Rafael Holdings, Inc. (NYSE: RFL) reported a first‑quarter fiscal 2026 net loss of $9.8 million, or $0.19 per share, compared with a $9.0 million loss ($0.37 per share) in the same period a year earlier. The widening loss is largely attributable to the consolidation of Cyclo Therapeutics’ expenses following the March 2025 merger, which added $6.2 million in research and development costs and $0.3 million in general and administrative expenses.
Revenue for the quarter rose 88% to $0.24 million, up from $0.128 million a year earlier, reflecting early sales of Trappsol® Cyclo™ and related licensing activity. Cash and cash equivalents stood at $45.5 million as of October 31, 2025, down from $52.8 million as of July 31, 2025, the end of the prior fiscal year. The 13% decline in cash balances indicates a steady burn rate that still supports the company’s near‑term obligations.
Research and development expenses increased to $7.5 million from $1.3 million, driven by the integration of Cyclo’s clinical development pipeline and the continued investment in the pivotal Phase 3 TransportNPC™ study. General and administrative costs rose to $2.8 million from $2.5 million, reflecting the additional personnel and infrastructure required to support the merged operations.
The Data Monitoring Committee for the Phase 3 TransportNPC™ study of Trappsol® Cyclo™ recommended that the trial continue after reviewing 48‑week safety and efficacy data. CEO Howard Jonas said the committee’s endorsement confirms the study’s strong safety profile and supports the company’s confidence in the drug’s potential to address a critical unmet need in Niemann‑Pick Disease Type C1.
Investors reacted cautiously to the earnings, focusing on the widening loss and the cash burn rate. The company’s continued investment in its lead candidate and the integration of Cyclo’s assets signal a long‑term growth strategy, but the financial metrics underscore the need for additional capital to sustain the clinical program and bring Trappsol® Cyclo™ to market.
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