Foghorn Therapeutics Provides Third Quarter 2026 Financial and Corporate Update

A $74.1 million cumulative catch-up adjustment drove the revenue increase following decisions not to advance two programs.

Rhea-AI Summary

Foghorn Therapeutics (FHTX) reported third-quarter 2026 net income of $58.150 million while advancing its wholly owned oncology and inflammation programs. Collaboration revenue was $83.543 million versus $8.153 million a year earlier, driven by a $74.1 million cumulative catch-up adjustment primarily linked to updated future cost estimates following decisions not to advance FHD-909 and the SMARCA2 selective degrader. A year earlier, the company recorded a $15.849 million net loss.

Cash, cash equivalents and marketable securities totaled $156.222 million at September 30, 2026. Foghorn expects funding to last into the second half of 2029, targets potential first-in-human inflammatory bowel disease studies by the end of 2027, and targets a 2027 investigational new drug application for its EP300 degrader. It is also developing small molecules to degrade secreted and transmembrane proteins. Quarterly restructuring costs were $2.272 million.

15 points · 1 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 5 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointCollaboration revenue rose to $83.543 million in third-quarter 2026 from $8.153 million a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Cash runway is expected to extend into the second half of 2029.
• Moderate point. Forward-looking: it has not happened yet and may not happen.IBD program targets potential first-in-human studies by end-2027; dose-range finding studies are expected in fourth-quarter 2026.
• Moderate point. Forward-looking: it has not happened yet and may not happen.EP300 degrader targets a 2027 investigational new drug application, focusing on multiple myeloma and diffuse large B-cell lymphoma.
• Minor pointNet income of $58.150 million replaced a $15.849 million net loss in third-quarter 2025.

10 minor points

• Minor pointDiluted earnings per share of $0.80 compared with a $0.25 loss a year earlier.
• Minor pointOperating income of $56.639 million compared with an $18.501 million operating loss a year earlier.
• Minor pointResearch and development expenses fell to $18.836 million from $20.002 million in third-quarter 2025.
• Minor pointGeneral and administrative expenses fell to $5.796 million from $6.652 million in third-quarter 2025.
• Minor pointIBD preclinical studies showed disease suppression comparable to an anti-IL-12/23p40 antibody control in two colitis models.
• Minor pointEP300 preclinical results included complete responses and greater anti-tumor activity than dual CBP/EP300 inhibitor inobrodib.
• Minor pointEP300 preclinical safety measures favored selective degradation over dual inhibition on body weight loss and platelet counts.
• Minor pointEP300 degradation produced tumor regression in a multiple myeloma model with acquired pomalidomide resistance.
• Minor pointInduced-proximity development is advancing small molecules intended to degrade secreted and transmembrane proteins.
• Minor pointStockholders’ deficit narrowed to $14.084 million at September 30, 2026, from $108.500 million at December 31, 2025.

Negative

• Moderate pointFHD-909 and the SMARCA2 selective degrader will not advance.
• Minor point$74.1 million cumulative catch-up adjustment drove revenue growth, primarily reflecting updated future cost estimates following program decisions.
• Minor pointCash, cash equivalents and marketable securities declined to $156.222 million from $158.894 million at December 31, 2025.
• Minor pointRestructuring costs of $2.272 million compared with none in third-quarter 2025.
• Minor pointTotal other income, net fell to $1.511 million from $2.652 million in third-quarter 2025.

Key Figures

Collaboration revenue: $83.5 million vs. $8.2 million Cumulative catch-up adjustment: $74.1 million Net income (loss): $58.2 million vs. $(15.8) million +4 more

Collaboration revenue

$83.5 million vs. $8.2 million

Three months ended September 30, 2026 vs. 2025

Cumulative catch-up adjustment

$74.1 million

Primarily related to updated estimated future costs after decisions not to advance two programs

Net income (loss)

$58.2 million vs. $(15.8) million

Three months ended September 30, 2026 vs. 2025

Cash, cash equivalents and marketable securities

$156.2 million

As of September 30, 2026

Cash runway

Into the second half of 2029

Company estimate stated in the update

Potential first-in-human studies

By the end of 2027

Novel oral small-molecule program focused initially on IBD

IND target

2027

Selective EP300 degrader program

Previous Earnings Reports

1 past event · Latest: Aug 06

Same Type 1 event

1. Aug 06

   2Q26 earnings

   24h Move

   +14.1%

   Q2 revenue included a $14.2 million catch-up adjustment; cash runway was stated into first-half 2028.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

inflammatory bowel disease, dose limiting toxicities, xenograft model

3 terms

inflammatory bowel disease medical

"Advancing a novel oral small molecule in inflammatory bowel disease (IBD)"

Inflammatory bowel disease is a group of long‑lasting conditions that cause repeated inflammation of the digestive tract, leading to symptoms like belly pain, diarrhea, bleeding and weight loss. For investors it matters because IBD drives steady demand for medications, ongoing clinical trials, medical devices and diagnostics; think of it as a chronic maintenance market where successful treatments can create predictable, long‑term revenue streams and regulatory milestones can move stock prices.

dose limiting toxicities medical

"dual inhibition of CBP/EP300 has been associated with dose limiting toxicities"

A dose limiting toxicity is a harmful side effect observed during a drug trial that is severe enough to prevent increasing the dose further. Think of it as the safety red line that tells researchers they’ve reached the highest tolerable amount of a drug; it matters to investors because these limits shape dosing, affect whether a drug can be effective, influence trial costs and timelines, and often change the likelihood of eventual regulatory approval and commercial success.

xenograft model medical

"tumor regression in a multiple myeloma xenograft model"

A xenograft model is an experimental setup in which human cells or tissues, often tumors, are implanted into an animal (commonly a mouse) to study disease behavior and test treatments in a living system. For investors, results from xenograft studies can indicate whether a drug or therapy has the potential to work in humans and help de-risk early-stage programs, but they are an imperfect stand-in—like testing a prototype on a crash-test dummy rather than in full real-world conditions.

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

- Advancing a novel oral small molecule in inflammatory bowel disease (IBD), with potential first-in-human trials targeted by end of 2027

- Selective EP300 degrader with potential to treat multiple myeloma (MM) and other hematological malignancies, tracking to IND in 2027

- Advancing a novel small molecule induced-proximity approach with the potential to address high-value secreted and transmembrane protein targets

- Strong balance sheet with cash, cash equivalents, and marketable securities of approximately
$156 million; cash runway into the second half of 2029

WATERTOWN, Mass., Nov. 09, 2026 (GLOBE NEWSWIRE) -- Foghorn^® Therapeutics Inc. (Nasdaq: FHTX), a biotechnology company pioneering a new class of medicines against challenging targets in oncology and immunology & inflammation (I&I), today provided a financial and corporate update in conjunction with the Company’s 10-Q filing for the third quarter ended September 30, 2026.

“Our focus is on advancing our wholly owned portfolio, including our novel, oral I&I program in IBD, with potential for first-in-human trials by the end of 2027, and our Selective EP300 degrader which has an IND targeted for next year,” said Adrian Gottschalk, President and Chief Executive Officer of Foghorn Therapeutics. “We are also advancing a novel induced-proximity approach with the potential to deliver antibody-like efficacy against high-value secreted and transmembrane proteins through small molecules. With cash runway into the second half of 2029, we are well positioned to deliver on this strategy.”

Program Overview and Upcoming Milestones

Novel oral I&I program. Foghorn is advancing a novel oral small-molecule inhibitor with an initial focus in IBD. Preclinical data demonstrate robust suppression of disease activity in a T-cell transfer colitis model and an IL-10 knock-out model, with efficacy comparable to an anti-IL-12/23p40 antibody positive control.

• Dose-range finding studies are expected to begin in the fourth quarter of 2026, with potential first-in-human studies by the end of 2027.
  
  

Selective EP300 degrader program. Foghorn is developing a Selective EP300 degrader for the treatment of hematological malignancies. Attempts to selectively drug EP300 have been challenging due to the high level of similarity between EP300 and CBP, and dual inhibition of CBP/EP300 has been associated with dose limiting toxicities. EP300 lineage dependencies are established in diffuse large b-cell lymphoma (DLBCL), MM, and other heme malignancies.

• EP300 degrader program outperforms clinical benchmark. Preclinical data highlight the therapeutic potential in MM including superior anti-tumor activity with complete responses, compared to clinical benchmark dual CBP/EP300 inhibitor inobrodib. Superior safety by body weight loss and platelet counts over dual inhibition, and tumor regression in a multiple myeloma xenograft model of acquired pomalidomide resistance were also observed.
• IND targeted in 2027, with a focus in MM and DLBCL.
  
  

Endoplasmic Reticulum Induced Proximity (ERIP). Foghorn is advancing a novel small-molecule induced-proximity approach to degrade secreted and transmembrane proteins before they reach the cell surface or circulation. The approach has the potential to address high-value targets in I&I, oncology, and other disease areas with the goal of achieving antibody-like efficacy through small molecules.

Third Quarter 2026 Financial Highlights

• Collaboration Revenue. Collaboration revenue was $83.5 million for the three months ended September 30, 2026, compared to $8.2 million for the three months ended September 30, 2025. The $75.4 million increase was driven by a $74.1 million cumulative catch-up adjustment primarily related to updated estimated future costs for the decision to not advance FHD-909 and the SMARCA2 selective degrader.
  
  
• Research and Development Expenses. Research and development expenses were $18.8 million for the three months ended September 30, 2026, compared to $20.0 million for the three months ended September 30, 2025. The $1.2 million decrease is attributed to a decrease in Lilly-partnered program costs, decreases in facilities and IT-related expenses, and decreases in personnel-related costs, partially offset by an increase in early development and other external costs.
  
  
• General and Administrative Expenses. General and administrative expenses were $5.8 million for the three months ended September 30, 2026, compared to $6.7 million for the three months ended September 30, 2025. This $0.9 million decrease was due to a decrease in personnel related costs, decreases professional and consulting costs, and lower facilities and IT-related expenses.
  
  
• Net Income (Loss). Net income was $58.2 million for the three months ended September 30, 2026, compared to a net loss of $15.8 million for the three months ended September 30, 2025.
  
  
• Cash, Cash Equivalents, and Marketable Securities. As of September 30, 2026, the Company had $156.2 million in cash, cash equivalents, and marketable securities, providing cash runway into the second half of 2029.
  
  

About Foghorn Therapeutics
Foghorn® Therapeutics is a biotechnology company developing novel medicines against challenging biological targets through multiple modalities and approaches, including oral small molecules, targeted protein degradation, and induced proximity. The Company is advancing programs in oncology as well as immunology and inflammation. Foghorn brings together deep biological understanding and small-molecule drug discovery expertise to pursue challenging targets with selectivity. Visit our website at www.foghorntx.com for more information on the Company, and follow us on X and LinkedIn.

Forward-Looking Statements

This press release contains “forward-looking statements.” Forward-looking statements include statements regarding the Company’s research and development programs and platform initiatives, including the Selective EP300 degrader program, the novel oral small molecule in I&I, ERIP approach and other preclinical product candidates, expected timing of preclinical data, expected cash runway, expected timing of regulatory filings, and research efforts and other statements identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding capital market conditions, our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions, including risks set forth under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission. Any forward-looking statement made in this press release speaks only as of the date on which it is made.

Condensed Consolidated Balance Sheets (In thousands)
		September 30, 2026				December 31, 2025
Cash, cash equivalents and marketable securities		$	156,222			$	158,894
All other assets			34,730				39,209
Total assets		$	190,952			$	198,103
Deferred revenue, total		$	146,272			$	249,154
All other liabilities			58,764				57,449
Total liabilities		$	205,036			$	306,603
Total stockholders’ deficit		$	(14,084	)		$	(108,500	)
Total liabilities and stockholders’ deficit		$	190,952			$	198,103

Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts)
		Three Months Ended September 30,
			2026				2025
Collaboration revenue		$	83,543			$	8,153
Operating expenses:
Research and development			18,836				20,002
General and administrative			5,796				6,652
Restructuring costs			2,272				—
Total operating expenses		$	26,904			$	26,654
Income (loss) from operations		$	56,639			$	(18,501	)
Total other income, net		$	1,511			$	2,652
Net income (loss)		$	58,150			$	(15,849	)
Net income (loss) per share attributable to common stockholders—basic			0.81				(0.25	)
Weighted average common shares outstanding—basic			71,460,569				63,029,293
Net income (loss) per share attributable to common stockholders—diluted			0.80				(0.25	)
Weighted average common shares outstanding—diluted			72,590,923				63,029,293

Contact:
Karin Hellsvik, Foghorn Therapeutics Inc.
khellsvik@foghorntx.com

FAQ

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

Why did Foghorn Therapeutics report a profit in the third quarter of 2026?

Foghorn reported $58.150 million in net income as collaboration revenue reached $83.543 million. Revenue growth was driven by a $74.1 million cumulative catch-up adjustment, primarily related to updated estimated future costs following the decision not to advance FHD-909 and the SMARCA2 selective degrader.

What are Foghorn Therapeutics’ next drug-development milestones?

Foghorn targets potential first-in-human IBD studies by the end of 2027 and a 2027 investigational new drug application for its selective EP300 degrader. Dose-range finding studies for the oral IBD program are expected to begin in the fourth quarter of 2026.