EDIT

Business Context and Reporting Period

Editas Medicine, Inc. (EDIT) is a pioneering gene editing company focused on developing in vivo genomic medicines. This Form 10-Q covers the quarterly period ended June 30, 2026. The Company operates as a single segment and has not yet generated product revenue, relying on equity financings and collaboration payments to fund operations.

Key Financial Metrics

Operating Expenses (YTD 2026): Research and Development was $37.8 million; General and Administrative was $21.8 million. The Company recorded a restructuring benefit of $1.3 million YTD 2026, compared to $66.9 million in charges YTD 2025.

Material Changes vs. Prior Period

• Revenue Growth: Revenue increased 232% in Q2 2026 and 79% YTD 2026 compared to 2025. This was primarily driven by the recognition of $8.2 million in deferred revenue related to the expiration of opt-in rights under the Bristol-Myers Squibb (BMS) collaboration.
• Expense Reduction: Total operating expenses decreased 45% in Q2 and 57% YTD compared to the prior year. This significant reduction is largely due to the absence of the $66.9 million in restructuring and impairment charges recorded in 2025 related to the discontinuation of the reni-cel program and a 65% workforce reduction.
• Net Loss Improvement: Net loss narrowed significantly to $18.2 million in Q2 2026 from $53.2 million in Q2 2025, reflecting both higher revenue and lower operating costs.
• Capital Raise: In May 2026, the Company completed a public offering of 55.6 million shares and warrants, raising net proceeds of approximately $116.9 million.

Outlook, Risks, and Management Commentary

• EDIT-401 Progress: The Company is advancing its lead candidate, EDIT-401 (an in vivo gene editing therapy for hyperlipidemia). A Phase 1/2 clinical trial is planned for initiation in Australia/New Zealand, with topline data expected in 2027.
• Liquidity Runway: Management expects existing cash and cash equivalents ($211.6 million) to fund operations into the second half of 2028. The Company does not expect to be profitable in 2026 or the foreseeable future.
• Intellectual Property Risks: Significant risks remain regarding CRISPR/Cas9 patent validity. The Company is involved in multiple interference proceedings with the University of California (CVC), ToolGen, and Sigma-Aldrich. While recent decisions favored the Broad Institute (licensor), appeals are pending, and outcomes remain uncertain.
• Contractual Obligations: The Company has a liability for the sale of future revenues (DRI Agreement) totaling $55.7 million, representing an upfront payment received in exchange for future license fees from Vertex Pharmaceuticals.

Investor Verification Checklist

• Cash Runway: Verify the $211.6 million liquidity position against the projected burn rate to confirm the "second half of 2028" funding timeline.
• EDIT-401 Timeline: Monitor the submission of the Clinical Trial Notification (expected August 2026) and the initiation of the Phase 1/2 trial in Australia.
• IP Litigation Status: Track the status of appeals in the PTAB interference proceedings involving CVC, ToolGen, and Sigma-Aldrich, as a loss could invalidate core technology rights.
• Restructuring Accruals: Review the remaining $7.9 million in accrued contract costs related to the reni-cel discontinuation to ensure no further unexpected charges.
• Warrant Exercise: Note the 55.6 million warrants issued in May 2026 with an exercise price of $3.50, which could provide up to $192.5 million in additional proceeds if exercised.