Armata Pharmaceuticals Announces Fourth Quarter and Full-Year 2025 Financial Results

LOS ANGELES, California, March 25, 2026 — Armata Pharmaceuticals, Inc. (NYSE American: ARMP), a late clinical-stage biotechnology company specializing in high-purity, pathogen-specific bacteriophage therapeutics for the treatment of antibiotic-resistant and difficult-to-treat bacterial infections, has released its financial results for Q4 and the full year ended December 31, 2025. This report contains several key developments and financial figures that may have significant implications for shareholders.

Key Financial Highlights

• Grant Revenue: Armata recognized grant revenue of \$1.1 million for Q4 2025, slightly down from \$1.2 million in Q4 2024. For the full year 2025, grant and award revenue totaled \$4.9 million (down from \$5.2 million in 2024). These revenues primarily reflect MTEC’s contributions to the AP-SA02 program for treating Staphylococcus aureus bacteremia.
• Research and Development (R&D) Expenses: R&D expenses for Q4 2025 were \$6.1 million, a notable decrease from \$8.5 million in Q4 2024. The full-year R&D expense stood at \$23.7 million, significantly lower than \$34.4 million in 2024. The reduction was mainly due to lower clinical trial activity and personnel-related costs.
• General and Administrative (G&A) Expenses: G&A expenses for Q4 2025 were \$3.4 million, compared to \$3.2 million for Q4 2024. The increase was largely due to higher legal expenses (\$0.2 million), partially offset by lower lease expenses.
• Impairment Expenses: Armata recognized a substantial \$5.4 million impairment expense in 2025 related to its office and R&D space in Marina del Rey, California, stemming from changes in the timeline to sublease the vacated space. No similar impairment occurred in 2024.
• Loss from Operations: Loss from operations in Q4 2025 was \$13.8 million, up from \$7.5 million in Q4 2024. The increase was mainly due to the \$5.4 million impairment charge, partially offset by lower R&D expenses.
• Net Income (Loss): The most striking figure for investors is the Q4 2025 net loss of \$124.3 million, or \$(3.42) per share (basic and diluted), compared to net income of \$2.6 million in Q4 2024. For the full year, net loss ballooned to \$173.8 million, or \$(4.80) per share (basic), compared to \$(18.9) million, or \$(0.52) per share, in 2024. The net loss was heavily impacted by a non-cash loss from the change in fair value of the convertible loan (\$105.8 million in Q4 alone, \$120.96 million for the year), impairment expenses, and lower operating income.
• Cash Position: As of December 31, 2025, Armata held \$14.1 million in cash, cash equivalents, and restricted cash, down slightly from \$14.8 million at the end of 2024. Cash and cash equivalents alone stood at \$8.7 million.

Balance Sheet and Debt Developments

• Total Assets: \$76.9 million at year-end 2025, down from \$86.4 million in 2024.
• Total Liabilities: Increased sharply to \$295.5 million from \$134.5 million in the prior year, driven by a surge in convertible loan and term debt balances.
• Stockholders’ Deficit: The deficit widened dramatically to \$(218.6) million from \$(48.0) million in 2024.
• Convertible Loan: Armata’s non-current convertible loan liability jumped to \$153.9 million (from \$32.9 million in 2024), and term debt to \$103.1 million (from \$22.5 million). These increases reflect significant financial leverage and may impact future liquidity and share value.
• Debt Amendments: On January 23, 2026, Armata amended several credit agreements with Innoviva Strategic Opportunities LLC, extending maturity dates to June 1, 2027. Additionally, the expiration dates of certain Innoviva warrants were extended to January 26, 2031, and related voting agreements were amended.

Other Notable Disclosures

• Going Concern Warning: Armata’s audited financial statements include an audit opinion with an explanatory paragraph regarding its ability to continue as a going concern. This is a strong warning for shareholders and could be price sensitive, indicating possible financial distress unless additional funding is secured.
• Shares Outstanding: As of March 18, 2026, there were approximately 36.6 million common shares outstanding.
• Pipeline and Business Focus: Armata continues to advance a broad pipeline of natural and synthetic phage candidates, including clinical candidates for Pseudomonas aeruginosa, Staphylococcus aureus, and other pathogens. The company maintains in-house cGMP manufacturing capabilities for future commercialization.

Potential Price-Sensitive and Shareholder-Relevant Information

• Massive Net Loss and Impairments: The huge swing from small net income in Q4 2024 to a large net loss in Q4 2025 (\$124.3 million), and the full-year loss (\$173.8 million) are significant. The losses are primarily driven by non-cash items related to convertible loan fair value changes and the impairment of leased office space.
• Debt and Liquidity Risks: The dramatic increase in liabilities (convertible loan and term debt) and the going concern warning are critical for investors. These factors could impact the company’s ability to fund operations and may affect share value.
• Debt Extension and Warrant Amendments: The extension of debt maturities and warrant expiration dates signal ongoing financial negotiations and may affect shareholder dilution and voting rights.
• Cash Burn: Operating cash flow for 2025 was negative (\$25.8 million), indicating continued cash burn and the need for additional capital.

Forward-Looking Statements & Risks

Armata’s report contains forward-looking statements regarding its development plans, clinical trials, regulatory milestones, manufacturing capabilities, and financial outlook. These statements are subject to various risks, including clinical trial success, regulatory approvals, ability to raise additional capital, and market acceptance of phage-based therapeutics.

Contact Information

Media Contact:
Pierre Kyme
[email protected]
310-665-2928

Investor Relations:
Joyce Allaire
LifeSci Advisors, LLC
[email protected]
212-915-2569

Conclusion

Armata Pharmaceuticals’ Q4 and full-year 2025 financial results highlight significant financial challenges, including substantial net losses, increased debt burden, and a going concern warning. These developments, together with amendments to credit agreements and warrant extensions, are highly relevant and price sensitive for shareholders. Investors should closely monitor Armata’s cash position, debt restructuring efforts, and progress on its clinical pipeline as these factors will be crucial in determining future share performance and company viability.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. All forward-looking statements are subject to risks and uncertainties. Investors should review Armata Pharmaceuticals’ filings with the SEC and consult their financial advisors before making any investment decisions.

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