Overview We are a clinical-stage biopharmaceutical company using an AI-native approach to develop differentiated antibody therapeutics. Our integrated drug creation platform combines Origin-1, our generative design model, with rapid validation using our lab-in-the-loop. We focus on underexplored mechanisms where unmet medical need is high and competition is low. We have advanced our first two programs from AI design to IND (or foreign equivalent) in around 2 years with a total investment of approximately $15 million per program, compared to an industry average of 4–6 years at a cost of greater than $50 million. This combination of underexplored target selection and capital-efficient execution is central to our strategy. Our lead product candidate, ABS-201, is an anti-prolactin receptor (PRLR) antibody engineered with an extended half-life to support a patient-friendly dosing interval. We believe PRLR is an underexplored target with the potential to provide durable, disease-modifying effects. If successfully developed, ABS-201 could establish a new treatment category in indications where current options remain inadequate. ABS-201 is being developed for two indications, pattern hair loss (PHL) and endometriosis, each with large affected populations and significant unmet need. Pipeline Programs Our pipeline is composed of programs which leverage our differentiated capabilities in de novo design, multi-parametric lead optimization, and reverse immunology. These programs have been designed to address areas with significant unmet medical needs with potential ‘first-in-class’, ‘best-in-class’, or ‘disease modifying’ profiles. ABS-201 for the Treatment of PHL ABS-201 is being evaluated in the HEADLINE™ Phase 1/2a clinical trial for PHL, a condition affecting approximately 80 million people in the United States. Our own patient and clinician surveys, as well as those of other parties, show broad dissatisfaction with current standard of care, which is limited by variable efficacy, poor compliance, and a lack of durable approaches. No approved therapy provides durable hair regrowth. This trial is designed to evaluate the safety, tolerability and preliminary efficacy of ABS-201 in healthy volunteers with and without PHL. The trial is a randomized, double-blind, placebo-controlled study expected to enroll up to 227 male and female healthy volunteers at multiple sites in Australia. In June 2026, we announced positive interim Phase 1 data from the HEADLINE trial, which included interim blinded data indicating that the study drug appears well tolerated, with favorable safety data across all blinded single ascending dose (SAD) cohorts. Additionally, the estimated half-life of at least 65 days supports 19 potential for ABS-201's targeted dosing interval of two or three injections over a six-month period. Interim proof-of-concept data, including data on exploratory efficacy endpoints, are expected in the second half of 2026 and full proof-of-concept data in early 2027. ABS-201 for the Treatment of Endometriosis Published literature suggests that PRL and PRLR may play a role in the development of endometrial lesions and associated pain in patients with endometriosis. As such, inhibition of PRLR signaling may influence pathways associated with lesion development and pain perception. As a result, ABS-201 may have the potential to affect both lesion growth and pain-related pathways. We intend to evaluate, and if possible, rely on the data generated from the HEADLINE trial, together with other available information, as part of our assessment of potential next steps for the ABS-201 program. We believe that the HEADLINE trial could provide supporting first-in-human safety, tolerability, and PK data that may inform the planned Phase 2 clinical trial evaluating ABS-201 in patients with endometriosis. Based on these and other considerations, we anticipate initiating a Phase 2 clinical trial evaluating ABS-201 in endometriosis in the fourth quarter of 2026, subject to review of available data, regulatory considerations and other factors, with potential proof-of-concept data in the second half of 2027. ABS-202 ABS-202 is a second novel anti-PRLR antibody program, designed using our generative AI platform, currently in preclinical development as a potential treatment for an undisclosed immunology and inflammation indication. Preclinical Stage Programs We are advancing early-stage immunology and inflammation programs. We continue to use our platform to develop additional early-stage programs addressing challenging targets in various indications with areas of significant unmet medical need. We plan to provide more information about these additional programs selectively and to seek partnerships or out-licenses for select programs as they advance. Financial results Revenue was $0.3 million and $0.5 million for the three and six months ended June 30, 2026, respectively, compared to $0.6 million and $1.8 million for the three and six months ended June 30, 2025, respectively. The decrease in revenue is due to a combination of the timing of achieving project-based milestones and the mix of ongoing program activity under our drug creation agreements. We incurred a net loss of $33.2 million and $62.8 million for the three and six months ended June 30, 2026, respectively, compared to a net loss of $30.6 million and $56.9 million for the three and six months ended June 30, 2025, respectively. Research and development expenses increased by $5.1 million, or 14%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. As of June 30, 2026, we had an accumulated deficit of $687.6 million and cash equivalents and marketable securities totaling $201.1 million. We expect to continue to incur significant expenses in connection with our ongoing activities, including as we: •develop ABS-201 and other internally developed programs across diverse indications, including the advancement of these product candidates through preclinical and clinical development; •continue to engage in discovery, research and development efforts and scale our activities through our existing and potential new partnerships; •develop, acquire, in-license or otherwise obtain technologies that enable us to expand our Integrated Drug Creation platform capabilities; and •attract, retain and motivate highly qualified personnel to join Absci in our mission. Our corporate headquarters and primary research and development facilities are located in Vancouver, Washington in a 77,974 square foot facility that includes general administrative office space and laboratory 20 space. Our AI Research Lab is located in New York, New York and our Innovation Center is located in Zug, Switzerland. Additionally, we have a research and development presence in Belgrade, Serbia. AMD strategic collaboration In January 2025, we entered into a strategic collaboration with Advanced Micro Devices, Inc. (AMD) with a goal to optimize the performance of AMD InstinctTM accelerators and ROCmTM software to support our AI drug creation, including our de novo antibody design models. Additionally, AMD invested $20.0 million through the purchase of 5,714,285 shares of our common stock in a private investment in public equity (PIPE) at a premium over the market price. Components of Results of Operations Revenue Our revenue currently consists primarily of fees earned from our partners in conjunction with drug creation agreements utilizing our Integrated Drug Creation platform, which are presented as partner program revenue in our results of operations. These fees are earned and paid at various points throughout the terms of these agreements including upfront, upon the achievement of specified project-based milestones, and throughout the program. Future revenue may also be earned from our partners’ achievements of certain clinical, regulatory, and commercial milestones and through royalties as a percentage of net product sales. We expect that our revenue will fluctuate from period to period due to the timing of executing additional partnerships, the contractual structure of existing and future partnerships, the measurement of progress towards completion of each program, the uncertainty of achieving technical milestones, and dependence on our partners’ program-related decisions. Operating Expenses Research and development Research and development expenses include personnel-related costs (comprised of salaries, benefits and share-based compensation), contract research services, contract manufacturing, consulting fees, laboratory supplies and facilities, and certain technology costs. These expenses are exclusive of depreciation and amortization. Research and development activities consist of continued development of our Integrated Drug Creation platform, internally developed programs, and partnered programs. We derive improvements to our Integrated Drug Creation platform from each type of activity. Research and development efforts apply to our Integrated Drug Creation platform broadly, as well as across programs. We expect research and development expenses to continue to increase in absolute dollars as we advance the HEADLINE trial, prepare for and conduct the planned Phase 2 trial of ABS-201 in endometriosis, advance our other internally developed programs, and continue to invest in our Integrated Drug Creation platform. Selling, general, and administrative Selling, general, and administrative expenses include personnel-related costs (comprised of salaries, benefits and share-based compensation) for executive, business development, legal, finance, human resources, information technology and other administrative functions. General and administrative expenses include certain professional service expenses, such as external legal, accounting, and other consultants, as well as insurance, certain technology costs, and allocated facility costs. These expenses are exclusive of depreciation and amortization. As we expand our clinical development and regulatory operations, require additional administrative support, and prepare for the potential future commercial launch of a product candidate, we expect personnel-related costs may increase in absolute dollars while continuing to actively manage other general and administrative expenses. We have a comprehensive intellectual property portfolio directed towards the many aspects of our Integrated Drug Creation platform, including those related to our internally developed programs, product candidates, proprietary cell lines and protein expression technologies, proprietary screening assays, antibody discovery methods, and generative AI models. We regularly file patent applications to protect innovations arising from our research and development. We also hold trademarks and trademark applications in the United States and 21 foreign jurisdictions. Costs to secure and defend our intellectual property are expensed as incurred and are classified as selling, general and administrative expenses. Depreciation and amortization Depreciation and amortization expense consists of the depreciation expense of our property and equipment and amortization of our intangibles. Our equipment is used most actively as part of our lab operations. Other income (expense) Interest expense Interest expense consists primarily of interest related to borrowings under our term debt and financed laboratory equipment. Other income, net Other income, net consists primarily of interest income from our cash, cash equivalents and marketable securities and realized and unrealized gains and losses on foreign currency transactions. Results of Operations The results of operations presented below should be reviewed in conjunction with our condensed consolidated financial statements and notes included elsewhere in this Quarterly Report. The following tables set forth our results of operations for the periods presented (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Partner program revenue $ 318 $ 593 $ 533 $ 1,772 Operating expenses Research and development 22,616 20,458 41,891 36,822 Selling, general and administrative 9,164 8,528 18,222 18,000 Depreciation and amortization 2,696 3,000 5,424 6,072 Total operating expenses 34,476 31,986 65,537 60,894 Operating loss (34,158) (31,393) (65,004) (59,122) Other income (expense) Interest expense (2) (56) (20) (135) Other income, net 990 1,011 2,273 2,469 Total other income, net 988 955 2,253 2,334 Loss before income taxes (33,170) (30,438) (62,751) (56,788) Income tax expense (40) (131) (58) (127) Net loss $ (33,210) $ (30,569) $ (62,809) $ (56,915) Comparison of the Three and Six Months Ended June 30, 2026 and 2025 Revenue Partner program revenue decreased by $0.3 million, or 46% for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 and decreased by $1.2 million, or 70%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, driven by a combination of the timing of achieving project-based milestones and the mix of ongoing program activity under our drug creation agreements. 22 Operating expenses The following tables summarize our operating expenses for the three and six months ended June 30, 2026 and 2025 (In thousands, except for percentages): For the Three Months Ended June 30, 2026 2025 $ Change % Change Operating expenses Research and development $ 22,616 $ 20,458 $ 2,158 11 % Selling, general and administrative 9,164 8,528 636 7 % Depreciation and amortization 2,696 3,000 (304) (10) % Total operating expenses $ 34,476 $ 31,986 $ 2,490 8 % For the Six Months Ended June 30, 2026 2025 $ Change % Change Operating expenses Research and development $ 41,891 $ 36,822 $ 5,069 14 % Selling, general and administrative 18,222 18,000 222 1 % Depreciation and amortization 5,424 6,072 (648) (11) % Total operating expenses $ 65,537 $ 60,894 $ 4,643 8 % Research and development Research and development expenses increased by $2.2 million, or 11%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily attributable to a net increase of $1.5 million in direct costs associated with external preclinical and clinical development, primarily driven by an increase from ABS-201, an increase of $0.8 million of other drug creation and platform costs, and a $0.5 million increase in other lab costs. This increase was offset by a decrease of $0.6 million of personnel costs and stock-based compensation. Research and development expenses increased by $5.1 million, or 14%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was primarily attributable to a net increase of $3.1 million in direct costs associated with external preclinical and clinical development, primarily driven by an increase from ABS-201, an increase of $2.8 million of other drug creation and platform costs, and a $0.7 million increase in other lab costs. This increase was offset by a decrease of $1.5 million of personnel costs and stock-based compensation. Selling, general and administrative expenses Selling, general, and administrative expenses increased by $0.6 million, or 7%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily attributable to an increase of $0.4 million in personnel and stock-based compensation costs. Selling, general, and administrative expenses increased by $0.2 million, or 1%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was primarily attributable to an increase of $0.1 million in personnel and stock-based compensation costs and an increase of $0.1 million in other administrative costs. Depreciation and amortization Depreciation and amortization expense decreased by $0.3 million, or 10%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 and decreased by $0.6 million, or 11%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to disposals of lab equipment. 23 Other income (expense) Other income, net Other income, net, was consistent for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Other income, net, was $2.3 million for the six months ended June 30, 2026, compared to $2.5 million for the six months ended June 30, 2025, representing a decrease of $0.2 million, or 8%, primarily attributable to realized and unrealized gains and losses on foreign currency transactions and a decrease in investment income from cash, cash equivalents and marketable securities. Liquidity and Capital Resources Overview As of June 30, 2026, we had $201.1 million of cash, cash equivalents and marketable securities. We have incurred net operating losses since inception. As of June 30, 2026, our accumulated deficit was $687.6 million. To date, we have funded operations through issuances and sales of equity securities and debt, in addition to revenue generated from our drug creation agreements. We believe that our cash, cash equivalents and marketable securities will be sufficient to meet our operating expenses, working capital and capital expenditure needs over at least the next 12 months following the date of this filing. Our future capital requirements will depend on many factors, including, but not limited to our ability to raise additional capital through equity or debt financing, the development of our internally developed programs including the progress and strategy of our preclinical and clinical activities, our ability to successfully enter into additional partnerships with new and existing partners, the advancement of technology development activities with existing and future partners, the successful preclinical and clinical development by us and our partners of product candidates generated using our Integrated Drug Creation platform, and the successful commercialization by us and our partners of any such product candidates that are approved. If we are unable to execute on our business plan and adequately fund operations, or if our business plan requires a level of spending in excess of cash resources, we may be required to change our strategies related to preclinical and clinical development and our approach to negotiating partnerships. Alternatively, we may need to seek additional equity or debt financing, which may not be available on terms acceptable to us or at all. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders. Debt financing and preferred equity financing, if available, may involve agreements that include covenants restricting our ability to take specific actions, such as incurring additional debt, selling or licensing our programs, making product acquisitions, making capital expenditures, or declaring dividends. If we are unable to generate sufficient revenue or raise additional capital when desired, our business, financial condition, results of operations and prospects would be adversely affected. Sources of liquidity Since our inception, we have financed our operations primarily from the issuance and sale of our redeemable convertible preferred stock, issuances of equity securities, borrowings under long-term debt agreements, and to a lesser extent, cash flow from operations. At-the-market offering In August 2025, we entered into a Sales Agreement with TD Securities (USA) LLC, as Sales Agent (the “Sales Agreement”), with respect to an “at the market offering” program under which we may offer and sell, from time to time, shares of our common stock having an aggregate offering price of up to $100.0 million through the Sales Agent. We have agreed to pay the Sales Agent a commission of up to 3.0% of the gross proceeds of any shares sold under the Sales Agreement. Upon execution, the Sales Agreement terminated and superseded the prior sales agreement entered into in June 2023 in its entirety. During the six months ended June 30, 2026, we issued 3,662,246 shares and received $12.5 million in net proceeds from the sale of common stock pursuant to the Sales Agreement. Public offerings of common stock 24 In June 2026, we sold an aggregate of 13,495,277 shares of our common stock pursuant to an underwriting agreement with Jefferies LLC, J.P. Morgan Securities LLC, TD Securities (USA) LLC, and Guggenheim Securities LLC, at a public offering price of $7.41 per share. We received total net proceeds from the offering of approximately $93.6 million after deducting underwriting discounts and commissions and estimated offering expenses payable by us. In July 2025, we sold an aggregate of 16,670,000 shares of our common stock pursuant to an underwriting agreement with Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Jefferies LLC and TD Securities (US) LLC at a public offering price of $3.00 per share, before underwriting discounts and commissions. We received total net proceeds from the offering of $46.7 million after deducting underwriting discounts and commissions and offering expenses payable by us. Private investment in public equity In January 2025, we entered into a strategic collaboration with AMD and sold an aggregate of 5,714,285 shares of our common stock to AMD for net proceeds of $20.0 million through a private investment in public equity (PIPE). The issuance of stock to AMD was at a premium of approximately $2.5 million over the market price on the issuance date. Cash Flows The following summarizes our cash flows (In thousands): For the Six Months Ended June 30, 2026 2025 Net cash provided by (used in) Operating activities (53,871) (38,712) Investing activities 31,430 (6,005) Financing activities 110,282 41,790 Net increase (decrease) in cash, cash equivalents, and restricted cash $ 87,841 $ (2,927) Cash flows from operating activities In the six months ended June 30, 2026, net cash used in operating activities was $53.9 million and consisted primarily of a net loss of $62.8 million adjusted for non-cash items, including depreciation and amortization expense of $5.4 million, stock-based compensation expense of $9.6 million, and a net increase in operating assets and liabilities in the amount of $4.9 million. In the six months ended June 30, 2025, net cash used in operating activities was $38.7 million and consisted primarily of a net loss of $56.9 million adjusted for non-cash items, including depreciation and amortization expense of $6.1 million, stock-based compensation expense of $9.7 million, and a net decrease in operating assets and liabilities in the amount of $4.0 million. Cash flows from investing activities In the six months ended June 30, 2026, net cash provided by investing activities was $31.4 million primarily from maturities of marketable securities of $54.0 million, partially offset by purchases of marketable securities of $22.6 million. In the six months ended June 30, 2025, net cash used in investing activities was $6.0 million primarily from purchases of marketable securities of $57.9 million, partially offset by maturities of marketable securities of $51.0 million. Cash flows from financing activities In the six months ended June 30, 2026, net cash provided by financing activities was $110.3 million. The net cash provided resulted primarily from aggregate proceeds of $93.6 million from the issuance of stock in our June public offering, $12.5 million from the issuance of common stock pursuant to the Sales Agreement, and proceeds of $4.9 million from the issuance of common stock through employee equity plans. 25 In the six months ended June 30, 2025, net cash provided by financing activities was $41.8 million. The net cash provided resulted primarily from aggregate proceeds of $41.7 million from the issuance of common stock pursuant to the PIPE with AMD and pursuant to the Prior Sales Agreement, and proceeds of $2.0 million from the issuance of common stock through employee equity plans, partially offset by principal payments of $1.9 million made for financed equipment. Critical Accounting Estimates Our management’s discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States (US GAAP). The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported expenses incurred during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. This report should be read in conjunction with the consolidated financial statements in our 2025 Annual Report on Form 10-K where we include additional information on our business, risk factors, critical accounting estimates, policies, and the methods and assumptions used in our estimates, among other important information. There were no material changes in our critical accounting policies and estimates during the six months ended June 30, 2026. Emerging Growth Company Status We are an emerging growth company, as defined in the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. Section 107 of the JOBS Act provides that an emerging growth company may take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933 for complying with new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. Section 107 of the JOBS Act provides that we can elect to opt out of the extended transition period at any time, which election is irrevocable. We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. Subject to certain conditions, as an emerging growth company, we may rely on certain other exemptions and reduced reporting requirements, including without limitation (i) providing an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act and (ii) complying with any requirement by the Public Company Accounting Oversight Board (PCAOB) regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the consolidated financial statements, known as the auditor discussion and analysis. In addition, we are also a “smaller reporting company” as defined in Rule 12b-2 of the Exchange Act and have elected to take advantage of certain of the scaled back disclosure requirements available to smaller reporting companies, including providing reduced narrative disclosure, particularly in the description of executive compensation. We will remain a smaller reporting company until (a) the last day of the fiscal year in which we have total annual gross revenue of less than $100 million and the market value of our common stock held by non-affiliates exceeds $700.0 million as of the prior June 30th, or (b) the last day of the fiscal year in which we have total annual gross revenue exceeding $100 million and the market value of our common stock held by non-affiliates exceeds $250.0 million. In August 2025, the SEC released a Compliance and Disclosure Interpretation clarifying the filer status transition for registrants that lose their smaller reporting company status based on the revenue tests. Due to this interpretation, we will remain a non-accelerated filer for filings due in the fiscal year immediately following the loss of smaller reporting company 26 status, allowing us to retain the exception from the auditor attestation requirement on internal control over financial reporting. However, the interpretation specifies that we will lose eligibility for all other smaller reporting company accommodations beginning with the Form 10-Q for the first fiscal quarter of the year after losing smaller reporting company status. In addition, the loss of emerging growth company status will not impact our “non-accelerated filer” status, which also provides an exemption from the auditor attestation requirement with respect to internal control over financial reporting.