Avalo Therapeutics (AVTX) Financials

Avalo Therapeutics’ latest quarter shows a much stronger cash position than a year ago, but the business remains heavily loss-making and dependent on balance-sheet liquidity. In Q1 2026, the company reported no revenue, a net loss of $19.6 million, and negative operating cash flow of $17.7 million. At the same time, Avalo ended the quarter with $82.1 million in cash, restricted cash, and short-term investments, which gives it a sizable near-term cushion.

The biggest positive trend is liquidity improvement. Cash and equivalents plus short-term investments rose to $82.0 million at March 31, 2026, compared with $67.2 million at year-end 2025 and $27.5 million a year earlier in Q1 2025. That suggests the company has rebuilt its balance sheet significantly over the past 12 months.

• Cash and short-term investments increased sequentially to $82.0 million in Q1 2026 from $67.2 million in Q4 2025.
• Net cash rose by $9.2 million in the quarter, helped by $25.5 million from investing activities and $1.4 million from financing activities.
• Balance sheet leverage remains low with total liabilities of $31.6 million versus total equity of $68.3 million.
• Interest and other income helped offset losses, contributing $1.3 million of other income in Q1 2026.
• Operating expenses were lower than in some prior periods, with SG&A at $6.9 million and R&D at $14.0 million.
• The company still has no product revenue, so the business remains in a development-stage profile.
• Non-cash items played a meaningful role in cash flow, including $3.1 million in non-cash adjustments during Q1 2026.
• Short-term investments were a major source of liquidity, with $25.5 million of net cash provided by investing activities coming from sales and maturities of investments.
• Operating cash burn remains high, with $17.7 million used in operations in Q1 2026.
• Losses are still substantial, as the company posted a $19.6 million net loss, or $(0.98) per share, in Q1 2026.

Year over year, the income statement shows a tougher operating picture. In Q1 2025, Avalo had a $13.1 million net loss and $14.7 million of operating expenses. In Q1 2026, expenses climbed to $20.9 million and the net loss widened to $19.6 million. That points to a higher cost base despite the absence of meaningful revenue.

Cash flow also shows that Avalo has relied on financing and investment activity to support operations. In earlier periods, the company has repeatedly burned cash from operations, including negative operating cash flow in Q1 2025, Q2 2025, Q3 2025, Q4 2025, and Q1 2026. Financing inflows were inconsistent, and the recent quarter’s positive cash change was driven more by selling investments than by core business performance.

The balance sheet has improved dramatically from the more stressed position seen in 2024. Avalo’s total common equity was $68.3 million in Q1 2026, compared with a negative $112.5 million in Q1 2024 and negative $13.6 million in Q2 2024. That is a major recovery, but investors should note that equity has also swung materially over time, reflecting the company’s history of dilution and financing activity.

Bottom line: Avalo Therapeutics enters 2026 with a healthier cash cushion than it had a year ago, which reduces near-term balance-sheet risk. However, the company is still burning cash, generating no revenue, and posting large losses. For retail investors, that means the story remains highly dependent on clinical progress and future financing discipline.