Arbutus Biopharma — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the quarter ended September 30, 2026, was $0.3 million, a decrease from $0.5 million in the same period of 2025, primarily due to lower license royalty revenues from Alnylam's ONPATTRO sales.
• Net income for the quarter was $59.1 million ($0.30 per basic and diluted share), compared to a net loss of $7.7 million ($0.04 per share) in the prior year period.
• Cash, cash equivalents, and marketable securities totaled $337.5 million as of September 30, 2026, an increase from $91.5 million as of December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $225.7 million, compared to a net cash used of $34.9 million in the same period of 2025.
• Research and development expenses were $2.6 million for the quarter, down from $5.8 million in the prior year period, driven by workforce reductions, discontinued in-house research, and lower clinical trial costs.
• General and administrative expenses were $8.0 million for the quarter, up from $3.0 million in the prior year period, primarily due to one-time executive cash bonuses related to the Moderna settlement.
• The Company received a $67.3 million cash dividend from Genevant in September 2026 and $178.4 million in July 2026 as its share of the noncontingent Moderna settlement payment.

Guidance and Future Outlook:

• Management expressed confidence in continuing momentum in Q4 and beyond following the successful lift of the FDA clinical hold on AB-101.
• The Company is evaluating next steps for the continued clinical development of AB-101 in the United States following the FDA's decision to lift the clinical hold on the IND application.
• The Moderna §1498 Appeal oral argument was held on November 5, 2026, with a decision forthcoming; a contingent payment of up to $1.3 billion is pending an appellate ruling.

Business Segments and Product Lines:

• AB-101: The FDA lifted the clinical hold on the Investigational New Drug application for this oral PD-L1 inhibitor, allowing for additional clinical development in the U.S. following a successful Phase 1 trial abroad.
• Imdusiran (AB-729): Phase 2a clinical trial data showed eight patients with chronic hepatitis B achieved functional cure following treatment with imdusiran and nucleos(t)ide analogue therapy; five of these patients sustained functional cure for over two years.
• LNP Technology: Arbutus and licensee Genevant filed new lawsuits in Japan and amended a Canadian lawsuit to enforce patents against Pfizer and BioNTech regarding their mRNA-LNP COVID-19 vaccines.
• Moderna Settlement: Arbutus received $178.4 million in July 2026 as its share of the $950 million noncontingent settlement payment, which included reimbursement for litigation costs.

Market and Competitive Landscape:

• The Company is actively enforcing its lipid nanoparticle (LNP) intellectual property rights globally, having filed lawsuits in 21 countries in July 2026 against Pfizer/BioNTech.
• Testing results submitted in Japan confirm that commercial Pfizer/BioNTech product samples contain LNPs falling under the scope of Arbutus' lipid composition patents.

Risks and Challenges:

• Ongoing patent litigation matters, including the Moderna §1498 Appeal, present uncertainties regarding the timing and outcome of legal proceedings.
• Clinical trials for product candidates may be more costly or take longer than anticipated, may not be initiated or completed, or may fail to generate results warranting future development.
• The Company may not receive necessary regulatory approvals for the clinical development of its product candidates.
• Economic and market conditions may worsen, or market shifts may require changes in strategic focus.
• Risks exist regarding the sufficiency of cash resources to cover foreseeable and unforeseeable operating expenses and capital expenditures.

Management Commentary and Tone:

• CEO Lindsay Androski described the quarter as "busy and productive," highlighting the finance team's success in returning capital to shareholders and the R&D team's achievement in lifting the FDA clinical hold.
• Management congratulated the teams for successfully returning a substantial portion of the Moderna settlement payment to shareholders and achieving the lift of the 2023 U.S. FDA clinical hold on AB-101.

Other Key Points:

• In early October 2026, the Company completed a modified "Dutch Auction" tender offer, returning $230 million of capital to shareholders by purchasing and cancelling 46 million common shares at $5.00 per share (approximately 23% of issued and outstanding shares).
• As of September 30, 2026, the Company had 199.3 million common shares issued and outstanding, along with 6.4 million stock options and unvested restricted stock units.
• The Company received $19.3 million in proceeds from the exercise of stock options during the nine months ended September 30, 2026.
• The balance sheet reflects an "Obligation to repurchase shares" of $230 million as of September 30, 2026, prior to the completion of the tender offer.