Lineage Cell Therapeutics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for the three months ended September 30, 2026, were approximately $1.5 million, a net decrease of $2.2 million compared to $3.7 million in the same period in 2025.
• Collaboration revenues were $1.3 million for the quarter, down from $3.5 million in Q3 2025, driven by lower recognition from the Roche Agreement and fewer services provided under the William Demant Invest agreement.
• Total operating expenses for the three months ended September 30, 2026, were approximately $8.8 million, an increase of $1.3 million compared to $7.5 million in the same period in 2025.
• Research and development expenses were $3.8 million for the quarter, up $0.5 million from $3.3 million in Q3 2025, driven by preclinical programs and the ReSonance program.
• General and administrative expenses were $4.9 million for the quarter, up $0.7 million from $4.2 million in Q3 2025, primarily due to personnel costs and stock-based compensation.
• Loss from operations was $7.3 million for the quarter, an increase of $3.5 million compared to $3.8 million in Q3 2025.
• Other income was $12.0 million for the quarter, compared to an expense of $26.0 million in Q3 2025, primarily due to a fair value non-cash remeasurement of warrant liabilities driven by a decrease in share price.
• Net income attributable to Lineage was $4.2 million ($0.02 basic EPS) for the quarter, compared to a net loss of $29.8 million ($0.13 basic EPS) in Q3 2025.
• Cash, cash equivalents, and marketable securities totaled $45.2 million as of September 30, 2026.
• Deferred revenues decreased from $15.7 million (current and non-current combined) as of December 31, 2025, to $13.76 million as of September 30, 2026.
• Warrant liabilities decreased from $43.9 million as of December 31, 2025, to $12.8 million as of September 30, 2026.

Guidance and Future Outlook:

• Cash, cash equivalents, and marketable securities are expected to support planned operations into the second quarter of 2028.
• Initial preclinical data for the COR1 corneal endothelial disease program is expected in the first quarter of 2027.
• A meeting with the Danish Medicines Agency is scheduled for the fourth quarter of 2026 to discuss development plans for the ReSonance program.
• Lineage intends to migrate the HUNT1 process to its AlloSCOPE manufacturing platform to support late-stage registrational trials in parallel with ongoing clinical development.

Business Segments and Product Lines:

• OpRegen (RG6501): Genentech's Phase 2a GAlette study is active at 17 sites in the U.S. and Israel; 3-year results from the Phase 1/2a study showed sustained gains in visual acuity and retinal structure improvement.
• HUNT1: Lineage acquired NeuroAirmid Therapeutics, Inc. and its clinical-stage neural cell therapy program for Huntington's Disease, which is currently enrolling in a Phase 1b/2a REGEN4HD clinical trial at the University of California, Irvine.
• COR1: The program advanced into preclinical testing utilizing the AlloSCOPE 5D technology; initial data is expected in Q1 2027.
• ReSonance (ANP1): Collaboration with William Demant Invest advanced into the second year of the three-year plan; cGMP material manufacturing and technology transfer were completed.
• OPC1: The DOSED clinical study is enrolling participants for spinal cord injury, evaluating a novel delivery device; no significant adverse events have been reported to date.
• ILT1: The program met internal milestones demonstrating the scalability of AlloSCOPE 5D technology from 100ml to 3-liter scale and successful differentiation of pluripotent stem cells into islet cell precursors.
• Intellectual Property: The USPTO issued U.S. Patent No. 12,692,476 covering the AlloSCOPE "5D" technology, with an expiration date of June 9, 2043.

Market and Competitive Landscape:

• The AlloSCOPE 5D technology is positioned to address industry challenges regarding commercially-scalable and consistent manufacturing of pluripotent cell-derived therapies.
• Genentech plans to evaluate proprietary surgical delivery devices in the GAlette study, which may offer advantages over currently available devices for subretinal delivery.
• The company is building a diversified portfolio of allogeneic cell transplant programs to create sustainable long-term value.

Risks and Challenges:

• The ongoing 2026 Iran War and broader Israeli regional conflict may materially and adversely impact clinical activities at Israel trial sites participating in the GAlette study and/or manufacturing processes conducted by the company's subsidiary in Jerusalem.
• Development activities, preclinical activities, and clinical trials may not commence, progress, or be completed as expected.
• CIRM grant support for the REGEN4HD study may be delayed, conditioned, reduced, or unavailable.
• Genentech retains discretion over the advancement of the OpRegen program, and Lineage cannot control Genentech's decisions.
• The company may need to raise additional capital before the projected cash runway ends in Q2 2028.

Management Commentary and Tone:

• CEO Brian M. Culley stated the company is focused on using its platform to build a diversified portfolio of allogeneic cell transplant programs.
• Management highlighted the acquisition of NeuroAirmid as a disciplined approach to capital allocation that adds a third clinical-stage asset and leverages existing manufacturing expertise.
• The company expressed confidence in the AlloSCOPE 5D patent as a differentiated solution for scalable manufacturing.
• Management emphasized a strategy of prioritizing programs that can generate meaningful data in early clinical trials to optimize capital allocation.

Other Key Points:

• Lineage acquired NeuroAirmid Therapeutics, Inc., adding the HUNT1 asset to its pipeline.
• The REGEN4HD clinical trial for HUNT1 is supported in part by a CIRM grant, reducing out-of-pocket development costs.
• Lineage will assume responsibility for certain clinical development costs estimated at $3.1 million through February 2030, as well as all future cell manufacturing and process development for HUNT1.
• The company completed the manufacturing of the first batch of cGMP Grade material for the ReSonance program.
• The 2026 Iran War and regional conflict are explicitly noted as a risk to operations in Israel.