Armata (NYSE: ARMP) posts $173.8M loss and discloses going concern risk
Rhea-AI Filing Summary
Armata Pharmaceuticals reported a sharp deterioration in results for the quarter and year ended December 31, 2025. Fourth-quarter grant revenue was $1.1 million, while research and development expenses fell to $6.1 million and general and administrative expenses were $3.4 million. The company recorded a $5.4 million impairment on vacated office and R&D space, contributing to a fourth-quarter operating loss of $13.8 million.
For full-year 2025, Armata posted a net loss of $173.8 million, compared with a $18.9 million net loss in 2024, driven largely by a $121.0 million non-cash loss from changes in fair value of a convertible loan and higher interest expense. Total liabilities rose to $295.5 million, resulting in a stockholders’ deficit of $218.6 million. Cash, cash equivalents and restricted cash were $14.1 million at year-end. In January 2026, Armata extended the maturity of multiple credit agreements to June 1, 2027 and lengthened warrant expirations. Its audited 2025 financial statements include an explanatory going concern paragraph. As of March 18, 2026, Armata had 36.6 million common shares outstanding.
Positive
- None.
Negative
- Severe 2025 net loss and volatility: Net loss widened to $173.8 million from $18.9 million, driven by a large non-cash $121.0 million loss on the convertible loan and higher interest expense.
- Highly leveraged balance sheet and deficit: Total liabilities climbed to $295.5 million with a stockholders’ deficit of $218.6 million, while cash, cash equivalents and restricted cash were only $14.1 million at year-end 2025.
- Going concern uncertainty: The 2025 audited financial statements include an explanatory going concern paragraph, signaling substantial doubt about Armata’s ability to continue as a going concern without further financial or operational improvements.
Insights
Armata shows heavy losses, rising leverage, and a going concern flag.
Armata Pharmaceuticals moved from a modest 2024 net loss to a much larger $173.8 million net loss in 2025. The core business trimmed operating expenses, but results were dominated by a $121.0 million non-cash loss from revaluing a convertible loan and higher interest expense.
The balance sheet is highly leveraged. Total liabilities reached $295.5 million against a stockholders’ deficit of $218.6 million, while cash, cash equivalents and restricted cash were only $14.1 million at year-end. Amendments in January 2026 pushed credit agreement maturities to June 1, 2027 and extended warrant lives, easing near-term maturity pressure but locking in significant debt.
Armata’s auditors included an explanatory going concern paragraph in the 2025 financial statements, underscoring uncertainty about the company’s ability to continue operating without additional funding or improved performance. Future filings detailing cash burn, any new financing, and progress in clinical programs will be key to understanding how this risk evolves.
8-K Event Classification
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
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Item 2.02Results of Operations and Financial Condition.
On March 25, 2026, Armata Pharmaceuticals, Inc. announced its financial results for the three months and full fiscal year ended December 31, 2025, in the press release furnished hereto as Exhibit 99.1.
The information in this Item 2.02 and the attached Exhibit 99.1 is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Item 2.02 and the attached Exhibit 99.1 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
Item 9.01Financial Statements and Exhibits.
(d)Exhibits.
Exhibit | | Description |
99.1 | Press Release, dated March 25, 2026. | |
104 | Cover Page Interactive Data File (embedded within Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: March 25, 2026 | Armata Pharmaceuticals, Inc. | |
By: | /s/ David House | |
Name: | David House | |
Title: | Senior Vice President, Finance and Principal Financial Officer | |
Exhibit 99.1
Armata Pharmaceuticals Announces Fourth Quarter and Full-Year 2025 Financial Results
LOS ANGELES, California, March 25, 2026 - Armata Pharmaceuticals, Inc. (NYSE American: ARMP) (“Armata” or the “Company”), a late clinical-stage biotechnology company focused on the development of high-purity, pathogen-specific bacteriophage therapeutics for the treatment of antibiotic-resistant and difficult-to-treat bacterial infections, today announced financial results for its fourth quarter and full-year ended December 31, 2025.
Fourth Quarter 2025 Financial Results
Grant Revenue. The Company recognized grant revenue of $1.1 million for the three months ended December 31, 2025 as compared to $1.2 million in the comparable period in 2024, which represents MTEC's share of the costs incurred for the Company's AP-SA02 program for the treatment of Staphylococcus aureus bacteremia.
Research and Development. Research and development expenses for the three months ended December 31, 2025 were approximately $6.1 million as compared to approximately $8.5 million for the comparable period in 2024. The decrease was primarily driven by lower clinical trial activity, including reduced spend on AP-PA02 and AP-SA02 programs, as well as lower personnel-related costs compared to the prior year period.
General and Administrative. General and administrative expenses for the three months ended December 31, 2025 were approximately $3.4 million as compared to approximately $3.3 million for the comparable period in 2024. The increase was mainly related to an increase of $0.2 million in legal expenses during the fourth quarter of 2025, offset in part by a decrease of $0.1 million in lease expense.
Impairment Expenses. During the year ended December 31, 2025, we recognized a $5.4 million impairment expense related to our office and research and development space under a non-cancelable operating lease in Marina del Rey, California. The impairment resulted from changes in the anticipated timeline in our plan to sublease the vacated space. There was no impairment of long-lived assets during the year ended December 31, 2024.
Loss from Operations. Loss from operations for the three months ended December 31, 2025 was approximately $13.8 million as compared to a loss from operations of approximately $10.5 million for the comparable period in 2024. The increase in operating loss was primarily driven by the $5.4 million impairment charge recognized in the current period, partially offset by lower research and development expenses.
Net Income (Loss). The net loss for the fourth quarter of 2025 was $124.3 million, or $(3.42) per share on a basic and diluted basis, as compared to a net income of $2.6 million, or $0.07 per share on a basic and $(0.23) per share on a diluted basis, for the comparable period in 2024. The net loss for the quarter ended December 31, 2025 included non-cash loss from the changes in fair value of convertible loan of $105.8 million, as compared to a non-cash gain from the changes in fair value of convertible loan of $14.2 million for the comparable period in 2024, non-cash impairment expense of $5.4 million and non-cash gain from debt extinguishment of $2.2 million for the comparable period in 2024.
Cash and Equivalents. As of December 31, 2025, Armata held approximately $14.1 million of cash and cash equivalents and restricted cash, as compared to $14.8 million as of December 31, 2024.
On January 23, 2026, Armata entered into amendments to the March 2025 Credit Agreement, the 2024 Credit Agreement, the 2023 Credit Agreement, and the Convertible Credit Agreement with Innoviva Strategic Opportunities LLC, extending the maturity dates to June 1, 2027. In addition, the Company amended certain outstanding Innoviva warrants to extend their expiration dates to January 26, 2031, and amended the related voting agreement to align with the revised warrant expiration date or FDA approval, as applicable.
The Company’s audited financial statements for the year ended December 31, 2025, included in its Annual Report on Form 10-K, contain an audit opinion from its independent registered public accounting firm that includes an explanatory paragraph relating to the Company’s ability to continue as a going concern. This announcement is made pursuant to the disclosure requirements of NYSE American Company Guide Sections 401(h) and 610(b).
As of March 18, 2026, there were approximately 36.6 million common shares outstanding.
About Armata Pharmaceuticals, Inc.
Armata is a late clinical-stage biotechnology company focused on the development of high-purity pathogen-specific bacteriophage therapeutics for the treatment of antibiotic-resistant and difficult-to-treat bacterial infections using its proprietary bacteriophage-based technology. Armata is developing and advancing a broad pipeline of natural and synthetic phage candidates, including clinical candidates for Pseudomonas aeruginosa, Staphylococcus aureus, and other pathogens. Armata is committed to advancing phage therapy with drug development expertise that spans bench to clinic including in-house phage-specific current Good Manufacturing Practices manufacturing to support full commercialization.
Forward Looking Statements
This communication contains “forward-looking” statements as defined by the Private Securities Litigation Reform Act of 1995. These statements relate to future events, results or to Armata’s future financial performance and involve known and unknown risks, uncertainties and other factors which may cause Armata’s actual results, performance or events to be materially different from any future results, performance or events expressed or implied by the forward-looking statements. In some cases, you can identify these statements by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or the negative of those terms, and similar expressions. These forward-looking statements reflect management’s beliefs and views with respect to future events and are based on estimates and assumptions as of the date of this communication and are subject to risks and uncertainties including risks related to Armata’s development of bacteriophage-based therapies; Armata's planned clinical trials; ability to staff and maintain its production facilities under fully compliant cGMP; ability to meet anticipated milestones in the development and testing of the relevant product; ability to be a leader in the development of phage-based therapeutics; ability to achieve its vision, including improvements through engineering and success of clinical trials; ability to successfully complete preclinical and clinical development of, and obtain regulatory approval of its product candidates and commercialize any approved products on its expected timeframes or at all; and Armata’s estimates regarding anticipated operating losses, capital requirements and needs for additional funds. Additional risks and uncertainties relating to Armata and its business can be found under the caption “Risk Factors” and elsewhere in Armata’s filings and reports with the U.S. Securities and Exchange Commission (the “SEC”), including in Armata’s Annual Report on Form 10-K, filed with the SEC on March 25, 2026, and in its subsequent filings with the SEC.
Armata expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Armata’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.
Media Contacts:
At Armata:
Pierre Kyme
ir@armatapharma.com
310-665-2928
Investor Relations:
Joyce Allaire
LifeSci Advisors, LLC
jallaire@lifesciadvisors.com
212-915-2569
Armata Pharmaceuticals, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
| | December 31, 2025 | | December 31, 2024 | | ||
Assets | | | | | | | |
Current assets | | | | | | | |
Cash and cash equivalents | | $ | 8,688 | | $ | 9,291 | |
Prepaid expenses and other current assets | |
| 1,508 | |
| 1,273 | |
Other receivables | | | 472 | | | 744 | |
Total current assets | |
| 10,668 | |
| 11,308 | |
Property and equipment, net | |
| 12,194 | |
| 13,241 | |
Operating lease right-of-use asset | |
| 33,911 | |
| 41,687 | |
Intangible assets, net | | | 13,746 | | | 13,746 | |
Other long term assets | |
| 6,363 | |
| 6,455 | |
Total assets | | $ | 76,882 | | $ | 86,437 | |
| | | | | | | |
Liabilities and stockholders’ deficit | |
| | |
| | |
Accounts payable, accrued and other current liabilities | | $ | 8,947 | | $ | 9,295 | |
Term debt, current | | | — | | | 38,954 | |
Total current liabilities | | 8,947 | | 48,249 | | ||
Convertible loan, non-current | | | 153,860 | | | 32,897 | |
Term debt, non-current | | | 103,061 | | | 22,539 | |
Operating lease liabilities, net of current portion | | | 26,533 | | | 27,694 | |
Deferred tax liability | | | 3,077 | | | 3,077 | |
Total liabilities | |
| 295,478 | |
| 134,456 | |
Total stockholders’ deficit | |
| (218,596) | |
| (48,019) | |
Total liabilities and stockholders’ deficit | | $ | 76,882 | | $ | 86,437 | |
Armata Pharmaceuticals, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
| Year Ended December 31, | ||||
| 2025 | | 2024 | ||
Grant and award revenue | $ | 4,904 | | $ | 5,174 |
Operating expenses | | | | | |
Research and development |
| 23,717 | | | 34,426 |
General and administrative |
| 12,409 | | | 13,184 |
Impairment expense |
| 5,412 | | | — |
Total operating expenses | | 41,538 | | | 47,610 |
Operating loss |
| (36,634) | |
| (42,436) |
Other income (expense) |
| | |
| |
Interest income | | 388 | | | 697 |
Interest expense | | (16,590) | | | (10,742) |
Change in fair value of the Convertible Loan | | (120,963) | | | 31,399 |
Gain on debt and the Convertible Loan extinguishments | | — | | | 2,166 |
Total other income (expense), net |
| (137,165) | |
| 23,520 |
Net loss | $ | (173,799) | | $ | (18,916) |
Per share information: | | | | | |
Net loss per share, basic | $ | (4.80) | | $ | (0.52) |
Weighted average shares outstanding, basic | | 36,239,253 | | | 36,160,848 |
Net loss per share, diluted | $ | (4.80) | | $ | (0.89) |
Weighted average shares outstanding, diluted | | 36,239,253 | | | 59,059,971 |
Armata Pharmaceuticals, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
Year Ended December 31, | |||
2025 | 2024 | ||
Operating activities: |
|
|
|
Net loss | $ (173,799) | $ (18,916) | |
Adjustments required to reconcile net loss to net cash used in operating activities: |
|
|
|
Depreciation expense | 1,531 | 1,325 | |
Stock-based compensation expense | 2,610 |
| 2,893 |
Change in fair value of the Convertible Loan | 120,963 | (31,399) | |
Non-cash interest expense | 16,568 |
| 10,758 |
Impairment expense | 5,412 |
| - |
Gain on debt and Convertible Loan extinguishments | - |
| (2,166) |
Change in right-of-use asset | 2,364 | 2,053 | |
Changes in operating assets and liabilities | (1,412) |
| (2,099) |
Net cash used in operating activities | (25,763) | (37,551) | |
Investing activities: |
|
|
|
Purchases of property and equipment | (542) | (1,879) | |
Net cash used in investing activities | (542) |
| (1,879) |
Financing activities: |
|
| |
Proceeds from issuance of term debt, net of issuance costs | 25,000 |
| 34,889 |
Payments for taxes related to net share settlement of equity awards | (46) | (61) | |
Proceeds from exercise of stock options | 658 |
| 130 |
Net cash provided by financing activities | 25,612 | 34,958 | |
Net decrease in cash, cash equivalents and restricted cash | (693) |
| (4,472) |
Cash, cash equivalents and restricted cash, beginning of period | 14,771 | 19,243 | |
Cash, cash equivalents and restricted cash, end of period | $ 14,078 |
| $ 14,771 |
Cash and cash equivalents | $ 8,688 |
| $ 9,291 |
Restricted cash | 5,390 | 5,480 | |
Cash, cash equivalents and restricted cash | $ 14,078 |
| $ 14,771 |