 million at the end of 2025.

Revenue: $3 million for Q2 2026 and $5 million for the first half, significantly lower than $28.3 million and $57.7 million in the same periods of 2025, primarily due to the winding down of the CSL collaboration.

R&D Expenses: $17.5 million for Q2 2026, down from $29.6 million in Q2 2025; $39 million for the first half, down from $64.5 million in 2025, reflecting disciplined capital allocation.

G&A Expenses: $11 million for Q2 2026, slightly up from $10.3 million in Q2 2025, attributed to legal fees.

2Strategic Updates and Business Highlights

Rare Disease Pipeline:

ARCT-032 (Cystic Fibrosis): Phase II study is ongoing with enrollment in the U.S., Israel, and Turkey. A decision to move to Phase III is expected in Q4 2026.

ARCT-810 (OTC Deficiency): Enrollment and dosing in the Phase II study are complete. Data readout is anticipated in Q3 2026, alongside regulatory discussions.

Vaccine Portfolio: Regained global rights to KOSTAIVE and other infectious disease vaccine programs after terminating the collaboration with CSL Seqirus. A one-time payment of $12 million was received, and liabilities worth approximately $16 million were resolved.

Thermo Fisher Collaboration: A partnership established for the commercial manufacturing of ARCT-032, which is expected to support late-stage development.

3Forward Guidance and Outlook

Clinical Milestones: Anticipate a decision on advancing ARCT-032 to Phase III in Q4 2026, and data from ARCT-810 in Q3 2026.

Financial Position: Strong balance sheet with a cash runway extending over 2.5 years, allowing for continued investment in clinical and regulatory milestones.

4Bad News, Challenges, or Points of Concern

Revenue Decline: Significant drop in revenue due to the conclusion of the CSL collaboration, raising concerns about future cash inflows.

Dependence on Clinical Outcomes: Future success hinges on the outcomes of ongoing clinical trials, particularly for ARCT-032 and ARCT-810, with inherent risks associated with regulatory approvals.

Market Competition: The company faces competitive pressures in the rare disease and vaccine markets, particularly from established players like Vertex in cystic fibrosis.

5Notable Q&A Insights

OTC Program Data: Upcoming data will include both U.S. and European datasets, with a focus on biomarkers and quality of life measures.

CF Program Enrollment: The addition of sites in Israel and Turkey is expected to enhance enrollment rates, with a focus on the unique patient population there.

Safety and Efficacy: Ongoing monitoring of safety signals in ARCT-032, with confidence in its tolerability based on previous dosing experiences.

Vaccine Development: Clear regulatory path for KOSTAIVE in the U.S. has been established, and the company is exploring commercialization and partnership opportunities for its vaccine portfolio. Overall, Arcturus Therapeutics is navigating a transitional phase with significant clinical developments and strategic repositioning, but faces challenges related to revenue generation and clinical trial outcomes.