Nkarta, Inc. Annual Report - How They Did This Year

I’ve put together this guide to help you understand Nkarta’s performance over the past year. My goal is to translate complex filings into plain English so you can decide if this company fits your investment goals.

1. What does this company do?

Nkarta is a biotech company in the testing phase. They are engineering "natural killer" cells—the soldiers of your immune system—to hunt and destroy cancer. They are also testing these therapies for autoimmune diseases.

Because they are still in the lab and clinical trial stage, they have no products on store shelves. They focus on "off-the-shelf" therapies. Instead of custom-making treatments for each patient, they manufacture them in large batches from healthy donor cells.

2. Financial performance

Since Nkarta has no product to sell, they aren't making a profit. They currently spend much more money than they bring in.

• The Big Picture: In 2025, the company lost $165.2 million, compared to a $158.4 million loss in 2024. Revenue is minimal, coming mostly from research partnerships rather than product sales.
• Funding: To keep research moving, they raise money by selling new shares of stock. As of March 2026, they had 71.3 million shares outstanding. In early 2024, they raised $240 million through a public offering to extend their operational runway.

3. Financial health

For Nkarta, financial health is all about their "runway"—how much cash they have before they need to raise more.

• Cash Position: As of December 31, 2025, Nkarta held $415 million in cash and safe investments like U.S. Treasury bonds.
• Spending: Most of their cash goes toward research and development. This covers clinical trial costs, manufacturing, and staff. They also pay for an 80,000-square-foot lab in South San Francisco. Based on current projections, their cash will fund operations into 2027.

4. Key risks

Investing in Nkarta is speculative. Keep these risks in mind:

• The "All-or-Nothing" Risk: Their value depends entirely on their technology. If their lead treatment, NKX019, fails in clinical trials, they have no other products to fall back on.
• The "Cash Burn" Cycle: They will continue to lose money while funding expensive trials. If they run out of cash, they must raise more. This usually means issuing more shares, which reduces your ownership percentage in the company.
• The Regulatory Hurdle: They must pass years of strict FDA testing. There is no guarantee they will ever get approval to sell a treatment. If the FDA pauses their trials due to safety concerns, the stock price could drop significantly.

5. Future outlook

Nkarta’s future depends on hitting clinical milestones. They are currently proving that NKX019 works, especially for autoimmune diseases like lupus. Success here could open a massive market. Until they reach a final trial stage or sign a major partnership, expect them to remain in a high-risk phase where their only "product" is clinical data.

Final Thought for Investors: Nkarta is a "clinical-stage" company, which means you are essentially betting on the success of their science rather than their current sales. Before investing, ask yourself if you are comfortable with the high volatility that comes with waiting for clinical trial results. If you prefer companies with established revenue and predictable profits, this may be one to watch from the sidelines until they move closer to commercializing a treatment.