01—Abstract
Summary
Summary of the 10-Q filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Revolution Medicines, Inc. reported a net loss of $453.8 milliona for the three months ended March 31, 2026, compared with $213.4 million in the same period of 2025, as research and development expenses rose to $344.0 million from $205.7 million and general and administrative expenses rose to $101.3 million from $35.0 million.
The company is a late-stage clinical oncology company developing RAS(ON) inhibitors, and the filing notes stock-based compensation of $87.3 millionb for the quarter, including $44.6 million of incremental expense tied to a retirement-benefit modification of its equity program. As of March 31, 2026, cash, cash equivalents and marketable securities totaled $1.9 billion, the accumulated deficit was $3.3 billion, and the company had no borrowings under its term loan facility. Management states that existing resources will fund planned operations for at least 12 months.
Subsequent to quarter end, the company completed concurrent offerings on April 17, 2026, selling 12,147,887 common shares at $142.00c per share for gross proceeds of approximately $1,725.0 million and issuing $500.0 million of 0.50% convertible senior notes due 2033, with net proceeds of approximately $1,650.4 million and $486.8 million, respectively. In May 2026, the company received a $250.0 million Tranche 2 payment from Royalty Pharma under its royalty purchase agreement. The filing also reports topline April 2026 results from the Phase 3 RASolute 302 trial of daraxonrasib in second-line pancreatic cancer, showing a median overall survival of 13.2 months versus 6.7 months for chemotherapy (hazard ratio 0.40), and notes that Amgen terminated its collaboration after discontinuing AMG 193.
The quarter's results reflect rising spending on clinical programs, particularly daraxonrasib, zoldonrasib and planned Phase 3 trials, alongside higher non-cash charges. Investors should weigh the growing expense base and the company's reliance on external capital, including the royalty and loan facilities that carry revenue-linked obligations.
02—Key points
Key Highlights
- Net loss widened to $453.8 million ($2.29 per share) for Q1 2026 from $213.4 million ($1.13 per share) in Q1 2025, driven by R&D expenses of $344.0 million and G&A expenses of $101.3 million.
- Cash, cash equivalents and marketable securities were $1.9 billion at March 31, 2026, and the company raised $226.7 million net through its at-the-market program during the quarter.
- Stock-based compensation rose to $87.3 million, including $44.6 million of incremental expense from a retirement-benefit modification of equity awards.
- Subsequent to quarter end, the April 2026 offerings generated approximately $1,650.4 million net from common stock and $486.8 million net from $500.0 million of 0.50% convertible senior notes due 2033.
- RASolute 302 Phase 3 topline results showed median overall survival of 13.2 months for daraxonrasib versus 6.7 months for chemotherapy (hazard ratio 0.40, p<0.0001).
- Liability related to the sale of future royalties was $280.6 million at March 31, 2026, and the company received a $250.0 million Tranche 2 payment from Royalty Pharma in May 2026.
- Accumulated deficit reached $3.3 billion, and the company stated it expects to incur losses for at least the next several years.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 6, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| R&D Expenses | $343.97M$205.75M | +67.2% |
| Operating Expenses | $445.22M$240.76M | +84.9% |
| Operating Income | -$445.22M-$240.76M | −84.9% |
| Net Income | -$453.82M-$213.42M | −112.6% |
| EPS (Basic) | $-2.29$-1.13 | −102.7% |
| EPS (Diluted) | $-2.29$-1.13 | −102.7% |
| Shares Outstanding (Basic) | 198.10M188.15M | +5.3% |
| Shares Outstanding (Diluted) | 198.10M188.15M | +5.3% |
05—Questions
Frequently Asked Questions
How did the company's operating expenses change compared with the prior-year quarter?
Total operating expenses were $445.2 million for Q1 2026 versus $240.8 million in Q1 2025. R&D expenses increased $138.2 million, driven mainly by daraxonrasib and zoldonrasib clinical costs and higher stock-based and employee compensation. G&A expenses increased $66.2 million, primarily from stock-based compensation, headcount-related costs and commercial preparation expenses.
How much cash does the company have, and how long will it last?
The company had $1.9 billion in cash, cash equivalents and marketable securities as of March 31, 2026, and cash used in operating activities was $354.2 million for the quarter. Management believes existing resources will fund planned operations for at least 12 months after the filing date. The April 2026 offerings added approximately $2.1 billion of aggregate net proceeds after quarter end.
What new debt and royalty obligations does the company have?
The company issued $500.0 million of 0.50% convertible senior notes due May 1, 2033 in April 2026, with an initial conversion price of approximately $198.80 per share. Under the June 2025 Royalty Purchase Agreement with Royalty Pharma, the company received $250.0 million upfront and a further $250.0 million in May 2026, with royalty payments tied to net sales. The term loan facility of up to $750.0 million had no amounts drawn as of March 31, 2026.
What clinical developments were reported in the filing?
The company reported topline results from the Phase 3 RASolute 302 trial in April 2026, in which daraxonrasib met its progression-free survival and overall survival endpoints, and it plans to present detailed results at the 2026 ASCO Annual Meeting. The company expects to initiate RASolute 309 in the second half of 2026 and RASolve 308 in the first half of 2026. Amgen terminated its collaboration in April 2026 after discontinuing AMG 193.
06—Continue