Forte Biosciences, Inc. Annual Report: A Simple Guide

I’ve put together this guide to help you understand how Forte Biosciences performed this year. Instead of digging through dense legal filings, we’ll break down the essentials so you can decide if this company fits your goals.

1. What does this company do?

Forte Biosciences is a biotech company in the testing phase. They don’t have a product on pharmacy shelves yet. Instead, they are testing a drug called FB102. This is a specialized antibody designed to treat autoimmune and inflammatory diseases—conditions where the body’s immune system mistakenly attacks itself.

2. Major wins this year

The big news for 2025 was positive data from their Phase 1b study for celiac disease. Patients taking FB102 showed better gut health and fewer symptoms than those taking a placebo. Since there are no FDA-approved treatments for celiac disease, this is a major milestone.

They have now started a Phase 2 study for celiac disease, with results expected in the first half of 2026. They are also testing FB102 for vitiligo and alopecia areata, with initial results expected throughout 2026.

3. Financial health: The "Burn"

Because they aren't selling medicine yet, they have no sales. They are in a "spending phase," using cash to pay for research and clinical trials.

• Cash on hand: As of December 31, 2025, they had about $77 million. They expect this to fund operations into the second half of 2027.
• How they fund it: They keep the lights on by selling shares of stock. In 2025, they raised $75 million this way, up from $53 million in 2024. Their loss for 2025 was about $48 million, mostly spent on researching FB102.

4. What this means for you (The Risks)

• More shares issued: Every time they sell new shares to raise cash, your ownership percentage shrinks. This is the trade-off for keeping the research alive. They have a facility that allows them to sell shares periodically, which can lead to unpredictable increases in the total share count.
• High Stakes: The company’s value depends entirely on FB102. If a clinical trial fails or shows safety concerns, the stock price could drop significantly.
• No Safety Net: They have no other products to fall back on if FB102 fails. The entire company rests on the success of this one molecule.
• Supply Chain: They rely on outside partners to manufacture FB102. If these partners have production delays, it could push back the entire timeline and force the company to raise more cash sooner.

5. Future outlook

The company is focused on 2026. We will soon see if their trials are successful. Positive results could increase the company's value and attract larger pharmaceutical partners. If the results are poor, the company will face a much tougher road.

Bottom line: This is a high-risk, high-reward bet on one drug. You aren't investing in a profitable business; you are investing in the potential for a future medical breakthrough. Before deciding to invest, ask yourself if you are comfortable with the volatility that comes with clinical trial results and the potential for your shares to be diluted as the company raises more capital. Expect significant price swings as the company reaches key milestones in 2026.