Rafael Holdings reports $9.8M Q1 loss after Cyclo Therapeutics acquisition
Rafael Holdings, Inc. (NYSE: RFL) has released its financial results for the first quarter of fiscal year 2026, covering the three months to October 31, 2025. The company reported a net loss of $9.8 million, with higher expenses linked to its recent acquisition of Cyclo Therapeutics in March 2025.
The company’s net loss for the quarter reached $9.8 million, or $0.19 per share. This marked an increase from the same period last year, driven by the consolidation of Cyclo Therapeutics’ expenses after the acquisition.
Research and development costs rose sharply to $7.5 million, up from $1.3 million in the prior-year quarter. The jump was largely due to Cyclo’s spending following the takeover. General and administrative expenses also climbed slightly, reaching $2.8 million compared to $2.5 million a year earlier.
Despite the losses, Rafael Holdings maintained a cash position of $45.5 million as of October 31, 2025. Meanwhile, the Data Monitoring Committee (DMC) reviewed 48-week data from the Phase 3 TransportNPC study of Trappsol Cyclo, a treatment for Niemann-Pick Disease Type C1. The committee recommended continuing the trial as planned.
The acquisition of Cyclo Therapeutics has significantly impacted Rafael Holdings’ financials, with higher R&D and administrative costs contributing to a wider net loss. The company’s cash reserves remain steady, while its key drug trial continues to progress under regulatory oversight.
