Armata Pharmaceuticals Announces Financial Results for the Third Quarter 2026 and Provides Corporate Update

Rhea-AI Summary

Armata Pharmaceuticals (ARMP) reported third-quarter 2026 net income of $54.857 million while advancing preparations for its planned AP-SA02 Phase 3 study. A $69.595 million convertible-loan fair-value gain primarily drove profit, versus a $26.675 million net loss a year earlier. Basic earnings per share were $1.15; diluted loss per share was $0.24. Grant revenue rose to $3.171 million from $1.159 million, while operating loss narrowed to $7.383 million from $7.776 million.

Armata expects Phase 3 initiation in the second half of 2026, depending on FDA concurrence with the protocol. AP-SA02 received Breakthrough Therapy designation, and Armata received $3.7 million in additional non-dilutive government funding. September 30 cash was $18.317 million, versus $8.688 million at December 31, 2025; current liabilities were $186.778 million. Nine-month operating cash use was $19.964 million.

Positive

• Q3 net income of $54.857 million reversed a $26.675 million loss a year earlier, primarily reflecting loan revaluation.
• Q3 basic EPS of $1.15 versus $(0.74); diluted loss per share narrowed to $0.24 from $0.74.
• Q3 grant revenue of $3.171 million increased from $1.159 million a year earlier.
• Q3 operating loss of $7.383 million narrowed from $7.776 million a year earlier.
• Nine-month grant revenue of $6.470 million increased from $3.819 million in 2025.
• Nine-month net income of $13.652 million reversed a $49.501 million loss in 2025.
• Nine-month basic EPS of $0.29 versus $(1.37); diluted loss per share narrowed to $0.74 from $1.37.
• Cash of $18.317 million at September 30, 2026 increased from $8.688 million at December 31, 2025.
• $3.7 million additional non-dilutive DoW funding was received specifically for AP-SA02 Phase 3 execution.
• AP-SA02 received FDA Breakthrough Therapy designation for adjunct treatment of complicated bacteremia caused by MSSA or MRSA.
• Phase 3 initiation is expected in the second half of 2026 for AP-SA02 in complicated S. aureus bacteremia.
• Four AP-SA02 engineering runs and one third-quarter cGMP production run with drug-product vialing were completed.
• Critical utility validation completed; quality-control release assay qualification and validation advanced.
• Clinical research organization contracts executed to support Phase 3 study management.
• FDA agreed to an Initial Pediatric Study Plan for future AP-SA02 evaluation in complicated S. aureus bacteremia.
• AP-SA02 U.S. patent issued October 6, 2026, protecting treatment methods until at least February 2041.
• AP-PA02 U.S. patent issued April 7, 2026, with treatment-method protection expected until January 2043.
• Nine-month term-debt proceeds of $25 million, net of issuance costs, supplied financing.
• Nine-month ATM stock-sale proceeds of $2.373 million and option-exercise proceeds of $1.242 million added funding.
• Stockholders’ deficit narrowed to $174.128 million at September 30, 2026 from $218.596 million at December 31, 2025.

Negative

• Phase 3 timing depends on FDA protocol concurrence; study-design discussions and initial U.S. site negotiations remain ongoing.
• Current liabilities of $186.778 million exceeded current assets of $22.599 million at September 30, 2026.
• Current convertible loan of $94.309 million was reported at September 30, 2026, versus none at December 31, 2025.
• Term debt included $83.862 million current and $43.299 million non-current at September 30, 2026.
• Q3 research and development expense of $6.830 million increased from $5.824 million a year earlier.
• Q3 general and administrative expense of $3.724 million increased from $3.111 million a year earlier.
• Q3 interest expense of $7.561 million increased from $4.346 million a year earlier.
• Nine-month operating loss of $26.480 million widened from $22.811 million in 2025.
• Nine-month research and development expense of $20.527 million increased from $17.647 million in 2025.
• Nine-month general and administrative expense of $12.423 million increased from $8.983 million in 2025.
• Nine-month interest expense of $19.754 million increased from $11.756 million in 2025.
• Nine-month operating cash use of $19.964 million increased from $19.089 million in 2025.
• ATM common-stock issuance and stock-option exercises added shares during the nine months ended September 30, 2026.
• Pediatric studies are deferred pending safety and efficacy data from the planned adult Phase 3 program.

News Explained

The update places Armata’s AP-SA02 Phase 3 in preparation: clinical-material production is underway, one cGMP production run and vialing were completed in the third quarter, and initiation timing depends on FDA concurrence with the protocol.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

LOS ANGELES, Nov. 12, 2026 /PRNewswire/ -- Armata Pharmaceuticals, Inc. (NYSE American: ARMP) ("Armata" or the "Company"), a late clinical-stage biotechnology company focused on the development of high-purity and potent, pathogen-specific bacteriophage therapeutics for the treatment of antibiotic-resistant and difficult-to-treat bacterial infections, today announced financial results for its third quarter ended September 30, 2026, and provided a corporate update.

"We continue to advance toward our most important near-term objective: initiating the Phase 3 superiority study of AP-SA02," said Armata's Dr. Deborah Birx, Chief Executive Officer. "We have progressed from planning to establishing the operational infrastructure needed to execute a large, pivotal clinical study. Our manufacturing capabilities are well established, critical clinical trial preparations are progressing, and we continue to work closely with the U.S. Food and Drug Administration ("FDA") to finalize the study design. Together, these accomplishments reflect the considerable effort and investment we have made to prepare for this important next stage of development, while maintaining fiscal discipline."

"We believe the FDA's recent Breakthrough Therapy designation further underscores AP-SA02's clinical potential. We also appreciate the continued financial support of the U.S. Department of War ("DoW"), which comes at an important time as we prepare for this next critical stage of clinical development. We believe AP-SA02 has the potential to make a meaningful difference in patient care and, more broadly, provide a foundation for expanding our bacteriophage technology into additional indications. We are excited about the opportunity ahead and remain firmly focused on successfully executing our Phase 3 program," concluded Dr. Birx.

Third Quarter 2026 and Recent Developments:

Preparations for AP-SA02 Phase 3 Program

Armata continued to make significant progress in clinical, regulatory, manufacturing, and operational preparations for the planned pivotal Phase 3 superiority study of AP-SA02, the Company's intravenously administered multi-phage product candidate for adjunct treatment of complicated Staphylococcus aureus bacteremia ("SAB") caused by methicillin-sensitive S. aureus ("MSSA") or methicillin-resistant S. aureus ("MRSA").

• Continued discussions with the FDA to finalize the study design and submitted protocol revisions in response to FDA feedback.
• Submitted responses to all Clinical, Chemistry, Manufacturing, and Controls ("CMC"), and Regulatory comments in the FDA's End-of-Phase 2 meeting written response.
• Completed four engineering runs of AP-SA02 at the Company's in-house cGMP manufacturing facility in Los Angeles, California. Production of clinical trial material for the planned Phase 3 study is underway, with one cGMP production run and vialing of AP-SA02 drug product completed in the third quarter of 2026.
• Advanced the qualification and validation of quality control release assays.
• Completed validation of critical utilities.
• Executed contracts with clinical research organizations to support study management.
• Continued negotiating clinical trial agreements with an initial group of U.S. clinical trial sites.

Collectively, these activities advance the Company's preparations to initiate its planned pivotal Phase 3 superiority study, which is designed to support a future Biologics License Application (BLA) for AP-SA02. The Phase 3 study is expected to initiate in the second half of 2026, with exact timing depending on when FDA concurs with the protocol.

Regulatory

• Received FDA Breakthrough Therapy designation for AP-SA02 for adjunct treatment of complicated bacteremia caused by MSSA or MRSA. The designation is intended to expedite the review of medicines that treat a serious or life-threatening condition and have shown preliminary clinical evidence indicating the potential for substantial improvement over available therapies. AP-SA02 now holds Breakthrough Therapy, Fast Track and Qualified Infectious Disease Product designations, providing strong regulatory validation.
• Obtained FDA agreement on an Initial Pediatric Study Plan ("Agreed iPSP") for future pediatric evaluation of AP-SA02 as an adjunct treatment for complicated SAB, with pediatric studies deferred pending safety and efficacy data from the planned adult Phase 3 program. We believe this plan supports potential pediatric expansion while prioritizing patient safety and efficient clinical development.

Funding

• Received $3.7 million in additional non-dilutive funding from the DoW^[i], the first funds received specifically for AP-SA02 Phase 3 execution under a previously announced award. This brings cumulative non-dilutive DoW funding under the award to approximately $32.4 million, including $28.7 million previously provided, underscoring continued U.S. government's interest in advancing AP-SA02.

Presentations and Publications

• Presented new AP-SA02 data at the 20^th International Symposium on Staphylococci and Staphylococcal Infections (ISSSI), held September 20–24 in Banff, Alberta, Canada. Findings suggest controlled genetic diversity may enhance killing of certain S. aureus clinical isolates by enabling individual phages to adapt to genetically and geographically diverse MRSA and MSSA isolates.
• Further advanced bacteriophage science through publication of the peer-reviewed article "Insights into Genome Ejection by a Therapeutic phiKMV-like Bacteriophage" in the Journal of Molecular Biology.
• Participated in the H.C. Wainwright 28^th Annual Global Investment Conference.

Intellectual Property

• Announced the issuance of two U.S. patents covering the Company's bacteriophage programs:
  • U.S. Patent No. 12,751,983, issued October 6, 2026, protects methods of treating S. aureus infections with AP-SA02, with protection until at least February 2041.
  • U.S. Patent No. 12,594,312, issued April 7, 2026, protects methods of treating Pseudomonas infections with AP-PA02, with protection expected until January 2043.

Third Quarter 2026 Financial Results

Grant and Award Revenue. The Company recognized grant and award revenue of $3.2 million for the three months ended September 30, 2026, as compared to $1.2 million in the comparable period in 2025. This represents the Medical Technology Enterprise Consortium's share of the costs incurred for the Company's AP-SA02 program for the treatment of SAB.

Research and Development. Research and development expenses for the three months ended September 30, 2026 were approximately $6.8 million, compared to approximately $5.8 million for the comparable period in 2025.

General and Administrative. General and administrative expenses for the three months ended September 30, 2026 were approximately $3.7 million, compared to approximately $3.1 million for the comparable period in 2025.

Loss from Operations. Loss from operations for the three months ended September 30, 2026 was approximately $7.4 million, compared to a loss of approximately $7.8 million for the comparable period in 2025.

Other Income (Expense). Other income, net, for the three months ended September 30, 2026 was approximately $62.2 million, compared with other expense, net, of approximately $18.9 million for the comparable period in 2025. Other income, net for the three months ended September 30, 2026 and 2025 included a gain of $69.6 million and a loss of $14.6 million, respectively, from changes in the fair value of the convertible loan.

Net Income (Loss). The net income for the third quarter of 2026 was $54.9 million, or $1.15 earnings per share on a basic basis and a ($0.24) loss per share on a diluted basis, as compared to a net loss of ($26.7) million, or $(0.74) loss per share on a basic and diluted basis, for the comparable period in 2025. Net income for the three months ended September 30, 2026 was primarily driven by the gain of $69.6 million from the change in fair value of the convertible loan.

Cash and Cash Equivalents. As of September 30, 2026, Armata held approximately $18.3 million of unrestricted cash and cash equivalents, compared to $8.7 million as of December 31, 2025.

As of November 6, 2026, 37,192,632 common shares were outstanding.

About AP-SA02

Armata is developing AP-SA02, a fixed multi-phage cocktail, for the adjunct treatment of complicated Staphylococcus aureus bacteremia caused by methicillin-sensitive S. aureus (MSSA) or methicillin-resistant S. aureus (MRSA). AP-SA02 has received Qualified Infectious Disease Product (QIDP),  Fast Track and Breakthrough Therapy designations from the FDA. The diSArm study (NCT05184764) was a Phase 1b/2a, multicenter, randomized, double-blind, placebo-controlled, multiple ascending dose escalation study of the safety, tolerability, and efficacy of intravenous AP-SA02 in addition to best available antibiotic therapy ("BAT") compared to BAT alone (placebo) for the treatment of adults with complicated S. aureus bacteremia. The Company highlighted positive results from the Phase 2a diSArm study in a late-breaking oral presentation at IDWeek 2025™ in October 2025. The Company plans to advance AP-SA02 into a Phase 3 superiority study in complicated SAB, anticipated to initiate in the second half of 2026, with exact timing depending on when FDA concurs with the protocol.

About Armata Pharmaceuticals, Inc.

Armata is a late clinical-stage biotechnology company focused on the development of high-purity and potency, pathogen-specific bacteriophage therapeutics for the treatment of antibiotic-resistant and difficult-to-treat bacterial infections using its proprietary bacteriophage-based technology. Armata is developing and advancing a broad pipeline of natural and synthetic phage candidates, including clinical candidates for Pseudomonas aeruginosa, Staphylococcus aureus, and other important pathogens. Armata is committed to advancing phage therapy with drug development expertise that spans bench to clinic, including in-house phage-specific current Good Manufacturing Practices ("cGMP") manufacturing to support full commercialization.

Forward-Looking Statements

This communication contains "forward-looking" statements as defined by the Private Securities Litigation Reform Act of 1995. These statements relate to future events, results or to Armata's future financial performance and involve known and unknown risks, uncertainties and other factors which may cause Armata's actual results, performance or events to be materially different from any future results, performance or events expressed or implied by the forward-looking statements. In some cases, you can identify these statements by terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" or the negative of those terms, and similar expressions. These forward-looking statements reflect management's beliefs and views with respect to future events and are based on estimates and assumptions as of the date of this communication and are subject to risks and uncertainties including risks related to Armata's development of bacteriophage-based therapies; Armata's planned clinical trials; ability to staff and maintain its production facilities under fully compliant cGMP; ability to meet anticipated milestones in the development and testing of the relevant product; ability to be a leader in the development of phage-based therapeutics; ability to achieve its vision, including improvements through engineering and success of clinical trials; ability to successfully complete preclinical and clinical development of, and obtain regulatory approval of its product candidates and commercialize any approved products on its expected timeframes or at all; and Armata's estimates regarding anticipated operating losses, capital requirements and needs for additional funds. Additional risks and uncertainties relating to Armata and its business can be found under the caption "Risk Factors" and elsewhere in Armata's filings and reports with the U.S. Securities and Exchange Commission (the "SEC"), including in Armata's Annual Report on Form 10-K, filed with the SEC on March 25, 2026, and in its subsequent filings with the SEC.

Armata expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Armata's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. 

Media Contacts:

At Armata:

Pierre Kyme
ir@armatapharma.com
310-665-2928

Investor Relations:

Joyce Allaire
LifeSci Advisors, LLC
jallaire@lifesciadvisors.com
212-915-2569

Armata Pharmaceuticals, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited)
		September 30, 2026			December 31, 2025
Assets
Current assets
Cash and cash equivalents		$	18,317		$	8,688
Prepaid expenses and other current assets			1,073			1,508
Other receivables			3,209			472
Total current assets			22,599			10,668
Property and equipment, net			10,799			12,194
Operating lease right-of-use asset			32,378			33,911
Intangible assets, net			13,746			13,746
Other long-term assets			4,956			6,363
Total assets		$	84,478		$	76,882
Liabilities and stockholders' deficit
Accounts payable, accrued and other current liabilities		$	8,607		$	8,947
Convertible Loan, current			94,309			—
Term debt, current			83,862			—
Total current liabilities			186,778			8,947
Convertible Loan, non-current			—			153,860
Term debt, non-current			43,299			103,061
Operating lease liabilities, net of current portion			25,452			26,533
Deferred tax liability			3,077			3,077
Total liabilities			258,606			295,478
Total stockholders' deficit			(174,128)			(218,596)
Total liabilities and stockholders' deficit		$	84,478		$	76,882

 

Armata Pharmaceuticals, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2026			2025			2026			2025
Grant and award revenue	$	3,171		$	1,159		$	6,470		$	3,819
Operating expenses
Research and development		6,830			5,824			20,527			17,647
General and administrative		3,724			3,111			12,423			8,983
Total operating expenses		10,554			8,935			32,950			26,630
Operating loss		(7,383)			(7,776)			(26,480)			(22,811)
Other income (expense)
Interest income		206			90			335			257
Interest expense		(7,561)			(4,346)			(19,754)			(11,756)
Change in fair value of the Convertible Loan		69,595			(14,643)			59,551			(15,191)
Total other income (expense), net		62,240			(18,899)			40,132			(26,690)
Net income (loss)		54,857			(26,675)			13,652			(49,501)
Income attributable to participating warrants		(12,219)			—			(3,064)			—
Net income (loss) attributable to common stockholders	$	42,638		$	(26,675)		$	10,588		$	(49,501)
Per share information:
Net income (loss) per share, basic	$	1.15		$	(0.74)		$	0.29		$	(1.37)
Weighted average shares outstanding, basic		37,181,573			36,226,285			36,822,284			36,201,674
Net loss per share, diluted	$	(0.24)		$	(0.74)		$	(0.74)		$	(1.37)
Weighted average shares outstanding, diluted		62,679,380			36,226,285			61,923,161			36,201,674

 

Armata Pharmaceuticals, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)
		Nine Months Ended September 30,
		2026			2025
Operating activities:
Net income (loss)		$	13,652		$	(49,501)
Adjustments required to reconcile net income (loss) to net cash used in operating activities:
Depreciation expense			1,620			1,113
Stock-based compensation expense			6,682			1,978
Change in fair value of the Convertible Loan			(59,551)			15,191
Non-cash accrued interest expense			19,740			11,739
Change in right-of-use asset			1,533			1,770
Changes in operating assets and liabilities:			(3,640)			(1,379)
Net cash used in operating activities			(19,964)			(19,089)
Investing activities:
Purchases of property and equipment			(171)			(490)
Net cash used in investing activities			(171)			(490)
Financing activities:
Proceeds from issuance of term debt, net of issuance costs			25,000			25,000
Proceeds from issuance of common stock under ATM, net			2,373			—
Payments for taxes related to net share settlement of equity awards			(121)			(46)
Proceeds from exercise of stock options			1,242			—
Net cash provided by financing activities			28,494			24,954
Net change in cash, cash equivalents and restricted cash			8,359			5,375
Cash, cash equivalents and restricted cash, beginning of period			14,078			14,771
Cash, cash equivalents and restricted cash, end of period		$	22,437		$	20,146

Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets:

		September 30, 2026			September 30, 2025
Cash and cash equivalents		$	18,317		$	14,756
Restricted cash			4,120			5,390
Cash, cash equivalents and restricted cash		$	22,437		$	20,146

_____________________________
i	Department of War (DoW) award received through the Medical Technology Enterprise Consortium (MTEC) and managed by the Naval Medical Research Command (NMRC) – Naval Advanced Medical Development (NAMD) with funding from the Defense Health Agency and Joint Warfighter Medical Research Program.

View original content to download multimedia:https://www.prnewswire.com/news-releases/armata-pharmaceuticals-announces-financial-results-for-the-third-quarter-2026-and-provides-corporate-update-302938272.html

SOURCE Armata Pharmaceuticals, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Why did Armata report a profit for the third quarter of 2026?

Armata’s $54.857 million net income primarily reflected a $69.595 million gain from changes in the fair value of its convertible loan. The company still recorded an operating loss of $7.383 million. Basic earnings per share were $1.15, while diluted loss per share was $0.24.

When does Armata expect to start the AP-SA02 Phase 3 trial?

Armata expects the AP-SA02 Phase 3 superiority study to begin in the second half of 2026, with exact timing depending on FDA concurrence with the protocol. The planned study concerns adjunct treatment of complicated S. aureus bacteremia and is designed to support a future Biologics License Application.