Lineage Books Net Income After Warrant Remeasurement

The Tip Desk · November 13, 2026 · 4 min read

The cell-therapy company posted $4.2 million of net income, or $0.02 a share, as a non-cash warrant remeasurement flipped other income to $12.0 million.

Lineage Cell Therapeutics (LCTX), a clinical-stage biotechnology company developing allogeneic cell therapies, reported net income of $4.2 million, or $0.02 a share on a basic basis, for the three months ended September 30, 2026, compared with a net loss of $29.8 million, or $0.13 a share, a year earlier. The company said the swing was primarily driven by a quarterly fair-value, non-cash remeasurement of warrant liabilities after its share price fell, versus an increase in the year-ago quarter. Diluted results remained a loss of $0.03 a share.

Other income was $12.0 million, compared with other expense of $26.0 million a year earlier.

The operating picture moved the other way. Total revenues were approximately $1.5 million, down $2.2 million from $3.7 million in the same period of 2025. The company said the decrease was primarily due to lower collaboration revenue recognized from deferred revenues under the Roche Agreement, reflective of measured progress toward completion of the first performance obligation, and lower revenue from its research collaboration with William Demant Invest; both were driven by fewer services provided.

Total operating expenses were approximately $8.8 million, up $1.3 million from $7.5 million a year earlier. Research and development expenses were $3.8 million, an increase of $0.5 million from $3.3 million. The company said the net increase was primarily driven by $0.8 million for preclinical programs and other undisclosed programs and $0.5 million for ReSonance, partially offset by $0.2 million for OPC1 and $0.6 million for OpRegen. General and administrative expenses were $4.9 million, up $0.7 million from approximately $4.2 million, primarily from personnel costs and stock-based compensation. Loss from operations was $7.3 million, an increase of $3.5 million from $3.8 million a year earlier.

Cash, cash equivalents, and marketable securities were $45.2 million as of September 30, 2026. The company said that balance is expected to support planned operations into the second quarter of 2028, a shorter runway than the prior quarter’s statement that cash as of June 30, 2026 was expected to support planned operations into the third quarter of 2028.

The quarter’s defining business move was the closing of the acquisition of NeuroAirmid Therapeutics and certain worldwide rights related to HUNT1 (hNSC-01), a pluripotent stem cell–derived neural cell therapy in a Phase 1b/2a REGEN4HD study for Huntington’s disease, adding a third clinical-stage asset. The deal also included rights to use clinical data from the ongoing REGEN4HD study. Chief executive Brian M. Culley said HUNT1 was created on the same proprietary cell line Lineage uses and is compatible with its AlloSCOPE “5D” technology. To date, six patients have been dosed with HUNT1, with no significant serious adverse events reported. Lineage will assume an estimated $3.1 million of CIRM-supported REGEN4HD clinical costs through February 2030, plus clinical development after the study and all future manufacturing, process development, scale-up and optimization.

The U.S. Patent and Trademark Office issued U.S. Patent No. 12,692,476 covering the AlloSCOPE platform, including AlloSCOPE 5D, with an expected expiration date of June 9, 2043.

COR1, the wholly owned corneal endothelial cell therapy, advanced into preclinical testing after Lineage achieved 5D precursor expansion and differentiation to support CEnC production with a thaw-and-inject formulation that met internal criteria for continued preclinical advancement. Initial preclinical functional-model data is expected in the first quarter of 2027.

The William Demant Invest ReSonance collaboration moved into the second year of a planned three-year collaboration after the joint scientific committee approved advancement. Lineage completed the first cGMP-grade batch, three engineering runs, and internal technology transfer, and is preparing a fourth-quarter 2026 meeting with the Danish Medicines Agency. ILT1 met internal milestones demonstrating AlloSCOPE 5D scalability from 100 milliliters to 3 liter scale and differentiating pluripotent stem cells into islet cell precursors in a 5D system.

Genentech’s Phase 2a GAlette study of OpRegen remained open and active at 17 clinical sites in the U.S. and Israel, with plans to evaluate proprietary surgical delivery devices for subretinal OpRegen delivery.