lxrx-20260630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from _____________ to _____________

Commission File Number: 000-30111

Lexicon Pharmaceuticals, Inc.

(Exact Name of Registrant as Specified in its Charter)


Delaware			76-0474169
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification Number)

2445 Technology Forest Blvd.

11th Floor

The Woodlands, Texas 77381

(Address of Principal Executive Offices and Zip Code)

(281) 863-3000

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001	LXRX	The Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes

☑

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files)

Yes

☑

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer Accelerated filer Non-accelerated filer ☑

Smaller reporting company ☑ Emerging growth company

If an emerging growth company, indicate by check mark if the registration has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

☑

As of August 3, 2026, 444,955,934 shares of the registrant’s common stock, par value $0.001 per share, were outstanding.

Lexicon Pharmaceuticals, Inc.

Table of Contents


		Page
Factors Affecting Forward-Looking Statements		2
Part I – Financial Information		3
Item 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets - June 30, 2026 (unaudited) and December 31, 2025	3
	Condensed Consolidated Statements of Comprehensive (Loss) Income (unaudited) - Three and Six Months Ended June 30, 2026 and 2025	4
	Condensed Consolidated Statements of Stockholders’ Equity (unaudited) - Three and Six Months Ended June 30, 2026 and 2025	5
	Condensed Consolidated Statements of Cash Flows (unaudited) - Six Months Ended June 30, 2026 and 2025	7
	Notes to Condensed Consolidated Financial Statements (unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23
Item 4.	Controls and Procedures	23
Part II – Other Information		24
Item 1.	Legal Proceedings	24
Item 1A.	Risk Factors	24




Item 5.	Other Information	26
Item 6.	Exhibits	27
	Signatures	28

The Lexicon name and logo, INPEFA® and ZYNQUISTA® are registered trademarks of Lexicon Pharmaceuticals, Inc.

——————

Factors Affecting Forward Looking Statements

This quarterly report on Form 10-Q contains forward-looking statements. These statements relate to future events or our future financial performance. We have attempted to identify forward-looking statements by terminology including “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “should” or “will” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks outlined under “Part II, Item 1A. - Risk Factors” and in our annual report on Form 10-K for the year ended December 31, 2025, that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels or activity, performance or achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, future results, levels of activity, performance or achievements may vary materially from our expectations. We are not undertaking any duty to update any of the forward-looking statements after the date of this quarterly report on Form 10-Q to conform these statements to actual results, unless required by law.

Part I – Financial Information

Item 1. Financial Statements

Lexicon Pharmaceuticals, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except par value and share amounts)


	As of June 30,		As of December 31,
	2026		2025
Assets	(unaudited)
Current assets:
Cash and cash equivalents	$	40,924	$	34,326
Short-term investments	149,686		61,904
Accounts receivable, net	1,643		2,384
Inventory	1,196		281
Prepaid expenses and other current assets	3,128		3,000
Total current assets	196,577		101,895
Property and equipment, net	1,651		1,863
Goodwill	44,543		44,543
Operating lease right-of-use-assets	6,921		7,318
Restricted cash	—		29,000
Other assets	368		368
Total assets	$	250,060	$	184,987
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	2,343	$	3,083
Accrued liabilities	12,363		13,189

Current portion of long-term debt	—		4,595
Total current liabilities	14,706		20,867
Long-term debt, net	51,437		49,408
Other long-term liabilities	9,392		7,174
Total liabilities	75,535		77,449
Commitments and contingencies (Note 7)
Stockholders’ Equity:


Convertible preferred stock, $0.01 par value; 5,000,000 shares authorized 2,712,582 and 2,304,147 shares issued at June 30, 2026 and December 31, 2025, respectively; none outstanding at June 30, 2026 and December 31, 2025	—		—
Common stock, $0.001 par value; 900,000,000 shares authorized at June 30, 2026; 446,870,629 and 365,848,216 shares issued, respectively	447		366
Additional paid-in capital	2,227,526		2,129,912
Accumulated deficit	(2,050,401)		(2,017,583)
Accumulated other comprehensive (loss) income	(204)		30
Treasury stock, at cost, 1,933,747 and 2,381,939 shares, respectively	(2,843)		(5,187)
Total stockholders’ equity	174,525		107,538
Total liabilities and stockholders’ equity	$	250,060	$	184,987

The accompanying notes are an integral part of these condensed consolidated financial statements.

Lexicon Pharmaceuticals, Inc.

Condensed Consolidated Statements of Comprehensive (Loss) Income

(In thousands, except per share amounts)

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Revenues:
Net product revenue	$	680	$	1,322	$	1,770	$	2,584
Licensing and milestone revenue	—		27,544		20,000		27,544
Royalties and other revenue	12		—		24		—
Total revenues	692		28,866		21,794		30,128
Operating expenses:
Cost of sales	39		33		147		63
Research and development, including stock-based compensation of $1,384, $1,620, $2,753, and $3,194 respectively	17,443		15,747		30,199		31,050
Selling, general and administrative, including stock-based compensation of $1,952, $1,575, $3,661, and $3,044 respectively	9,750		9,350		18,984		20,958
Total operating expenses	27,232		25,130		49,330		52,071
(Loss) income from operations	(26,540)		3,736		(27,536)		(21,943)
Interest and other expense	(2,609)		(2,318)		(4,199)		(4,153)
Interest and other income	1,723		1,834		3,266		4,053
Loss on early extinguishment of debt	(4,349)		—		(4,349)		—
Net (loss) income	$	(31,775)	$	3,252	$	(32,818)	$	(22,043)
Net (loss) income per common share, basic	$	(0.07)	$	0.01	$	(0.08)	$	(0.06)
Net (loss) income per common share, diluted	$	(0.07)	$	0.01	$	(0.08)	$	(0.06)

Weighted average common shares outstanding, basic	437,653		363,294		419,050		362,687
Weighted average common shares outstanding, diluted	437,653		363,570		419,050		362,687

Other comprehensive (loss) income:
Unrealized loss on investments	(74)		(39)		(234)		(133)
Comprehensive (loss) income	$	(31,849)	$	3,213	$	(33,052)	$	(22,176)

The accompanying notes are an integral part of these condensed consolidated financial statements.

Lexicon Pharmaceuticals, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands)

(Unaudited)


	Common Stock			Preferred Stock			Additional				Accumulated Other
	Shares	Par Value		Shares	Par Value		Paid-In Capital		Accumulated Deficit		Comprehensive Income (Loss)		Treasury Stock		Total
Balance at December 31, 2024	363,020	$	363	—	$	—	$	2,117,325	$	(1,967,242)	$	119	$	(4,615)	$	145,950
Stock-based compensation expense	—	—		—	—		3,043		—		—		—		3,043

Issuance of common stock under Equity Incentive Plans	2,540	3		—	—		(3)		—		—		—		—
Payments for tax withholding on share-based compensation vesting	—	—		—	—		—		—		—		(572)		(572)
Net loss	—	—		—	—		—		(25,295)		—		—		(25,295)
Unrealized loss on investments	—	—		—	—		—		—		(94)		—		(94)
Balance at March 31, 2025	365,560	$	366	—	$	—	$	2,120,365	$	(1,992,537)	$	25	$	(5,187)	$	123,032
Stock-based compensation expense	—	—		—	—		3,195		—		—		—		3,195

Issuance of common stock under Equity Incentive Plans	221	—		—	—		—		—		—		—		—

Net income	—	—		—	—		—		3,252		—		—		3,252
Unrealized loss on investments	—	—		—	—		—		—		(39)		—		(39)
Balance at June 30, 2025	365,781	$	366	—	$	—	$	2,123,560	$	(1,989,285)	$	(14)	$	(5,187)	$	129,440

The accompanying notes are an integral part of these condensed consolidated financial statements.

Lexicon Pharmaceuticals, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands)

(Unaudited)


	Common Stock			Preferred Stock			Additional				Accumulated Other
	Shares	Par Value		Shares	Par Value		Paid-In Capital		Accumulated Deficit		Comprehensive Income (Loss)		Treasury Stock		Total
Balance at December 31, 2025	365,848	$	366	—	$	—	$	2,129,912	$	(2,017,583)	$	30	$	(5,187)	$	107,538
Stock-based compensation expense	—	—		—	—		3,078		—		—		—		3,078
Issuance of preferred stock, net of fees	—	—		408	4		26,544		—		—		—		26,548
Issuance of common stock, net of fees	56,489	57		—	—		69,616		—		—		—		69,673
Issuance of common stock under Equity Incentive Plans	3,371	3		—	—		62		—		—		—		65
Issuance of treasury stock under Equity Incentive Plans	—	—		—	—		(5,187)		—		—		5,187		—
Payments for tax withholding on share-based compensation vesting	—	—		—	—		—		—		—		(2,843)		(2,843)
Net loss	—	—		—	—		—		(1,043)		—		—		(1,043)
Unrealized loss on investments	—	—		—	—		—		—		(160)		—		(160)
Balance at March 31, 2026	425,708	$	426	408	$	4	$	2,224,025	$	(2,018,626)	$	(130)	$	(2,843)	$	202,856
Stock-based compensation expense	—	—		—	—		3,336		—		—		—		3,336


Fees related to issuance of common stock	—	—		—	—		(50)		—		—		—		(50)
Issuance of common stock under Equity Incentive Plans	741	1		—	—		231		—		—		—		232

Conversion of preferred stock to common stock	20,422	20		(408)	(4)		(16)								—
Net loss	—	—		—	—		—		(31,775)		—		—		(31,775)
Unrealized loss on investments	—	—		—	—		—		—		(74)		—		(74)
Balance at June 30, 2026	446,871	$	447	—	$	—	$	2,227,526	$	(2,050,401)	$	(204)	$	(2,843)	$	174,525

The accompanying notes are an integral part of these condensed consolidated financial statements.

Lexicon Pharmaceuticals, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)


	Six Months Ended June 30,
	2026		2025
Cash flows from operating activities:
Net loss	$	(32,818)	$	(22,043)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	212		352
Stock-based compensation	6,414		6,238
Amortization of debt-related costs	1,213		803
Loss on early extinguishment of debt	4,349		—
Accretion of marketable securities purchased at a discount	(1,292)		(2,540)
Other non-cash adjustments	(99)		(1,561)
Changes in operating assets and liabilities:
Decrease in accounts receivable, net	741		1,290
(Increase) decrease in inventories	(915)		63
(Increase) decrease in prepaid expenses and other current assets	(128)		806
Decrease in other long-term assets	397		376
Decrease in accounts payable and other liabilities	(1,996)		(10,569)
Net cash used in operating activities	(23,922)		(26,785)
Cash flows from investing activities:

Purchases of investments	(163,221)		(90,943)
Maturities of investments	76,497		147,008
Net cash (used in) provided by investing activities	(86,724)		56,065
Cash flows from financing activities:

Proceeds from issuance of common stock, net of fees	70,777		—
Proceeds from issuance of preferred stock, net of fees	26,548		—
Proceeds from issuance of common stock for equity incentive plans	297		—
Payments for tax withholding on share-based compensation vesting	(2,843)		(572)
Proceeds from debt borrowings	55,000		—
Repayment of debt borrowings	(59,261)		(45,000)
Payment of financing fees	(2,274)		—
Net cash provided by (used in) financing activities	88,244		(45,572)
Net decrease in cash, cash equivalents and restricted cash	(22,402)		(16,292)
Cash, cash equivalents, and restricted cash at beginning of period	63,326		66,656
Cash, cash equivalents, and restricted cash at end of period	$	40,924	$	50,364

Supplemental disclosure of cash flow information:
Cash paid for interest	$	2,606	$	4,888

The accompanying notes are an integral part of these condensed consolidated financial statements.

Lexicon Pharmaceuticals, Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. Summary of Significant Accounting Policies

Basis of Presentation. The accompanying unaudited condensed consolidated financial statements of Lexicon Pharmaceuticals, Inc. (“Lexicon” or the “Company”) include the accounts of Lexicon and its wholly-owned subsidiaries. Intercompany transactions and balances are eliminated in consolidation. These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six month period ended June 30, 2026 are not necessarily indicative of the results that may be expected for the year ended December 31, 2026. For further information, refer to the financial statements and footnotes thereto included in Lexicon’s annual report on Form 10-K for the year ended December 31, 2025, as filed with the SEC.

Use of Estimates. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

Significant Accounting Policies. There have been no significant changes to our summary of significant policies discussed in our annual report on Form 10-K for the year ended December 31, 2025.

Recent Accounting Pronouncements Issued But Not Yet Adopted. In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disclosures (Subtopic 220-40) – Disaggregation of Income Statement Expenses, which is effective prospectively for annual periods beginning after December 15, 2026, and for interim periods beginning after December 15, 2027. The Company is evaluating the impact of adopting ASU 2024-03.

2. Cash and Cash Equivalents, Restricted Cash and Investments

The fair value of cash and cash equivalents, restricted cash and investments held are as follows:


	As of June 30, 2026
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Cash and cash equivalents	$	40,925	$	—	$	(1)	$	40,924


Securities maturing within one year:
U.S. treasury securities	116,967		—		(142)		116,825
Corporate debt securities	32,922		—		(61)		32,861
Total short-term investments	$	149,889	$	—	$	(203)	$	149,686
Total cash and cash equivalents and short-term investments	$	190,814	$	—	$	(204)	$	190,610

	As of December 31, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
			(in thousands)
Cash and cash equivalents	$	34,326	$	—	$	—	$	34,326
Restricted cash	29,000		—		—		29,000
Total cash and cash equivalents and restricted cash	$	63,326	$	—	$	—	$	63,326
Securities maturing within one year:
U.S. treasury securities	39,004		22		—		39,026
Corporate debt securities	22,871		8		(1)		22,878
Total short-term investments	$	61,875	$	30	$	(1)	$	61,904
Total cash and cash equivalents, restricted cash and short-term investments	$	125,201	$	30	$	(1)	$	125,230

As of June 30, 2026 and December 31, 2025, Lexicon’s investments in an unrealized loss position had an estimated fair value of $153.7 million and $2.5 million, respectively. During the six month period ended June 30, 2026, there were less than $0.1 million in realized gains and no realized losses. There were no realized gains or losses during the six month period ended June 30, 2025.

3. Fair Value Measurements

The Company uses various inputs in determining the fair value of its investments and measures these assets on a recurring basis. Assets and liabilities recorded at fair value in the condensed consolidated balance sheets are categorized by the level of objectivity associated with the inputs used to measure their fair value. The following levels are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities:

•Level 1 - quoted prices in active markets for identical assets, which include U.S. treasury securities

•Level 2 - other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.), which includes corporate debt securities

•Level 3 - significant unobservable inputs

The inputs or methodology used for valuing securities are not necessarily an indication of the credit risk associated with investing in those securities. The following tables provide the fair value measurements of applicable Company assets that are measured at fair value on a recurring basis according to the fair value levels defined above. There were no transfers between Level 1 and Level 2 during the periods presented.


	Assets at Fair Value as of June 30, 2026
	Level 1		Level 2		Level 3		Total
	(in thousands)

Cash and cash equivalents	$	40,924	$	—	$	—	$	40,924
Short-term investments	116,825		32,861		—		149,686

Total cash and cash equivalents and short-term investments	$	157,749	$	32,861	$	—	$	190,610


	Assets at Fair Value as of December 31, 2025
	Level 1		Level 2		Level 3		Total
	(in thousands)

Cash and cash equivalents	$	34,326	$	—	$	—	$	34,326
Short-term investments	39,026		22,878		—		61,904
Restricted cash	29,000		—		—		$	29,000
Total cash and cash equivalents, short-term investments and restricted cash	$	102,352	$	22,878	$	—	$	125,230

The carrying amount of prepaid expenses and other assets, accounts payable, and accrued expenses are generally considered to be representative of their respective fair values because of the short-term nature of those instruments. The fair value of the Hercules Term Loan is determined under Level 2 in the fair value hierarchy and approximates carrying value as the loan bears interest at a rate that approximates prevailing market rates for instruments with similar characteristics. See Note 6, Debt Obligations for a further discussion of our debt and related instruments.

4. Supplemental Financial Information

Property and Equipment.


	Estimated Useful Lives	As of June 30,		As of December 31,
	In Years	2026		2025
		(in thousands)

Computers and software	3-5	$	2,003	$	2,003
Furniture and fixtures	5-7	389		389
Leasehold improvements	3-7	2,178		2,178
Total property and equipment		4,570		4,570
Less: Accumulated depreciation and amortization		(2,919)		(2,707)
Net property and equipment		$	1,651	$	1,863

Accrued Liabilities.


	As of June 30,		As of December 31,
	2026		2025
	(in thousands)

Accrued research and development services	$	4,149	$	2,932
Accrued compensation and benefits	3,896		6,415
Short-term lease liability	1,642		1,642
Other	2,676		2,200