Relay Therapeutics Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.73%.
Did RLAY Beat Earnings? Q1 2026 Results
Relay Therapeutics delivered a disappointing first quarter for fiscal 2026, missing on both the top and bottom lines as revenue collapsed 60.9% year-over-year to $3.00 million, falling well short of the $4.65 million consensus by 35.48%, while its loss per share of $0.41 widened beyond the expected $0.36 loss by 15.01%. The sharp revenue decline traced primarily to reduced contributions from the Elevar Therapeutics license agreement, which had generated a much larger payment in the year-ago period. Offsetting some of the gloom, the net loss narrowed modestly to $73.29 million from $77.06 million a year ago as G&A expenses dropped significantly and R&D costs edged lower despite rising Phase 3 ReDiscover-2 trial spending. The FDA's Breakthrough Therapy designation for zovegalisib in PIK3CA-mutant breast cancer and encouraging Phase 2 data showing a 60% volumetric response rate in vascular anomalies lent clinical credibility to the pipeline. Management guided that its $642 million cash position, supplemented by additional ATM proceeds, should fund operations into 2029, with a Phase 3 first-line breast cancer trial targeted for early 2027.
- Revenue decline driven by lower recognition under the Elevar Therapeutics license agreement
- R&D expense reduction from prior strategic streamlining of research organization, partially offset by ReDiscover-2 trial costs
- G&A expense reduction from lower employee compensation costs and absence of prior-year Elevar agreement costs
- Interest income of $5.4 million partially offset operating losses
“We have made important progress so far in 2026, highlighted by promising data supporting further development for the zovegalisib plus atirmociclib triplet combination in frontline breast cancer.”
Relay Therapeutics CEO, on the earnings call
Forward Guidance & Outlook
Relay Therapeutics expects to initiate a Phase 3 first-line trial in endocrine-sensitive patients with metastatic breast cancer in early 2027, subject to regulatory feedback. Initial clinical data for zovegalisib in vascular anomalies is expected at the ISSVA World Congress in May 2026. The company expects its current cash, cash equivalents, and investments of approximately $642 million (plus an additional $22.1 million received in April ATM offerings) to be sufficient to fund operating expenses and capital expenditure requirements into 2029.
RLAY YoY Financials
Figures from SEC filings and company reports. Not investment advice.