Senti Biosciences Holdings, Inc. (SNTI) - Q1 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended March 31, 2026. Senti Biosciences is a clinical-stage biotechnology company developing cell and gene therapies using a proprietary gene circuit platform. The company operates as a single segment focused on research and development. On April 24, 2026, the company completed a holding company reorganization, with Senti Biosciences Holdings, Inc. becoming the successor issuer.
Key Financial Metrics
| Metric (in thousands) | Q1 2026 | Q1 2025 |
|---|---|---|
| Collaboration Revenue | $16 | $0 |
| Research & Development Expenses | $5,281 | $9,281 |
| General & Administrative Expenses | $6,233 | $7,116 |
| Gain on Lease Modification | ($6,882) | $0 |
| Net Loss | ($4,221) | ($14,112) |
| Net Loss Per Share (Basic/Diluted) | ($0.14) | ($1.41) |
| Cash and Cash Equivalents (End of Period) | $8,935 | $16,420 |
| Restricted Cash | $3,528 | $3,528 |
| Total Liabilities | $35,676 | $45,634 |
| Accumulated Deficit | ($362,793) | ($358,572) |
Cash Flow: Net cash used in operating activities was $7.5 million for Q1 2026, compared to $14.1 million in Q1 2025. The reduction in cash burn was significantly influenced by the non-cash gain on lease modification.
Material Changes vs. Prior Period
- Net Loss Reduction: Net loss decreased by $9.9 million (70%) year-over-year, primarily driven by a one-time $6.9 million gain on lease modification resulting from the restructuring of the Alameda facility lease.
- Expense Reduction: Operating expenses decreased by $11.8 million. R&D expenses dropped $4.0 million due to reduced external services and supplies costs. G&A expenses decreased $0.9 million.
- Sublease Income Decline: GeneFab sublease income fell from $1.7 million to $0.1 million due to lease amendments and the termination of the HQ sublease.
- Liquidity Position: Cash and cash equivalents decreased by $7.5 million during the quarter. Total assets declined from $51.2 million to $38.2 million, largely due to the reduction in lease liabilities and right-of-use assets.
Outlook, Risks, and Unusual Items
- Going Concern Warning: Management has concluded that substantial doubt exists regarding the company's ability to continue as a going concern. With $8.9 million in unrestricted cash, the company may not be able to maintain operations starting as early as the second quarter of 2026 without additional funding.
- Financing Activity: In April 2026, the company entered a Securities Purchase Agreement to issue up to $40.0 million in senior secured convertible notes. The initial tranche of $10.0 million is expected to close in May 2026, which management believes will extend operations into the third quarter of 2026.
- Lease Restructuring: The company reduced its Alameda facility footprint by 50% and restructured sublease arrangements with GeneFab to cure defaults. This resulted in the significant non-cash gain noted above.
- Risks: Key risks include the inability to raise additional capital, the high dilution potential of the new convertible notes (subject to full-ratchet anti-dilution), and reliance on GeneFab as the sole contract manufacturer.
Investor Verification Checklist
- Closing of Convertible Notes: Verify the closing of the $10.0 million initial tranche of senior secured convertible notes in May 2026 and the terms regarding the 200% redemption penalty upon maturity or default.
- Runway Extension: Confirm if the proceeds from the notes are sufficient to fund operations through Q3 2026 as projected, or if further capital raises are immediately required.
- GeneFab Relationship: Monitor the status of the GeneFab sublease and the $3.4 million past-due rent settlement (converted to prepaid credits), as GeneFab's failure to perform constitutes an event of default.
- Dilution Impact: Assess the potential dilution from the convertible notes (exchange price $0.6261) and the existing warrant pool (31.7 million shares).
- Lease Obligations: Review the remaining lease liabilities ($19.1 million) and the impact of the $2.0 million letter of credit drawdown by the Alameda landlord.