BEAM

Beam Therapeutics Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share amounts) June 30, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 219,825 $ 294,944 Marketable securities 933,102 950,266 Prepaid expenses and other current assets 25,668 23,478 Total current assets 1,178,595 1,268,688 Property and equipment, net 97,606 104,500 Restricted cash 6,711 6,676 Operating lease right-of-use assets 95,586 100,679 Other assets 7,857 634 Total assets $ 1,386,355 $ 1,481,177 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 13,099 $ 10,231 Accrued expenses and other current liabilities 40,406 55,267 Current portion of derivative liabilities 9,400 7,700 Current portion of deferred revenue — 6,659 Current portion of lease liability 15,207 14,364 Current portion of contingent consideration liabilities 2,771 2,714 Total current liabilities 80,883 96,935 Long-term lease liability 131,893 139,759 Long-term portion of contingent consideration liabilities 5,586 5,952 Long-term portion of debt 100,258 — Other liabilities 293 173 Total liabilities 318,913 242,819 Commitments and contingencies (See Note 7, License and other agreements and Note 8, Collaboration agreements) Stockholders’ equity: Preferred stock, $0.01 par value; 25,000,000 shares authorized, and no shares issued or outstanding at June 30, 2026 and December 31, 2025, respectively — — Common stock, $0.01 par value; 250,000,000 shares authorized, 103,264,636 and 101,748,962 issued and outstanding at June 30, 2026 and December 31, 2025, respectively 1,033 1,017 Additional paid-in capital 2,926,813 2,877,449 Accumulated other comprehensive (loss) income (2,189 ) 1,111 Accumulated deficit (1,858,215 ) (1,641,219 ) Total stockholders’ equity 1,067,442 1,238,358 Total liabilities and stockholders’ equity $ 1,386,355 $ 1,481,177 The accompanying notes are an integral part of these condensed consolidated financial statements. 1 Beam Therapeutics Inc. Condensed Consolidated Statements of Operations and Other Comprehensive Loss (Unaudited) (in thousands, except share and per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 License and collaboration revenue $ 490 $ 8,466 $ 32,228 $ 15,936 Operating expenses: Research and development 95,096 101,758 199,620 200,574 General and administrative 31,947 26,859 66,376 54,799 Total operating expenses 127,043 128,617 265,996 255,373 Loss from operations (126,553 ) (120,151 ) (233,768 ) (239,437 ) Other income (expense): Change in fair value of derivative liabilities (4,200 ) 1,300 (1,700 ) 4,500 Change in fair value of non-controlling equity investments 338 4,415 354 2,334 Change in fair value of contingent consideration liabilities (205 ) (28 ) 309 (55 ) Gain on sale of equity method investment 455 — 455 — Interest and other income (expense), net 7,487 12,326 17,354 22,190 Total other income (expense) 3,875 18,013 16,772 28,969 Net loss $ (122,678 ) $ (102,138 ) $ (216,996 ) $ (210,468 ) Unrealized gain (loss) on marketable securities (1,119 ) (150 ) (3,300 ) (669 ) Comprehensive loss $ (123,797 ) $ (102,288 ) $ (220,296 ) $ (211,137 ) Net loss per common share, basic and diluted $ (1.18 ) $ (1.00 ) $ (2.09 ) $ (2.21 ) Weighted-average common shares outstanding, basic and diluted 104,326,669 101,995,184 103,797,276 95,023,977 The accompanying notes are an integral part of these condensed consolidated financial statements. 2 Beam Therapeutics Inc. Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) (in thousands, except share amounts) Common Stock Additional Paid-in Accumulated Other Comprehensive Accumulated Total Stockholders’ Shares Amount Capital Income (Loss) Deficit Equity Balance at December 31, 2024 83,633,069 $ 836 $ 2,298,661 $ 679 $ (1,566,631 ) $ 733,545 Cumulative effect of adoption of ASU 2025-07 — — — — 5,404 5,404 Purchase of common stock under ESPP 90,436 1 1,500 — — 1,501 Issuance of common stock and pre-funded warrants, net of issuance costs of $30.8 million 16,151,686 162 470,316 — — 470,478 Vesting of restricted common stock 607,196 6 (6 ) — — — Stock-based compensation — — 26,682 — — 26,682 Exercise of common stock options 74,707 1 718 — — 719 Other comprehensive income (loss) — — — (519 ) — (519 ) Net loss — — — — (108,330 ) (108,330 ) Balance at March 31, 2025 100,557,094 $ 1,006 $ 2,797,871 $ 160 $ (1,669,557 ) $ 1,129,480 Issuance of common stock and pre-funded warrants, net of issuance costs of $30.8 million — — (4 ) — — (4 ) Vesting of restricted common stock 81,163 1 (1 ) — — — Stock-based compensation — — 24,367 — — 24,367 Exercise of common stock options 120,491 1 1,754 — — 1,755 Other comprehensive income (loss) — — — (150 ) — (150 ) Net loss — — — — (102,138 ) (102,138 ) Balance at June 30, 2025 100,758,748 $ 1,008 $ 2,823,987 $ 10 $ (1,771,695 ) $ 1,053,310 3 Beam Therapeutics Inc. Condensed Consolidated Statements of Stockholders’ Equity - Continued (Unaudited) (in thousands, except share amounts) Common Stock Additional Paid-in Accumulated Other Comprehensive Accumulated Total Stockholders’ Shares Amount Capital Income (Loss) Deficit Equity Balance at December 31, 2025 101,748,962 $ 1,017 $ 2,877,449 $ 1,111 $ (1,641,219 ) $ 1,238,358 Purchase of common stock under ESPP 74,518 1 1,509 — — 1,510 Vesting of restricted common stock 720,697 7 (7 ) — — — Stock-based compensation — — 19,044 — — 19,044 Exercise of common stock options 197,671 2 2,023 — — 2,025 Other comprehensive income (loss) — — — (2,181 ) — (2,181 ) Net loss — — — — (94,318 ) (94,318 ) Balance at March 31, 2026 102,741,848 $ 1,027 $ 2,900,018 $ (1,070 ) $ (1,735,537 ) $ 1,164,438 Vesting of restricted common stock 74,578 1 (1 ) — — — Stock-based compensation — — 19,278 — — 19,278 Exercise of common stock options 448,210 5 7,518 — — 7,523 Other comprehensive income (loss) — — — (1,119 ) — (1,119 ) Net loss — — — — (122,678 ) (122,678 ) Balance at June 30, 2026 103,264,636 1,033 2,926,813 (2,189 ) (1,858,215 ) 1,067,442 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Beam Therapeutics Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) Six Months Ended June 30, 2026 2025 Operating activities Net loss $ (216,996 ) $ (210,468 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 11,015 11,066 Amortization of investment discount (premiums) (5,368 ) (8,467 ) Amortization of debt discount 99 — Stock-based compensation expense 38,322 51,049 Change in operating lease right-of-use assets 5,093 5,297 Change in fair value of derivative liabilities 1,700 (4,500 ) Change in fair value of contingent consideration liabilities (309 ) 55 Change in fair value of non-controlling equity investments (354 ) (2,334 ) Loss (gain) on disposal of property and equipment 44 Gain on sale of equity method investment (455 ) — Changes in operating assets and liabilities: Prepaid expenses and other current assets (2,328 ) 2,827 Accounts payable 3,430 6,435 Accrued expenses and other liabilities (14,943 ) (8,590 ) Operating lease liabilities (7,023 ) (6,622 ) Deferred revenue (6,659 ) (15,936 ) Other long-term liabilities 123 (146 ) Net cash provided by (used in) operating activities (194,609 ) (180,334 ) Investing activities Purchases of property and equipment (4,646 ) (6,201 ) Purchases of marketable securities (334,708 ) (673,111 ) Maturities of marketable securities 354,293 383,812 Proceeds from sale of equity method investment 455 — Net cash provided by (used in) investing activities 15,394 (295,500 ) Financing activities Proceeds from issuance of common shares and pre-funded warrants, net of issuance costs — 470,513 Proceeds from issuances of stock under ESPP 1,510 1,501 Proceeds from exercise of stock options 9,548 2,474 Proceeds from the issuance of debt, net of fees paid to lender 93,886 — Payments of debt issuance costs (813 ) — Net cash provided by (used in) financing activities 104,131 474,488 Net change in cash, cash equivalents and restricted cash (75,084 ) (1,346 ) Cash, cash equivalents and restricted cash—beginning of period 301,620 290,111 Cash, cash equivalents and restricted cash—end of period $ 226,536 $ 288,765 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 Beam Therapeutics Inc. Condensed Consolidated Statements of Cash Flows - Continued (Unaudited) (in thousands) Six Months Ended June 30, 2026 2025 Supplemental disclosure of cash flow information: Cash paid for interest $ 2,569 $ — Supplemental disclosure of noncash investing and financing activities: Property and equipment additions in accounts payable and accrued expenses $ 814 $ 972 The accompanying notes are an integral part of these condensed consolidated financial statements. 6 Beam Therapeutics Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) 1. Nature of the business and basis of presentation Organization Beam Therapeutics Inc., which we refer to herein as the “Company” or “Beam,” is a biotechnology company committed to establishing the leading, fully integrated platform for precision genetic medicines. Beam’s vision is to provide life-long cures to patients suffering from genetic diseases. The Company was incorporated on January 25, 2017 as a Delaware corporation and began operations in July 2017. Its principal offices are in Cambridge, Massachusetts. Liquidity and capital resources Since its inception, the Company has devoted substantially all of its resources to building its base editing platform and advancing development of its portfolio of programs, establishing and protecting its intellectual property, conducting research and development activities, continuing to invest in its internal manufacturing capabilities and making arrangements to conduct manufacturing activities with contract manufacturing organizations, conducting clinical trials, building a commercial function, organizing and staffing the Company, maintaining its facilities and new facility build-outs, business planning, raising capital and providing general and administrative support for these operations. The Company is subject to risks and uncertainties common to clinical-stage companies in the biotechnology industry including, but not limited to, technical risks associated with the successful research, development and manufacturing of product candidates, development by competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations and the ability to secure additional capital to fund operations. Current and future programs will require significant research and development efforts, including extensive preclinical and clinical testing and regulatory approval prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel and infrastructure. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales. The Company has entered into an at the market sales agreement, or the Sales Agreement, with Jefferies LLC, or Jefferies, pursuant to which the Company is entitled to offer and sell, from time to time at prevailing market prices, shares of its common stock having aggregate gross proceeds of up to $1.1 billion. The Company agreed to pay Jefferies a commission of up to 3.0% of the aggregate gross sale proceeds of any shares sold by Jefferies under the Sales Agreement. As of June 30, 2026, the Company has sold 13,769,001 shares of its common stock under the Sales Agreement at an average price of $62.75 per share for aggregate gross proceeds of $864.0 million, before deducting commissions and offering expenses payable by the Company. There were no shares sold under the Sales Agreement during the three and six months ended June 30, 2026. In March 2025, the Company closed an underwritten public offering of 16,151,686 shares of common stock at a public offering price of $28.48 per share and pre-funded warrants to purchase 1,404,988 shares of common stock at a purchase price of $28.47 per pre-funded warrant for aggregate net proceeds of $470.5 million, after deducting underwriting discounts, commissions and approximately $0.8 million related to legal, accounting and other fees in connection with the offering. Refer to Note 9, Common stock and pre-funded common stock warrants, for further information. In December 2025, Bristol-Myers Squibb Company completed an acquisition, or the Acquisition, of Orbital Therapeutics, Inc., or Orbital. At the closing of the Acquisition, the Company held 75 million shares of Orbital common stock, which were cancelled and converted into $255.1 million in closing cash consideration, plus the right to receive up to approximately $26.3 million in additional cash consideration upon the release, if any, of certain escrows. During the three months ended June 30, 2026, the Company received an additional $0.5 million related to the release of a portion of the escrow associated with the Acquisition. The Company may receive additional cash consideration in future periods upon the release of the remaining escrow amounts, if any, in accordance with the terms of the Acquisition. In February 2026, the Company entered into a financing agreement with certain lenders and Sixth Street Lending Partners which provides for a credit facility, or the Credit Facility, consisting of an initial draw of $100.0 million on the closing date; up to $300 million available upon the achievement of certain clinical, regulatory and commercial milestones for risto-cel; and an additional $100 million available at the Company’s option, subject to mutual agreement between the parties, during the seven-year term of the agreement. The Credit Facility matures on February 24, 2033 and bears interest at an annual rate equal to the 3-month Secured Overnight Financing Rate (SOFR) plus 6.5% (subject to a 1.00% floor). Certain additional commitment, administrative, undrawn amount and facility fees are also payable in connection with the Credit Facility. Since its inception, the Company has incurred substantial losses and had an accumulated deficit of $1.9 billion as of June 30, 2026. The Company expects to generate operating losses and negative operating cash flows for the foreseeable future. The Company expects that its cash, cash equivalents, and marketable securities as of June 30, 2026 of $1.2 billion will be sufficient to fund its operations for at least the next 12 months from the date of issuance of these financial statements. The Company will need additional financing to support its continuing operations and pursue its growth strategy. Until such time as the Company can generate 7 significant revenue from product sales, if ever, it expects to finance its operations through a combination of equity offerings, debt financings, collaborations, strategic alliances and licensing arrangements. The Company may be unable to raise additional funds or enter into such other agreements when needed on favorable terms or at all. The inability to raise capital as and when needed would have a negative impact on the Company’s financial condition and its ability to pursue its business strategy. The Company will need to generate significant revenue to achieve profitability, and it may never do so. 2. Summary of significant accounting policies The Company’s significant accounting policies are disclosed in the audited consolidated financial statements for the year ended December 31, 2025, and notes thereto, which are included in the Company’s Annual Report on Form 10-K that was filed with the Securities and Exchange Commission, or the SEC, on February 24, 2026, or the 2025 Form 10-K. Since the date of those financial statements, except as set forth below under “Debt,” there have been no material changes to the Company's significant accounting policies. Debt The Company accounts for debt instruments in accordance with Accounting Standards Codification, or ASC, No. 470, Debt. Debt is initially recorded at the amount of cash proceeds received, adjusted for debt discounts, premiums, and issuance costs, and is subsequently measured at amortized cost using the effective interest method. Debt is classified as current or noncurrent based on the contractual maturity date and the absence or presence of conditions that would require repayment within twelve months of the balance sheet date. The Company’s financing arrangements may include non‑revolving delayed draw commitments. Fees paid in connection with obtaining such commitments are deferred and recorded as a loan commitment asset, which represents the Company’s contractual right to access future financing. The loan commitment asset is initially measured at fair value and is assessed for impairment at each reporting period. Upon the funding of a delayed draw term loan, the Company derecognizes the associated portion of the loan commitment asset and records it as a discount to the funded debt, which is amortized to interest expense over the term of the related loan using the effective interest method. If it becomes probable that all or a portion of a loan commitment will not be drawn, the related portion of the loan commitment asset is expensed immediately. Debt arrangements are evaluated for embedded features that may require bifurcation and separate accounting under ASC 815, Derivatives and Hedging. Embedded features that meet the definition of a derivative and are not clearly and closely related to the debt host are bifurcated unless a scope exception applies. If bifurcation is required, embedded derivatives are initially and subsequently measured at fair value, with changes in fair value recognized in earnings. Basis of presentation The accompanying condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or GAAP. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the ASC and Accounting Standards Update, or ASU, of the Financial Accounting Standards Board, or FASB. Principles of consolidation The accompanying condensed consolidated financial statements include the results of operations of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities as of and during the reporting period. The Company bases its estimates and assumptions on historical experience when available and on various factors that it believes to be reasonable under the circumstances. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, incremental borrowing rate used in the calculation of lease liabilities, research and development expenses, stock-based compensation, contingent consideration liabilities, success payments and certain judgments regarding revenue recognition. Actual results could differ from these estimates. Recently adopted accounting pronouncements The Company early adopted ASU No. 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract, or ASU 2025-07, in the fourth quarter of 2025 using a modified retrospective approach. The new guidance modifies Accounting Standards Codification Topic 815, Derivatives and Hedging, or Topic 815, to add a scope exclusion for contracts that are not traded on an exchange if the underlying on which the settlement is based relates to operations or activities specific to one of the parties to the contract. As a result, an existing contract that includes a settlement feature based on the Company’s operations or activities is now excluded from Topic 815 and will now be accounted for in accordance with ASC 450, Contingencies, or ASC 450, whereby any settlements will be recognized as such obligations become probable and estimable. The adoption of ASU 2025-07 using 8 a modified retrospective approach required the Company to adopt the standard as of January 1, 2025. Upon adoption, the Company recognized a cumulative-effect adjustment to remove the previously recognized derivative liability as of January 1, 2025, reducing the long-term portion of derivative liabilities by $5.4 million, with an offsetting adjustment to accumulated deficit. The previously reported statement of operations and comprehensive loss for the three and six months ended June 30, 2025 has been adjusted to reflect this guidance, resulting in reducing the previously reported net loss for the three and six months ended June 30, 2025 by $0.2 million and $1.1 million, respectively, which had no impact per share for the three months ended June 30, 2025 and an impact of $0.02 per share for the six months ended June 30, 2025. The adjustment had no impact on previously reported cash flows from operating, investing, or financing activities within the Company's condensed consolidated statements of cash flows. In accordance with ASC 450, no liability has been recognized for the contingent payments under the contract through June 30, 2026. Recently announced accounting pronouncements In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires disclosure of specified information about certain costs and expenses in the footnotes to the financial statements. This ASU is effective for annual periods beginning after December 15, 2026 and is applicable to the Company’s fiscal year beginning January 1, 2027, with early application permitted. The Company has not early adopted this ASU and is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software. This standard is intended to modernize the accounting for internal-use software. Under the new standard, the Company will capitalize eligible costs when (i) management has authorized and committed to funding the software project, and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2027, with early adoption permitted as of the beginning of a fiscal year. The standard may be applied prospectively, retrospectively or using a modified transition approach. The Company is currently evaluating the impact that this standard will have on the Company’s consolidated operating results, cash flows, financial condition and related disclosures. Cash, cash equivalents, and restricted cash Cash and cash equivalents consist of standard checking accounts, money market accounts, and all highly liquid investments with a remaining maturity of three months or less at the date of purchase. Restricted cash represents collateral provided for letters of credit issued as security deposits in connection with the Company’s leases of its corporate facilities. The following table reconciles cash, cash equivalents, and restricted cash reported within the Company’s condensed consolidated balance sheets to the total of the amounts shown in the condensed consolidated statements of cash flows (in thousands): June 30, 2026 June 30, 2025 Cash and cash equivalents $ 219,825 $ 282,132 Restricted cash 6,711 6,633 Total cash, cash equivalents, and restricted cash $ 226,536 $ 288,765 3. Property and equipment, net Property and equipment consist of the following (in thousands): June 30, 2026 December 31, 2025 Leasehold improvements $ 111,941 $ 110,760 Lab equipment 78,094 77,038 Furniture and fixtures 4,836 4,836 Computer equipment 3,170 3,170 Construction in process 4,374 2,823 Total property and equipment 202,415 198,627 Less accumulated depreciation (104,809 ) (94,127 ) Property and equipment, net $ 97,606 $ 104,500 The following table summarizes depreciation expense incurred (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Depreciation expense $ 5,410 $ 5,538 $ 11,015 $ 11,066 9 4. fair value of financial instruments The Company’s financial instruments that are measured at fair value on a recurring basis consist of cash equivalents, marketable securities, corporate equity securities, contingent consideration liabilities related to acquisitions, and success payment derivative liabilities pursuant to the license agreement, or the Harvard License Agreement, between President and Fellows of Harvard University, or Harvard, and the Company, as well as the license agreement, or the Broad License Agreement, between The Broad Institute, Inc., or Broad Institute, and the Company. The following tables set forth the fair value of the Company’s financial assets and liabilities by level within the fair value hierarchy at June 30, 2026 (in thousands): Carrying amount Fair value Level 1 Level 2 Level 3 Assets Cash equivalents: Money market funds $ 189,825 $ 189,825 $ 189,825 $ — $ — U.S. Treasury securities backed repurchase agreements 30,000 30,000 — 30,000 — Marketable securities: Commercial paper 300,621 300,621 — 300,621 — Corporate notes 119,885 119,885 — 119,885 — U.S. Treasury securities 468,162 468,162 — 468,162 — U.S. Government securities 38,499 38,499 — 38,499 — Corporate equity securities 5,935 5,935 5,935 — — Total assets $ 1,152,927 $ 1,152,927 $ 195,760 $ 957,167 $ — Liabilities Success payment liability – Harvard $ 4,300 $ 4,300 $ — $ — $ 4,300 Success payment liability – Broad Institute 5,100 5,100 — — 5,100 Contingent consideration liability milestones 8,357 8,357 — — 8,357 Total liabilities $ 17,757 $ 17,757 $ — $ — $ 17,757 The following tables set forth the fair value of the Company’s financial assets and liabilities by level within the fair value hierarchy at December 31, 2025 (in thousands): Carrying amount Fair value Level 1 Level 2 Level 3 Assets Cash equivalents: Money market funds $ 274,944 274,944 $ 274,944 $ — $ — U.S. Treasury securities backed repurchase agreements 20,000 20,000 — 20,000 — Marketable securities: Commercial paper 304,959 304,959 — 304,959 — Corporate notes 150,046 150,046 — 150,046 — U.S. Treasury securities 462,984 462,984 — 462,984 — U.S. Government securities 26,696 26,696 — 26,696 — Corporate equity securities 5,581 5,581 5,581 — — Total assets $ 1,245,210 $ 1,245,210 $ 280,525 $ 964,685 $ — Liabilities Success payment liability – Harvard $ 3,300 $ 3,300 $ — $ — $ 3,300 Success payment liability – Broad Institute 4,400 4,400 — — 4,400 Contingent consideration liability milestones 8,666 8,666 — — 8,666 Total liabilities $ 16,366 $ 16,366 $ — $ — $ 16,366 10 Cash equivalents – Money market funds included within cash equivalents are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets and repurchase agreements backed by U.S. Treasury securities that are classified within Level 2 of the fair value hierarchy because pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through using models or other valuation methodologies. Marketable securities – Marketable securities, excluding corporate equity securities, are classified within Level 2 of the fair value hierarchy because pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined using models or other valuation methodologies. As of June 30, 2026 the Company holds an investment in Prime Medicine, Inc., or Prime, consisting of 1,608,337 shares of Prime's common stock valued at $5.9 million, which is included in marketable securities in the condensed consolidated balance sheet. Pursuant to ASC 825, Financial instruments, the Company records changes in the fair value of its investments in equity securities to other income (expense), in the Company’s condensed consolidated statements of operations. The following table summarizes other income (expense) recorded due to changes in the fair value of corporate equity securities held (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Other income (expense) $ 338 $ 4,415 $ 354 $ 2,334 Success payment liabilities – As discussed further in Note 7, License and other agreements, the Company is required to make payments to Harvard and Broad Institute based upon the achievement of specified multiples of the market value of the Company's common stock, at specified valuation dates. The Company’s liability for the share-based success payments under the Harvard License Agreement and the Broad License Agreement is carried at fair value. To determine the estimated fair value of the success payment liability, the Company uses a Monte Carlo simulation methodology, which models the future movement of stock prices based on several key variables. The following variables were incorporated in the calculation of the estimated fair value of the Harvard and Broad Institute success payment liabilities: Harvard Broad Institute June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 Fair value of common stock (per share) $ 34.32 $ 27.72 $ 34.32 $ 27.72 Expected volatility 73 % 71 % 71 % 75 % Expected term (years) 0.24-2.99 0.01-3.49 0.24-3.86 0.01-4.36 The computation of expected volatility was estimated using available information about the historical volatility of stocks of similar publicly traded companies in addition to the Company's own data for a period matching the expected term assumption. In addition, the Company incorporated the estimated number, timing, and probability of valuation measurement dates in the calculation of the success payment liability. The following table reconciles the change in the fair value of success payment liabilities based on Level 3 inputs (in thousands): Six Months Ended June 30, 2026 Harvard Broad Institute Total Balance at December 31, 2025 $ 3,300 $ 4,400 $ 7,700 Change in fair value 1,000 700 1,700 Balance at June 30, 2026 $ 4,300 $ 5,100 $ 9,400 Contingent consideration liabilities – On July 1, 2025, the Company acquired an early-stage life sciences company. The total consideration paid was $14.5 million, which is comprised of an upfront payment of 403,128 shares of the Company’s common stock valued at $6.7 million, contingent consideration payments based on the achievement of certain development, clinical and commercial milestones initially valued at $7.7 million and $0.1 million of seller transaction expenses. The maximum amount of the milestone payments is $89.0 million. The primary asset acquired included in-process research and development valued at $14.5 million upon acquisition. As no alternative future use was identified for the acquired in-process research and development, the Company expensed the full fair value of the asset as research and development expense upon acquisition. Milestone payments are payable at the Company’s sole discretion in cash or in shares of the Company's common stock (valued using a volume-weighted average price). As these milestones are payable with a variable number of shares of the Company’s common stock, the milestone payments result in liability classification under ASC 480, Distinguishing Liabilities from Equity. These contingent consideration liabilities are carried at fair value which was estimated by applying a probability-based model, which utilized inputs 11 based on timing of achievement that were unobservable in the market. These contingent consideration liabilities are classified within Level 3 of the fair value hierarchy. The following variables were incorporated in the calculation of the estimated fair value of the contingent consideration liabilities: Contingent consideration liability milestones June 30, 2026 December 31, 2025 Discount rate 10.40 % 8.00 % Probability of achievement 2-32% 2-32% Projected year of achievement 2026-2037 2026-2037 The following table reconciles the change in fair value of the contingent consideration liabilities based on level 3 inputs (in thousands): Contingent consideration liability milestones Balance at December 31, 2025 $ 8,666 Change in fair value (309 ) Balance at June 30, 2026 $ 8,357 5. Marketable securities The following table summarizes the Company’s marketable securities held at June 30, 2026 (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Commercial paper $ 301,061 $ 7 $ (447 ) $ 300,621 Corporate notes 120,007 1 (123 ) 119,885 U.S. Treasury securities 469,656 53 (1,547 ) 468,162 U.S. Government securities 38,632 — (133 ) 38,499 Corporate equity securities 5,935 — — 5,935 Total $ 935,291 $ 61 $ (2,250 ) $ 933,102 The following table summarizes the Company’s marketable securities held at December 31, 2025 (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Commercial paper $ 304,861 $ 162 $ (64 ) $ 304,959 Corporate notes 149,928 128 (10 ) 150,046 U.S. Treasury securities 462,112 872 — 462,984 U.S. Government securities 26,673 23 — 26,696 Corporate equity securities 5,581 — — 5,581 Total $ 949,155 $ 1,185 $ (74 ) $ 950,266 The amortized cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. At June 30, 2026 and December 31, 2025, the balance in accumulated other comprehensive (loss) income was comprised solely of activity related to marketable debt securities. There were no realized gains or losses recognized on the sale or maturity of marketable securities for the three or six months ended June 30, 2026 or 2025 and, as a result, the Company did not reclassify any amounts out of accumulated other comprehensive (loss) income for either period. The Company holds debt securities of companies with high credit quality and has determined that there was no material change in the credit risk of any of its debt securities. The contractual maturity dates of all the investments are less than one year. 12 6. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following (in thousands): June 30, 2026 December 31, 2025 Employee compensation and related benefits $ 14,071 $ 29,342 Research costs 10,461 15,836 Process development and manufacturing costs 3,474 3,646 Professional fees 3,343 4,458 Other 9,057 1,985 Total $ 40,406 $ 55,267 7. License and other agreements The Company has various license agreements related to technology used in its research and development activities. The license agreements may include up-front payments, option fees, ongoing maintenance fees, sublicense fees, royalty-based payments, milestone payments, success-based payments, and other payments. Option fees, when applicable, are recognized when exercised; maintenance fees, sublicense fees, and other payments are recorded as incurred based on the estimated amounts due or that will ultimately be paid. Contingent payments that are not required to be accounted for as a derivative are recognized as incurred. As the success-based payments due under the Company’s license arrangements are derivatives, the change in the fair value of the success-based payments is recognized in a separate line item in the statement of operations and comprehensive loss, as discussed further below. The total contingent obligations and non-royalty sublicense fees included in research and development expenses in the statement of operations and comprehensive loss for the six months ended June 30, 2026 was $5.0 million. There were no contingent obligations and non-royalty sublicense fees included in research and development expenses in the statement of operations and comprehensive loss for the three and six months ended June 30, 2025. The value attributable to sublicenses and the related sublicense fees due under the Company’s license agreements may require estimates and other judgments related to contractual requirements, which creates uncertainty over the ultimate amount that would be paid under these arrangements. Contractual amounts due are accrued and if a contingency exists related to the interpretation of the amounts due under the license agreement, the Company recognizes a liability for the amount that is probable and estimable. When no amount within the range of potential payments is a better estimate than any other amount, however, the minimum amount in the range is accrued. Harvard license agreement Under the Harvard License Agreement, Harvard is entitled to receive success payments, in cash or shares of Company stock, determined based upon the achievement of specified multiples of the initial weighted average value of the Company’s Series A Preferred at specified valuation dates. The success payments range from $5.0 million to a maximum of $105.0 million and have valuation multiples that range from 5 times to 40 times the initial weighted average value of the Series A Preferred. Subsequent to the Company’s February 2020 initial public offering, or IPO, the amount of success payments is based on the market value of the Company's common stock. The Company is required to make success payments to Harvard during a period of time, or the Harvard Success Payment Period, which has been determined to be the later of (1) the ninth anniversary of the Harvard License Agreement or (2) the earlier of (a) the twelfth anniversary of the Harvard License Agreement and (b) the third anniversary of the first date on which a licensed product receives regulatory approval in the United States. During the Harvard Success Payment Period, the Company will perform a calculation of any amounts owed to Harvard on each rolling 90-day period, commencing one year after the IPO. In May 2021, the first success payment measurement occurred and amounts due to Harvard were calculated to be $15.0 million. The Company elected to make the payment in shares of the Company’s common stock and issued 174,825 shares of the Company’s common stock to settle this liability on June 10, 2021. The Company may owe Harvard success payments of up to an additional $90.0 million. As of June 30, 2026, no success payments were due to Harvard. The following table summarizes the Company’s success payment liability for Harvard (in thousands): June 30, 2026 December 31, 2025 Harvard success payment liability $ 4,300 $ 3,300 13 The following table summarizes the expense (income) resulting from the change in the fair value of the success payment liability for Harvard (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Change in fair value of Harvard success payment liability $ 2,100 $ (600 ) $ 1,000 $ (2,200 ) Broad license agreement Under the Broad License Agreement, Broad Institute is entitled to receive success payments, in cash or shares of Company common stock, determined based upon the achievement of specified multiples of the initial weighted average value of the Series A Preferred at specified valuation dates. The success payments range from $5.0 million to a maximum of $105.0 million and have valuation multiples that range from 5 times to 40 times the initial weighted average value of the Series A Preferred. Subsequent to the IPO, the amount of success payments is based on the market value of the Company’s common stock. The Company is required to make success payments to Broad Institute during a period of time, or the Broad Success Payment Period, which has been determined to be the earliest of (1) the twelfth anniversary of the Broad License Agreement or (2) the third anniversary of the first date on which a licensed product receives regulatory approval in the United States. During the Broad Success Payment Period, the Company will perform a calculation of any amounts owed to Broad Institute on each rolling 90-day period, commencing one year after the IPO. In May 2021, the first success payment measurement occurred and amounts due to Broad Institute were calculated to be $15.0 million. The Company elected to make the payment in shares of the Company’s common stock and issued 174,825 shares of the Company’s common stock to settle this liability on June 10, 2021. The Company may owe Broad Institute success payments of up to an additional $90.0 million. As of June 30, 2026, no success payments were due to Broad Institute. The following table summarizes the Company’s success payment liability for Broad Institute (in thousands): June 30, 2026 December 31, 2025 Broad Institute success payment liability $ 5,100 $ 4,400 The following table summarizes the expense (income) resulting from the change in the fair value of the success payment liability for Broad Institute (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Change in fair value of Broad Institute success payment liability $ 2,100 $ (700 ) $ 700 $ (2,300 ) Settlement agreement On July 19, 2024, the Company entered into a settlement agreement with a research institution pursuant to which, in exchange for a release of claims in its favor, the Company agreed, among other things, to pay the research institution an upfront payment of $15.0 million and to make additional payments contingent upon the development and commercialization of BEAM-102 and BEAM-302. These contingent payments consist of certain development, regulatory, and sales-based milestone payments, as well as a 1% royalty on net sales through 2038. Any amounts due must be settled in cash. The maximum amount of development and regulatory milestone payments under the settlement agreement is $15.0 million, and the maximum amount of sales milestone payments is $35.0 million per program. The Company paid the $15.0 million upfront payment during the year ended December 31, 2024. The Company determined that the recognition criteria under ASC 450, was not met as the likelihood of a loss is not considered probable and estimable as of June 30, 2026 and therefore no related liability is recorded as of June 30, 2026. 8. Collaboration agreements Eli Lilly and Company In October 2023, the Company entered into a Transfer and Delegation Agreement, or the Lilly Agreement, with Eli Lilly and Company, or Lilly, pursuant to which Lilly acquired certain assets and other rights under the Company’s amended collaboration and license agreement, or the Verve Agreement, with Verve Therapeutics, Inc., or Verve, including the Company’s opt-in rights to co-develop and co-commercialize Verve’s base editing programs for cardiovascular disease (see discussion below related to the Verve Agreement). The Company granted Lilly an exclusive sublicense to the Verve technology originally licensed to the Company under the Verve Agreement. Lilly also acquired the right to receive any future milestone or royalty payments payable by Verve under the Verve Agreement and the rights and obligations to designate representatives and participate on the joint steering committee with Verve. The Company received a $200.0 million nonrefundable upfront payment and is eligible to receive up to $350.0 million in potential future development-stage payments upon the completion of certain clinical, regulatory and alliance events. Through June 30, 2026, the Company has recognized a total of $50.0 million of milestone related revenue, including $25.0 million during the six months ended June 30, 2026. Through June 30, 2026, the Company has received $50.0 million of these milestone payments. There was 14 no revenue recognized during the three and six months ended June 30, 2025. As of June 30, 2026, there was no deferred revenue remaining related to the Lilly Agreement. Apellis Pharmaceuticals In June 2021, the Company entered into a research collaboration agreement, or the Apellis Agreement, with Apellis Pharmaceuticals, Inc., or Apellis, focused on the use of certain of the Company’s base editing technology to discover new treatments for complement system-driven diseases. Under the terms of the Apellis Agreement, the Company conducted preclinical research on six base editing programs that target specific genes within the complement system in various organs, including the eye, liver, and brain. Apellis had an exclusive option to license any or all of the six programs, or in each case, an Opt-In Right, and collectively, the Opt-In Rights, and would assume responsibility for subsequent development. In 2025, Apellis notified the Company of its decision to opt-in to one of the six base editing programs. As a result of Apellis' decision to opt-in to the program, the Company received a cash opt-in fee of $3.8 million which was recognized as revenue during the year ended December 31, 2025. The Company may elect to enter into a 50-50 U.S. co-development and co-commercialization agreement with Apellis with respect to one program licensed under the collaboration. The collaboration is managed on an overall basis by an alliance steering committee formed by an equal number of representatives from the Company and Apellis. As part of the collaboration, the Company received a total of $75.0 million in upfront and near-term milestones from Apellis, which was comprised of $50.0 million received upon signing and an additional $25.0 million payment on June 30, 2022, the one-year anniversary of the effective date of the Apellis Agreement, or the First Anniversary Payment. Following any exercise of an Opt-In Right for any of the six programs, the Company is eligible to receive development, regulatory, and sales milestones from Apellis, as well as royalty payments on sales. The collaboration had an initial term of five years and could have been extended up to two years on a per year and program-by-program basis. Pursuant to the terms of the Apellis Agreement, the Company’s obligation to provide services concluded as of June 30, 2026 as Apellis did not elect to extend the agreement beyond the initial term. The Company accounts for the Apellis Agreement under ASC 606, Revenue from Contracts with Customers, or ASC 606, as it includes a customer-vendor relationship as defined under ASC 606 and meets the criteria to be considered a contract. The overall transaction price as of the inception of the contract was determined to be $75.0 million, which is composed of the upfront payment of $50.0 million and the First Anniversary Payment of $25.0 million. The Company re-evaluates the transaction price in each reporting period. The Company concluded that each of the six base editing programs combined with the research and development service, licenses, substitution rights and governance participation were material promises that were both capable of being distinct and were distinct within the context of the Apellis Agreement and represented separate performance obligations. The Company further concluded that the Opt-In Rights and option to extend the collaboration term did not grant Apellis a material right. The Company determined that the term of the contract is five years, as this is the period during which both parties have enforceable rights. The selling price of each performance obligation was determined based on the Company’s estimated standalone selling price, or ESSP. The Company developed the ESSP for all of the performance obligations included in the Apellis Agreement by determining the total estimated costs to fulfill each performance obligation identified with the objective of determining the price at which it would sell such an item if it were to be sold regularly on a standalone basis. The Company allocated the stand-alone selling price to the performance obligations based on the relative standalone selling price method. The Company recognized revenue for each performance obligation as it was satisfied over the five-year term using an input method. The Company allocated the transaction price of $75.0 million to each of the six performance obligations, which included each of the six base editing programs combined with the research and development service, licenses, substitution rights and governance participation, and was recognized using an input method based on the actual costs incurred as a percentage of total estimated costs towards satisfying the performance obligation as this method provided the most faithful depiction of the entity’s performance in transferring control of the goods and services promised to Apellis and represented the Company’s best estimate of the period of the obligation. The Company recognized $0.5 million and $7.2 million of revenue related to the Apellis Agreement during the three and six months ended June 30, 2026, respectively. For the three and six months ended June 30, 2025, the Company recognized $6.3 million and $11.7 million of revenue related to the Apellis Agreement, respectively. As of June 30, 2026, there was no remaining deferred revenue related to the Apellis Agreement. In May 2026, Biogen Inc. announced that it had completed its acquisition of Apellis. 9. Common stock and pre-funded common stock warrants The Company has entered into the Sales Agreement with Jefferies pursuant to which the Company is entitled to offer and sell, from time to time at prevailing market prices, shares of its common stock having aggregate gross proceeds of up to $1.1 billion. The Company agreed to pay Jefferies a commission of up to 3.0% of the aggregate gross sale proceeds of any shares sold by Jefferies under the Sales Agreement. As of June 30, 2026, the Company has sold 13,769,001 shares of its common stock under the Sales Agreement at an average price of $62.75 per share for aggregate gross proceeds of $864.0 million, before deducting commissions and 15 offering expenses payable by the Company. There were no shares sold under the Sales Agreement during the three and six months ended June 30, 2026. In March 2025, the Company closed an underwritten public offering of 16,151,686 shares of the Company’s common stock at a public offering price of $28.48 per share as well as pre-funded warrants to purchase 1,404,988 shares of the Company's common stock at a purchase price of $28.47 (representing the price of $28.48 per share minus the $0.01 per share exercise price of such pre-funded warrant). The pre-funded warrants are immediately exercisable, subject to certain beneficial ownership restrictions, at any time after their original issuance and will not expire. After underwriting discounts and commissions and offering expenses, the Company received net proceeds from the offering of $470.5 million. No pre-funded warrants have been exercised through June 30, 2026. 10. Stock option and grant plan 2019 equity incentive plan As of June 30, 2026, the Company had 18,350,221 shares reserved including 2,359,298 shares available for future issuance, pursuant to the Beam Therapeutics Inc. 2019 Equity Incentive Plan. Stock-based compensation expense recorded as research and development and general and administrative expenses in the condensed consolidated statements of operations and other comprehensive loss is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Research and development $ 11,246 $ 14,832 $ 22,302 $ 30,565 General and administrative 8,032 9,535 16,020 20,484 Total stock-based compensation expense $ 19,278 $ 24,367 $ 38,322 $ 51,049 Stock options The following table provides a summary of stock option activity under the Company’s equity award plans: Number of options Weighted average exercise price Outstanding at December 31, 2025 11,316,549 $ 35.68 Granted 2,268,906 28.41 Exercised (645,881 ) 14.78 Forfeited (310,616 ) 45.38 Outstanding at June 30, 2026 12,628,958 35.23 Exercisable as of June 30, 2026 7,857,085 $ 40.07 The weighted-average grant date fair value per share of stock options granted in the six months ended June 30, 2026 was $20.20. As of June 30, 2026, there was $90.9 million of unrecognized compensation expense related to unvested stock options, which is expected to be recognized over a weighted-average remaining vesting period of approximately 2.6 years. Restricted stock The Company issues shares of restricted common stock, including both restricted stock units and restricted stock awards. Restricted common stock issued generally vests over a period of two to four years. The following table summarizes the Company’s restricted stock activity: Shares Weighted- average grant date fair value Unvested as of December 31, 2025 2,543,852 $ 27.16 Issued 1,720,125 21.38 Vested (795,275 ) 31.49 Forfeited (106,737 ) 24.49 Unvested as of June 30, 2026 3,361,965 $ 23.26 At June 30, 2026, there was approximately $69.7 million of unrecognized stock-based compensation expense related to restricted stock that is expected to vest. These costs are expected to be recognized over a weighted-average remaining vesting period of approximately 3.0 years. 16 2019 employee stock purchase plan The Company issued 74,518 and 90,436 shares under the Beam Therapeutics Inc. 2019 Employee Stock Purchase Plan, or ESPP, during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, the Company had 4,533,299 shares available for issuance under the ESPP. Stock-based compensation recognized under the ESPP for the three and six months ended June 30, 2026 was $0.4 million and $0.8 million, respectively. The Company recognized stock-based compensation under the ESPP of $0.4 million and $0.7 million for the three and six months ended June 30, 2025, respectively. 11. Net loss per share For periods in which the Company reports a net loss, potentially dilutive securities have been excluded from the computation of diluted net loss per share as their effects would be anti-dilutive. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share is the same. Shares of the Company's common stock underlying pre-funded warrants are included in the calculation of the basic and diluted earnings per share. The Company excluded the following potential common shares, presented based on amounts outstanding at period end, from the computation of diluted net loss per share because including them would have had an anti-dilutive effect: As of June 30, 2026 2025 Unvested restricted stock 3,361,965 2,885,312 Outstanding options to purchase common stock 12,628,958 11,616,771 ESPP 74,517 132,053 Total 16,065,440 14,634,136 The following table summarizes the computation of basic and diluted net loss per share of the Company (in thousands, except share and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Numerator: Net loss $ (122,678 ) $ (102,138 ) $ (216,996 ) $ (210,468 ) Denominator: Weighted average common shares outstanding, basic and diluted 104,326,669 101,995,184 103,797,276 95,023,977 Net loss per common share, basic and diluted $ (1.18 ) $ (1.00 ) $ (2.09 ) $ (2.21 ) 12. Income taxes During the three and six months ended June 30, 2026 and 2025, the Company recorded a full valuation allowance on federal and state deferred tax assets since there is insufficient evidence that the deferred tax assets are more likely than not realizable. The Company did not have any tax provision or benefit for the six months ended June 30, 2026 or June 30, 2025. 13. Debt Sixth Street Financing Agreement On February 24, 2026, or the Closing Date, the Company entered into a financing agreement, or the Financing Agreement, with certain of its subsidiaries as guarantors party thereto, the lenders party thereto, or the Lenders, and Sixth Street Lending Partners, as the administrative agent and collateral agent for the Lenders. The Financing Agreement provides for the Credit Facility, consisting of (i) an initial draw of $100 million on the Closing Date, (ii) a potential additional $100 million draw upon the acceptance by the U.S. Food and Drug Administration, or FDA, of the Company’s biologics license application, or BLA, submission for risto-cel prior to a certain date, or the Delayed Draw A, (iii) a potential additional $100 million draw at the Company’s option upon the FDA’s approval of the risto-cel BLA prior to a certain date, or the Delayed Draw B, (iv) a potential additional $100 million draw at the Company’s option upon achieving a revenue target from sales of risto-cel prior to a certain date and (v) a potential additional $100 million draw subject to agreement among the Company and the Lenders. The Credit Facility matures on February 24, 2033, or the Maturity Date, and bears interest at an annual rate equal to the 3-month Secured Overnight Financing Rate (SOFR) plus 6.50% (subject to a 1.00% floor) or permits interest on a base rate plus a margin. As of June 30, 2026, the effective interest rate was 10.5%. Certain additional commitment, administrative, undrawn amount and facility fees are also payable in connection with the Credit Facility. The Credit Facility requires quarterly interest payments, but does not provide for scheduled amortization payments during the term. All principal will be due on the Maturity Date. The Company will have the right to prepay loans under the Credit Facility at any time. The Company is required to repay loans under the Credit Facility with proceeds from certain asset sales and licensing transactions, 17 condemnation events and extraordinary receipts, subject, in some cases, to reinvestment rights. Repayments are subject, in some cases, to prepayment premiums, ranging between 1% to 5%. At maturity (or upon prepayment or acceleration, as applicable), the Company is required to pay a facility fee equal to 4.0% of the original principal amount of the term loans. This amount is considered part of the stated redemption price at maturity and is accreted to interest expense over the term of the loan using the effective interest method. All obligations under the Financing Agreement will be secured on a first-priority basis, subject to certain exceptions, by security interests in substantially all assets of the Company and its material subsidiaries, including its intellectual property, and will be guaranteed by the Company's material subsidiaries, subject to certain exceptions. The Financing Agreement contains customary covenants, including, without limitation, a financial covenant to maintain liquidity of at least $40 million (which shall increase to $80 million upon the draw of the Delayed Draw A and $125 million upon the draw of the Delayed Draw B) if the Company's market capitalization is below $1.75 billion, a covenant to use commercially reasonable efforts to develop and commercialize risto-cel and negative covenants that, subject to certain exceptions, restrict the Company's ability to incur additional indebtedness, grant liens, make investments (including acquisitions), effectuate mergers or consolidations, engage in asset sales and licensing transactions, pay dividends, modify material agreements, pay subordinated indebtedness, and undertake other matters customarily restricted in such agreements. Among other permissions, the Company is permitted, on terms and conditions set forth in the Financing Agreement, to have outstanding convertible unsecured notes in an amount not to exceed $400 million. The Company is subject to restrictions on sales and licensing transactions with respect to its core intellectual property, including risto-cel, subject to certain exceptions, including certain transactions related to areas outside the United States. The Financing Agreement also contains certain events of default after which loans under the Credit Facility may be due and payable immediately, including payment defaults, material inaccuracy of representations and warranties, covenant defaults, bankruptcy and insolvency proceedings, cross-defaults to certain other agreements, judgments against the Company and its subsidiaries, and change of control. On the Closing Date the Company drew down the initial $100.0 million of gross proceeds and paid initial fees of $6.9 million, inclusive of fees paid to the lender out of the gross proceeds of approximately $6.1 million and third-party legal fees of approximately $0.8 million. Amounts paid to lenders were accounted for as a debt discount and recorded as a direct reduction to the carrying amount of the loan. Third‑party legal fees were capitalized as debt issuance costs and similarly recorded as a reduction of the carrying amount of the debt. The Financing Agreement contains certain embedded features requiring bifurcation under Topic 815, including contingent interest, mandatory prepayment provisions, and increased‑cost and capital adequacy indemnification clauses. However, no embedded derivatives were recorded as the fair value of such features was deemed immaterial as of issuance and as of June 30, 2026. In connection with the delayed draw commitments, the Company recognized a loan commitment asset, or the Loan Commitment Asset, at its estimated fair value. The Loan Commitment Asset represents the Company’s contractual right to future financing and meets the definition of a financial asset. The fair value of the Loan Commitment Asset was included as part of the total proceeds allocated to the loan at issuance, resulting in a premium that is amortized as a reduction to interest expense over the life of the loan using the effective interest method. The Loan Commitment Asset of $7.1 million is classified as a noncurrent asset and is assessed for impairment at each reporting period. Commitment fees on the undrawn delayed draw commitments accrue at a rate of 0.75% per annum on the undrawn amounts and are expensed as incurred as interest expense. As of June 30, 2026, the carrying amount of the loan, net of unamortized debt discount and issuance costs, was approximately $100.3 million. No principal payments are due within the next five years as the principal balance is due on the February 24, 2033 Maturity Date. The loan is classified as a noncurrent liability, as no principal payments are due within the next twelve months. The following table summarizes the Company’s outstanding debt liability (in thousands): June 30, 2026 Initial term loan $ 100,000 Final payment fee on initial term loan 4,000 Unamortized debt discount and issuance costs (3,742 ) Balance at June 30, 2026 $ 100,258 The following table summarizes components of the Company's debt related interest expense (in thousands): 18 Three Months Ended June 30, Six Months Ended June 30, 2026 2026 Cash interest expense $ 2,595 $ 3,555 Amortization of debt issuance costs 65 100 Amortization of annual fee 13 18 Total interest expense related to debt $ 2,673 $ 3,673 14. Segment Data The Company defines its segments on the basis of the way in which internally reported financial information is regularly reviewed by the chief operating decision maker, or CODM, to analyze financial performance, make decisions, and allocate resources. The Company’s CODM is John Evans, its Chief Executive Officer. The Company manages its operations as a single operating and reportable segment and the measure of segment profit or loss is consolidated net income (loss). The CODM uses net income (loss) in the budget and forecasting process and considers budget-to-actual variances on a quarterly basis when making decisions about the allocation of operating and capital resources. The internal reporting of significant segment expenses is based on the functional classification. External expenses include costs from external manufacturing, clinical and research organizations, supply chain and logistics costs, consultants, and other vendors. Employee related expenses include employee salaries and benefits costs, employee meal, travel and entertainment spend, along with payroll related taxes and other similar items. These functional costs exclude stock-based compensation, facility and information technology costs, depreciation and amortization, and other segment items. The table below provides information about the Company’s segment, including significant expenses, other segment items, certain other segment expenses, and a reconciliation to net income (loss) (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 License and collaboration revenue $ 490 $ 8,466 $ 32,228 $ 15,936 Research and development expenses External research and development expenses* 31,566 39,891 61,643 74,312 Employee related expenses* 31,955 27,623 64,822 56,865 General and administrative expenses External general and administrative expenses* 9,562 6,302 22,927 11,675 Employee related expenses* 12,703 9,992 24,654 20,433 Facility and information technology related expenses* 15,441 14,576 29,879 28,960 Depreciation and amortization 5,410 5,538 11,015 11,066 Stock-based compensation 19,278 24,367 38,322 51,049 Interest and other income (7,487 ) (12,326 ) (17,354 ) (22,190 ) Other segment items 4,740 (5,359 ) 13,316 (5,766 ) Net income (loss) $ (122,678 ) $ (102,138 ) $ (216,996 ) $ (210,468 ) * Denotes significant segment expense Other segment items includes: •Change in fair value of derivative liabilities •Change in fair value of non-controlling equity investments •Change in fair value of contingent consideration liabilities •Milestone expense •License and sublicenses fees •Gain on sale of equity method investment 19