Seres Therapeutics Inc. reported a net loss of $19.9 million, or $2.08 per share, for the three months ended March 31, 2026, while revenue totaled $358,000, all of which came from grant funding. The loss marks a sharp reversal from the $32.7 million net income reported in Q1 2025, a figure that was largely driven by a $50 million installment payment from Nestlé related to the VOWST divestiture and $6.3 million in reimbursements.
The Q1 2026 loss is largely attributable to higher operating expenses. Research and development costs rose to $13.2 million from $11.8 million in Q1 2025, reflecting intensified investment in the SER‑155 and SER‑603 live‑biotherapeutic programs. General and administrative expenses fell to $8.1 million from $11.9 million in the prior year, a reduction that partially offset the increased R&D spend but was still insufficient to offset the loss from the absence of the VOWST installment. Revenue remained flat compared with the $0.41 million reported in Q1 2025, underscoring the company’s continued reliance on grant income rather than commercial sales.
Seres reported $29.8 million in cash and cash equivalents as of March 31, 2026. Management indicated that this balance is expected to support operations through the third quarter of 2026, a runway that has been shortened by the company’s cost‑cutting measures, including a 30 % workforce reduction. The company has also disclosed “substantial doubt” about its ability to continue as a going concern without additional capital, highlighting the urgency of securing new funding or strategic partnerships.
In its commentary, Seres emphasized disciplined capital allocation and the prioritization of its early‑stage live‑biotherapeutic pipeline. The company highlighted the progress of SER‑155, which is advancing toward Phase 2 for allogeneic hematopoietic stem cell transplant patients and has received Breakthrough Therapy and Fast Track designations, and the development of SER‑603 for inflammatory bowel disease. Management reiterated the need for additional capital to sustain these programs and to maintain the company’s cash runway.
Analysts had expected earnings of $1.88 per share and revenue of $0.408 million for the quarter. Seres’ actual EPS of –$2.08 missed consensus by $0.20, and revenue fell short by $0.05 million. The miss reflects the loss of the VOWST installment and the continued absence of commercial revenue streams, while the company’s increased R&D spend signals a strategic shift toward long‑term pipeline development rather than short‑term profitability.
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