UK's Compass Pathways Q4 loss widens on warrant liability adjustment

COMPASS Pathways

24/03/2026 11:40

Overview

UK biotechnology firm's Q4 operating income missed analyst expectations

Net loss for Q4 widened, mainly due to non-cash warrant liability adjustment

Company raised $150 mln and exercised $200 mln in warrants, extending cash runway into 2028

Outlook

COMPASS expects to complete NDA submission for COMP360 in Q4 2026

Company aims to be launch-ready for COMP360 by end of 2026

COMPASS expects cash position to fund operations into 2028

Result Drivers

WARRANT LIABILITY ADJUSTMENT - Widened net loss in Q4 was primarily due to a $38.2 mln non-cash loss on fair value adjustment related to warrant liabilities

LOWER R&D EXPENSES - Research and development expenses decreased due to reduced staffing and share-based compensation following a reorganization in Q4 2024

HIGHER LEGAL AND PROFESSIONAL FEES - General and administrative expenses rose slightly year-over-year, mainly due to increased legal and professional fees related to financing activities

Company press release: ID:nBwbg9z2za

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 EPS
-$1
Q4 Net Income
-$93.88 mln
Q4 Operating Income
Miss
-$45.95 mln
-$41.62 mln (8 Analysts)
Q4 Operating Expenses
$45.95 mln
Q4 Pretax Profit
-$96.61 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the biotechnology & medical research peer group is "buy"

Wall Street's median 12-month price target for Compass Pathways PLC is $20.00, about 274.5% above its March 23 closing price of $5.34

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)