What changed in this filing

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Item 1. Financial Statements

2025-11-10 compared with 2025-08-12 · 107 added, 90 removed, 409 unchanged (33% of the section changed)

3 unchanged sentences

(amounts in thousands, except share and per share data)

September 30,

2025 December 31,

27 unchanged sentences

Common stock, $ 0.0001 par value per share:

390,000,000 and 195,000,000 shares authorized at June 30, 2025 and December 31, 2024, respectively;

87,388,425 and 82,734,696 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively

390,000,000 and 195,000,000 shares authorized at September 30, 2025 and December 31, 2024, respectively;

93,264,421 and 82,734,696 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively

Additional paid-in capital 1,636,327 1,602,441

8 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

7 unchanged sentences

Other (expense) income, net:

Other (expense) income, net ( 1,758 ) ( 1 ) ( 2,183 ) 5

Interest related to sale of future revenues ( 2,020 ) — ( 4,236 ) —

Interest expense related to sale of future revenues ( 2,399 ) — ( 6,635 ) —

Interest income, net 1,831 3,530 6,634 12,861

Other expense, net ( 1 ) ( 5 ) ( 2,184 ) —

Total other (expense) income, net ( 569 ) 3,525 ( 2,185 ) 12,861

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Net loss $ ( 25,117 ) $ ( 62,141 ) $ ( 154,440 ) $ ( 191,698 )

Other comprehensive loss:

Unrealized loss on marketable debt securities ( 73 ) ( 116 ) ( 253 ) ( 640 )

Other comprehensive gain (loss):

Unrealized gain (loss) on marketable debt securities ( 15 ) 964 ( 268 ) 324

Comprehensive loss $ ( 25,132 ) $ ( 61,177 ) $ ( 154,708 ) $ ( 191,374 )

11 unchanged sentences

Balance at December 31, 2024 82,734,696 $ 8 $ 1,602,441 $ 268 $ ( 1,468,443 ) $ 134,274

Issuance of common stock from at the market equity offering 706,236 — 1,435 — — $ 1,435

Issuance of common stock from at-the-market equity offering, net 706,236 — 1,435 — — $ 1,435

Vesting of restricted common stock awards 268,604 — — — — —

3 unchanged sentences

Balance at March 31, 2025 83,709,536 $ 8 $ 1,606,855 $ 88 $ ( 1,544,531 ) $ 62,420

Issuance of common stock from at the market equity offering 3,419,836 1 7,184 — — 7,185

Issuance of common stock from at-the-market equity offering, net 3,419,836 1 7,184 — — 7,185

Stock-based compensation expense — — 2,664 — — 2,664

4 unchanged sentences

Balance at June 30, 2025 87,388,425 $ 9 $ 1,616,931 $ 15 $ ( 1,597,766 ) $ 19,189

Issuance of common stock from at-the-market equity offering, net 5,799,178 — 17,147 — — 17,147

Exercise of stock options 12,130 — 21 — — 21

Stock-based compensation expense — — 2,228 — — 2,228

Vesting of restricted common stock awards 64,688 — — — — —

Unrealized loss on marketable debt securities — — — ( 15 ) — ( 15 )

Net loss — — — — ( 25,117 ) ( 25,117 )

Balance at September 30, 2025 93,264,421 $ 9 $ 1,636,327 $ — $ ( 1,622,883 ) $ 13,453

Common Stock Additional

18 unchanged sentences

Balance at June 30, 2024 82,429,514 $ 8 $ 1,593,350 $ ( 442 ) $ ( 1,360,907 ) $ 232,009

Vesting of restricted common stock awards 109,110 — — — — —

Stock-based compensation expense — — 4,802 — — 4,802

Unrealized gain on marketable debt securities — — — 964 — 964

Net loss — — — — ( 62,141 ) ( 62,141 )

Balance at September 30, 2024 82,538,624 $ 8 $ 1,598,152 $ 522 $ ( 1,423,048 ) $ 175,634

The accompanying notes are an integral part of the condensed consolidated financial statements.

2 unchanged sentences

(amounts in thousands)

Six Months Ended

Nine Months Ended

September 30,

Cash flow from operating activities

4 unchanged sentences

Loss on disposal of fixed assets 2,193 139

Net amortization of premiums and discounts on marketable securities ( 840 ) ( 3,596 )

Net accretion of discounts on marketable securities ( 902 ) ( 4,922 )

Interest related to sale of future revenues 6,635 —

21 unchanged sentences

Repayment on sale of future revenues ( 2,872 ) —

Proceeds from issuance of common stock from at the market equity offering 8,619 —

Proceeds from issuance of common stock from at-the-market equity offering, net 25,767 —

Proceeds from exercise of stock options 21 192

7 unchanged sentences

Cash, cash equivalents, and restricted cash, end of period $ 168,318 $ 99,709

1 As of June 30, 2025 and June 30, 2024, restricted cash of $ 3,877 and $ 3,877 was included in Restricted cash and other non-current assets on the Consolidated Balance Sheet, respectively.

1 As of September 30, 2025 and September 30, 2024, restricted cash of $ 2,670 and $ 3,877 was included in Restricted cash and other non-current assets on the Consolidated Balance Sheet, respectively.

Supplemental disclosure of cash and non-cash activities:

3 unchanged sentences

Commencement of right-of-use asset $ — $ 7,844

Modification of right-of-use asset $ — $ 1,954

Non-cash termination of right-of-use asset $ 4,849 $ —

4 unchanged sentences

Editas Medicine, Inc.

(the “Company”) is a pioneering gene editing company dedicated to developing potentially transformative genomic medicines to treat a broad range of serious diseases.

(the “Company”) is a pioneering gene editing company dedicated to developing transformative genomic medicines to treat a broad range of serious diseases.

The Company was incorporated in the state of Delaware in September 2013.

1 unchanged sentence

Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, and raising capital.

The Company has primarily financed its operations through various equity financings, payments received under a research collaboration with Juno Therapeutics, Inc.

(“Juno Therapeutics”), a wholly owned subsidiary of the Bristol-Myers Squibb Company (“BMS”), payments received under its former strategic alliance with Allergan Pharmaceuticals International Limited (together with its affiliates, “Allergan”), which was terminated in August 2020, payments received under the purchase and sale agreement with DRI Healthcare Acquisitions LP (“DRI”), and payments received in conjunction with the Company’s license agreement with Vertex Pharmaceuticals, Inc (“Vertex”, and such agreement, the “Vertex License Agreement”).

The Company has primarily financed its operations through various equity financings, payments received under a research collaboration with the Bristol-Myers Squibb Company (“BMS”), through its wholly owned subsidiary Juno Therapeutics, Inc.

(“Juno Therapeutics”), payments received under its former strategic alliance with Allergan Pharmaceuticals International Limited (together with its affiliates, “Allergan”), which was terminated in August 2020, payments received under a purchase and sale agreement with DRI Healthcare Acquisitions LP (“DRI”), and payments received under the Company’s license agreement with Vertex Pharmaceuticals, Inc (“Vertex”, and such agreement, the “Vertex License Agreement”).

The Company is subject to risks common to companies in the biotechnology industry, including but not limited to, risks of failure of preclinical studies and clinical trials, the need to obtain marketing approval for any drug product candidate that it may identify and develop, the need to successfully commercialize and gain market acceptance of its product candidates, dependence on key personnel, protection of proprietary technology, compliance with government regulations, development by competitors of technological innovations and ability to transition from pilot-scale manufacturing to large-scale production of products.

As of June 30, 2025, the Company has raised an aggregate of $ 1.0 billion in net proceeds through the sale of shares of its common stock in public offerings and at-the-market offerings.

As of September 30, 2025, the Company has raised an aggregate of $ 1.0 billion in net proceeds through the sale of shares of its common stock in public offerings and at-the-market offerings.

The Company also has funded its business from payments received under its purchase and sale agreement with DRI, payments received under the Vertex License Agreement, its research collaboration with BMS through its wholly owned subsidiary Juno Therapeutics and its former strategic alliance with Allergan (which was terminated in August 2020).

As of June 30, 2025, the Company had cash, cash equivalents and marketable securities of $ 178.5 million.

As of September 30, 2025, the Company had cash, cash equivalents and marketable securities of $ 165.6 million.

In May 2021, the Company entered into a common stock sales agreement with TD Securities (USA) LLC (as successor to Cowen and Company, LLC) (“TD Cowen”), under which the Company from time to time can issue and sell shares of the Company’s common stock through TD Cowen in at-the-market offerings for aggregate gross sale proceeds of up to $ 300.0 million.

1 unchanged sentence

In March 2025, the Company further amended its common stock sales agreement with TD Cowen in connection with amending its existing shelf registration statement following the loss of the Company’s status as a “well-known seasoned issuer” (as defined under Rule 405 of the Securities Act of 1933, as amended), reducing the amount of shares of common stock the Company may issue and sell through TD Cowen to aggregate gross sale proceeds of up to $ 150.0 million (the “ATM Facility”).

As of June 30, 2025, the Company has sold 4,126,072 shares of common stock under the ATM Facility for gross proceeds of $ 8.6 million and has $ 141.4 million available under the ATM Facility.

As of September 30, 2025, the Company has sold 9,925,250 shares of common stock under the ATM Facility for gross proceeds of $ 26.4 million and has $ 123.6 million of shares of common stock remaining available for issuance and sale under the ATM Facility.

The Company has incurred annual net operating losses in every year since its inception.

As of August 12, 2025, the issuance date of the consolidated financial statements, the Company expects that its existing cash, cash equivalents and marketable securities will be sufficient to fund its operating expenses and capital expenditure requirements for at least twelve months from the issuance date of the consolidated financial statements.

The Company had an accumulated deficit of $ 1.6 billion at June 30, 2025, and will require substantial additional capital to fund its operations.

As of November 10, 2025, the issuance date of the condensed consolidated financial statements, the Company expects that its existing cash and cash equivalents will be sufficient to fund its operating expenses and capital expenditure requirements into the third quarter of 2027.

The Company had an accumulated deficit of $ 1.6 billion at September 30, 2025, and will require substantial additional capital to fund its operations.

The Company has never generated any product revenue.

10 unchanged sentences

The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure.

The three months ended June 30, 2025 and 2024 are referred to as the second quarter of 2025 and 2024, respectively.

The three months ended September 30, 2025 and 2024 are referred to as the third quarter of 2025 and 2024, respectively.

The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or any other interim period.

28 unchanged sentences

Cash Equivalents and Marketable Securities

Cash equivalents and marketable securities consisted of the following at June 30, 2025 (in thousands):

Cash equivalents consisted of the following at September 30, 2025 (in thousands):

Cost Allowance

Cash equivalents and marketable securities:

Treasuries 39,944 — 20 ( 5 ) 39,959

Cash equivalents:

Money market funds 165,648 — — — 165,648

7 unchanged sentences

Total $ 269,645 $ — $ 289 $ ( 21 ) $ 269,913

As of June 30, 2025, the Company did not hold any marketable securities that were in a continuous unrealized loss position for more than twelve months.

Furthermore, the Company has determined that there were no material changes in the credit risk of the securities.

As of June 30, 2025, the Company holds no securities with remaining maturities greater than one year .

There were no realized gains or losses on available-for-sale securities during the six months ended June 30, 2025 or 2024.

There were no realized gains or losses on available-for-sale securities during the nine months ended September 30, 2025 or 2024.

Fair Value Measurements

Assets measured at fair value on a recurring basis as of June 30, 2025 were as follows (in thousands):

Assets measured at fair value on a recurring basis as of September 30, 2025 were as follows (in thousands):

September 30,

2025 Quoted Prices

4 unchanged sentences

Money market funds $ 165,648 $ 165,648 $ — $ —

Marketable securities:

Treasuries 39,959 39,959 — —

Restricted cash and other non-current assets:

14 unchanged sentences

Total financial assets $ 273,790 $ 267,289 $ 6,501 $ —

The fair value of the Company’s liability for sale of future revenues approximates the amount recorded on the Company’s balance sheet as of June 30, 2025 and December 31, 2024, which represents a level 3 fair value measurement.

The fair value of the Company’s liability for sale of future revenues approximates the amount recorded on the Company’s balance sheet as of September 30, 2025 and December 31, 2024, which represents a level 3 fair value measurement.

Accrued Expenses

Accrued expenses consisted of the following (in thousands):

September 30,

2025 December 31,

10 unchanged sentences

Property and equipment, net consisted of the following (in thousands):

September 30,

2025 December 31,

18 unchanged sentences

As such, the Company anticipates that it has a substantial commitment in connection with these proceedings until such time as these proceedings have been resolved, but the amount of such commitment is not determinable.

The Company incurred an aggregate of $ 2.3 million and $ 4.2 million in expenses during the three and six months ended June 30, 2025.

The Company incurred an aggregate of $ 2.5 million and $ 4.6 million in expense during the three months and six months ended June 30, 2024, respectively, for such reimbursement.

The Company incurred an aggregate of $ 3.2 million and $ 7.4 million in expenses during the three and nine months ended September 30, 2025.

The Company incurred an aggregate of $ 2.1 million and $ 6.6 million in expense during the three and nine months ended September 30, 2024, respectively, for such reimbursement.

Lease Termination

1 unchanged sentence

The lease commenced April 1, 2024.

In September 2024, the Company modified the lease, and as a result of the modification the lease payments decreased and the notification period for the termination of the license and service agreement increased from 12 months’ prior written notice to 18 months’ prior written notice.

In September 2024, the Company entered into a modification of the lease, and as a result of the modification the lease payments decreased and the notification period for the termination of the license and service agreement increased from 12 months’ prior written notice to 18 months’ prior written notice.

In January 2025, the Company gave its termination notice on the license and service agreement, which resulted in the end of the term of the agreement being July 2026, and $ 8.9 million of remaining payments owed.

In April 2025, the Company further modified the lease to terminate on April 30, 2025 with a final fixed payment of $ 3.7 million.

In April 2025, the Company entered into a further modification to the lease providing that the lease would terminate on April 30, 2025 with a final fixed payment of $ 3.7 million.

Collaboration Agreements

The Company has entered into multiple collaborations, out-licenses and strategic alliances with third parties that typically involve payments to or from the Company, including up-front payments, payments for research and development services, option payments, milestone payments and royalty payments to or from the Company.

The terms and conditions as

well as the accounting analysis for the Company’s significant collaborations, out-licenses and strategic alliances are described in Note 9, “Collaboration Agreements” to the consolidated financial statements included in the Annual Report.

The terms and conditions as well as the accounting analysis for the Company’s significant collaborations, out-licenses and strategic alliances are described in Note 9, “Collaboration Agreements” to the consolidated financial statements included in the Annual Report.

There have been no other material changes to the terms and conditions, or the accounting conclusions, previously disclosed in the Annual Report.

Collaboration Revenue

As of June 30, 2025, the Company’s contract liabilities were primarily related to the Company’s collaboration with BMS.

The following table presents changes in the Company’s accounts receivable and contract liabilities for the six months ended June 30, 2025 (in thousands):

Balance at December 31, 2024 Additions Deductions Balance at June 30, 2025

As of September 30, 2025, the Company’s contract liabilities were primarily related to the Company’s collaboration with BMS.

The following table presents changes in the Company’s accounts receivable and contract liabilities for the nine months ended September 30, 2025 (in thousands):

Balance at December 31, 2024 Additions Deductions Balance at September 30, 2025

Accounts receivable $ 16,266 $ 9,821 $ ( 17,957 ) $ 8,130

1 unchanged sentence

Deferred revenue $ 60,425 $ — $ ( 6,221 ) $ 54,204

During the three and six months ended June 30, 2025 and 2024, the Company recognized the following collaboration revenue (in thousands):

Revenue recognized in the period from:

2025 June 30,

Three Months Ended Six Months Ended Three Months Ended Six Months Ended

During the three and nine months ended September 30, 2025 and 2024, the Company recognized the following collaboration revenue (in thousands):

September 30,

2025 September 30,

Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended

Amounts included in deferred revenue at the beginning of the period $ — $ 6,221 $ — $ —

Performance obligations satisfied in previous periods $ — $ — $ $ — $ —

Amendment to BMS Collaboration Agreement

2 unchanged sentences

The Company’s accounting assessment for the 2024 Amendment is described in Note 9, “Collaboration Agreements,” to the consolidated financial statements included in the Annual Report.

As of June 30, 2025, there was no short-term deferred revenue and $ 50.2 million of long-term deferred revenue in the accompanying consolidated balance sheets.

During the three months ended September 30, 2025, the Company recognized $ 7.5 million of revenue related to a milestone achieved in the third quarter of 2025 from its collaboration with BMS, none of which was previously deferred.

The Company did not recognize any revenue related to its collaboration with BMS during the three months ended September 30, 2024.

As of September 30, 2025, there was no short-term deferred revenue and $ 50.2 million of long-term deferred revenue in the accompanying consolidated balance sheets.

Stock-based Compensation

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

3 unchanged sentences

Restricted Stock Unit Awards

The following is a summary of restricted stock unit awards activity for the six months ended June 30, 2025:

The following is a summary of restricted stock unit awards activity for the nine months ended September 30, 2025:

Shares Weighted Average Grant Date Fair Value Per Share

3 unchanged sentences

Forfeited ( 1,239,630 ) $ 9.99

Unvested restricted stock unit awards as of June 30, 2025 923,539 $ 9.15

There were no restricted stock units that contained performance-based vesting provisions granted in the six months ended June 30, 2025.

There was no expense related to the vesting of performance-based restricted stock units for the three and six months ended June 30, 2025 and $ 0.1 million and $ 3.5 million of expense related to the vesting of performance-based restricted stock units for the three and six months ended June 30, 2024, respectively.

As of June 30, 2025, total unrecognized compensation expense related to unvested restricted stock unit awards was $ 6.4 million, which the Company expects to recognize over a remaining weighted-average period of 1.99 years.

Unvested restricted stock unit awards as of September 30, 2025 652,267 $ 9.12

There were no restricted stock units that contained performance-based vesting provisions granted in the nine months ended September 30, 2025.

There was no expense related to the vesting of performance-based restricted stock units for the three and nine months ended September 30, 2025.

There was no expense related to the vesting of performance-based restricted stock units for the three months ended September 30, 2024.

Expense related to the vesting of performance-based restricted stock units was $ 3.5 million for the nine months ended September 30, 2024.

As of September 30, 2025, total unrecognized compensation expense related to unvested restricted stock unit awards was $ 3.2 million, which the Company expects to recognize over a remaining weighted-average period of 1.65 years.

Stock Options

The following is a summary of stock option activity for the six months ended June 30, 2025:

The following is a summary of stock option activity for the nine months ended September 30, 2025:

Shares Weighted Average

5 unchanged sentences

Cancelled ( 4,395,961 ) $ 9.91

Outstanding at June 30, 2025 10,445,817 $ 8.54 7.71 $ 2,505

Exercisable at June 30, 2025 4,026,696 $ 16.59 5.23 $ 120

As of June 30, 2025, total unrecognized compensation expense related to stock options was $ 15.1 million, which the Company expects to recognize over a remaining weighted-average period of 2.7 years.

Outstanding at September 30, 2025 8,980,711 $ 8.81 7.44 $ 7,553

Exercisable at September 30, 2025 3,941,705 $ 15.73 5.41 $ 818

As of September 30, 2025, total unrecognized compensation expense related to stock options was $ 11.3 million, which the Company expects to recognize over a remaining weighted-average period of 2.5 years.

Net Loss per Share

3 unchanged sentences

Contingently issuable shares are included in diluted loss per share based on the number of shares, if any, that would be issuable under the terms of the arrangement if the end of the reporting period was the end of the contingency period, if the results are dilutive.

For purposes of the diluted net loss per share calculation, unvested restricted stock unit awards and outstanding stock options are considered to be common stock equivalents, but they were excluded from the Company’s calculation of diluted net loss per share allocable to common stockholders because their inclusion would have been anti-dilutive.

diluted net loss per share allocable to common stockholders because their inclusion would have been anti-dilutive.

Therefore, basic and diluted net loss per share applicable to common stockholders were the same for all periods presented.

The following common stock equivalents were excluded from the calculation of diluted net loss per share allocable to common stockholders because their inclusion would have been anti-dilutive:

September 30,

Unvested restricted stock unit awards 652,267 2,540,456

8 unchanged sentences

The Company estimates the effective interest rate used to record non-cash interest expense under the Purchase and Sale Agreement based on the estimate of future revenue payments to be made to DRI.

As of June 30, 2025, the estimated effective interest rate under the agreement was 15.1 %.

As of September 30, 2025, the estimated effective interest rate under the agreement was 15.0 %.

Over the life of the arrangement, the actual effective interest rate will be affected by the amount and timing of the payments made to DRI and changes in the Company's revenue forecasts.

At each reporting date, the Company will reassess its estimate of total future payments to be made to DRI, and prospectively adjust the effective interest rate and amortization of the liability as necessary.

The following table presents the changes in the liability related to the sale of future revenues under the Purchase and Sale Agreement with DRI as of June 30, 2025 (in thousands):

June 30, 2025

The following table presents the changes in the liability related to the sale of future revenues under the Purchase and Sale Agreement with DRI as of September 30, 2025 (in thousands):

September 30, 2025

Deferred royalty obligation related to the sale of future revenues, net as of December 31, 2024

2 unchanged sentences

Amortization of issuance costs 181

Deferred royalty obligation related to the sale of future revenues, net as of June 30, 2025

Deferred royalty obligation related to the sale of future revenues, net as of September 30, 2025

Restructuring and Impairment Charges

On December 11, 2024, the Company’s board of directors approved the discontinuation of the clinical development of the Company's reni-cel program to treat sickle cell disease and transfusion-dependent beta thalassemia (the “Discontinuation”).

As a result of the Discontinuation, the Company has ceased activities towards the filing of a biologic license application and potential commercialization of reni-cel.

In connection with the Discontinuation, the Board also approved a reduction in the Company’s employee workforce by approximately 180 positions, or approximately 65 % (the “Reduction”).

Since the Discontinuation and Reduction started in December 2024 through the six months ended June 30, 2025, the Company has incurred the following restructuring and impairment charges (in thousands):

Employee termination benefits $ 14,797

Costs for ongoing contracts and terminated contracts 54,098

Acceleration of expense for change in useful life estimate and lease termination 6,548

Impairment charges 3,724

Total restructuring and impairment charges $ 79,167

The Company incurred the following restructuring and impairment charges for the three and six months ended June 30, 2025, which are recorded in the consolidated statements of operations (in thousands):

On December 11, 2024, the Company’s board of directors approved the discontinuation of the clinical development of the Company's renizgamglogene autogedtemcel (“reni-cel”) program to treat sickle cell disease and transfusion-dependent beta thalassemia (the “Discontinuation”).

As a result of the Discontinuation, the Company ceased activities towards the filing of a biologic license application and potential commercialization of reni-cel.

In connection with the Discontinuation, the Company’s board of directors also approved a reduction in the Company’s employee workforce by approximately 180 positions, or approximately 65 % (the “Reduction”).

The Company incurred the following restructuring and impairment charges in connection with the Discontinuation and Reduction for the three and nine months ended September 30, 2025, which are recorded in the consolidated statements of operations (in thousands):

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

Employee termination benefits $ — $ 4,322

7 unchanged sentences

For employees who were notified of their termination in December 2024 and had no requirements to provide future services or were subject to the Benefit Plan, the Company recognized the liability for the termination benefits in full at fair value in the fourth quarter of 2024.

For employees who are required to

render services beyond a minimum retention period to receive their one-time termination benefits or salary continuation, the Company is recognizing the termination benefits ratably over their future service periods.

The service periods began in December 2024 and all will end at various dates throughout 2025.

The following table shows the liability related to employee termination benefits as of June 30, 2025 (in thousands):

For employees who are required to render services beyond a minimum retention period to receive their one-time termination benefits or salary continuation, the Company is recognizing the termination benefits ratably over their future service periods.

The service periods began in December 2024 and were completed by September 30, 2025.

The following table shows the liability related to employee termination benefits as of September 30, 2025 (in thousands):

Employee Termination Benefits

2 unchanged sentences

Amounts paid or otherwise settled during the period ( 11,015 )

Accrued employee termination benefits as of June 30, 2025

Accrued employee termination benefits as of September 30, 2025

In total, the Company expects that it will incur approximately $ 15.0 million of employee termination benefit expense to implement the Reduction.

2 unchanged sentences

In accordance with ASC 420, the Company recognized these unavoidable contract costs when incurred for terminated contracts or at the cease-use date, as it relates to contract costs that continue to be incurred.

The following table shows the liability related to costs for ongoing contracts and contract termination costs as of June 30, 2025 (in thousands):

The following table shows the liability related to costs for ongoing contracts and contract termination costs as of September 30, 2025 (in thousands):

Contract Costs

2 unchanged sentences

Amounts paid or otherwise settled during the period ( 20,809 )

Accrued contract costs as of June 30, 2025

At June 30, 2025, $4.0 million of accrued contract costs was included in Other non-current liabilities on the Consolidated Balance Sheet.

Accrued contract costs as of September 30, 2025

At September 30, 2025, $ 4.2 million of accrued contract costs was included in Other non-current liabilities on the Condensed Consolidated Balance Sheet.

These costs are subject to significant estimation based on the Company's expectation of the costs that will continue to be incurred on the contracts, as well as negotiation of contract changes and terminations with its vendors.

Changes in this estimate will be made in the period the information is known and could be material.

Changes in this estimate will be made in the period the information is knowable and could be material.

Impairment and Accelerated Depreciation Charges

5 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

Accelerated depreciation related to leasehold improvements and software $ — $ 1,790

11 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

19 unchanged sentences

Other (expense) income, net:

Other (expense) income, net ( 1,758 ) ( 1 ) ( 2,183 ) 5

Interest related to sale of future revenues ( 2,020 ) — ( 4,236 ) —

Interest expense related to sale of future revenues ( 2,399 ) — ( 6,635 ) —

Interest income, net 1,831 3,530 6,634 12,861

Other expense, net ( 1 ) ( 5 ) ( 2,184 ) —

Total other (expense) income, net ( 569 ) 3,525 ( 2,185 ) 12,861

Net loss $ ( 25,117 ) $ ( 62,141 ) $ ( 154,440 ) $ ( 191,698 )

1 The three and six months ended June 30, 2025 and 2024 include $ 24,830 and $ 64,075 and $- and $- of restructuring and impairment charges, respectively.

2 The three and six months ended June 30, 2025 and 2024 include $ 1,251 and $ 2,860 and $- and $- of restructuring and impairment charges, respectively.

1 The nine months ended September 30, 2025 include $ 64,075 of restructuring and impairment charges.

The three months ended September 30, 2025 and the three and nine months ended September 30, 2024 include no restructuring and impairment charges, respectively.

2 Other expenses primarily consists of impairment charges, consultant fees and office expenses.

3 The nine months ended September 30, 2025 include $ 2,860 of restructuring and impairment charges.

The three months ended September 30, 2025 and the three and nine months ended September 30, 2024 include no restructuring and impairment charges, respectively.

4 Facility and other expenses primarily consists of rent expense, insurance premiums, depreciation expense, software licenses and office expenses.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements