Aethlon Medical Inc (AEMD) Q1 2026 Earnings Report

Revenue and profitability
- Revenue: null (not disclosed in the provided dataset)
- Net income: -$1,761,858,000 for the quarter ended 2025-06-30 based on the income data; EPS: -$0.85
- YoY net income change (per dataset): -68,428.12%; QoQ net income change: -28,067.68%; EPS YoY: -150%; EPS QoQ: +78.80%

Cost structure and operating efficiency
- Operating expenses: $1,792,390,000 for the quarter (data appears inconsistent with accompanying call commentary that described a step-down to about $1.8 million in some lines; the call notes reference a substantial cost reduction versus a year-ago quarter). General and administrative expenses: $1,211,390,000; other expenses: $581,000,000.
- The reported figures imply a material operating loss, with income before tax and net income both negative (–$1.7619 billion).

Cash flow and liquidity
- Net cash used in operating activities: –$1,714,937,000.
- Free cash flow: –$1,714,937,000.
- Cash at end of period (balance sheet data): $3,765,154,000; cash at beginning of period: $5,599,074,000; net change in cash: –$1,735,790,000.
- Management commentary in the call suggested a cash balance of about $3.8 million, creating a material inconsistency with the balance sheet figures; cross-check with Form 10-Q needed.

Balance sheet and leverage
- Total assets: $5,306,002,000; total liabilities: $1,882,489,000; total stockholders’ equity: $3,423,513,000.
- Cash and cash equivalents: $3,765,154,000; long-term debt: $255,052,000; total debt: $573,852,000; net debt: –$3,191,302,000 (net cash).
- Retained earnings: –$169,716,675,000; other comprehensive income (loss): –$22,377,000; other equity line items show a large positive offset in “other stockholders’ equity” (as shown: $173,159,966,000).

Operational progression indicators
- The Australian oncology trial progressed to a second cohort after a DSMB recommendation, with sites actively screening under an amended protocol allowing combination therapies (pembrolizumab or nivolumab).
- Data readouts from Grau lab on extracellular vesicles (EVs) and antitumor T-cell function are anticipated in September 2025, aiming to inform later efficacy and safety dosing decisions and PMA/efficacy trial design.

Notes on data quality
- There are explicit inconsistencies between the call narrative (operating expenses around $1.8 million and a major cost-cutting narrative) and the income statement entries showing operating expenses in the billions. This discrepancy necessitates verification against the Form 10-Q filed after the call to ensure reliability of the investment thesis.

Key management insights and actions from the QQ1 2026 earnings call:
- Strategy and execution: “In the first quarter, we advanced our lead oncology indication clinical program, delivered preclinical results supporting broader applications including long COVID, all while significantly reducing operating expenses.” (James B. Frakes)
- Strategic prioritization: “Although we received formal CDSCO approval to initiate a similar oncology trial in India, discussions with our India-based CRO indicated first patient treatment would slip to early 2026. Given this extended time line and our broader strategic priorities, we decided not to proceed with the India study.” (Jim Frakes)
- Regulatory and operational progress in Australia: “Based on our current progress in Australia, we could complete treatments by late 2025 or early 2026, analyze data and be in a position to apply for a PMA or efficacy trial in Australia and engage strategic partners.” (James B. Frakes, echoed by Steven P. LaRosa)
- Safety and dose-finding progress: “We passed the first cohort… the independent DSMB recommended advancing to our second treatment cohort where patients will receive 2 Hemopurifier treatments during a 1-week period.” (Steven P. LaRosa)
- Enrollment acceleration efforts: “We are actively recruiting plans for 2 additional sites… looking at clinical trial liaisons and social media campaigns to speed enrollment.” (Steven P. LaRosa)
- Data readouts and near-term milestones: “We would expect to be able to make some observations of this data sometime in September 2025.” (Steven P. LaRosa)
- Long COVID and EV research: “The data demonstrated that both large and small extracellular vesicles from long COVID patients bound to the GNA lectin and lectin affinity resin in our device.” (Steven P. LaRosa)
- Cash and burn context: “As of June 30, 2025, we had a cash balance of approximately $3.8 million.” (James B. Frakes) [note: this conflicts with balance-sheet cash; see data quality note above]
- Outlook and capital strategy: “like every development-stage life science company that doesn't have its products approved for sale yet, we will need to continue to raise money, ideally with strategic partners rather than purely financial investors.” (James B. Frakes)

The QQ1 2026 profile for Aethlon Medical remains highly conditional and high-risk. The near-term catalysts hinge on three levers: (1) confirmation of safety and progression through cohort 2 in Australia, (2) the Grau lab readouts on EV dynamics and T-cell function (expected September 2025), and (3) the decision timeline for a PMA/efficacy pathway in Australia. Management’s emphasis on prioritizing Australia over India, leveraging a substantial Australian tax incentive, and pursuing strategic partnerships aligns with a path to regulatory validation rather than immediate commercial sales. However, the company’s financial trajectory—per the provided data—shows a substantial net loss and significant cash burn, with inconsistent cash balance disclosures that require clarification from the 10-Q. For risk-tolerant investors, the key upside hinges on translating strong preclinical EV-removal signals into meaningful clinical efficacy signals and obtaining timely PMA/efficacy trials in Australia. The potential for long COVID EV-targeted initiatives could add optionality. Conversely, the primary downside risk is the failure to demonstrate clinically meaningful benefit or regulatory approval, which would constrain future funding options and strategic partnerships. Given the current data landscape, a rigorous evaluation of the upcoming September readouts and regulatory milestones is essential before favoring a positive multi-quarter outlook. Near-term execution risk remains high, and the funding trajectory will likely determine whether the Hemopurifier can reach a scalable commercial phase.