Werewolf Therapeutics, Inc. 8-K

What Happened
Werewolf Therapeutics, Inc. (HOWL) filed an 8-K reporting a major reduction in force approved Feb 9, 2026, affecting 64% of its workforce and expected to be substantially completed by Feb 13, 2026. The company expects a one-time employee separation charge of approximately $4.1 million in Q1 2026, consisting of severance and related benefits, with the amount anticipated to be paid in cash in Q1. As part of the reduction, CFO Timothy W. Trost and CMO Dr. Randi Isaacs resigned effective Feb 13, 2026 and will enter consulting agreements (effective Feb 16, 2026) at $250/hour for up to six months to assist with transition. The company appointed Michael Urban as principal financial officer and principal accounting officer effective Feb 13, 2026. Separately, the company disclosed under Regulation FD that it has been pursuing financing and is evaluating strategic alternatives, including partnerships for its WTX-124 and WTX-330 INDUKINE programs.

Key Details

• Workforce cut: 64% of employees; reduction approved Feb 9, 2026 and expected substantially completed by Feb 13, 2026.
• Estimated charge: ~ $4.1 million one-time employee separation expense in Q1 2026, expected to be cash-paid in Q1; actual costs may differ.
• Executive changes: CFO Timothy Trost and CMO Dr. Randi Isaacs resigned effective Feb 13, 2026; both eligible for severance equal to nine months' base salary plus nine months of company COBRA contributions (subject to separation agreements and releases).
• Transition arrangements: Both departing officers will provide consulting services at $250/hour for up to six months beginning Feb 16, 2026; Michael Urban (VP Finance & Corporate Controller) named principal financial/accounting officer effective Feb 13, 2026.
• Regulation FD disclosure: Company disclosed prior confidential investor discussions and is evaluating financing and strategic alternatives, including partnerships for WTX-124 and WTX-330; no assurance of any transaction or terms.

Why It Matters

• Material operational change: A 64% workforce reduction is large and likely to materially affect how the company operates and advances its programs.
• Near-term cash impact: The company expects a roughly $4.1M cash severance outlay in Q1 2026, which investors should consider when assessing near-term liquidity and cash runway.
• Leadership transition: The CFO and CMO departures and the appointment of a new principal financial officer are significant for financial reporting, financing efforts, and clinical development oversight; consulting agreements aim to smooth the transition.
• Strategic focus: The Regulation FD disclosure confirms the company is actively seeking financing and strategic alternatives (including partnerships for WTX-124 and WTX-330). Investors should watch for further announcements that could affect valuation, funding, or development plans.