Oncolytics Biotech (ONCY) Financials

Oncolytics Biotech (NASDAQ: ONCY) remains a development-stage biotech with no reported revenue and substantial operating cash burn. The available statements cover the first and second quarters of 2025 and 2026, with the 2025 figures identified as restated. The latest quarter shows increasing research spending, continued equity financing and a worsening balance-sheet deficit.

• Equity financing continued to provide liquidity. Oncolytics raised $6.8 million through common-stock issuance in Q2 2026, following $7.6 million in Q1 2026. This funding helped offset the company’s operating cash burn.
• Interest and investment income remained positive in Q1 and Q2 2026. The company generated $37,000 in Q2 and $44,000 in Q1, although these amounts were small relative to operating expenses.
• Research and development spending remained substantial. The $4.3 million spent on R&D in Q2 2026 indicates that Oncolytics continues to fund development activities, which could support future clinical or commercial progress if its programs succeed.
• Cash and equivalents totaled $4.1 million at June 30, 2026. Current assets were $7.1 million, including $1.7 million of prepaid expenses and $1.2 million of accounts receivable. The composition of current assets means cash alone provides only limited near-term flexibility.
• Operating cash flow improved on a year-over-year basis only in the context of a much larger spending base. Q2 2026 operating cash outflow was $8.1 million, compared with $4.1 million in Q2 2025. Q1 2026 operating cash outflow was $7.3 million, indicating consistently heavy cash usage.
• Revenue remained at zero. Oncolytics reported no revenue or gross profit in Q1 or Q2 of either 2025 or 2026, leaving the company dependent on financing and potential future development or partnership milestones.
• Quarterly losses expanded sharply year over year. Q2 2026 net loss was $9.4 million, up from $5.3 million in Q2 2025. The basic and diluted loss was $0.08 per share in Q2 2026, compared with $0.06 in the prior-year quarter.
• Operating expenses more than doubled year over year. Q2 2026 operating expenses were $9.4 million versus $4.7 million in Q2 2025. SG&A rose to $5.1 million from $2.7 million, while R&D increased to $4.3 million from $1.9 million.
• Liquidity declined during Q2 despite the equity raise. Cash fell from $5.5 million at March 31, 2026, to $4.1 million at June 30. The company used $8.1 million in operating cash, while financing provided $6.8 million, resulting in a $1.4 million net decrease in cash.
• The balance sheet showed a substantial negative-equity position. Total liabilities were $13.8 million versus $7.7 million of assets, producing negative total equity of $6.2 million. Accounts payable also increased to $3.4 million from $2.7 million in the prior quarter, while total liabilities rose by approximately $547,000.

Overall, the financial trend is high risk. Oncolytics is spending heavily on development without generating revenue, and its cash balance is small relative to its quarterly operating burn. Continued equity issuance is currently supporting operations, but the increase in shares outstanding—from 91.0 million in Q2 2025 to 119.7 million in Q2 2026—highlights meaningful dilution risk for existing shareholders. Without improved operating efficiency, additional financing, partnerships or future revenue, the company may need to raise additional capital to continue funding its programs.