Sutro Biopharma Reports First Quarter 2026 Financial Results and Business Highlights
Rhea-AI Summary
Sutro Biopharma (NASDAQ: STRO) reported Q1 2026 results and pipeline progress. Revenue was $14.5 million and R&D plus G&A expenses were $44.1 million. Cash, cash equivalents and marketable securities totaled $202.6 million, plus $110.0 million recent equity proceeds, extending cash runway into at least Q2 2028.
The company advanced ADC candidates STRO-004, STRO-006 and STRO-227, with initial STRO-004 Phase 1 data expected mid‑2026 and IND submissions for STRO-006 and STRO-227 planned in 2026. Under its Astellas collaboration, a TROP2 dual‑payload iADC entered the clinic, triggering a $10 million milestone. Sutro also closed its luvelta program.
Positive
- Cash, cash equivalents and marketable securities rose to $202.6 million from $141.4 million at year-end 2025
- Underwritten equity offering raised $110.0 million gross at $13.98 per share
- Cash runway projected into at least Q2 2028, excluding additional anticipated milestones
- Q1 2026 R&D and G&A expenses decreased to $44.1 million from $64.9 million year over year
- $10 million milestone payment received from Astellas in April 2026
- TROP2-targeted dual-payload iADC under Astellas collaboration entered the clinic with patient dosing underway
Negative
- Q1 2026 revenue declined to $14.5 million from $17.4 million in Q1 2025
- Luvelta program closed with no additional investment or ongoing business development
News Market Reaction – STRO
In the May 15 session, STRO gained 1.43%, reflecting a mild positive market reaction. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 23 | Full-year 2025 earnings | Positive | +10.5% | Stronger 2025 revenue, extended runway and ADC pipeline progress drove a gain. |
| Nov 06 | Q3 2025 earnings | Positive | -13.4% | IND clearance and solid cash runway coincided with a double‑digit price drop. |
| Aug 07 | Q2 2025 earnings | Positive | +0.3% | Higher revenue and ADC milestones were followed by a modest positive move. |
| May 08 | Q1 2025 earnings | Negative | -9.1% | Restructuring, portfolio shift and large headcount cuts matched a share decline. |
| Mar 13 | Full-year 2024 earnings | Negative | -35.2% | Revenue drop, high expenses and restructuring aligned with a sharp selloff. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have often been volatile, with mostly aligned reactions and an average move of -9.36%, skewed by one sharply negative event in 2024.
Over the past year, Sutro’s earnings updates have combined pipeline progress with major financial shifts. Prior releases highlighted STRO‑004’s move into Phase 1, advancing dual‑payload STRO‑227, and collaborations with Astellas. Financially, cash balances moved from $316.9M at Dec 31, 2024 to $167.6M at Sep 30, 2025, then $141.4M at Dec 31, 2025, alongside restructuring and cost reductions. The current Q1 2026 report continues this focus on next‑generation ADCs and extended runway into at least Q2 2028.
Key Terms
phase 1 medical
dose-escalation medical
antibody drug conjugates medical
tissue factor medical
integrin β6 medical
immunostimulatory antibody-drug conjugate medical
AI-generated analysis. How Rhea-AI works. Not financial advice.
– On track to report initial safety, PK and early activity from Phase 1 dose-escalation trial of STRO-004, potential best-in-class Tissue Factor ADC, in mid-2026 –
– Continued advancement of wholly-owned pipeline, including ITGB6 ADC STRO-006 and dual-payload PTK7 program STRO-227, with IND submissions planned in 2026 –
– First dual-payload iADC from Sutro’s platform entered the clinic under Astellas collaboration; patient dosing underway –
– Strong balance sheet with
SOUTH SAN FRANCISCO, Calif., May 14, 2026 (GLOBE NEWSWIRE) -- Sutro Biopharma, Inc. (Sutro or the Company) (NASDAQ: STRO), a clinical-stage oncology company pioneering site-specific and novel-format antibody drug conjugates (ADCs), today reported its financial results for the first quarter of 2026 and recent business highlights.
“During the first quarter, we continued to execute across our clinical and preclinical portfolio, positioning Sutro for key data readouts later this year,” said Jane Chung, Sutro’s Chief Executive Officer. “Dose escalation is rapidly progressing in our Phase 1 trial of STRO-004, and we remain on track to report initial safety, pharmacokinetic and early activity data in mid-2026, which we believe will provide important insights into its clinical profile and our platform as a whole. This clinical momentum is reinforced by preclinical data we presented at the recent AACR Annual Meeting, which highlighted the robust and consistent antitumor activity of STRO-004, as well as continued progress across our broader ADC pipeline.”
“In parallel, we are advancing our next-generation ADC candidates, STRO-006, targeting ITGB6, and STRO-227, our first wholly-owned dual-payload ADC targeting PTK7, as we work toward IND submissions this year. We are also pleased to see our first partnered dual-payload iADC with Astellas entering the clinic, marking an important validation of our platform’s ability to generate differentiated multi-payload ADCs. With a strengthened balance sheet and continued disciplined execution, we believe we are well positioned to deliver meaningful progress across our programs in 2026.”
Wholly-Owned Pipeline
STRO-004: Sutro continues to advance its ongoing first-in-human Phase 1 dose-escalation trial of STRO-004, a Tissue Factor (TF)-targeting ADC with a DAR8 Topo1 payload, in patients with advanced solid tumors. The Company expects to report initial clinical data in mid-2026, including safety and tolerability, pharmacokinetic exposure, and early activity data. In preclinical studies, STRO-004 demonstrated a favorable safety profile, including a highest non-severely toxic dose (HNSTD) of 50 mg/kg in non-human primates, supporting the clinical starting dose of 1 mg/kg.
STRO-006: Sutro’s next-generation, highly selective integrin β6 (ITGB6)-targeting ADC with a DAR8 Topo1 payload, designed for the treatment of multiple solid tumors. The program continues to advance toward clinical development, with an IND submission anticipated in 2026.
STRO-227: Sutro’s wholly-owned DAR10 dual-payload ADC targeting PTK7, combining MMAE (DAR2) and a Topo1 payload (DAR8) to enable complementary mechanisms of action within a single molecule. The program remains on track for IND submission in 2026 and represents a key component of Sutro’s strategy to expand its pipeline of novel-format dual-payload ADCs.
Next-Generation ADC Collaborations
Astellas: Two research and development programs are progressing under Sutro’s collaboration with Astellas focused on dual-payload immunostimulatory ADCs (iADCs).
- The first program, targeting TROP2, has entered the clinic and is actively dosing patients, resulting in a
$10 million milestone payment received by Sutro in April 2026. - The second program continues to progress in an IND-enabling toxicology study.
Medical Conferences
American Association for Cancer Research (AACR), April 17-22, 2026, San Diego, California
- Sutro presented new preclinical data at AACR from across its pipeline of ADC discovery programs, including an oral presentation on STRO-004. Among the highlights, STRO-004 demonstrated robust and consistent antitumor activity across multiple TF-expressing solid tumor PDX models, with improved anti-tumor activity versus benchmark ADCs. Additionally, STRO-006 and STRO-227 showed meaningful, dose-dependent antitumor activity across solid tumor models. More details can be found in the press release here.
- In addition to these presentations, Sutro’s strategic partner, Astellas Pharma, also reviewed preclinical results from its TROP2-targeted iADC program, ASP2998, at AACR. The oral presentation, titled “ASP2998, a TROP2-targeted immunostimulatory antibody-drug conjugate (iADC) with dual payloads, demonstrates potent efficacy and a favorable safety profile in nonclinical models,” highlighted the progress in development of next-generation iADCs leveraging Sutro’s cell-free protein synthesis platform. ASP2998 is a first-in-class iADC that combines cytotoxic and immune-stimulatory mechanisms to enhance antitumor efficacy. Inclusion of a STING agonist augments the antitumor efficacy, immune activation and durable tumor immunity of ASP2998, supporting its superior activity over toxin-only anti-TROP2 ADCs. Preclinically, ASP2998 demonstrated a favorable safety profile, supporting a promising therapeutic index.
Investor Conferences
Management will participate in the following upcoming healthcare investor conferences. When available, the webcasts of the presentations will be accessible through the News & Events page of the Investor Relations section of the Company’s website at www.sutrobio.com. Archived replays will be available for at least 30 days after the event.
- H.C. Wainwright 4th Annual BioConnect Investor Conference (New York, NY • May 19)
- TD Cowen 7th Annual Oncology Innovation Summit (Virtual • May 26 – 27)
- Jefferies Global Healthcare Conference (New York, NY • June 2-4)
Corporate Updates
- Sutro strengthened its cash position with an underwritten offering of 7,868,383 shares of its common stock at a price of
$13.98 per share, resulting in gross proceeds of$110.0 million , before deducting underwriting discounts and commissions and other offering expenses. The Company’s cash runway is now expected into at least the second quarter of 2028, excluding additional anticipated milestones from our existing collaborations. - The luvelta program has been closed and there will be no additional investment in the program. Sutro is not currently pursuing further business development opportunities for the program.
First Quarter 2026 Financial Highlights
Cash, Cash Equivalents and Marketable Securities
As of March 31, 2026, Sutro had cash, cash equivalents and marketable securities of
Revenue
Revenue was
Research & Development (R&D) and General & Administrative (G&A) Expenses
Total R&D and G&A expenses for the quarter ended March 31, 2026 were
About Sutro Biopharma
Sutro Biopharma, Inc. is a clinical-stage biotechnology company advancing a next-generation antibody-drug conjugate (ADC) platform designed to deliver single- and dual-payload ADCs that enable meaningful breakthroughs for patients with cancer. By fully optimizing the antibody, linker, and payload, Sutro’s cell-free platform produces ADCs that are engineered to improve drug exposure, reduce side effects, and expand the range of treatable tumor types. With unique capabilities in dual-payload ADCs, Sutro aims to overcome treatment resistance and redefine what’s possible in cancer therapy. The Company’s pipeline of single- and dual-payload ADCs targets large oncology markets with limited treatment options and significant need for improved therapies.
For more information, follow Sutro on social media @Sutrobio or visit www.sutrobio.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, anticipated preclinical and clinical development activities; timing of announcements of IND submissions, trial initiation, clinical results, and other regulatory filings; outcome of discussions with regulatory authorities; potential benefits, efficacy and safety profile of the Company’s product candidates and platform; potential business development and partnering transactions; potential market opportunities for the Company’s product candidates; the timing and receipt of anticipated future milestone and royalty payments; the Company’s expected cash runway; and the expected costs and cost reductions associated with the restructuring. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, the Company cannot guarantee future events, results, actions, levels of activity, performance or achievements, and the timing and results of biotechnology development and potential regulatory approval is inherently uncertain. Forward-looking statements are subject to risks and uncertainties that may cause the Company’s actual activities or results to differ significantly from those expressed in any forward-looking statement, including risks and uncertainties related to the Company’s ability to advance its product candidates, the receipt and timing of potential regulatory designations, approvals and commercialization of product candidates, the market size for the Company’s product candidates to be smaller than anticipated, clinical trial sites, supply chain and manufacturing facilities, the Company’s ability to obtain, maintain and recognize the benefits of certain designations received by product candidates, the timing and results of preclinical and clinical trials, the Company’s ability to fund development activities and achieve development goals, the Company’s ability to protect intellectual property, the Company’s commercial collaborations with third parties, the impact of health pandemics, tariffs, regional geopolitical conflicts, changes in interest rates, inflation, potential uncertainty with respect to the debt ceiling and government shutdowns, and other risks and uncertainties described under the heading “Risk Factors” in documents the Company files from time to time with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this press release, and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.
Investor Contact
Emily White
Sutro Biopharma
(650) 823-7681
ewhite@sutrobio.com
Media Contact
Amy Bonanno
Lyra Strategic Advisory
abonanno@lyraadvisory.com
| Sutro Biopharma, Inc. Selected Statements of Operations Financial Data (Unaudited) (In thousands, except share and per share amounts) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenues | $ | 14,523 | $ | 17,399 | ||||
| Operating expenses | ||||||||
| Research and development | 36,553 | 51,597 | ||||||
| General and administrative | 7,584 | 13,273 | ||||||
| Restructuring and related costs | 42 | 21,043 | ||||||
| Total operating expenses | 44,179 | 85,913 | ||||||
| Loss from operations | (29,656 | ) | (68,514 | ) | ||||
| Interest income | 1,635 | 3,189 | ||||||
| Non-cash interest expense related to the sale of future royalties | (9,467 | ) | (9,344 | ) | ||||
| Interest and other income (expense), net | (1,011 | ) | (1,292 | ) | ||||
| Loss before provision for income taxes | (38,499 | ) | (75,961 | ) | ||||
| (Benefit) from / provision for income taxes | (15 | ) | 7 | |||||
| Net loss | $ | (38,484 | ) | $ | (75,968 | ) | ||
| Net loss per share, basic and diluted | $ | (2.94 | ) | $ | (9.08 | ) | ||
| Weighted-average shares used in computing basic and diluted loss per share | 13,082,355 | 8,364,294 | ||||||
| Sutro Biopharma, Inc. Selected Balance Sheets Financial Data (Unaudited) (In thousands) | ||||||||
| March 31, | December 31, | |||||||
| 2026 (1) | 2025 (2) | |||||||
| Assets | ||||||||
| Cash, cash equivalents and marketable securities | $ | 202,558 | $ | 141,428 | ||||
| Accounts receivable | 12,484 | 3,977 | ||||||
| Property and equipment, net | 9,363 | 10,648 | ||||||
| Operating lease right-of-use assets | 9,707 | 10,903 | ||||||
| Other assets | 7,876 | 6,874 | ||||||
| Total Assets | $ | 241,988 | $ | 173,830 | ||||
| Liabilities and Stockholders’ Deficit | ||||||||
| Accounts payable, accrued expenses and other liabilities | $ | 55,506 | $ | 58,482 | ||||
| Deferred revenue | 10,632 | 12,590 | ||||||
| Operating lease liability | 13,632 | 15,674 | ||||||
| Deferred royalty obligation related to the sale of future royalties | 229,105 | 219,536 | ||||||
| Total liabilities | 308,875 | 306,282 | ||||||
| Total stockholders’ deficit | (66,887 | ) | (132,452 | ) | ||||
| Total Liabilities and Stockholders’ Deficit | $ | 241,988 | $ | 173,830 | ||||
(1) The condensed balance sheet as of March 31, 2026 was derived from the unaudited financial statements included in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed with the Securities and Exchange Commission on May 14, 2026.
(2) The condensed balance sheet as of December 31, 2025 was derived from the audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on March 23, 2026.
