EPS of $-1.31 decreased by 95.5% from previous year
Net income of -2.89M
"No earnings call transcript data provided." - N/A
GRI Bio Inc (GRI) QQ1 2026 Results: Cash Runway, R&D Burn, and Early Pipeline Catalysts in Healthcare/Biotechnology
Executive Summary
GRI Bio Inc (GRI) reported for QQ1 2026 with no revenue disclosed and a consolidated operating burn of approximately $2.897 million, yielding an EBITDA of about -$2.896 million and a net loss of -$2.892 million. The quarter benefited from a financing inflow of roughly $5.007 million, which more than offset the cash burn and led to a net increase in cash of $1.841 million, ending the period with about $5.122 million in cash and cash equivalents. The results underscore the company’s status as a clinical-stage biotechnology firm: ongoing R&D intensity, negative earnings, and limited near-term revenue opportunities. Importantly, balance sheet liquidity is supported by the financing activity in the quarter, but the business remains reliant on continued equity raises or external financing to sustain operations absent meaningful near-term product revenues.
Strategically, GRI continues to pursue its pipeline across multiple programs. GRI0621 is in Phase II for idiopathic pulmonary fibrosis (IPF), and GRI0803 is in a Phase I trial for systemic lupus erythematosus (SLE). GRI0124 is in preclinical development for primary sclerosing cholangitis, with additional preclinical programs GRI0729 and ADAIR/ADMIR in earlier stages. While these programs offer potential upside, there are no revenue milestones or assured cash flows in the near term. The company’s liquidity profile appears fragile in a fast-evolving biotechnology landscape without substantial product sales, necessitating further fundraising or strategic partnerships to extend runway beyond the current quarter. Investors should monitor pipeline advancement milestones, data readouts, and any additional financing activities that could influence share count and dilution.
Key Performance Indicators
Operating Income
-2.90M
QoQ: -48.26% | YoY:-36.01%
Net Income
-2.89M
QoQ: -48.46% | YoY:-36.22%
EPS
-1.31
QoQ: -227.50% | YoY:-95.52%
Revenue Trend
Margin Analysis
Key Insights
Revenue: not reported/no revenue identified in the quarter
Cost of revenue: $1,000 thousand
Gross profit: -$1,000 thousand; gross margin not disclosed
R&D expenses: $1,879 thousand
General and Administrative expenses: $1,018 thousand
Financial Highlights
Financial highlights (QQ1 2026):
- Revenue: not reported/no revenue identified in the quarter
- Cost of revenue: $1,000 thousand
- Gross profit: -$1,000 thousand; gross margin not disclosed
- R&D expenses: $1,879 thousand
- General and Administrative expenses: $1,018 thousand
- Operating expenses: $2,897 thousand
- EBITDA: -$2,896 thousand
- Operating income: -$2,897 thousand
- Total other income/expenses: $5 thousand
- Income before tax: -$2,892 thousand
- Net income: -$2,892 thousand
- Earnings per share (diluted): -$1.31
- Weighted average shares outstanding: 2,205,139
Cash flow and liquidity:
- Net cash from operating activities: -$3,166 thousand
- Stock-based compensation included in cash flow: $41 thousand
- Change in working capital: -$328 thousand; accounts payable: $40 thousand; other working capital: -$368 thousand
- Net cash provided by (used in) financing activities: $5,007 thousand
- Common stock issued: $5,941 thousand
- Net change in cash: $1,841 thousand
- Cash at end of period: $5,122 thousand; cash at beginning: $3,281 thousand
Balance sheet snapshot:
- Total assets: $5,675 thousand; cash and cash equivalents: $5,122 thousand
- Total current assets: $5,576 thousand; total current liabilities: $2,309 thousand; current ratio approx. 2.41x
- Total liabilities: $2,353 thousand; long-term debt: $44 thousand; total debt: $96 thousand
- Total stockholders’ equity: $3,322 thousand; retained earnings: -$45,678 thousand; accumulated other comprehensive income/loss: -$76 thousand; other stockholders’ equity: $49,000 thousand (note: reflects reporting line items in the data)
- Net debt: -$5,026 thousand (net cash position)
Income Statement
Metric
Value
YoY Change
QoQ Change
Gross Profit
-1.00K
N/A
-100.04%
Operating Income
-2.90M
-36.01%
-48.26%
Net Income
-2.89M
-36.22%
-48.46%
EPS
-1.31
-95.52%
-227.50%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Earnings call transcript data were not provided in the materials available for this analysis. Consequently, there are no management quotes or thematic highlights to insert here. If transcript access becomes available, this section would summarize management commentary by theme (strategy, ops, market conditions), with context and implications for investors.
No earnings call transcript data provided.
— N/A
No earnings call transcript data provided.
— N/A
Forward Guidance
Management did not publish explicit numeric guidance for QQ2 2026 or beyond in the provided materials. The near-term drivers highlighted by the pipeline trajectory are: (1) GRI0621 Phase II in IPF, (2) GRI0803 Phase I in SLE, and (3) GRI0124 preclinical for PSC, along with other preclinical candidates. Our qualitative assessment indicates that readouts or data disclosures (e.g., interim IPF or SLE trial results, safety signals, biomarker progress) would materially influence sentiment and financing needs. Feasibility of achieving near-term milestones depends on patient enrollment rates, regulatory interactions, and potential partnerships. Given the current cash burn and dependence on equity financing, the achievability of further runway hinges on timely data, potential collaborations, or licensing agreements that can bring in non-dilutive or dilutive capital while de-risking the pipeline.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
BDRX
0.00%
0.00%
0.00%
0.00%
CLNN
75.30%
-50.32%
15.10%
-9.05%
FHTX
1.00%
-3.85%
30.50%
-3.04%
HOWL
0.00%
0.00%
-31.60%
-60.20%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
GRI Bio remains a high-risk, high-reward dialysis into the biotech sector. The QQ1 2026 results underscore the company’s clinical-stage profile: meaningful R&D investment with no revenue, wrapped in a tight liquidity runway that currently hinges on ongoing financing activities. The near-term investment thesis relies on pipeline milestones rather than near-term commercial potential. If GRI0621 and GRI0803 deliver early readouts that support biological plausibility or signal potential efficacy, the company could attract partnering discussions or licensing deals to extend runway and de-risk the program. However, absent data breakthroughs or transformative partnerships, the stock remains highly sensitive to financing conditions and clinical outcomes. Investors should weigh the potential upside of successful IPF/SLE data with the notable risk of further dilution and delayed value realization.
Key Investment Factors
Growth Potential
High-entitlement upside exists if the IPF and SLE programs demonstrate clinically meaningful efficacy and safety signals, potentially enabling co-development deals or licensing. Pipeline diversification into PSC and other preclinical programs could broaden long-term value but remains highly uncertain given early-stage readouts.
Profitability Risk
Clinical development risk remains dominant; no revenue visibility in QQ1 2026; reliance on ongoing financing raises dilution risk; regulatory risk and competitive dynamics in IPF and autoimmune spaces; long timelines to data readouts increase uncertainty.
Financial Position
Liquidity is currently supported by a $5.0 million financing inflow in the quarter, yielding ending cash of $5.12 million. With quarterly operating cash burn around $3.17 million, the near-term liquidity runway is contingent on additional financing or partnerships. Retained earnings are deeply negative, indicating accumulated losses, which elevates equity-dilution risk for current shareholders. The company’s modest debt load and net cash position mitigate interest burden but do not obviate the need for sustained capital markets access.
SWOT Analysis
Strengths
Healthy liquidity on paper at QQ1 2026 end due to financing activity, with cash and equivalents of approximately $5.1 million.
Low current liabilities relative to current assets, suggesting reasonable near-term liquidity headroom (current ratio ~2.4x).
Diversified pipeline across IPF (GRI0621 Phase II) and SLE (GRI0803 Phase I), plus several preclinical programs (GRI0124, GRI0729) that could unlock future value.
Weaknesses
No reported revenue and ongoing net losses (net income -$2.892 million; EPS -$1.31 for QQ1 2026).
High quarterly operating burn driven by R&D and G&A expenses (R&D $1.879 million; G&A $1.018 million).
Reliance on equity financing to sustain operations, implying dilution risk and potential volatility in share count.
Opportunities
Potential strategic partnerships or licensing deals to advance IP assets and secure non-dilutive or low-dilutive funding.
Clinical readouts from IPF and SLE programs could catalyze valuations and collaboration opportunities.
Pipeline expansion (PSC and other indications) may create multiple future upside catalysts.
Threats
Clinical trial risk and potential for negative or non-accelerating data affecting funding and valuation.
Market competition in IPF and autoimmune diseases with larger, better-funded players.
Continued dependence on capital markets for runway increases dilution risk and raises the cost of capital.