Armata Pharmaceuticals — Third Quarter 2026 Earnings Summary

Financial Performance:

• Recognized grant and award revenue of $3.2 million for the three months ended September 30, 2026, compared to $1.2 million in the same period in 2025.
• Research and development expenses were approximately $6.8 million for the quarter, up from approximately $5.8 million in the comparable 2025 period.
• General and administrative expenses were approximately $3.7 million for the quarter, compared to approximately $3.1 million in the comparable 2025 period.
• Reported a loss from operations of approximately $7.4 million for the quarter, improving from a loss of approximately $7.8 million in the comparable 2025 period.
• Other income, net, was approximately $62.2 million for the quarter, compared to other expense, net, of approximately $18.9 million in the comparable 2025 period.
• Net income for the third quarter of 2026 was $54.9 million, or $1.15 per share on a basic basis, compared to a net loss of $26.7 million, or $0.74 per share on a basic and diluted basis, in the comparable 2025 period.
• Net income for the quarter was primarily driven by a $69.6 million gain from the change in fair value of the convertible loan, compared to a $14.6 million loss in the prior year period.
• Held approximately $18.3 million in unrestricted cash and cash equivalents as of September 30, 2026, an increase from $8.7 million as of December 31, 2025.
• As of September 30, 2026, total current liabilities were $186.8 million, including $94.3 million in current convertible loan and $83.9 million in current term debt, compared to $8.9 million in total current liabilities as of December 31, 2025.

Guidance and Future Outlook:

• The pivotal Phase 3 superiority study for AP-SA02 is expected to initiate in the second half of 2026, with exact timing dependent on FDA concurrence with the protocol.
• The Phase 3 study is designed to support a future Biologics License Application (BLA) for AP-SA02.

Business Segments and Product Lines:

• Completed four engineering runs of AP-SA02 at the in-house cGMP manufacturing facility in Los Angeles, California.
• Production of clinical trial material for the Phase 3 study is underway, with one cGMP production run and vialing of the drug product completed in the third quarter of 2026.
• Advanced the qualification and validation of quality control release assays and completed validation of critical utilities.
• Executed contracts with clinical research organizations to support study management and continued negotiating clinical trial agreements with an initial group of U.S. clinical trial sites.
• Submitted responses to all Clinical, Chemistry, Manufacturing, and Controls (CMC), and Regulatory comments in the FDA's End-of-Phase 2 meeting written response.
• Continued discussions with the FDA to finalize the study design and submitted protocol revisions in response to FDA feedback.
• Presented new AP-SA02 data at the 20th International Symposium on Staphylococci and Staphylococcal Infections (ISSSI), suggesting controlled genetic diversity may enhance killing of certain S. aureus clinical isolates.
• Published a peer-reviewed article titled "Insights into Genome Ejection by a Therapeutic phiKMV-like Bacteriophage" in the Journal of Molecular Biology.

Market and Competitive Landscape:

• AP-SA02 has received FDA Breakthrough Therapy, Fast Track, and Qualified Infectious Disease Product (QIDP) designations for the adjunct treatment of complicated bacteremia caused by MSSA or MRSA.
• The FDA granted an Initial Pediatric Study Plan (Agreed iPSP) for future pediatric evaluation of AP-SA02, with pediatric studies deferred pending safety and efficacy data from the adult Phase 3 program.
• AP-SA02 is being developed as a fixed multi-phage cocktail for the adjunct treatment of complicated Staphylococcus aureus bacteremia.

Risks and Challenges:

• Actual results may differ from forward-looking statements due to risks related to the development of bacteriophage-based therapies, ability to staff and maintain production facilities under cGMP, ability to meet anticipated milestones, and the ability to successfully complete preclinical and clinical development.
• Risks include the ability to obtain regulatory approval of product candidates, commercialize approved products on expected timeframes, and estimates regarding anticipated operating losses and capital requirements.
• The company faces risks related to the need for additional funds and the uncertainty of clinical trial success.

Management Commentary and Tone:

• CEO Dr. Deborah Birx stated the company is advancing toward the near-term objective of initiating the Phase 3 superiority study of AP-SA02, noting that operational infrastructure is established and critical preparations are progressing.
• Management emphasized maintaining fiscal discipline while preparing for the next stage of development.
• Dr. Birx expressed confidence that the FDA's Breakthrough Therapy designation underscores AP-SA02's clinical potential and highlighted the importance of continued financial support from the U.S. Department of War (DoW).
• Management indicated excitement about the opportunity to expand the bacteriophage technology into additional indications.

Other Key Points:

• Received $3.7 million in additional non-dilutive funding from the U.S. Department of War (DoW), bringing cumulative non-dilutive DoW funding under the award to approximately $32.4 million.
• Announced the issuance of two U.S. patents: Patent No. 12,751,983 (issued October 6, 2026) protecting methods of treating S. aureus infections with AP-SA02 until at least February 2041, and Patent No. 12,594,312 (issued April 7, 2026) protecting methods of treating Pseudomonas infections with AP-PA02 until January 2043.
• As of November 6, 2026, 37,192,632 common shares were outstanding.
• The company participated in the H.C. Wainwright 28th Annual Global Investment Conference.
• The diSArm study (NCT05184764) was a Phase 1b/2a study of AP-SA02, with positive results highlighted in a late-breaking oral presentation at IDWeek 2025.