Maze Therapeutics, Inc. 10-Q

Item 1. Financial Statements (Unaudited) Maze Therapeutics, Inc. Condensed Bal ance Sheets (Unaudited) (In thousands, except share and per share data) September 30, December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 316,773 $ 196,812 Marketable securities 67,162 — Prepaid expenses and other current assets 7,367 4,859 Total current assets 391,302 201,671 Property and equipment, net 5,538 6,668 Restricted cash 1,089 1,088 Operating lease right-of-use asset 20,920 23,250 Other assets 3,209 7,865 Total assets $ 422,058 $ 240,542 Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) Current liabilities: Accounts payable $ 2,918 $ 1,939 Accrued expenses and other current liabilities 14,430 14,102 Operating lease liabilities, current 4,764 4,632 Total current liabilities 22,112 20,673 Operating lease liabilities, net of current portion 19,419 21,996 Other liabilities, non-current 1,091 969 Total liabilities 42,622 43,638 Commitments and contingencies (Note 9) Redeemable convertible preferred stock, $ 0.001 par value; no shares authorized, issued and outstanding as of September 30, 2025; 298,205,027 shares authorized and 297,205,041 shares issued and outstanding as of December 31, 2024; aggregate liquidation preference of $ 502,390 as of December 31, 2024 — 508,087 Stockholders’ equity (deficit): Preferred stock, $ 0.001 par value; 10,000,000 and no shares authorized as of September 30, 2025 and December 31, 2024, respectively; no shares issued and outstanding as of September 30, 2025 and December 31, 2024 — — Common stock, $ 0.001 par value; 500,000,000 and 410,000,000 shares authorized as of September 30, 2025 and December 31, 2024, respectively; 48,076,885 and 2,446,864 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively; 10,372 shares subject to repurchase as of September 30, 2025 and December 31, 2024 48 2 Additional paid-in-capital 834,298 47,242 Accumulated other comprehensive income 69 — Accumulated deficit ( 454,979 ) ( 358,427 ) Total stockholders’ equity (deficit) 379,436 ( 311,183 ) Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit) $ 422,058 $ 240,542 See accompanying notes to these financial statements. 1 Maze Therapeutics, Inc. Condensed Statements of Opera tions and Comprehensive (Loss) Income (Unaudited) (In thousands, except share and per share data) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 License revenue $ — $ 2,500 $ — $ 167,500 Operating expenses: Research and development 25,190 19,857 80,878 61,280 General and administrative 7,775 6,872 23,962 18,908 Total operating expenses 32,965 26,729 104,840 80,188 (Loss) income from operations ( 32,965 ) ( 24,229 ) ( 104,840 ) 87,312 Interest and other income, net 2,878 1,846 8,288 3,138 Change in fair value of convertible promissory notes — ( 2,648 ) — ( 7,193 ) (Loss) income before income tax benefit (expense) ( 30,087 ) ( 25,031 ) ( 96,552 ) 83,257 Income tax benefit (expense) — 279 — ( 1,447 ) Net (loss) income $ ( 30,087 ) $ ( 24,752 ) $ ( 96,552 ) $ 81,810 Allocation of undistributed earnings to participating securities (see Note 13) — — — ( 73,499 ) Net (loss) income attributable to common stockholders, basic (see Note 13) $ ( 30,087 ) $ ( 24,752 ) $ ( 96,552 ) $ 8,311 Net (loss) income attributable to common stockholders, diluted (see Note 13) $ ( 30,087 ) $ ( 24,752 ) $ ( 96,552 ) $ 9,031 Net (loss) income per share attributable to common stockholders (see Note 13): Basic $ ( 0.66 ) $ ( 10.25 ) $ ( 2.45 ) $ 3.49 Diluted $ ( 0.66 ) $ ( 10.25 ) $ ( 2.45 ) $ 2.67 Weighted-average shares of common stock outstanding used to compute net (loss) income per share attributable to common stockholders (see Note 13): Basic 45,779,577 2,415,897 39,464,634 2,384,117 Diluted 45,779,577 2,415,897 39,464,634 3,387,166 Comprehensive income: Net (loss) income $ ( 30,087 ) $ ( 24,752 ) $ ( 96,552 ) $ 81,810 Other comprehensive income: Net unrealized gain on marketable securities 69 — 69 — Comprehensive (loss) income $ ( 30,018 ) $ ( 24,752 ) $ ( 96,483 ) $ 81,810 See accompanying notes to these financial statements. 2 Maze Therapeutics, Inc. Condensed Statement s of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) (Unaudited) (In thousands, except share data) Redeemable convertible Additional Accumulated Total preferred stock Common stock paid-in other comprehensive Accumulated stockholders’ Shares Amount Shares Amount capital income deficit deficit Balance as of December 31, 2023 203,415,024 $ 383,902 2,385,212 $ 2 $ 21,836 $ — $ ( 395,686 ) $ ( 373,848 ) Exercise of stock options — — 30,083 — 365 — — 365 Issuance of restricted stock — — 10 — — — — — Vesting of restricted stock and early exercised stock options — — — — 11 — — 11 Stock-based compensation expense — — — — 2,310 — — 2,310 Net loss and comprehensive loss — — — — — — ( 32,494 ) ( 32,494 ) Balance as of March 31, 2024 203,415,024 $ 383,902 2,415,305 $ 2 $ 24,522 $ — $ ( 428,180 ) $ ( 403,656 ) Exercise of stock options — — 8,555 — 79 — — 79 Issuance of restricted stock — — 2 — — — — — Vesting of restricted stock and early exercised stock options — — — — 6 — — 6 Stock-based compensation expense — — — — 2,142 — — 2,142 Net income and comprehensive income — — — — — — 139,056 139,056 Balance as of June 30, 2024 203,415,024 $ 383,902 2,423,862 $ 2 $ 26,749 $ — $ ( 289,124 ) $ ( 262,373 ) Exercise of stock options — — 29,256 — 245 — — 245 Issuance of restricted stock — — 2 — — — — — Repurchase of early exercised stock options — — ( 12,965 ) — — — — — Vesting of restricted stock and early exercised stock options — — — — 5 — — 5 Stock-based compensation expense — — — — 2,343 — — 2,343 Net income and comprehensive income — — — — — — ( 24,752 ) ( 24,752 ) Balance as of September 30, 2024 203,415,024 $ 383,902 2,440,155 $ 2 $ 29,342 $ — $ ( 313,876 ) $ ( 284,532 ) Redeemable convertible Additional Accumulated Total preferred stock Common stock paid-in other comprehensive Accumulated stockholders’ Shares Amount Shares Amount capital income deficit equity (deficit) Balance as of December 31, 2024 297,205,041 $ 508,087 2,446,864 $ 2 $ 47,242 $ — $ ( 358,427 ) $ ( 311,183 ) Issuance of common stock in connection with initial public offering, net of issuance costs of $ 15,402 — — 8,750,000 9 124,589 — — 124,598 Conversion of redeemable convertible preferred stock to common stock upon initial public offering ( 297,205,041 ) ( 508,087 ) 32,586,823 33 508,054 — — 508,087 Exercise of stock options — — 13,479 — 126 — — 126 Stock-based compensation expense — — — — 3,226 — — 3,226 Net loss and comprehensive loss — — — — — — ( 32,786 ) ( 32,786 ) Balance as of March 31, 2025 — $ — 43,797,166 $ 44 $ 683,237 $ — $ ( 391,213 ) $ 292,068 Issuance of restricted stock — — 2 — — — — — Issuance of common stock under the 2025 Employee Stock Purchase Plan — — 53,716 — 612 — — 612 Stock-based compensation expense — — — — 3,237 — — 3,237 Net loss and comprehensive loss — — — — — — ( 33,679 ) ( 33,679 ) Balance as of June 30, 2025 — $ — 43,850,884 $ 44 $ 687,086 $ — $ ( 424,892 ) $ 262,238 Issuance of common stock and pre-funded warrants to purchase common stock in connection with private placement, net of issuance costs of $ 8,657 — — 4,000,002 4 141,339 — — 141,343 Exercise of stock options — — 225,999 — 2,009 — — 2,009 Stock-based compensation expense — — — — 3,864 — — 3,864 Net unrealized gain on marketable securities — — — — — 69 — 69 Net loss — — — — — — ( 30,087 ) ( 30,087 ) Balance as of September 30, 2025 — $ — 48,076,885 $ 48 $ 834,298 $ 69 $ ( 454,979 ) $ 379,436 3 See accompanying notes to these financial statements. 4 Maze Therapeutics, Inc. Condensed Statements of C ash Flows (Unaudited) (In thousands) Nine Months Ended September 30, 2025 2024 Operating activities Net (loss) income $ ( 96,552 ) $ 81,810 Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation 1,904 2,592 Stock-based compensation expense 10,327 6,795 Non-cash lease expense 2,330 2,149 Accretion of discounts on marketable securities ( 278 ) — Change in fair value of convertible promissory notes — 7,193 Other items, net 21 421 Changes in operating assets and liabilities: Prepaid expenses and other current assets ( 2,508 ) 603 Other assets 374 ( 1,965 ) Accounts payable 1,098 ( 1,025 ) Accrued expenses and other liabilities 1,519 1,964 Operating lease liabilities ( 2,445 ) ( 2,131 ) Net cash (used in) provided by operating activities ( 84,210 ) 98,406 Investing activities Purchases of marketable securities ( 66,815 ) — Purchases of property and equipment ( 760 ) ( 542 ) Net cash used in investing activities ( 67,575 ) ( 542 ) Financing activities Proceeds from initial public offering, net of offering costs paid 127,752 — Proceeds from private placement, net of offering costs paid 141,748 — Proceeds from exercise of stock option awards, net of repurchases 2,135 670 Proceeds from issuance of common stock under the 2025 Employee Stock Purchase Plan 612 — Proceeds from issuance of convertible promissory notes, net of issuance costs — 24,475 Payment of deferred offering costs — ( 2,560 ) Payment of success fee derivative ( 500 ) — Net cash provided by financing activities 271,747 22,585 Net increase in cash, cash equivalents, and restricted cash 119,962 120,449 Cash, cash equivalents, and restricted cash at beginning of the period 197,900 30,246 Cash, cash equivalents, and restricted cash at end of the period $ 317,862 $ 150,695 Supplemental disclosure of non-cash investing and financing activities Purchases of property and equipment recorded in accounts payable and accrued expenses $ 34 $ 208 Vesting of restricted stock and stock options subject to repurchase $ — $ 22 Offering costs recorded in accounts payable and accrued expenses $ 405 $ 720 Reconciliation to cash, cash equivalents and restricted cash: Cash and cash equivalents $ 316,773 $ 149,607 Restricted cash 1,089 1,088 Total cash, cash equivalents and restricted cash $ 317,862 $ 150,695 Supplemental disclosure of cash flow information: Income taxes paid $ — $ 1,230 See accompanying notes to these financial statements. 5 Maze Therapeutics, Inc. Notes to Condensed Fi nancial Statements (Unaudited) 1. Organization and principal activities Description of business Maze Therapeutics, Inc., or the Company, is a clinical-stage biopharmaceutical company harnessing the power of human genetics and variant functionalization with its Maze Compass platform to develop novel, small molecule precision medicines for patients living with kidney and metabolic diseases, including obesity. The Company was incorporated in Delaware in August 2017 and is located in South San Francisco, California. Reverse stock split On January 22, 2025, the Company’s board of directors approved a 1-for-9.641 reverse stock split of its issued and outstanding shares of common stock, which was effected on January 24, 2025. Upon the effectiveness of the reverse stock split, (i) all shares of outstanding common stock were adjusted; (ii) the conversion ratio of the convertible preferred stock was adjusted; (iii) the number of shares of common stock for which each outstanding option to purchase common stock is exercisable were adjusted; and (iv) the exercise price of each outstanding option to purchase common stock was adjusted. All of the outstanding common stock share numbers (including shares of common stock subject to the Company’s options and as converted for the outstanding convertible preferred stock), share prices, exercise prices and per share amounts contained in the condensed financial statements have been retroactively adjusted in the condensed financial statements to reflect this reverse stock split for all periods presented. The par value per share and the authorized number of shares of common stock and preferred stock were not adjusted as a result of the reverse stock split. Initial public offering In February 2025, the Company completed its initial public offering, pursuant to which it issued and sold an aggregate of 8,750,000 shares of its common stock at an initial public offering price of $ 16.00 per share, resulting in net proceeds of approximately $ 127.8 million, after deducting underwriting discounts, commissions and other offering expenses paid by the Company in 2025. Immediately prior to the closing of the initial public offering, the Company’s outstanding convertible preferred stock automatically converted into 32,586,823 shares of common stock. Following the closing of the initial public offering, no shares of convertible preferred stock were authorized or outstanding. In connection with the completion of the initial public offering on February 3, 2025, the Company’s certificate of incorporation was amended and restated to (i) authorize 500,000,000 shares of common stock, par value $ 0.001 per share and (ii) authorize 10,000,000 shares of undesignated preferred stock, par value $ 0.001 per share, each of which may be issued from time to time by the Company’s board of directors in one or more series. The amended and restated certificate of incorporation eliminated all references to the previously existing series of convertible preferred stock. Private placement On September 10, 2025, the Company entered into a securities purchase agreement with certain investors, pursuant to which the Company issued and sold in a private placement, or the Private Placement, an aggregate of 4,000,002 shares of its common stock at a purchase price of $ 16.25 per share and pre-funded warrants to purchase up to an aggregate of 5,231,090 shares of its common stock at a purchase price of $ 16.249 per pre-funded warrant, or the Pre-Funded Warrants, resulting in net proceeds of approximately $ 141.3 million, after deducting placement fees and other offering expenses payable by the Company of approximately $ 8.7 million. Each Pre-Funded Warrant has an exercise price of $ 0.001 per share, is immediately exercisable and does not expire. As of September 30, 2025 , no ne of the Pre-Funded Warrants have been exercised. Liquidity and capital resources The Company has incurred significant losses and negative cash flows from operations since its inception, except for the net income and cash provided by operations during the year ended December 31, 2024, and expects to incur significant and increasing losses as a result of its continued research and development activities. As of September 30, 2025, the Company had an accumulated deficit of $ 455.0 million . Historically, the Company has financed its operations primarily through issuances of its equity, issuances of convertible promissory notes and license agreements. The Company may seek to raise capital through debt financings, equity financings, license agreements, or other sources of financing. There can be no assurance that such financing will be available or will be at terms acceptable to the Company. 6 As of September 30, 2025, the Company had cash, cash equivalents and marketable securities of $ 383.9 million . The Company believes that its cash, cash equivalents and marketable securities as of September 30, 2025 will be sufficient to fund the Company’s operations for at least one year from the issuance date of these unaudited condensed financial statements. 2. Summary of significant accounting policies Basis of presentation The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, for interim financial information and the instructions to Form 10-Q and Article 10 of the Securities and Exchange Commission, or SEC, Regulation S-X for interim financial information. These unaudited condensed financial statements and notes should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on March 31, 2025, or the 2024 10-K. The condensed balance sheet as of December 31, 2024 was derived from the audited annual financial statements as of and for the period then ended. Certain information and footnote disclosures included in the Company’s annual financial statements have been condensed or omitted. The accompanying unaudited condensed financial statements reflect all adjustments that, in the opinion of management, are necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented. All such adjustments are of a normal recurring nature except for the impacts of adopting new accounting standards, if any, discussed below. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. During the nine months ended September 30, 2025, there were no significant changes to the Company’s significant accounting policies as described in the Company’s audited financial statements as of and for the year ended December 31, 2024 , as included in the 2024 10-K. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying notes. The Company bases its estimates on historical experience and market-specific or other relevant assumptions that it believes are reasonable under the circumstances. Assets and liabilities reported in the Company’s condensed balance sheet and expenses reported are affected by estimates and assumptions, which are used for, but are not limited to, measuring and recognizing revenue, and determining the fair value of assets and liabilities, including the Company’ s convertible promissory notes, common stock valuation, income tax uncertainties, measurement of stock-based compensation expense, and certain accruals. Actual results could differ from such estimates or assumptions. Segment reporting The Company operates and manages its business as one reportable and operating segment, which is the business of harnessing its understanding of human genetics and variant functionalization to develop small molecule precision medicines. The Company’s chief executive officer , who is the chief operating decision maker, or CODM, reviews financial information on an aggregate basis for allocating resources and evaluating financial performance. The CODM, in alignment with the Company’ s overall corporate strategy and goals, analyzes a variety of data to guide segment resource allocation, including program and portfolio scientific data, probability of regulatory and commercial success, and the competitive environment. The CODM also reviews certain financial results included in the segment (loss) income from operations which is reported on the condensed statements of operations and comprehensive (loss) income as total (loss) income from operations. The measure of segment assets is reported on the condensed balance sheets as total assets. 7 As of September 30, 2025 and December 31, 2024 , all of the Company’s property and equipment was maintained in the United States. No revenue was generated during the three and nine months ended September 30, 2025 . The Company generated revenue of $ 2.5 million and $ 167.5 million during the three and nine months ended September 30, 2024 , respectively. The following table presents selected financial information with respect to the Company’s single operating segment for the three and nine months ended September 30, 2025 and 2024 (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 License revenue $ — $ 2,500 $ — $ 167,500 Research and development expenses Personnel-related costs 11,497 8,365 32,450 25,157 Clinical trial expenses 3,925 1,997 14,675 6,921 Outside research and development services 3,760 3,493 13,084 10,954 Manufacturing expenses 879 692 4,628 2,926 Facilities, depreciation and other expenses 5,129 5,310 16,041 15,322 Total research and development expenses 25,190 19,857 80,878 61,280 General and administrative expenses 7,775 6,872 23,962 18,908 Segment operating expenses 32,965 26,729 104,840 80,188 Segment (loss) income from operations ( 32,965 ) ( 24,229 ) ( 104,840 ) 87,312 Segment interest and other income, net 2,878 1,846 8,288 3,138 Change in fair value of convertible promissory notes — ( 2,648 ) — ( 7,193 ) Segment (loss) income before income taxes $ ( 30,087 ) $ ( 25,031 ) $ ( 96,552 ) $ 83,257 Fair value measurement Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or an exit price, in the principal or most advantageous market for that asset or liability in an orderly transaction between market participants on the measurement date, and establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. The Company determined the fair value of financial assets and liabilities using the fair value hierarchy that describes three levels of inputs that may be used to measure fair value, as follows: • Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets; • Level 2—Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3—Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. For certain financial instruments, including cash and accounts payable, as well as certain accrued liabilities, the recorded amount approximates estimated fair value due to their relatively short maturity period. Cash, cash equivalents and restricted cash The Company considers all highly liquid financial instruments with original maturities of 90 days or less at the date of purchase to be cash equivalents. Restricted cash is comprised of cash that is restricted as to withdrawal or use under the terms of certain contractual agreements. Restricted cash as of September 30, 2025 and December 31, 2024 included $ 1.1 million as collateral for a letter of credit related to the Company’s headquarters building lease in South San Francisco, California. Restricted cash is classified as a noncurrent asset on the balance sheet. As of September 30, 2025 and December 31, 2024 , restricted cash consisted of money market funds. 8 Marketable securities The Company generally invests its excess cash in money market funds and investment grade short- to intermediate-term fixed income securities. Such investments are included in cash and cash equivalents, short-term marketable securities or long-term marketable securities on the condensed balance sheets, are considered available-for-sale, and are reported at fair value with net unrealized gains and losses included as a component of stockholders’ equity. The Company classifies investments in securities with original maturities over 90 days and remaining maturities of less than one year as short-term investments and investments in securities with remaining maturities of over one year as long-term investments. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity, which is included in interest and other income, net in the condensed statements of operations and comprehensive (loss) income. Realized gains and losses and declines in value determined to be due to credit losses on marketable securities, if any, are included in interest and other income, net. The Company periodically evaluates the need for an allowance for credit losses. This evaluation includes consideration of several qualitative and quantitative factors, including whether it has plans to sell the security, whether it is more likely than not it will be required to sell any marketable securities before recovery of its amortized cost basis, whether it has the ability and intent to hold the security to maturity and the portion of any unrealized loss that is the result of a credit loss. Factors considered in making these evaluations include quoted market prices, recent financial results and operating trends, implied values from any recent transactions or offers of investee securities, credit quality of debt instrument issuers, expected cash flows from securities, other publicly available information that may affect the value of the marketable security, duration and severity of the decline in value and the Company's strategy and intentions for holding the marketable security. The Company excludes the applicable accrued interest from both the fair value and amortized cost basis of marketable securities for purposes of identifying and measuring an impairment. Accrued interest receivable on marketable securities is recorded within prepaid expenses and other current assets on the condensed balance sheets. The Company’s accounting policy is to not measure an allowance for credit loss for accrued interest receivable and to write-off any uncollectible accrued interest receivable as a reversal of interest income in a timely manner, which is considered to be in the period in which it is determined the accrued interest will not be collected. Deferred offering costs The Company defers offering costs consisting of legal, accounting and other fees and costs directly associated with in-process equity financings until such financings are consummated. After consummation of the equity financing, these costs are classified in stockholders’ equity (deficit) as a reduction of the additional paid-in capital recorded as a result of the financing. If the in-process financing is abandoned, the deferred offering costs are expensed immediately as a charge to operating expenses in the condensed statements of operations and comprehensive (loss) income. As of December 31, 2024 , approximately $ 4.3 million of deferred offering costs related to the Company’s initial public offering were recorded within other assets in the accompanying condensed balance sheets and upon completion of the Company’s initial public offering in February 2025, the deferred offering costs were recorded as a reduction to the additional paid-in capital within stockholders’ equity (deficit) recorded in the accompanying condensed balance sheets as of September 30, 2025 . Revenue recognition The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers , or ASC 606. To determine the appropriate amount and timing of revenue to be recognized under this guidance, the Company performs the following steps: (i) identifies the contract(s) with a customer; (ii) identifies the performance obligations in the contract; (iii) determines the transaction price, including variable consideration, if any; (iv) allocates the transaction price to the performance obligations in the contract; and (v) recognizes revenue when (or as) the entity satisfies a performance obligation. The Company has entered into arrangements involving the license of intellectual property. Analyzing the license arrangements to identify performance obligations requires the use of judgment. In arrangements that include the license of intellectual property and other promised services, the Company first identifies if the licenses are distinct from the other promises in the arrangement. For the license of intellectual property that is distinct, the Company recognizes revenue from consideration allocated to the license when the license is transferred and the customer is able to benefit from the license. If the license is not distinct, the license is combined with other services into a single performance obligation and the Company recognizes revenue when (or as) the performance obligation is satisfied. Factors that are considered in evaluating whether a license is distinct from other promised services include, for example, whether the counterparty can benefit from the license without the promised service on its own or with other readily available resources and whether the promised service is expected to significantly modify or customize the intellectual property. Promised goods and services that are not material in the context of the contract are not considered performance obligations. 9 The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. Non-refundable upfront payments are considered fixed consideration and included in the transaction price. If an arrangement includes development, regulatory or commercial milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. The Company includes the amount of estimated variable consideration, including milestones, in the transaction price to the extent that it is probable that a significant reversal of cumulative revenue recognized will not occur. Milestone payments that are not within the Company’s control or the licensee’s control, such as regulatory approvals, are generally not considered probable of being achieved until those approvals are received. At the end of each reporting period, the Company re-evaluates the probability of achievement of the milestones and any related constraint, and, if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which will affect revenue in the period of adjustment. For arrangements with licenses of intellectual property that include sales-based royalties, including milestone payments based on the level of sales, and if the license is deemed to be the predominant item to which the royalties relate, the Company recognizes royalty revenue and sales-based milestones at the later of (i) when the related sales occur, or (ii) when the performance obligation to which the royalty has been allocated has been satisfied. Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue in the Company’s balance sheets. If the related performance obligation is expected to be satisfied within the next twelve months this will be classified in current liabilities. Amounts recognized as revenue prior to receipt are recorded as contract assets in the Company’s balance sheets. If the Company expects to have an unconditional right to receive consideration in the next twelve months, this will be classified in current assets. Convertible promissory notes From December 2023 through April 2024, the Company issued a total of $ 40.7 million aggregate principal amount of convertible promissory notes, which contained automatic conversion features triggered upon a qualified preferred stock financing or a qualified public offering. As permitted under Accounting Standards Codification 825, Financial Instruments , or ASC 825, the Company elected the fair value option for recognition of the convertible promissory notes. In accordance with ASC 825, the Company recorded these convertible promissory notes at fair value and remeasured the convertible promissory notes at fair value each reporting period with changes in fair value recorded in the condensed statements of operations and comprehensive (loss) income. As a result of applying the fair value option, direct costs and fees related to the convertible promissory notes were recognized in earnings as incurred and not deferred. The impact of interest expense on the convertible promissory notes is included within the changes in fair value. The Company recorded a loss of $ 2.6 million and $ 7.2 million in the condensed statements of operations and comprehensive (loss) income for the three and nine months ended September 30, 2024 , respectively, reflecting the change in the fair value of the convertible promissory notes. In connection with the private placement of Series D convertible preferred stock the Company completed in November 2024, which was a qualified preferred stock financing pursuant to the terms of the convertible promissory notes, the outstanding convertible promissory notes automatically converted into shares of Series D-1 convertible preferred stock, and no convertible promissory notes were outstanding as of December 31, 2024. Accordingly, no change in fair value of convertible promissory notes was recorded in the condensed statements of operations and comprehensive (loss) income for the three and nine months ended September 30, 2025 . Redeemable convertible preferred stock The Company recorded convertible preferred stock at fair value on the dates of issuance, net of issuance costs. Upon the occurrence of certain events that were outside the Company’s control, including a deemed liquidation event, holders of the convertible preferred stock could cause redemption for cash. Therefore, redeemable convertible preferred stock was classified outside of stockholders’ equity (deficit) on the balance sheet as events triggering the redemption were not solely within the Company’s control. The carrying values of the redeemable convertible preferred stock were subject to adjustment to their redemption value if and when it became probable that the preferred stock would become redeemable. Net income (loss) per share Net income (loss) per share attributable to common stockholders is calculated using the two-class method required for companies with participating securities. The Company considered its convertible preferred stock to be participating securities as the holders were entitled to receive noncumulative dividends in the event that a dividend is paid on common stock. 10 Basic net income (loss) per share attributable to common stockholders is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period less common shares subject to vesting or forfeiture, without consideration for potentially dilutive securities. In September 2025, the Company completed the Private Placement, pursuant to which the Company issued the Pre-Funded Warrants to purchase 5,231,090 shares of its common stock. The Pre-Funded Warrants are exercisable immediately at an exercise price of $ 0.001 per share and do not expire. As of September 30, 2025, none of the Pre-Funded Warrants have been exercised. The Company included the Pre-Funded Warrants in the computation of basic net loss per share, as applicable, since their exercise price is negligible and they may be exercised at any time. See Note 6, Capital structure for further discussion of the Private Placement. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares and the number of common shares that would be issued assuming exercise and conversion of all potentially dilutive instruments. In calculating diluted net income (loss) per share, the Company applies the more dilutive of the two-class method or the if-converted method to the redeemable convertible preferred stock, applies the treasury stock method to equity awards, and applies the if-converted method to the convertible promissory notes, if dilutive. Distributed and undistributed earnings are allocated to participating securities based on their participation rights and are subtracted from net income in determining net income attributable to common stockholders for basic and diluted net income per share, only in periods of net income. Because the Company reported a net loss for the three and nine months ended September 30, 2025 , and the inclusion of the potentially dilutive securities would be antidilutive, diluted net loss per share is the same as basic net loss per share for the periods presented. New accounting pronouncements—Not yet adopted In December 2023, Financial Accounting Standards Board, or the FASB, issued ASU 2023-09, Improvements to Income Tax Disclosures , which will require incremental income tax disclosures on an annual basis for all public entities. The amendments require that public business entities disclose specific categories in the rate reconciliation and provide additional information for reconciling items meeting a quantitative threshold. The amendments also require disclosure of income taxes paid to be disaggregated by jurisdiction, and disclosure of income tax expense disaggregated by federal, state, and foreign. ASU 2023-09 is effective for annual reporting beginning with the fiscal year ending December 31, 2025. The Company is currently evaluating the incremental disclosures that will be required in its financial statements. In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures , which will require additional expense disclosures for all public entities. The amendments require that at each interim and annual reporting period, an entity will disclose certain disaggregated expenses included in each relevant expense caption, as well as the total amount of selling expenses and, in annual periods, an entity’s definition of selling expenses. ASU 2024-03 is effective for annual reporting periods beginning with the fiscal year ending December 31, 2027, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the incremental disclosures that will be required in its financial statements. 11 3. Fair value measurements The following tables summarize the types of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy. See Note 10, Loan and security agreement, for the Company’s methodology for measuring the fair value of the credit line success fee derivative. Fair value measurements (in thousands) Total Level 1 Level 2 Level 3 As of September 30, 2025 Assets Cash equivalents: Money market funds $ 181,250 $ 181,250 $ — $ — U.S. treasury securities 2,500 — 2,500 — U.S. government agency securities 2,488 — 2,488 — Marketable securities: U.S. treasury securities 54,753 — 54,753 — U.S. government agency securities 12,409 — 12,409 — Restricted cash 1,089 1,089 — — Total assets measured at fair value $ 254,489 $ 182,339 $ 72,150 $ — As of December 31, 2024 Assets Cash equivalents: Money market funds $ 40,777 $ 40,777 $ — $ — Restricted cash 1,088 1,088 — — Total assets measured at fair value $ 41,865 $ 41,865 $ — $ — Liabilities Credit line success fee derivative $ 500 $ — $ — $ 500 Total liabilities measured at fair value $ 500 $ — $ — $ 500 There were no transfers between Level 1, 2, or 3 during the three and nine months ended September 30, 2025 and 2024 . 4. Cash equivalents and marketable securities All marketable securities were considered available-for-sale as of September 30, 2025 . The Company did no t hold any investments in marketable securities as of December 31, 2024. On a recurring basis, the Company records its marketable securities at fair value using Level 1 or Level 2 inputs as discussed in Note 3, Fair value measurements. The amortized cost, gross unrealized holding gains, and fair value of the Company’s cash equivalents and marketable securities by major security type as of September 30, 2025 are summarized in the table below: September 30, 2025 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Aggregate Estimated Fair Value U.S. treasury securities $ 57,194 $ 59 $ — $ 57,253 U.S. government agency securities 14,887 10 — 14,897 Total $ 72,081 $ 69 $ — $ 72,150 Interest receivable as of September 30, 2025 and December 31, 2024 was $ 0.7 million and zero , respectively, and is recorded as a component of prepaid expenses and other current assets on the Company’s condensed balance sheets. As of September 30, 2025 , none of the Company's marketable securities were in an unrealized loss position. The Company has no t recognized an allowance for credit losses as of September 30, 2025. As of September 30, 2025 , all of the Company’s 12 marketable securities have a remaining contractual maturity of less than one year . 5. Balance sheet components Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following: As of September 30, As of December 31, 2025 2024 (in thousands) Accrued compensation expenses $ 8,186 $ 8,083 Accrued research and development expenses 5,065 2,934 Accrued professional expenses 1,120 2,467 Other accrued expenses and current liabilities 59 618 Total accrued expenses and other current liabilities $ 14,430 $ 14,102 6. Capital structure Common stock Common stockholders are entitled to dividends if and when declared by the board of directors of the Company, subject to the prior rights of holders of all classes of stock outstanding having priority rights as to dividends. The holder of each share of common stock is entitled to one vote. As of September 30, 2025 and December 31, 2024 , no dividends were declared. Common stock reserved for future issuance, on an as-converted basis, consisted of the following: As of September 30, As of December 31, 2025 2024 Series A redeemable convertible preferred stock — 10,889,434 Series B redeemable convertible preferred stock — 6,971,192 Series C redeemable convertible preferred stock — 4,997,963 Series D redeemable convertible preferred stock — 5,641,987 Series D-1 redeemable convertible preferred stock — 4,086,247 Shares reserved under 2025 Equity Incentive Plan and 2019 Equity Incentive Plan 4,825,869 831,177 Stock options, issued and outstanding 5,749,020 5,278,735 Pre-funded warrants, issued and outstanding 5,231,090 — Restricted stock units, issued and outstanding 594,825 — Shares reserved under 2025 Employee Stock Purchase Plan 396,284 — Total 16,797,088 38,696,735 Initial public offering In February 2025, the Company completed its initial public offering, pursuant to which it issued and sold an aggregate of 8,750,000 shares of its common stock at an initial public offering price of $ 16.00 per share, resulting in net proceeds of approximately $ 127.8 million, after deducting underwriting discounts, commissions and other offering expenses paid by the Company in 2025. In connection with the completion of the initial public offering, the Company’s certificate of incorporation was amended and restated to (i) authorize 500,000,000 shares of common stock, par value $ 0.001 per share and (ii) authorize 10,000,000 shares of undesignated preferred stock, par value $ 0.001 per share, each of which may be issued from time to time by the Company’s board of directors in one or more series. The amended and restated certificate of incorporation eliminated all references to the previously existing series of convertible preferred stock. 13 Private placement In September 2025, the Company completed the Private Placement, pursuant to which the Company issued and sold an aggregate of 4,000,002 shares of its common stock at a purchase price of $ 16.25 per share and the Pre-Funded Warrants to purchase up to an aggregate of 5,231,090 shares of its common stock at a purchase price of $ 16.249 per pre-funded warrant, resulting in net proceeds of approximately $ 141.3 million, after deducting placement fees and other offering expenses payable by the Company of approximately $ 8.7 million. The Pre-Funded Warrants are exercisable immediately at an exercise price of $ 0.001 per share each and do not expire. The Pre-Funded Warrants provide that each holder of the Pre-Funded Warrants does not have the right to exercise any portion of its Pre-Funded Warrants if such holder, together with its affiliates, would beneficially own in excess of 4.99 % or 9.99 %, at the holder’s election, of the number of shares of the Company's common stock outstanding immediately after giving effect to such exercise. As of September 30, 2025 , no ne of the Pre-Funded Warrants have been exercised. Upon the issuance of the Pre-Funded Warrants, the Company evaluated the warrant terms to determine the appropriate accounting and classification pursuant to Accounting Standards Codification 480, Distinguishing Liabilities from Equity , and Accounting Standards Codification 815, Derivatives and Hedging . Warrants are classified as liabilities when the warrant terms allow settlement of the warrant exercise in cash and classified as equity when the warrant terms only allow settlement in shares of common stock. The terms of the Pre-Funded Warrants include certain provisions related to fundamental transactions and a cashless exercise provision in the event registered shares are not available, and do not include any mandatory redemption provisions. Based on its evaluation, the Company concluded the Pre-Funded Warrants should be classified as equity with no subsequent remeasurement as long as such warrant continue to be classified as equity. Redeemable convertible preferred stock Immediately prior to the closing of the initial public offering in February 2025, the Company’s outstanding redeemable convertible preferred stock automatically converted into 32,586,823 shares of common stock. No shares of convertible preferred stock were authorized, issued and outstanding at September 30, 2025 . 7. Equity incentive plan and stock-based compensation expense 2025 Equity Incentive Plan The Company’s board of directors and stockholders approved the 2025 Equity Incentive Plan, or 2025 Plan, which became effective on January 29, 2025. The 2025 Plan replaced the 2019 Equity Incentive Plan, or 2019 Plan, and upon its effectiveness, the Company ceased granting awards under the 2019 Plan. The 2025 Plan allows the Company to make equity-based and cash-based incentive awards to its officers, employees, directors and consultants. The Company initially reserved 5,300,000 shares of its common stock under the 2025 Plan plus those shares of common stock previously reserved but unissued under the 2019 Plan. Any outstanding awards granted under the 2019 Plan will remain subject to the terms of the 2019 Plan and applicable award agreements. As of September 30, 2025 , there were an aggregated 5,749,020 options outstanding under the 2019 Plan and 2025 Plan and 594,825 unvested restricted stock units, or RSUs, outstanding under the 2025 Plan. 2025 Employee Stock Purchase Plan The Company’s board of directors and stockholders approved the 2025 Employee Stock Purchase Plan, or 2025 ESPP, which became effective on January 30, 2025. The number of shares initially available for issuance pursuant to the 2025 ESPP was 450,000 shares. During the nine months ended September 30, 2025 , 53,716 shares were issued under the 2025 ESPP. Stock-based compensation expense The following table summarizes the components of stock-based compensation expense recognized in the Company’s condensed statements of operations and comprehensive (loss) income during the three and nine months ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (in thousands) (in thousands) Research and development $ 2,428 $ 1,230 $ 6,284 $ 3,905 General and administrative 1,436 1,113 4,043 2,890 Total stock-based compensation expense $ 3,864 $ 2,343 $ 10,327 $ 6,795 14 As of September 30, 2025 , there was $ 30.6 million of total unrecognized compensation cost related to unvested options for which the cost is expected to be recognized over a weighted-average period of 2.72 years. As of September 30, 2025 , there was $ 1.7 million unrecognized share-based compensation cost related to the 2025 ESPP, which is expected to be recognized over a weighted-average period of 1.19 years. Restricted stock units In September 2025, the Company issued 594,825 RSUs under the 2025 Plan at a grant date fair value of $ 23.67 per share. These RSUs vest in equal annual installments over two years, subject to the holder's continued employment with, or services to, the Company on each vesting date. Each RSU represents the right to receive one share of the Company’s common stock when and if the applicable vesting conditions are satisfied. Total stock-based compensation expense related to RSUs recognized during the three and nine months ended September 30, 2025 was $ 0.2 million and is included in the stock-based compensation expense table above. As of September 30, 2025, there was $ 13.9 million of total unrecognized compensation cost related to RSUs that is expected to be recognized over a weighted average period of 1.92 years. 8. License agreements Trace License Agreement In March 2024, the Company entered into an exclusive license agreement with Trace Neuroscience, Inc., or Trace, pursuant to which the Company granted an exclusive worldwide license to a discovery research program targeting UNC13A for the treatment of amyotrophic lateral sclerosis, or the Trace License Agreement. As consideration for the licensed rights and the transfer of know-how and materials, the Company received an upfront payment of $ 15.0 million in April 2024. Thereafter, the Company is entitled to potential subsequent payments of up to an aggregate of $ 80.0 million based on development and regulatory milestones and up to an aggregate of $ 250.0 million based on sales milestones. The Company is also entitled to tiered royalties ranging from percentages in the low single-digits to sub-teens on net sales of any licensed product if successfully commercialized. The Company assessed the Trace License Agreement in accordance with ASC 606 and concluded that it was a contract with a customer. The Company determined that there is one performance obligation relating to the license to the UNC13A discovery program, including the underlying know-how and certain related materials, and that the transaction price consisted of the $ 15.0 million non-refundable upfront cash payment. The potential future development and regulatory milestones represent variable consideration and were constrained, as it was concluded that it was not probable that a significant reversal in cumulative revenue recognized will not occur and therefore not included in the transaction price as of September 30, 2025 . Potential sales milestones and royalties on net product sales will be recognized in the same period that the underlying net product sales occur as they were determined to relate to the license. The $ 15.0 million transaction price was recorded as license revenue in the condensed statements of operations and comprehensive (loss) income during the second quarter of 2024, at the point in time when control of the license and related know-how was transferred to Trace. Shionogi License Agreement In March 2024, the Company entered into an exclusive license agreement with Shionogi & Co., Ltd, or Shionogi, pursuant to which the Company granted Shionogi an exclusive, worldwide, sublicensable license to research, develop, manufacture and commercialize MZE001 and certain other small molecule compounds modulating glycogen synthase 1, or the Shionogi License Agreement. As consideration for the licensed rights and the transfer of know-how and materials, the Company received an upfront payment of $ 150.0 million in May 2024 upon the effectiveness of the Shionogi License Agreement. The Shionogi License Agreement also requires that Shionogi pay the Company up to $ 275.0 million in the aggregate in milestone payments upon the completion of certain clinical and regulatory milestones and up to $ 330.0 million in the aggregate in milestone payments if certain sales milestones are achieved. The Shionogi License Agreement also requires that Shionogi pay the Company tiered royalties ranging from percentages in the low double-digits to twenty on net sales of licensed products, subject to certain deductions. 15 The Company assessed the Shionogi License Agreement in accordance with ASC 606 and concluded that it was a contract with a customer. The Company determined that there is one performance obligation relating to the license to the MZE001 program, including the underlying know-how and certain related materials, and that the transaction price consisted of the $ 150.0 million non-refundable upfront cash payment. The potential clinical and regulatory milestones represent variable consideration and were constrained as it was concluded that it was not probable that a significant reversal in cumulative revenue recognized will not occur and therefore not included in the transaction price as of September 30, 2025 . Potential sales milestones and royalties on net product sales will be recognized in the same period that the underlying net product sales occur as they were determined to relate to the license. The $ 150.0 million transaction price was recorded as license revenue in the condensed statements of operations and comprehensive (loss) income during the second quarter of 2024, at the point in time when control of the license and related know-how and materials was transferred to Shionogi. Neurocrine License Agreement In May 2024, the Company entered into an exclusive license agreement with Neurocrine Biosciences, Inc., or Neurocrine, pursuant to which the Company granted Neurocrine an exclusive worldwide license to a discovery research program targeting ATXN2, or the Neurocrine License Agreement. As consideration for the licensed rights and the transfer of know-how and materials, the Company received an upfront payment of $ 2.5 million in June 2024. Thereafter, the Company is entitled to potential subsequent payments of up to an aggregate of $ 24.8 million based on research and development milestones and up to an aggregate of $ 175.0 million based on sales milestones. The Company is also entitled to tiered royalties ranging in the sub-single-digit to low single-digit percentages on net sales of any licensed product if successfully commercialized. The Company assessed the Neurocrine License Agreement in accordance with ASC 606 and concluded that it was a contract with a customer. The Company determined that there is one performance obligation relating to the license to the ATXN2 discovery program, including the underlying know-how and certain related materials, and that the transaction price consisted of the $ 2.5 million upfront cash payment. The potential research and development milestones represent variable consideration and were constrained as it was concluded that it was not probable that a significant reversal in cumulative revenue recognized will not occur and therefore not included in the transaction price as of September 30, 2025 . Potential sales milestones and royalties on net product sales will be recognized in the same period that the underlying net product sales occur as they were determined to relate to the license. The $ 2.5 million transaction price was recorded as license revenue in the condensed statements of operations and comprehensive (loss) income during the third quarter of 2024, at the point in time when control of the license and the related know-how and materials was transferred to Neurocrine. 9. Commitments and contingencies Legal proceedings From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of its business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made and that such expenditures can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. No contingent liabilities have been recorded as of September 30, 2025 and December 31, 2024. Indemnification In accordance with the Company’s amended and restated certificate of incorporation and amended and restated bylaws, the Company has indemnification obligations to its officers and directors for certain events or occurrences, subject to certain limits, while they are serving in such capacity. There have been no claims to date, and the Company has a directors and officers liability insurance policy that may enable it to recover a portion of any amounts paid for future claims. 10. Loan and security agreement In March 2025, the Company entered into an amendment to the loan and security agreement dated June 2022, that provides for a one-year extension of the $ 50.0 million revolving line of credit maturity date to June 2026. The revolving line of credit is secured by substantially all of the Company’s assets, except for its intellectual property. The Company has not elected to draw down any funds from this debt facility as of September 30, 2025 . Advances under the revolving line may be prepaid and reborrowed by the Company without penalty. The Company has the option to convert the aggregate principal amount of advances under the line of credit, if any, into a term loan upon maturity of the revolving line of credit. Advances under the line of credit accrue interest at a variable annum rate of the greater of (i) 0.75 % above the prime rate and (ii) 4.50 %. The prime rate is defined as the variable rate of interest, per annum, most recently announced by the bank, as its “prime rate,” whether or not such announced rate is the lowest rate available from the bank. 16 Under the loan and security agreement, the Company was required to pay the bank a success fee of up to $ 2.0 million depending on if the Company closed a sale of substantially all of its assets, consummated a reorganization where the voting stockholders before such transaction held less than 50 % of the voting securities after such transaction, or completed the sale of the Company’s securities in connection with an initial public offering, reverse merger or other similar transaction wherein the Company’s securities were thereafter traded in a public market. This success fee was deemed to be a freestanding derivative instrument that was bifurcated from the line-of-credit instrument and was initially and subsequently measured at fair value each reporting period. The fair value of this success fee derivative was estimated utilizing a probability-weighted cash flow approach, including variables for the timing of the related events and other probability estimates, which were deemed to be Level 3 inputs in the fair value hierarchy. The fair value of this success fee derivative was approximately $ 0.5 million as of December 31, 2024 and was recorded in accrued expenses and other current liabilities on the condensed balance sheets. In February 2025, the Company paid a success fee of $ 0.5 million pursuant to the terms of the loan and security agreement, upon the completion of the Company’s initial public offering. No change in fair value of the derivative was recorded for the three and nine months ended September 30, 2025 . The change in fair value of the derivative of approximately $ 0.2 million and $ 0.3 million for the three and nine months ended September 30, 2024 , respectively, was recorded in interest and other income, net in the condensed statements of operations and comprehensive (loss) income. Total issuance costs and the debt discount arising from the success fee amounted to $ 0.3 million and were recorded in other assets, which are amortized as interest expense over the commitment period. The debt discount was fully amortized as of September 30, 2025 . 11. Related party transactions The Company has paid fees to its founders and certain board members in exchange for consulting services. During the three and nine months ended September 30, 2025 and 2024 , the Company recorded an immaterial amount of such fees in each of research and development expenses and general and administrative expenses in the condensed statements of operations and comprehensive (loss) income. 12. Income taxes The Company’s provision for income taxes is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items, if any. For the three and nine months ended September 30, 2024 , the Company recorded an income tax benefit of $ 0.3 million and an income tax provision of $ 1.4 million, respectively. No income tax provision was recorded for the three and nine months ended September 30, 2025. The amount recognized in the comparative periods in 2024 was due to the net income generated during the periods as a result of the recognition of license revenue under the Company’s license agreements as discussed in Note 8, License agreements, resulting in taxable income to the Company. Based on available objective evidence as of September 30, 2025 and December 31, 2024, the Company believes it is more likely than not that its net deferred tax assets may not be realized. The primary difference between the effective tax rate and the statutory tax rate relates to the Company’s change in valuation allowance against deferred taxes. The One Big Beautiful Bill Act of 2025, or the OBBBA, was enacted in the United States in July 2025. The OBBBA contains several changes to corporate taxation, including permanent repeal of the requirement to capitalize domestic research and experimental expenditures for federal income tax purposes for taxable years beginning after December 31, 2024. The OBBBA does not materially impact the Company's effective tax rate or cash flows in the current fiscal year. 17 13. Net (loss) income per share The following table sets forth the computation of basic and diluted net (loss) income per share (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Basic (loss) income per share: Numerator: Net (loss) income $ ( 30,087 ) $ ( 24,752 ) $ ( 96,552 ) $ 81,810 Allocation of undistributed earnings to participating securities — — — ( 73,499 ) Net (loss) income attributable to common stockholders, basic $ ( 30,087 ) $ ( 24,752 ) $ ( 96,552 ) $ 8,311 Denominator: Weighted-average shares of common stock outstanding 45,789,949 2,434,527 39,475,006 2,414,649 Less: weighted-average shares of common stock subject to repurchase ( 10,372 ) ( 18,630 ) ( 10,372 ) ( 30,532 ) Weighted-average shares of common stock outstanding used in the calculation of (loss) income per share attributable to common stockholders, basic 45,779,577 2,415,897 39,464,634 2,384,117 Net (loss) income per share attributable to common stockholders, basic $ ( 0.66 ) $ ( 10.25 ) $ ( 2.45 ) $ 3.49 Diluted (loss) income per share: Numerator: Net (loss) income attributable to common stockholders, basic $ ( 30,087 ) $ ( 24,752 ) $ ( 96,552 ) $ 8,311 After tax effect of assumed conversion of convertible notes — — — 720 Net (loss) income attributable to common stockholders, diluted $ ( 30,087 ) $ ( 24,752 ) $ ( 96,552 ) $ 9,031 Denominator: Weighted-average shares of common stock outstanding, basic 45,779,577 2,415,897 39,464,634 2,384,117 Weighted-average dilutive effect of convertible promissory notes — — — 573,195 Weighted-average dilutive effect of equity awards — — — 429,854 Weighted-average shares of common stock outstanding, diluted 45,779,577 2,415,897 39,464,634 3,387,166 Net (loss) income per share attributable to common stockholders, diluted $ ( 0.66 ) $ ( 10.25 ) $ ( 2.45 ) $ 2.67 The potential shares of common stock that were excluded from the computation of diluted net (loss) income per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows: Nine Months Ended September 30, 2025 2024 Shares subject to outstanding stock options 5,749,020 2,274,798 Shares subject to outstanding restricted stock units 594,825 — Unvested restricted stock subject to repurchase 10,372 10,372 Convertible promissory notes — 860,098 Total 6,354,217 3,145,268 The antidilutive potential common stock table above includes instruments for convertible notes and equity awards that are different tranches and are excluded from the amounts included in the table computing diluted net income (loss) per share. 18