Sign in
AB

AbCellera Biologics Inc. (ABCL)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 revenue was $8.955M, up from $6.507M in Q3 2024; EPS was $(0.19), down from $(0.17) YoY. Management emphasized completion of platform investments and the start of activities at its new clinical manufacturing facility, ending the quarter with ~$680M in available liquidity .
  • Against Wall Street consensus, ABCL delivered a significant revenue beat and an EPS miss: Revenue $8.96M vs $6.33M*, EPS $(0.19) vs $(0.162). Revenue upside was driven by research fee activity; EPS underperformed on higher R&D investment in internal programs (estimates: S&P Global).
  • Strategic execution remained a highlight: two AbCellera-led Phase 1 programs (ABCL635, ABCL575) are “on track” with a mid‑2026 proof-of-concept readout targeted for 635 and a dosing-frequency differentiation thesis for 575; a fourth program is expected to be nominated by year‑end .
  • Liquidity and capital runway are robust: $523M in cash, equivalents, and marketable securities plus ~$160M in committed government funding (total available liquidity ~$680M), supporting pipeline progression and CMC/GMP ramp .

What Went Well and What Went Wrong

What Went Well

  • Platform and manufacturing milestones achieved: “started activities at our new clinical manufacturing facility and substantially completed our platform investments,” positioning ABCL to advance internal programs and leverage in-house CMC/GMP capabilities .
  • Pipeline progress and leadership strengthening: ABCL635 and ABCL575 Phase 1 trials “progressing to plan”; addition of Dr. Sarah Noonberg as CMO to drive clinical execution .
  • Revenue growth and business metrics: total revenue increased YoY to $8.955M from $6.507M; cumulative partner-initiated programs with downstreams rose to 103 and molecules in clinic to 18, supporting future downstream economics .

Quote: “We ended the quarter with approximately $680 million in available liquidity to execute on our strategy and will continue to prioritize advancing our two lead programs through Phase 1 clinical studies and building our pipeline.” — Carl Hansen, CEO .

What Went Wrong

  • EPS miss vs consensus and higher net loss: $(0.19) EPS vs $(0.162)* consensus; net loss widened to $57.1M from $51.1M YoY, reflecting elevated R&D related to internal programs, including ~$15M in specific investments in two programs (estimates: S&P Global*).
  • Research fee revenue trajectory: management reiterated research fees should “continue to trend lower” as ABCL increasingly focuses on internal pipeline, implying near-term revenue variability absent licensing/milestones .
  • Partner-initiated programs’ clinical conversion pace: investor concern on perceived stagnation addressed; management noted longer-than-expected conversion timelines (examples up to ~6 years), limiting near-term downstream milestones .

Financial Results

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$4.235 $17.084 $8.955
Net Loss ($USD Millions)$(45.621) $(34.727) $(57.119)
Diluted EPS ($USD)$(0.15) $(0.12) $(0.19)
Loss from Operations ($USD Millions)$(62.660) $(49.585) $(76.278)
R&D Expense ($USD Millions)$42.496 $39.213 $55.028
Sales & Marketing ($USD Millions)$2.842 $3.009 $2.906
G&A ($USD Millions)$16.226 $18.977 $22.052

Revenue mix

Revenue Component ($USD Millions)Q1 2025Q2 2025Q3 2025
Research Fees$4.068 $6.639 $8.817
Licensing Revenue$0.167 $10.445 $0.138
Milestone Payments$0.000 $0.000 $0.000
Total Revenue$4.235 $17.084 $8.955

Liquidity

Liquidity MetricQ1 2025Q2 2025Q3 2025
Cash, Equivalents & Marketable Securities ($USD Millions)$605.266 $553.078 $495.672
Available Government Funding ($USD Millions)~$178 ~$173 ~$159
Total Available Liquidity ($USD Millions)~$810 ~$753 ~$680

KPIs

KPIQ1 2025Q2 2025Q3 2025
Partner-initiated program starts with downstreams (cumulative)97 102 103
Molecules in the clinic (cumulative)16 18 18

YoY context for Q3

MetricQ3 2024Q3 2025
Total Revenue ($USD Millions)$6.507 $8.955
Net Loss ($USD Millions)$(51.107) $(57.119)
Diluted EPS ($USD)$(0.17) $(0.19)

Consensus vs Actual (Q3 2025)

MetricConsensus*ActualBeat/Miss
Revenue ($USD)$6,332,890*$8,955,000+$2,622,110 / +41%*
Primary EPS ($USD)$(0.162)*$(0.19)−$0.028*

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Financial Guidance (Revenue, EPS, Margins)FY/Q3 2025No formal numerical guidance providedNo formal numerical guidance providedMaintained
Operating Cash Usage PrioritiesRemainder of 2025Prioritize advancing ABCL635/575 Phase 1 and building preclinical pipelineReiterated; capital needs “very manageable,” runway “well beyond the next three years”Maintained
Manufacturing Ramp (CMC/GMP)2025On track to come online in 2025Activities started at clinical manufacturing site; platform investments substantially completeRaised execution status

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2025, Q1 2025)Current Period (Q3 2025)Trend
Clinical pipeline – ABCL635 (VMS/NK3R)Dosing initiated; mid‑2026 initial safety/efficacy data targeted Single disclosure post double‑blind POC; “mid‑year” 2026 timing reaffirmed; safety/efficacy bar aimed to be competitive vs market entrants On track; clearer disclosure plan
Clinical pipeline – ABCL575 (OX40L, AD)Phase 1 authorized/opened; half‑life modeling suggests 6‑month dosing Enrollment on track; differentiation via less frequent dosing; competitive class efficacy weaker than Dupixent per recent readouts Execution steady; competitive dynamic evolving
CMC/GMP manufacturingOn track to come online in 2025 Activities started at new clinical manufacturing facility Progressing per plan
Liquidity and funding~$750–$810M available liquidity; significant government funding ~$680M available liquidity; cash/securities $523M; runway “well beyond the next three years” Strong but declining balance as investments ramp
Partner programs/downstream economics102 programs; molecules in clinic increased to 18 103 programs; conversion timelines longer than initially expected (examples up to ~6 years) Long‑dated value accrual
GPCR/ion channel platformHighlighted as core capability; ABCL688 advanced to IND‑enabling NK3R program viewed as platform validation; intent to follow with additional programs Strategic emphasis sustained

Management Commentary

  • “We have also started activities at our new clinical manufacturing facility, and we have substantially completed our platform investments.” — Carl Hansen .
  • “Altogether, we finished the quarter with $523 million of total cash, cash equivalents, and marketable securities... we have approximately $680 million in available liquidity to execute on our strategy.” — Andrew Booth .
  • “Our differentiation thesis… for 575 was really about less frequent dosing… data would suggest even less frequent dosing, perhaps six months.” — Carl Hansen .
  • “We expect [ABCL635] disclosure… after we have completed the proof of concept… somewhere around midpoint next year.” — Carl Hansen .

Q&A Highlights

  • Partner program conversion: Management acknowledged clinical progression can take longer than expected; some handed‑off programs have entered clinic as much as six years later, underscoring long‑tail downstream potential .
  • ABCL635 disclosure plan and efficacy bar: Single disclosure post POC; aiming for safety and efficacy “competitive” vs approved small molecules (e.g., fezolinetant) with biomarker/engagement targets informing go‑forward decisions .
  • ABCL575 differentiation vs class: Focus on extended dosing intervals; class efficacy appears less robust than Dupixent; near‑term most important catalysts likely external readouts from competitors .
  • Market positioning for VMS: 635 targets women with contraindications or intolerance to MHT and those preferring non‑hormonal options, with potential differentiation in dosing, safety, and efficacy .

Estimates Context

  • Q3 2025 revenue beat and EPS miss: Revenue $8.96M vs $6.33M*, EPS $(0.19) vs $(0.162); revenue strength reflects partnered research activity while EPS was pressured by higher R&D spend, including ~$15M in two internal programs (estimates: S&P Global).
  • Estimate implications: Revenue upside may prompt modest increases to near‑term revenue models; EPS miss and explicit investment focus suggest potential EPS estimate tempering until visibility on POC efficacy and development cadence improves (estimates: S&P Global*).

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Revenue outperformed consensus while EPS missed due to intentional investment in internal programs; expect a continued trade‑off of near‑term profitability for pipeline value creation (estimates: S&P Global*).
  • Liquidity is ample (~$680M available), with runway “well beyond the next three years,” supporting Phase 1 progress, IND‑enabling for ABCL688, and manufacturing scale‑up .
  • Two lead programs remain on track: ABCL635 targeting mid‑2026 POC readout with competitive efficacy/safety goals; ABCL575’s extended dosing thesis could become more compelling as class data mature .
  • Near‑term catalysts are operational (CMC/GMP ramp, candidate nomination) and clinical (enrollment, biomarker/PK readouts), with external competitor readouts likely influencing 575’s positioning .
  • Partner program downstreams are long‑dated; investors should calibrate expectations for milestone/royalty timing given conversion timelines up to ~6 years in examples .
  • Leadership build (CMO appointment) strengthens clinical development execution, an important driver as ABCL transitions from platform to therapeutics .
  • For trading, revenue beats may provide near‑term support; however, EPS pressure and a development‑driven narrative mean stock likely trades on clinical milestones and competitive readouts rather than quarterly profitability (estimates: S&P Global*).