Wednesday Sector Laggards: Real Estate, Consumer Services
Consumer Services Sector Performance: The consumer services sector is lagging behind the market, experiencing a decline of approximately 1.3%, with Monro and WW International leading the losses at 9.3% and 5.6%, respectively.
Market Overview: The article also mentions that real estate and consumer services are among the sectors underperforming on Wednesday, indicating broader market challenges.
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- Earnings Decline: Rafael Holdings reported a GAAP EPS of -$0.13 for Q2, showing improvement from -$0.19 in the same period last year, yet still indicating ongoing financial challenges for the company.
- Widening Net Loss: For the three months ending January 31, 2026, the company recorded a net loss of $6.4 million, compared to a loss of $4.6 million a year ago, reflecting rising operational costs and insufficient revenue.
- Cash Position: As of January 31, 2026, Rafael Holdings had cash and cash equivalents of $37.8 million, indicating some liquidity, but future capital efficiency remains a concern.
- Financial Health Warning: The ongoing losses and cash flow situation may impact the company's future financing capabilities and market confidence, necessitating effective measures to improve financial performance.
- Financial Performance: As of October 31, 2025, Rafael Holdings reported a net loss of $9.8 million for Q1, translating to a loss of $0.19 per share, which is an increase from last year's $9.0 million and $0.37 per share, reflecting the impact of consolidating Cyclo Therapeutics' expenses post-acquisition.
- Surge in R&D Expenses: Research and development expenses soared to $7.5 million this quarter, compared to $1.3 million in the same period last year, primarily due to the inclusion of Cyclo's costs, indicating the company's ongoing commitment to drug development.
- Cash Flow Status: As of October 31, 2025, the company had cash and cash equivalents of $45.5 million, down from $52.8 million on July 31, 2025, highlighting liquidity pressures amid ongoing losses.
- Clinical Trial Progress: Rafael Holdings' Trappsol®Cyclo™ received a recommendation to continue from the Data Monitoring Committee in its pivotal Phase 3 trial for Niemann-Pick Disease Type C1, suggesting the drug could become a significant new treatment option for this rare and fatal genetic disorder.

Continuation of Phase 3 Study: Rafael Holdings' subsidiary, Cyclo Therapeutics, will continue its pivotal phase 3 TransportNPC study for Trappsol® Cyclo™ in treating Niemann-Pick Disease Type C1 (NPC1) after a positive interim analysis by an independent Data Monitoring Committee (DMC).
Trappsol® Cyclo™ Overview: Trappsol® Cyclo™, administered intravenously, aims to address the root cause of NPC1 by mobilizing cholesterol from cells, and has shown a favorable safety profile consistent with earlier studies.
Real Estate Sector Performance: Real estate shares have shown relative strength, increasing by approximately 1% overall, with Rafael Holdings rising by about 10.7% and Jones Lang LaSalle up by around 2.3% on Thursday.
Market Commentary Disclaimer: The views expressed in the article are those of the author and do not necessarily represent the opinions of Nasdaq, Inc.
Rights Offering Results: Rafael Holdings, Inc. successfully closed a $25 million rights offering, resulting in subscriptions for 3,130,480 shares of Class B common stock, generating gross proceeds of approximately $4 million. CEO Howard Jonas and affiliates will purchase unsubscribed shares through a backstop private placement totaling about $21 million.
Use of Proceeds: The funds raised from the rights offering and backstop private placement are intended to support regulatory approval efforts and potential launch of Trappsol® Cyclo™ for treating Niemann-Pick Disease Type C1, pending positive results from ongoing clinical trials.

Rights Offering Announcement: Rafael Holdings, Inc. has announced a rights offering for holders of Class A and B Common Stock, allowing them to purchase shares at a subscription price of $1.28 each, with the subscription period running from May 13 to May 29, 2025.
Eligibility and Participation Details: To participate, holders must be recorded as of May 9, 2025, and former Cyclo Therapeutics shareholders need to exchange their shares for Class B common stock before this date; Howard Jonas will also purchase any unsubscribed shares under a Standby Purchase Agreement.







