Citius Oncology, Inc. — Fiscal Third Quarter 2026 Earnings Summary

Financial Performance

• Revenue was $1.5 million for the three months ended June 30, 2026, compared to $0 in the prior-year quarter; $7.1 million for the nine months ended June 30, 2026, compared to $0 in the prior-year period.
• Gross profit was $1.0 million for the three months ended June 30, 2026, and $5.5 million for the nine months ended June 30, 2026.
• Research and development expenses were $0.2 million for the three months ended June 30, 2026 (down from $0.9 million in the prior-year quarter) and $2.3 million for the nine months ended June 30, 2026 (down from $5.3 million in the prior-year period).
• General and administrative expenses were $4.2 million for the three months ended June 30, 2026 (up from $1.9 million in the prior-year quarter); nine-month G&A was $30.7 million, which included a $19.7 million one-time CMO contract cancellation charge recognized in the second fiscal quarter.
• Net loss was $8.9 million, or $(0.08) per share, for the three months ended June 30, 2026, compared to $5.4 million, or $(0.08) per share, in the prior-year quarter; net loss was $41.1 million, or $(0.42) per share, for the nine months ended June 30, 2026, compared to $19.8 million, or $(0.28) per share, in the prior-year period.
• Cash and cash equivalents were $16.6 million as of June 30, 2026.
• Total liabilities were $71.7 million as of June 30, 2026, including $6.4 million in notes payable and $3.8 million in notes payable to a related party.
• Stockholders' equity was $40.4 million as of June 30, 2026, down from $44.9 million as of September 30, 2025.

Guidance and Future Outlook

• Management expects continued institutional demand to drive new wholesaler orders, noting that revenue is recognized when wholesaler orders are fulfilled.
• The Company targets formulary inclusion at 100 priority institutions by the end of fiscal 2026.
• Management expressed confidence in a robust remainder of the fiscal year based on the positive trajectory of formulary approvals, institutional adoption, and unit demand.
• The Company aims to broaden engagement with treatment centers and provide first-in-class support for health care providers.

Business Segments and Product Lines

• LYMPHIR (denileukin diftitox-cxdl) is the sole commercial product, launched in December 2025 for relapsed or refractory cutaneous T-cell lymphoma (CTCL).
• LYMPHIR has been ordered by 44 institutions since launch, including academic oncology centers, NCCN institutions, and community infusion centers.
• Institutional vial orders grew 31% sequentially from 708 vials in the quarter ended March 31, 2026, to 926 vials in the quarter ended June 30, 2026.
• July 2026 saw 383 institutional vials ordered, the largest order month to date, representing a 25% increase over the prior quarter's monthly average.
• The number of new ordering institutions increased by 80% in the quarter ended June 30, 2026, compared to the quarter ended March 31, 2026.
• The commercial organization expanded to 29 people, adding 21 field-based professionals and eight medical science liaisons via partner EVERSANA to achieve nationwide coverage.
• Near-universal payer coverage has been secured with no reported reimbursement denials or prior authorization barriers.
• Two investigator-initiated Phase 1 studies advanced: LYMPHIR with pembrolizumab in gynecologic cancers (20.5 months median progression-free survival in 48% of efficacy-evaluable patients; 24% overall objective response rate) and LYMPHIR prior to CAR-T therapy in DLBCL (86% objective response rate, 57% complete response).

Market and Competitive Landscape

• Management estimates the initial CTCL market for LYMPHIR exceeds $400 million, is growing, and is underserved by existing therapies.
• The Company holds robust intellectual property protections including orphan drug designation, complex technology, trade secrets, and pending patents for immuno-oncology combination therapies.
• The Company engaged U.S. and international CTCL key opinion leaders at the Sixth World Congress of Cutaneous Lymphomas in Montreal.

Risks and Challenges

• The Company requires substantial additional funds and must raise money to fund operations for at least the next 12 months as a going concern.
• Risks include the ability to successfully commercialize LYMPHIR, establish a sustainable revenue stream, and regain compliance with Nasdaq's continued listing standards.
• Challenges include physician and patient acceptance in a competitive landscape, obtaining a new bulk drug substance supplier, and reliance on third-party logistics providers and specialty pharmacies.
• The Company faces risks related to research and development results, procuring cGMP commercial-scale supply, and maintaining uninterrupted product supply.

Management Commentary and Tone

• Leonard Mazur, Chairman and CEO, stated that institutional demand is accelerating and the launch is moving in the right direction.
• Management highlighted the ability to generate initial momentum with a lean internal team while maintaining healthy product margins.
• The tone was confident regarding the underlying increasing demand trends providing a strong basis for the remainder of fiscal 2026.

Other Key Points

• The Company received approximately $9.7 million in net proceeds from the exercise of certain warrants.
• The Company funded $10.0 million under the first tranche of a senior secured term loan facility of up to $25.0 million.
• Jonathan Peri, Ph.D., J.D., was appointed as an independent director on August 10, 2026.
• Citius Pharmaceuticals, Inc. owns approximately 62% of Citius Oncology.
• A $19.7 million one-time charge was recognized in the second fiscal quarter for the cancellation of a CMO contract.
• The Company recognized a gain on the sale of New Jersey net operating losses of $1.76 million for the nine months ended June 30, 2026.