Rapport Therapeutics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net loss for the third quarter of 2026 was $40.2 million, compared to $26.9 million in the prior year period.
• Research and development (R&D) expenses were $34.3 million for the quarter, up from $22.3 million in the prior year period.
• Selling, general and administrative (SG&A) expenses were $9.8 million for the quarter, up from $7.7 million in the prior year period.
• Cash, cash equivalents, and short-term investments (excluding restricted cash) totaled $395.0 million as of September 30, 2026, down from $436.1 million as of June 30, 2026.
• Net cash used in operating activities for the three months ended September 30, 2026, was $41.6 million, compared to $17.5 million in the prior year period.
• Net cash provided by investing activities was $51.1 million for the quarter, compared to $56.8 million used in the prior year period.
• Net cash provided by financing activities was $1.7 million for the quarter, compared to $270.5 million provided in the prior year period.
• Net loss per share (basic and diluted) was $0.84 for the quarter, compared to $0.71 in the prior year period.

Guidance and Future Outlook:

• The Company expects cash, cash equivalents, and short-term investments as of September 30, 2026, combined with proceeds from recent financings, to fund operating expenses and capital requirements through the end of 2029.
• Two Phase 3 trials for RAP-219 in acute bipolar mania are expected to initiate in the second half of 2027.
• A Phase 3 trial for RAP-219 in primary generalized tonic-clonic seizures (PGTCS) is expected to begin in the first half of 2027.
• Initial data from the open-label long-term safety trial for RAP-219 in focal onset seizures (FOS) is expected in the fourth quarter of 2026.
• Phase 1 pharmacokinetic data for the long-acting injectable (LAI) formulation of RAP-219 is expected in the third quarter of 2027.
• Preliminary results for the Phase 1 trial of RAP-641 in chronic pain and migraine are expected in the second half of 2027.

Business Segments and Product Lines:

• RAP-219 in Focal Onset Seizures (FOS): The pivotal FOCUS 1 and FOCUS 2 Phase 3 trials are enrolling patients. Partner Tenacia initiated patient recruitment for the Phase 3 FOS program in China following NMPA approval of the IND application.
• RAP-219 in Bipolar Mania: A randomized, double-blind, placebo-controlled Phase 2 trial (N=253) met its primary endpoint with a statistically significant 3.1-point placebo-adjusted LS mean improvement in Young Mania Rating Scale (YMRS) total score at Week 3 (p=0.045). Secondary endpoints showed a statistically significant 0.4-point improvement in Clinical Global Impression-Bipolar Version Severity of Mania score (p=0.024). RAP-219-treated patients had a 15.4-point LS mean reduction in YMRS total score from baseline at Week 3 versus 12.3 points with placebo. All 11 YMRS items improved on RAP-219 compared to placebo. The drug was well tolerated with no serious adverse events; 3.2% of patients on RAP-219 discontinued due to treatment-emergent adverse events (TEAEs) versus 0.8% on placebo.
• RAP-219 in PGTCS: Preparations are ongoing to initiate a Phase 3 trial in the first half of 2027.
• RAP-641: The FDA cleared the IND application for this α6β4 nicotinic acetylcholine receptor agonist for chronic pain and migraine.
• Long-Acting Injectable (LAI): Development of an LAI formulation of RAP-219 continues.

Market and Competitive Landscape:

• RAP-219 has demonstrated proof-of-concept in two indications (epilepsy and bipolar mania), positioning the Company to serve patients in two multibillion-dollar markets.
• The Company's precision neuroscience platform targets TARPγ8, which is expressed in discrete brain regions (hippocampus and neocortex) with minimal expression in the hindbrain, aiming to provide a differentiated safety profile compared to traditional neuroscience medications.

Risks and Challenges:

• Forward-looking statements note risks related to clinical development activities, including the timing, progress, and results of ongoing and planned trials.
• Risks include the ability to obtain regulatory approvals on expected timelines, uncertainties in preclinical and clinical development, and dependence on third parties for trials, manufacturing, and commercialization.
• The Company faces risks related to its financial condition, the need for substantial additional funds, and the competitive landscape for its product candidates.
• Risks also include the ability to attract and retain key personnel and the maintenance of intellectual property protections.

Management Commentary and Tone:

• CEO Abraham N. Ceesay stated the Company is "delivering on our priorities with strong execution across the portfolio."
• Management described the positive Phase 2 results in bipolar mania as "transformational," accelerating the path to becoming an industry-leading precision neuroscience company.
• The CEO noted that RAP-219 now has clinical proof-of-concept in two indications, providing opportunities to serve multibillion-dollar markets, and expressed confidence in the "steady cadence of catalysts ahead."
• Management emphasized being "well funded" to deliver on upcoming catalysts following recent financing.

Other Key Points:

• In October 2026, the Company completed an underwritten public offering of common stock at $21.00 per share and pre-funded warrants at $20.999, alongside a 2.25% convertible senior notes offering due 2032 and a concurrent private placement, generating approximately $410.7 million in net proceeds.
• In November 2026, the Company sold approximately $10 million of common stock under its ATM Program at $25.05 per share.
• The Company reported an estimated $815.4 million in cash and cash equivalents as of November 3, 2026, calculated as the September 30 balance plus approximately $420.7 million from recent financings and ATM sales.
• The Company plans to meet with the FDA in the first quarter of 2027 to discuss Phase 2 bipolar mania data and registrational trial design.
• Tenacia, Rapport's partner in China, has initiated patient recruitment for the Phase 3 FOS program following NMPA approval.