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Aardvark Therapeutics, Inc. (AARD)·Q4 2024 Earnings Summary

Executive Summary

  • Aardvark reported FY2024 results with cash, cash equivalents, and short-term investments of $73.7M as of December 31, 2024, not including February 2025 IPO proceeds; management expects runway into 2027 .
  • Clinical momentum: Phase 3 HERO trial in Prader‑Willi Syndrome (PWS) is ongoing with topline data expected in early 2026; Phase 2 HONOR (hypothalamic obesity) and EMPOWER (ARD‑201 fixed‑dose combo) targeted to initiate in 2H25 .
  • Q4 2024 quarterly results (S&P Global): Net loss $(8.78)M* and Diluted EPS $(2.16); sequentially weaker vs Q3 given ramp in operating spend (Total OpEx $9.45M vs $5.09M* in Q3) as ARD‑101 advanced [Values retrieved from S&P Global].
  • No Wall Street consensus EPS or revenue estimates were available through S&P Global for Q4 2024; results were disclosed via an 8‑K press release without a standard earnings call transcript [Values retrieved from S&P Global].

What Went Well and What Went Wrong

What Went Well

  • Encouraging Phase 2 signals in PWS: meaningful reductions in hyperphagia (up to 16‑point HQ‑CT reduction; ~8‑point average among protocol‑adherent subjects) over 28 days .
  • Body composition trends: ~1.5% decrease in body fat and >2% increase in lean muscle after 28 days of ARD‑101 dosing per DEXA analysis .
  • Strengthened balance sheet and leadership: successful IPO with $97.9M gross proceeds; additions of a seasoned CMO and new board members supporting clinical strategy and governance .
  • Quote (CEO): “Many approved obesity medications… primarily regulate appetite… there is a significant, untapped opportunity to target anti‑hunger signaling to treat metabolic rare diseases and obesity” – positioning ARD‑101’s mechanism to lower fasting discomfort without reducing desirability of food or inducing nausea .

What Went Wrong

  • Operating intensity increased: FY2024 R&D expenses rose to $17.4M (+$12.9M YoY), primarily related to ARD‑101 development and personnel costs; G&A rose to $5.3M (+$3.1M YoY) .
  • FY2024 net loss widened to $(20.6)M vs $(7.2)M in FY2023, reflecting higher OpEx while pre‑commercial stage .
  • No quarterly revenue reported in the press release and S&P Global shows no quarterly revenue values for Q4 2024, underscoring the clinical‑stage profile with dependence on financing and trial execution [Values retrieved from S&P Global].

Financial Results

Quarterly P&L Snapshot (Q2–Q4 2024)

MetricQ2 2024Q3 2024Q4 2024
Revenues ($USD Millions)n/a*n/a*n/a*
Total Operating Expenses ($USD Millions)$6.07*$5.09*$9.45*
Net Income - (IS) ($USD Millions)$(5.45)*$(4.18)*$(8.78)*
Diluted EPS - Continuing Operations ($USD)$(1.37)*$(1.05)*$(2.16)*

Values retrieved from S&P Global.

Annual Results (FY 2023 vs FY 2024)

MetricFY 2023FY 2024
Research and Development ($USD Millions)$4.48 $17.36
General and Administrative ($USD Millions)$2.17 $5.31
Total Operating Expenses ($USD Millions)$7.42 $22.79
Net Loss ($USD Millions)$(7.21) $(20.59)
Net Loss per Share (basic & diluted) ($USD)$(1.82) $(5.15)
Weighted‑Average Shares (Millions)3.96 4.00

KPIs and Balance Sheet (Year‑End)

KPIFY 2024
Cash, Cash Equivalents & Short‑Term Investments ($USD Millions)$73.7
Cash Runway CommentaryFunding into 2027 (incl. IPO proceeds)
Total Assets ($USD Millions)$77.51
Total Liabilities ($USD Millions)$5.39
Accumulated Deficit ($USD Millions)$(58.33)

No segments disclosed or segment revenue breakdown reported in the press release .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash RunwayMulti‑yearn/aSufficient to fund projected operations into 2027Maintained/Clarified
Clinical Milestone – HERO (ARD‑101 in PWS)Early 2026n/aTopline data expected early 2026New/Confirmed
Clinical Milestone – HONOR (Hypothalamic Obesity)2H 2025n/aPhase 2 initiation expected in 2H 2025New
Clinical Milestone – EMPOWER (ARD‑201 combo)2H 2025n/aPhase 2 initiation expected in 2H 2025New

No explicit quantitative guidance for revenue, margins, OpEx, OI&E, or tax rate was provided in the Q4/FY press release .

Earnings Call Themes & Trends

No earnings call transcript was identified for Q4 2024 in the document corpus; themes below reflect press release disclosures .

TopicPrevious Mentions (Q-2)Previous Mentions (Q-1)Current Period (Q4 2024)Trend
PWS clinical efficacy signalsn/an/aPhase 2: hyperphagia reduction (HQ‑CT), favorable DEXA body composition trends Positive
Phase 3 HERO timelinen/an/aTopline early 2026 On track
Pipeline expansionn/an/aHONOR (hypothalamic obesity) and EMPOWER (ARD‑201) initiations in 2H25 Expanding
Capital & runwayn/an/a$73.7M YE cash+STI; IPO adds runway to 2027 Strengthened
Regulatory & risk factorsn/an/aForward‑looking risks including trial timelines, third‑party dependencies Standard biotech risks

Management Commentary

  • Strategy focus: “There is a significant, untapped opportunity to target anti‑hunger signaling… ARD‑101 is intended to address hunger by lowering the discomfort of fasting without notably decreasing the appeal of food or inducing nausea.” – Tien Lee, M.D., Founder & CEO .
  • Clinical priorities: Advancement to potentially pivotal Phase 3 HERO trial in PWS following encouraging Phase 2 data signals .
  • Organizational readiness: Post‑IPO capital and leadership additions support pipeline execution across HERO, HONOR, and EMPOWER .

Q&A Highlights

No Q4 2024 earnings call transcript was available; no Q&A themes or clarifications beyond the press release disclosures .

Estimates Context

  • S&P Global Wall Street consensus for Q4 2024 EPS and revenue was unavailable; no consensus values were returned for AARD for the period. Any comparisons to estimates cannot be made for this quarter [Values retrieved from S&P Global].

Key Takeaways for Investors

  • Clinical data supports proceeding to Phase 3 HERO in PWS; topline expected early 2026 is the primary value‑inflection catalyst .
  • Strengthened liquidity with YE2024 cash+STI of $73.7M and February 2025 IPO; management guides runway into 2027, reducing near‑term financing overhang .
  • Operating expenses are rising with program advancement (FY R&D up ~$12.9M YoY; G&A up ~$3.1M YoY), widening FY net loss to $(20.6)M; this is typical of clinical‑stage scaling but bears monitoring on cash burn trajectory .
  • Quarterly Q4 showed deeper loss and EPS sequentially vs Q3, consistent with higher OpEx; traders should monitor spend vs trial progress through 2025* [Values retrieved from S&P Global].
  • Near‑term news flow: Phase 2 initiations in HONOR and EMPOWER in 2H25 can broaden the obesity and hypothalamic obesity narrative beyond PWS .
  • Absence of consensus estimates and lack of a standard earnings call limit near‑term model precision; watch SEC filings and IR updates for incremental disclosures .

Values retrieved from S&P Global: Quarterly Revenues, Total Operating Expenses, Net Income - (IS), and Diluted EPS - Continuing Operations for Q2–Q4 2024.