Tempest Reports Third Quarter 2026 Financial Results and Provides Business Update

Tempest faces severe cash constraints despite pipeline progress and new board appointments.

What the company is saying

Tempest Therapeutics frames its update as a period of 'meaningful progress' in advancing two next-generation in vivo CAR-T platforms, emphasizing the strategic collaboration with Hebei Senlang Biotechnology and the exclusive license for the CD7-targeted lentiviral vector platform. The company highlights TPST-4903, a BCMA/GPRC5D dual-targeting CAR-T candidate in Phase 1 for relapsed or refractory multiple myeloma, and TPST-4003, a dual-targeting CD19/BCMA candidate, with an investigator-initiated trial in China expected to begin in Q4 2026. The narrative stresses pipeline expansion, access to additional capital through a $25.0 million (potentially $50.0 million) equity facility with Lincoln Park Capital, and the addition of independent directors Nancy Freda-Smith and John W. Frederick to strengthen governance. Financially, the company acknowledges a sharp cash decline, a significant net loss, and explicitly warns of 'substantial doubt' about its ability to continue as a going concern. The tone is cautiously optimistic about future clinical milestones, but the going concern warning and cash runway of less than 12 months are not downplayed.

What the data suggests

Tempest ended Q3 2026 with $0.9 million in cash and cash equivalents, down from $7.7 million at year-end 2025, reflecting a rapid cash burn. Net loss for the quarter was $3.6 million ($0.21 per share), and for the nine months ended September 30, 2026, the net loss reached $36.6 million ($2.54 per share), both increasing from the prior year. Research and development expenses dropped to $0.2 million for the quarter and $2.1 million for the nine months, primarily due to portfolio reprioritization and the impact of a February 2026 asset acquisition, but acquired in-process R&D expenses surged to $22.2 million. General and administrative expenses were $2.6 million for the quarter and $11.5 million for the nine months, with a $1.0 million year-over-year increase attributed to one-time acquisition costs. Financing activities included a $2.5 million private placement in September 2026 ($1.8 million net), and a $0.3 million equity sale to Lincoln Park Capital under a facility allowing up to $25.0 million ($50.0 million if fully utilized) over 24 months. The company’s liabilities now exceed assets, with total liabilities of $10.59 million against assets of $8.76 million, and stockholders’ equity at a deficit of $1.83 million. The explicit going concern warning is based on the expectation that current cash will not cover operating expenses for the next 12 months.

Analysis

The announcement is largely factual, providing detailed financial results and specific updates on pipeline progress, partnerships, and board appointments. However, several key claims regarding clinical milestones (such as the expected presentation of Phase 1 data and the initiation of a new trial in China) are forward-looking and not yet realised. The company highlights its next-generation CAR-T pipeline and strategic partnerships, but these are at early clinical or preclinical stages, with no efficacy or commercial data disclosed. The financials reveal a deteriorating position, with a sharp decline in cash, a large net loss, and a going concern warning, yet the narrative emphasizes pipeline expansion and potential future milestones. Capital intensity is high, with significant R&D and in-process acquisition expenses, but immediate returns are absent and the company is reliant on future financing. The tone is measured, but the gap between ambitious pipeline language and the company's precarious financial state introduces moderate hype.

Risk flags

• ●Liquidity risk is acute: with only $0.9 million in cash at quarter-end and a projected runway of less than 12 months, Tempest must secure additional funding to avoid insolvency. The company’s own going concern warning underscores this risk.
• ●Operational risk is high: pipeline progress is at an early stage, with TPST-4903 in Phase 1 and TPST-4003’s trial not yet started. There is no disclosed clinical efficacy or safety data, and the timeline to meaningful results is uncertain.
• ●Dilution risk is significant: the company’s reliance on equity financing, including a $25.0 million (potentially $50.0 million) facility with Lincoln Park Capital and recent private placements, could lead to substantial dilution for existing shareholders if exercised at depressed valuations.
• ●Balance sheet risk is present: total liabilities now exceed assets, and stockholders’ equity has turned negative, indicating financial distress and limiting access to non-dilutive capital.
• ●Execution risk on partnerships and trial timelines: while strategic collaborations have been announced, the benefits are contingent on successful trial initiation, enrollment, and data readouts, none of which are guaranteed or near-term.

Bottom line

Tempest Therapeutics is advancing early-stage CAR-T programs and has secured new board members and licensing deals, but its financial position is precarious. The company ended Q3 2026 with only $0.9 million in cash, a net loss of $36.6 million for the year to date, and a negative equity position, prompting a formal going concern warning. While the pipeline and partnerships could create long-term value, there is no near-term clinical or commercial catalyst, and the company must raise substantial capital to survive the next year. Investors should focus on the company’s ability to secure funding—either through the Lincoln Park facility, warrant exercises, or other means—as the single most important factor for near-term viability. Without a material capital infusion or concrete clinical data, the risk of insolvency or severe dilution is high.

Announcement summary

(NASDAQ:TPST) Tempest Therapeutics, Inc. reported financial results for the quarter ended September 30, 2026, and provided a business update. The company exercised its option under an agreement with Hebei Senlang Biotechnology Co., Ltd. to obtain an exclusive license to develop and commercialize Senlang’s CD7-targeted lentiviral vector platform and associated in vivo CAR-T candidates worldwide, excluding China. The lead program, TPST-4903, is a BCMA/GPRC5D dual-targeting in vivo CAR-T candidate currently being evaluated in a Phase 1 dose-escalation study in patients with relapsed or refractory multiple myeloma (rrMM), with initial data expected to be presented at an upcoming scientific conference. Tempest unveiled its next-generation in vivo CAR-T pipeline, including lead product candidate TPST-4003, a dual-targeting CD19/BCMA in vivo CAR-T candidate. In July 2026, Tempest executed a strategic partnership with Hebei Senlang Biotechnology to collaborate on the development of proprietary in vivo CAR-T product candidates, including TPST-4003. An investigator-initiated trial in China evaluating TPST-4003 in approximately 10 patients with myasthenia gravis or multiple sclerosis is expected to begin in the fourth quarter of 2026. In September 2026, Tempest completed a private placement of pre-funded warrants and Series C and D warrants for gross proceeds of approximately $2.5 million (approximately $1.8 million net of placement agent fees and offering expenses), excluding up to approximately $5.0 million of gross proceeds that may be received upon the cash exercise of the Series C and D warrants. On August 13, 2026, Tempest entered into a purchase agreement with Lincoln Park Capital Fund, LLC, giving the company the right to sell up to $25.0 million of its common stock, increasing to $50.0 million if the initial amount is sold, over a 24-month period beginning September 1, 2026. Through September 30, 2026, Tempest sold 350,000 shares to Lincoln Park for gross proceeds of approximately $0.3 million. The Board of Directors was strengthened with the appointments of independent directors Nancy Freda-Smith and John W. Frederick. Tempest ended the quarter with $0.9 million in cash and cash equivalents, compared to $7.7 million on December 31, 2025. Net loss and net loss per share for the quarter were $3.6 million and $0.21, respectively, compared to $3.5 million and $0.79 for the same period in 2025. Research and development expenses for the quarter were $0.2 million, compared to $0.6 million for the same period in 2025. General and administrative expenses for the quarter were $2.6 million, compared to $3.0 million for the same period in 2025. Financing costs related to the Lincoln Park equity line of credit for the quarter were $0.8 million, consisting of $0.66 million for the fair value of commitment shares issued to Lincoln Park and $0.15 million of issuance costs. For the nine months ended September 30, 2026, cash used in operating activities was $12.4 million. Net loss and net loss per share for the nine months ended September 30, 2026 were $36.6 million and $2.54, respectively, compared to $22.2 million and $5.71 for the same period in 2025. Research and development expenses for the nine months ended September 30, 2026 were $2.1 million, compared to $12.1 million for the same period in 2025. General and administrative expenses for the nine months ended September 30, 2026 were $11.5 million, compared to $10.4 million for the same period in 2025. Acquired in-process research and development expenses for the nine months ended September 30, 2026 were $22.2 million, compared to nil for the same period in 2025. As of September 30, 2026, total assets were $8.76 million and total liabilities were $10.59 million. There is substantial doubt about the company’s ability to continue as a going concern, as existing cash and cash equivalents are expected to fund projected operating expense requirements for less than 12 months from the date the financial statements were available to be issued.

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