Seres Therapeutics Reports Second Quarter 2026 Financial Results and Provides Business Updates, Including Further Action to Reduce Ongoing Facilities Costs
Rhea-AI Summary
Seres Therapeutics (Nasdaq:MCRB) reported second quarter 2026 net income of $4.6 million, versus a $19.9 million loss a year earlier, mainly driven by a $25 million gain on sale of the VOWST business tied to a milestone termination payment from Nestlé Health Science.
R&D expenses fell to $9.1 million and G&A to $7.1 million, partly offset by a $5.8 million lease impairment. Seres announced early termination of its 200 Sidney Street lease and a previously restructured 101 CambridgePark Drive lease, which are expected to materially reduce future facility cash costs and lease obligations.
Clinically, an MSK investigator-sponsored trial of SER-155 in immune checkpoint inhibitor-related enterocolitis showed 80% of 15 participants achieved immunosuppressive-free clinical response at day 15, with no safety concerns identified. Cash and equivalents were $15.6 million on June 30, 2026, and the company expects its cash, including Nestlé payments, to fund operations into the first quarter of 2027.
Positive
- Net income swung to $4.6 million from a $19.9 million loss year over year
- Recognized $25 million gain on sale of VOWST business from Nestlé milestone termination
- R&D expenses down to $9.1 million from $12.9 million year over year
- G&A expenses reduced to $7.1 million from $10.3 million year over year
- Lease restructuring and early termination expected to materially cut ongoing facility cash costs
- SER-155 irEC IST showed 80% immunosuppressive-free clinical response at day 15 in 15 patients
- Cash runway expected to extend through the first quarter of 2027
Negative
- Cash and cash equivalents declined to $15.6 million from $45.8 million at year-end 2025
- Recorded a $5.8 million impairment charge tied to leased space at 101 CambridgePark Drive
- Operating loss remained high at $21.3 million for the quarter despite cost reductions
- Revenue remains minimal, with only $0.7 million in grant revenue for the quarter
- Future SER-155 and pipeline advancement are contingent on securing additional funding or partnerships
News Explained
Capital remains sought rather than committed; the release provides no new financing terms or disclosed ownership change for existing common holders.
Seres says it is seeking capital to advance its SER-155 programs, but the August 5 update reports no completed financing; consequently, it establishes no new financing commitment, proceeds, or ownership change for existing common holders.
A private placement would be a securities sale to selected investors outside a public offering, but this release does not disclose such a sale or its price, dilution, or conversion terms.
The balance sheet lists 9,827,569 common shares issued and outstanding on
Market Reaction – MCRB
Following this news, MCRB has gained 1.17%, reflecting a mild positive market reaction. Argus tracked a trough of -11.1% from its starting point during tracking. Our momentum scanner has triggered 5 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $5.31.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 05 | Q1 earnings report | Negative | -2.5% | Q1 net loss contrasted with prior-year net income and cash runway extended through Q3 2026 |
| Mar 12 | Q4 earnings report | Positive | +1.3% | Full-year net income and year-end cash supported runway into Q3 2026 |
| Nov 05 | Q3 earnings report | Positive | -7.6% | Net income was driven by a VOWST sale gain and cash runway reached Q2 2026 |
| Aug 06 | Q2 earnings report | Negative | -3.5% | Quarterly net loss persisted despite a smaller loss than the prior-year period |
| May 07 | Q1 earnings report | Positive | -3.0% | Net income and expected Nestlé payment supported funding into Q1 2026 |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions aligned with the reported earnings direction in three of five events, while two positive earnings reports showed divergence.
Key Terms
irEC medical
allo-HCT medical
breakthrough therapy regulatory
fast track designation regulatory
ind-enabling regulatory
live biotherapeutic medical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Recently announced
IST data support SER-155 as a potential treatment for irEC that may allow patients to continue cancer therapy; Company evaluating irEC clinical development strategy in consultation with KOLs
Seres engaging potential partners, seeking capital to advance its SER-155 programs, including for the prevention of bloodstream infections in patients undergoing allo-HCT and those experiencing irEC
Seres announces agreement to exit additional leased space early, further reducing ongoing facility-related cash costs, which follows announcement of balance sheet strengthening and facilities cost reduction transactions in June 2026
CAMBRIDGE, Mass., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Seres Therapeutics, Inc. (Nasdaq: MCRB), (Seres or the Company), a leading live biotherapeutics company, today reported second quarter 2026 financial results and provided business updates.
"We are very pleased with the recent progress at Seres, including the positive topline data from the investigator-sponsored trial of SER-155 in irEC conducted by MSK, announced last month," said Richard Kender, Executive Chairman and Interim Chief Executive Officer of Seres. "The study demonstrated that
Marella Thorell, Chief Financial Officer of Seres, added, "Terminating our Sidney Street lease will substantially reduce our future lease obligations and will further lower our ongoing annual fixed costs beginning in 2027. Together with the lease restructuring we announced in June, this transaction reflects our continued focus on rigorous financial discipline, while we maintain the operational infrastructure needed to advance our live biotherapeutic pipeline, including our Phase 2-ready SER-155 program in allo-HCT."
Recent Highlights
SER-155 in immune checkpoint inhibitor-related enterocolitis (irEC)
- In July, Seres announced positive topline results from the IST of SER-155 in irEC (NCT06801067) conducted at MSK. The open-label study evaluated SER-155 in 15 participants with moderate-to-severe (Grade 2-3) irEC who were naïve to immunosuppressive therapy. irEC is among the most frequent and severe immune-related adverse reactions in recipients of ICI therapy and, at the moderate-to-severe grade, affects approximately
25% of ICI recipients in the US. - In the study, 12 of 15 participants (
80% ) achieved an immunosuppressive-free clinical response at day 15, the primary efficacy endpoint, defined as at least a 1-grade improvement in diarrhea symptoms without immunosuppressive therapy. SER-155 was generally well tolerated with no safety concerns identified and no serious adverse events assessed as related to SER-155. - Participants in the study were on a wide range of ICI types, including PD-1 inhibitors (Keytruda®, Opdivo®, Zynyz®), PD-L1 inhibitors (Imfinzi®, Bavencio®), CTLA-4 inhibitors (Yervoy®, Imjudo®), LAG-3 inhibitor (Opdualag®), and combinations thereof. The promising study results support continued development of SER-155 to treat irEC and the Company is engaging potential partners, including companies with ICI franchises, as it evaluates next steps for the development of SER-155 in irEC.
Broader pipeline and portfolio
- SER-155 remains Phase 2 ready for the prevention of bloodstream infections in patients undergoing allogeneic hematopoietic stem cell transplant (allo-HCT) for the treatment of blood cancer. SER-155 has received Breakthrough Therapy and Fast Track designations for this indication. Efforts to secure funding to advance clinical development for this program continue.
- The Company continues to advance IND-enabling activities for SER-603, in development for inflammatory bowel disease, and is engaging potential collaborators to support the clinical advancement of this program as a mono and/or combination therapy.
- Seres continues to progress development of SER-428, an investigational oral liquid formulation based on SER-155 strains supported by a grant from CARB-X (Combating Antibiotic-Resistant Bacteria Biopharmaceutical Accelerator), for dosing in patients who cannot take oral capsules. Seres is designing a Phase 1b open-label trial, in collaboration with Dr. Dan Freedberg at Columbia University, to evaluate SER-428 in medical ICU patients at high risk of infection.
Corporate Updates
Seres completed the below transactions that will collectively strengthen the Company’s balance sheet and reduce ongoing annual facility cash costs.
- On July 31, Seres entered into an agreement to terminate the lease for its facility at 200 Sidney Street in Cambridge, MA. This early termination eliminates the Company's remaining obligations under the lease as of December 31, 2026 in exchange for certain consideration and will further significantly reduce ongoing facility-related cash costs beginning in 2027. Additional details regarding the agreement are included in the Company's Report on Form 8-K, which was filed with the Securities and Exchange Commission on August 4, 2026. The accounting for this transaction will be reported in the Company’s third quarter 2026 results.
- In June, Seres restructured the lease for its facility at 101 CambridgePark Drive in Cambridge, MA, reducing its leased space, rental rate and related operating expenses. The restructured 10-year lease is expected to materially reduce the Company's ongoing annual facility-related cash costs and long-term lease obligations.
- In June, Seres entered into an amendment to its asset purchase agreement with Nestlé Health Science (Nestlé) under which Nestlé will pay Seres an aggregate
$25 million (the Milestone Termination Payment), in two equal installments of$12.5 million on July 1, 2026 (which was received) and$12.5 million which is expected to be received on October 1, 2026, to buy out potential future VOWST net sales-based milestones. Seres sold the VOWST business to Nestlé Health Science in 2024.
Second Quarter 2026 Financial Results
- Net income was
$4.6 million for the second quarter of 2026, compared to a net loss of$19.9 million for the same period in 2025. The difference is primarily due to a$25 million Gain on Sale of the VOWST Business recognized in the second quarter of 2026 arising from the Milestone Termination Payment due from Nestlé. - Research and development expenses were
$9.1 million for the second quarter of 2026, compared with$12.9 million for the same period in 2025, reflecting lower personnel-related expenses, facilities costs, transition services agreement (TSA) costs and SER-155 costs driven by lower activities in these areas and cost reduction efforts. - General and administrative expenses were
$7.1 million for the second quarter of 2026, compared with$10.3 million for the same period in 2025, due to lower personnel-related expenses, facilities costs, professional services fees, and IT costs, including those related to IT services provided under the TSA. - In the second quarter of 2026, there was a
$5.8 million impairment charge recorded related to the early termination of a portion of the Company’s leased space at 101 Cambridgepark Drive. - There were no manufacturing services expenses in the second quarter of 2026, compared with
$1.7 million in the second quarter of 2025, as the Company completed such services under the TSA at the end of 2025.
Cash and Cash Runway
As of June 30, 2026, Seres had
About Seres Therapeutics
Seres Therapeutics, Inc. (Nasdaq: MCRB) is a clinical-stage biotechnology company developing novel live biotherapeutics products (LBP), designed to address unmet needs in oncology that can lead to interruption to patients' cancer care and/or mortality, and to treat inflammatory and immune (I&I) diseases, by modulating host function to protect and improve mucosal epithelial barrier integrity, induce immune homeostasis and tolerance, and prevent the colonization and overgrowth of pathogens in the gastrointestinal (GI) tract. The Company previously led the development and FDA approval of VOWST™, the first orally administered microbiome therapeutic, which was subsequently divested to Nestlé Health Science. SER-155, an investigational cultivated multi-strain biotherapeutic, which has received Breakthrough Therapy and Fast Track designations, is being advanced for the prevention of bloodstream infections in patients undergoing allogeneic hematopoietic stem cell transplant (allo-HCT), and is Phase 2 ready, pending receipt of funding. SER-155 is also being developed to address immune checkpoint inhibitor-related enterocolitis (irEC) to provide an immunosuppressive-free alternative and enable patients to continue their ICI cancer therapy. Having recently reported promising results from an IST, Seres is evaluating the design of a Phase 2 study in irEC. The Company is advancing IND-enabling studies for SER-603, which is in development for inflammatory bowel disease. Mechanistically, Seres' biotherapeutics target the mucosal epithelial barrier-immune interface and are optimized to modulate host function to increase mucosal epithelium integrity, induce immune homeostasis, and prevent the colonization and overgrowth of harmful bacteria in the GI tract. For more information, please visit www.serestherapeutics.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements about: SER-155 and its intended uses and benefits in irEC; our clinical development plans for SER-155, SER-603 and SER-428; potential accessibility for patients; the timing and results of clinical studies and data readouts; current or future product candidates and their potential impacts and outcomes; engagement with potential partners and financing sources; our ability to access capital to advance our programs; expected receipt of milestone termination payments; our lease restructuring activities and anticipated cost savings and liability reductions; our cash runway; our planned strategic focus; the anticipated timing of any of the foregoing; and other statements that are not historical fact.
These forward-looking statements are based on management's current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: (1) our need for additional funding; (2) our ability to continue as a going concern; (3) we have incurred significant losses, are not currently profitable and may never become profitable; (4) our cost reduction actions may not achieve their intended benefits, including an extended cash runway; (5) our limited operating history; (6) we may not be able to realize the anticipated benefits of the VOWST sale, and may face new challenges as a smaller, less diversified company; (7) we have in the past and may in the future receive notice of the failure to satisfy a continued listing rule from The Nasdaq Stock Market LLC; (8) our novel approach to therapeutic intervention; (9) our reliance on third parties to conduct our clinical trials and manufacture our product candidates; (10) our ability to achieve market acceptance necessary for commercial success; (11) the competition we will face; (12) our ability to protect our intellectual property; (13) impact of our recent management transitions and appointments and our ability to retain key personnel; and (14) disruptions at the FDA or other government agencies. These and other important factors discussed under the caption "Risk Factors" in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2026, to be filed with the Securities and Exchange Commission (SEC) on August 5, 2026, as well as our other reports filed with the SEC, could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management's estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, except as required by law, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
| SERES THERAPEUTICS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands, except share and per share data) | ||||||||
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 15,594 | $ | 45,766 | ||||
| Accounts receivable due from SPN - related party | 25,000 | 360 | ||||||
| Accounts receivable | 274 | 157 | ||||||
| Prepaid expenses and other current assets | 1,480 | 3,093 | ||||||
| Total current assets | 42,348 | 49,376 | ||||||
| Property and equipment, net | 5,798 | 7,635 | ||||||
| Operating lease assets | 51,168 | 72,483 | ||||||
| Restricted cash | 2,243 | 8,668 | ||||||
| Other non-current assets | 31 | 31 | ||||||
| Total assets | $ | 101,588 | $ | 138,193 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,186 | $ | 1,682 | ||||
| Accrued expenses and other current liabilities | 3,739 | 3,972 | ||||||
| Accrued liabilities due to SPN - related party | 3,278 | 3,278 | ||||||
| Operating lease liabilities | 11,828 | 10,390 | ||||||
| Total current liabilities | 20,031 | 19,322 | ||||||
| Operating lease liabilities, net of current portion | 44,816 | 72,576 | ||||||
| Other long-term liabilities | 2,207 | 2,077 | ||||||
| Total liabilities | 67,054 | 93,975 | ||||||
| Commitments and contingencies (Note 9) | ||||||||
| Stockholders’ equity (deficit): | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 10 | 10 | ||||||
| Additional paid-in capital | 1,022,259 | 1,016,611 | ||||||
| Accumulated deficit | (987,735 | ) | (972,403 | ) | ||||
| Total stockholders’ equity | 34,534 | 44,218 | ||||||
| Total liabilities and stockholders’ equity | $ | 101,588 | $ | 138,193 | ||||
| SERES THERAPEUTICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (unaudited, in thousands, except share and per share data) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenue: | |||||||||||||||
| Grant revenue | 736 | — | 1,094 | — | |||||||||||
| Total revenue | 736 | — | 1,094 | — | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development expenses | 9,141 | 12,939 | 22,336 | 24,760 | |||||||||||
| General and administrative expenses | 7,061 | 10,253 | 15,131 | 22,141 | |||||||||||
| Impairment of long-lived assets | 5,807 | — | 5,807 | — | |||||||||||
| Manufacturing services | — | 1,689 | — | 5,216 | |||||||||||
| Total operating expenses | 22,009 | 24,881 | 43,274 | 52,117 | |||||||||||
| Loss from operations | (21,273 | ) | (24,881 | ) | (42,180 | ) | (52,117 | ) | |||||||
| Other income (expense): | |||||||||||||||
| Gain on sale of VOWST Business | 25,000 | 185 | 25,000 | 52,366 | |||||||||||
| Interest income | 181 | 546 | 506 | 1,164 | |||||||||||
| Other income (expense) (1) | 673 | 4,295 | 1,342 | 11,414 | |||||||||||
| Total other income (expense), net | 25,854 | 5,026 | 26,848 | 64,944 | |||||||||||
| Net income (loss) and comprehensive income (loss) | $ | 4,581 | $ | (19,855 | ) | $ | (15,332 | ) | $ | 12,827 | |||||
| Net income (loss) per share attributable to common stockholders – basic | $ | 0.47 | $ | (2.27 | ) | $ | (1.59 | ) | $ | 1.47 | |||||
| Net income (loss) per share attributable to common stockholders – diluted | $ | 0.47 | $ | (2.27 | ) | $ | (1.59 | ) | $ | 1.47 | |||||
| Weighted average common shares outstanding - basic | 9,706,193 | 8,743,733 | 9,644,704 | 8,723,589 | |||||||||||
| Weighted average common shares outstanding - diluted | 9,747,138 | 8,743,733 | 9,644,704 | 8,732,176 | |||||||||||
[1] Includes
Investor and Media Contact:
IR@serestherapeutics.com
Carlo Tanzi, Ph.D.
Kendall Investor Relations
ctanzi@kendallir.com
