Tempest Therapeutics, Inc. Annual Report - How They Did This Year

I’m breaking down Tempest Therapeutics’ performance to help you decide if this company fits your investment goals.

1. What does this company do and how did they perform this year?

Tempest Therapeutics is a biotech company based in Brisbane, California, focused on cancer treatments. They develop small-molecule drugs and cell therapies to boost the body’s immune response against tumors. Because they are still in the testing phase, they do not sell any products yet. Instead, they rely on research grants and future licensing deals. In 2026, the company shifted its focus to CAR-T cell therapy, which involves engineering a patient’s own immune cells to find and destroy cancer.

2. Financial performance

Tempest reported a loss of about $42.5 million this year. Most of this spending—$34.8 million—went directly into research and development. The company spends roughly $3.5 million per month to keep operations running.

In February 2026, Tempest acquired new CAR-T assets. To pay for this without draining their cash, they issued 8.2 million new shares. This reduced the ownership percentage of existing shareholders but allowed the company to keep $58 million in the bank at year-end. This cash should fund operations through the second half of 2027, provided their development schedule stays on track.

3. Major wins and challenges

The company’s lead CAR-T drug, TPST-2003, showed a 100% response rate in a small study of 12 patients with hard-to-treat multiple myeloma. While these early results are exciting, the company must now prove the treatment is safe and effective in a larger, more diverse group of patients.

Tempest keeps costs low by partnering with others. Through agreements with the National Cancer Institute and Novatim, Tempest has offloaded many of the costs for testing their other drug, TPST-1495. This allows Tempest to keep ownership of their core technology while partners cover the expensive clinical trials.

4. Financial health

Tempest’s future depends on hitting key clinical milestones. Success in these trials will help them raise more money or attract large pharmaceutical partners. The company has no long-term debt, but because they have no sales, they are very sensitive to the stock market. You should view this as a high-stakes investment. They have enough cash for the next 18–20 months. After that, they will likely need to raise more money by selling more shares or taking on debt.

5. Key risks

The biggest risk for shareholders is that the company will issue more shares, which reduces your ownership percentage. The 8.2 million shares issued in 2026 increased the total share count by 25%. Additionally, the company faces "clinical risk." If a trial for TPST-1495 or TPST-2003 fails, the company’s value could drop significantly.

Other risks include:

• Regulatory Risk: The FDA might demand more safety data, which would delay the product.
• Competitive Risk: Larger, wealthier biotech firms are also working on CAR-T therapies. They could beat Tempest to market.
• Liquidity Risk: If the stock price stays low, raising money becomes more expensive, leading to even more shares being issued.

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Final Thought for Investors: Tempest is a classic "all-or-nothing" biotech play. You are essentially betting on the success of their clinical trials. If you are comfortable with the possibility of share dilution and the long wait for a marketable product, the company’s current cash position and partnerships provide a runway to see their next major data milestones. If you prefer companies with steady revenue or lower volatility, this may be one to watch from the sidelines for now.