Revolution Medicines, Inc. (RVMD) Earnings

Management highlights

### Pancreatic Cancer Development & Commercial Preparation - Full positive phase 3 Resolute 302 results for RMC-4630 (Durexon RASib) in previously treated metastatic pancreatic cancer were published at ASCO and in the *New England Journal of Medicine*, demonstrating statistically significant and clinically meaningful improvements in overall survival, progression-free survival, and patient-reported quality of life versus chemotherapy, with a manageable safety profile. - The FDA-cleared expanded access program (EAP) for Durexon RASib is active across nearly all 50 U.S. states and Puerto Rico, with over 90% of reviewed patient requests approved and treatment provided to more than 2,000 eligible patients to date. - The FDA has accepted the new drug application (NDA) for Durexon RASib in this indication for review, and the EMA has granted Durexon RASib high priority designation under its Cancer Medicines Pathfinder project and initiated an accelerated phased review ahead of full marketing authorization submission. - U.S. commercial infrastructure (sales team, field access, patient services, supply chain) is fully built and ready for launch pending approval, and international commercial capabilities are being expanded across key markets. - Multiple additional Phase 3 trials are ongoing or newly initiated: Resolute 303 (first-line metastatic), Resolute 304 (adjuvant setting) for Durexon RASib; RASOLUTE 305 (first-line metastatic) for G12D-selective inhibitor Zoldon RASib; and newly initiated RASOLUTE 309 evaluating the Durexon + Zoldon RASib combination in first-line RAS G12D pancreatic cancer. - New preliminary data presented at ESMO-GI 2026 showed compelling anti-tumor activity and favorable safety for Zoldon RASib combinations: 82%/61% objective response rates (ORR) when combined with standard chemotherapy in first-line, and 50%/47% ORR for the Durexon + Zoldon doublet in later-line RAS G12D disease, supporting ongoing pivotal trials. - Early-stage RAS G12Z-selective inhibitor RMC5127 remains well-tolerated with no dose-limiting toxicities and early signs of anti-tumor activity across multiple tumor types in its first-in-human trial. ### Non-Small Cell Lung Cancer (NSCLC) Pipeline Progress - Durexon RASib received FDA Breakthrough Therapy Designation for previously treated metastatic NSCLC with KRAS mutations other than G12C, and the global Phase 3 RESOLVE-301 registrational trial continues to enroll well, with completion of enrollment expected in 2026 and initial readout planned for 2027. - New encouraging early data was presented for combinations of mutant-selective RAS inhibitors with standard first-line pembrolizumab + platinum chemotherapy: Zoldon RASib (G12D) achieved 82% ORR with 100% disease control rate (DCR) in previously untreated KRAS G12D NSCLC, while Luron RASib (G12C) achieved 85% confirmed ORR and 97% DCR with a 95% 6-month progression-free survival rate in previously untreated RAS G12C NSCLC. Both combinations had favorable safety profiles with no unexpected additive toxicities. - Based on these data, the company has initiated the randomized, placebo-controlled Phase 3 RESOLVE-308 trial for Zoldon RASib in first-line RAS G12D NSCLC, and plans to initiate the corresponding Phase 3 RESOLVE-307 trial for Luron RASib in first-line RAS G12C NSCLC in Q4 2026. This portfolio addresses over 70% of all RAS-driven NSCLC cases. ### General Pipeline Updates - A clinical data update and clarified development strategy for colorectal cancer is expected in Q4 2026. - Identification of the recommended Phase 2 dose for RMC5127 is expected in H2 2026, with initial clinical data disclosure planned for 2027. - First-in-human trial initiation for RM055, a novel mutant-specific catalytic RAS inhibitor, remains on track for Q4 2026.

Guidance

- Revolution Medicines updated its 2026 full-year GAAP operating expense guidance to a range of $2.1 billion to $2.2 billion, an upward revision from prior expectations, including $270 million to $290 million in expected non-cash stock-based compensation. - The upward guidance revision reflects increased planned investment driven by three core priorities: (1) accelerating and expanding manufacturing for commercial and clinical supply of Durexon RASib and Zoldon RASib to meet potential demand scenarios; (2) higher clinical development expenses to execute on the expanded aggressive registrational strategy across multiple pipeline programs; and (3) accelerating U.S. commercial readiness investments and expanding international commercial infrastructure to support future launches outside the U.S.

Segment performance

Revolution Medicines is a clinical-stage biotech focused on RAS-driven cancer therapies, and does not report separate product segment revenue as it has not yet launched any commercial products. All financial results are reported as aggregated corporate operating expenses: Q2 2026 R&D expenses were $395 million (up from $224 million in Q2 2025), and G&A expenses were $110 million (up from $41 million in Q2 2025). Net loss for Q2 2026 was $644 million, compared to $248 million in Q2 2025. The company ended Q2 2026 with $3.9 billion in cash and investments, including $2.2 billion in gross proceeds from April 2026 public offerings and a $250 million milestone tranche from its Royalty Pharma funding arrangement, with up to an additional $1.5 billion in committed capital available pending milestone achievement.

Risks & headwinds

- All product approvals are contingent on successful regulatory review, and actual clinical and regulatory outcomes may differ from management's current expectations due to inherent risks in biotech drug development. - Crossover of control-arm patients from the frontline pancreatic cancer Phase 3 trial to commercial Durexon RASib after potential approval could potentially impact the overall survival endpoint analysis of the trial, though management has implemented trial design mitigations including geographic trial site selection to reduce this risk. - Forward-looking statements regarding pipeline progress, launch timelines, and clinical outcomes are inherently uncertain, and actual results may differ materially from expectations due to unforeseen clinical, regulatory, or commercial challenges as disclosed in the company's SEC filings.

Analyst Q&A

• Q: What is your confidence that Luron RASib (G12C) can outperform competing first-line G12C trials, and what is your outlook for colorectal cancer (CRC) proof of concept after Adagrasib's failed confirmatory trial? /

  A: Management deferred detailed commentary on the CRC program until the Q4 2026 data update, when they will share concrete data and development plans. For Luron RASib, management noted the compound has a strong competitive safety and efficacy profile in both monotherapy and first-line combination settings, and Revolution's broad portfolio of three mutant-selective inhibitors positions the company to address over 70% of all RAS-mutant NSCLC patients. (398 characters)

• Q: Given your broad portfolio of mutant-selective RAS inhibitors, how will you position multi-selective RAS inhibitors (like Durexon RASib) in first-line NSCLC, and does this include RM055? /

  A: Management is intentionally pursuing both multi-selective and mutant-selective inhibitor development to maximize treatment optionality for patients. The company is prioritizing advancing the three mutant-selective inhibitors first, but is not deprioritizing Durexon RASib, RM055 or other early pipeline assets, and will continue pursuing all complementary regimens that can benefit patients. (341 characters)

• Q: Can you share early feedback from the Durexon RASib expanded access program (EAP) and what are the expected European regulatory timelines under the EMA's new phased review? /

  A: No quantitative efficacy or safety data is collected from the EAP because it is an access program, not a clinical trial. Anecdotal feedback from large enrolling institutions and patients has been encouraging, with high patient uptake that suggests positive early prescriber experience. Management cannot provide specific timelines for the EMA's phased review, which is designed to be expedited, and will support the process as requested. (412 characters)

• Q: What is the risk of control-arm patient crossover to commercial Durexon RASib in frontline pancreatic cancer Phase 3 trials, and will EAP patients transition to commercial access after approval? /

  A: Management acknowledges crossover could impact the overall survival endpoint, and has mitigated this risk through geographic site selection that accounts for gradual rollout of approvals globally, and pre-trial patient education on treatment options. After approval, the company plans to support a seamless transition from EAP to commercial access to avoid treatment interruptions for patients. (368 characters)

• Q: What is your perspective on the PRMT5 inhibitor combination data from partner Tango, and do you need your own PRMT5 inhibitor in your pipeline? /

  A: The PRMT5 combination hypothesis is biologically intriguing and supported by preclinical data and Tango's early high response rate data, but more clinical data is needed to build conviction. Management does not believe a proprietary PRMT5 inhibitor is required, as there are many available PRMT5 inhibitors with varying profiles, and Durexon/Zoldon RASib will serve as the backbone for any future combinations. (347 characters)