Sign in

You're signed outSign in or to get full access.

AB

Arbutus Biopharma Corp (ABUS)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 printed a clean headline beat on both revenue and EPS driven by a one-time recognition of previously deferred revenue from the termination of the Qilu Greater China partnership; total revenue was $10.7M and diluted EPS was $0.01 versus a net loss in the prior year period . Against S&P Global consensus, revenue beat by ~$9.12M (+~562%)* and EPS beat by ~$0.06 turning positive on the quarter*.
  • Operating discipline remained evident: R&D (-65% YoY) and G&A (-56% YoY) fell materially as the company executes on its 2024–2025 restructuring and portfolio focus; net income margin reached ~23.5% vs deeply negative prior periods .
  • Strategic update: Arbutus reacquired Greater China rights to imdusiran in June (regaining global rights), expanded its Scientific Advisory Board, and reshaped its Board (Sawhney joins; Hasija resigns) .
  • Litigation timeline evolved: Moderna U.S. case moved to summary judgment in July 2025 with jury trial set for March 2026; Pfizer/BioNTech claim construction ruling timing remains pending .
  • Near-term stock catalysts: visibility on LNP litigation milestones (summary judgment, trial scheduling) and clarity on Phase 2b imdusiran development path post-SAB input; Q2 top-line strength was non-recurring due to deferred revenue recognition .

What Went Well and What Went Wrong

What Went Well

  • Strong topline and positive EPS: Q2 revenue of $10.7M and EPS of $0.01, primarily from recognizing previously deferred Qilu revenue; net income of $2.5M .
  • Cost structure reset: R&D fell to $5.5M (from $15.6M YoY) and G&A to $3.3M (from $7.5M YoY), reflecting the 2024 streamlining and focus on imdusiran/AB-101 .
  • Strategic control and governance: Reacquired Greater China rights to imdusiran and added leading HBV experts (e.g., Janssen) to the SAB; Board refreshed with Dr. Roger Sawhney .

Quote: “We delivered a strong quarter, marked by positive quarterly earnings resulting from the conclusion of our Greater China partnership with Qilu… two important steps taken this quarter in our quest to drive long-term value through our cHBV programs.” — CEO Lindsay Androski .

What Went Wrong

  • Non-recurring revenue driver: The beat was substantially non-recurring due to recognition of previously deferred revenue from Qilu; core recurring revenue remains modest .
  • Continued cash use: Net cash used in operating activities was $29.1M for the first six months of 2025, despite restructuring actions .
  • Ongoing legal uncertainty: Pfizer/BioNTech claim construction ruling timing remains uncertain; Moderna international cases won’t see major hearings until 1H26 .

Financial Results

Revenue, EPS and Margins vs Prior Periods

MetricQ2 2024Q1 2025Q2 2025
Revenue ($M)$1.73 $1.76 $10.74
Diluted EPS ($)$(0.11) $(0.13) $0.01
Net Income Margin (%)-1,147% (calc from $-19.80M/$1.73M) -1,390% (calc from $-24.53M/$1.76M) 23.5% (calc from $2.52M/$10.74M)

Notes: Margins are calculated from reported revenue and net income in the referenced documents.

Q2 2025 vs Estimates (S&P Global)

MetricConsensusActualSurprise
Revenue ($M)$1.62*$10.74 +$9.12M; +~562% (calc)
Primary EPS ($)$(0.05)*$0.01 +$0.06 (turn to profit)

Values marked with * are from S&P Global consensus.

Operating Expense Bridge

Metric ($M)Q2 2024Q1 2025Q2 2025
R&D$15.55 $8.96 $5.50
G&A$7.55 $5.83 $3.33
Restructuring$— $12.37 $0.17

Revenue Components

Component ($M)Q2 2024Q1 2025Q2 2025
Collaborations & Licenses$1.16 $1.32 $10.21
Non-cash Royalty Revenue$0.57 $0.45 $0.53
Total Revenue$1.73 $1.76 $10.74

Balance Sheet / Cash KPIs

Metric ($M)Q4 2024Q1 2025Q2 2025
Cash, Cash Equivalents & Marketable Securities$122.62 $112.71 $98.09
Liability Related to Sale of Future Royalties$4.83 $4.41 $3.91
Stockholders’ Equity$97.37 $79.16 $82.98

Guidance Changes

MetricPeriodPrevious Guidance/TimelineCurrent Guidance/TimelineChange
Net cash burn trajectoryFY 2025“Expect to significantly reduce net cash burn in 2025 vs 2024” Reiterated cost discipline; H1’25 operating cash outflow $29.1M (context) Maintained directional outlook; quantified YTD cash use
Restructuring cash paymentsH2 2025N/ARemaining restructuring-related payments expected in H2 2025 New timing detail
Moderna U.S. LNP litigation2025–2026Jury trial scheduled Sept 29, 2025 Summary judgment began July 2025; jury trial March 2026; case reassigned to new judge Timeline extended; process advanced
Pfizer/BioNTech litigation2025Claim construction in Dec 2024; ruling expected 2025 Court has not provided timing; ruling could come in 2025 Timing less certain

No formal revenue/EPS/OpEx financial guidance ranges provided in Q2 materials .

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript available. Themes compiled from Q4’24 and Q1’25 press releases and Q2’25 press release/8-K.

TopicQ4 2024 (Q-2)Q1 2025 (Q-1)Q2 2025 (Current)Trend
LNP litigation milestonesPfizer/BioNTech claim construction held Dec 2024; Moderna trial then set for Sept 2025 Trial entry to summary judgment stage; UPC defense due July 8, 2025 Summary judgment began July 2025; U.S. trial March 2026; international hearings 1H26; NJ ruling timing TBD Extended timeline; procedural progress
Imdusiran strategyReviewing Phase 2b plans; workforce reduction to focus on imdusiran 8 functional cure patients across trials; focus on HBsAg <1000 IU/mL Reacquired China rights; SAB strengthened to guide late-stage path Increasing strategic control
AB-101 (oral PD-L1)Part 3 underway; strategy under review High receptor occupancy incl. 74–100%; no SAEs or liver dysfunction Continued development; no new safety issues disclosed Steady execution
Cost structure / cashExpect lower 2025 burn vs 2024; ended 2024 with $122.6M cash+securities Cash+securities $112.7M; restructuring charges in Q1 Cash+securities $98.1M; H1’25 op cash outflow $29.1M Cash trending lower; spending reduced

Management Commentary

  • “We delivered a strong quarter, marked by positive quarterly earnings resulting from the conclusion of our Greater China partnership with Qilu… launching a late-stage clinically focused Scientific Advisory Board” — CEO Lindsay Androski .
  • “Dr. Harry Janssen… brings… experience in late-stage clinical trials in cHBV.” — CEO Lindsay Androski .
  • On litigation: “Summary judgment phase… began in July 2025… jury trial… March 2026… five international lawsuits… first major hearings… 1H 2026.” .

Q&A Highlights

  • No Q2 2025 earnings call transcript located; no Q&A highlights available from a transcript in the period reviewed [functions ListDocuments: 0 transcripts found for 2025-05-01 to 2025-08-31].

Estimates Context

  • Against S&P Global consensus for Q2 2025, revenue of $10.74M beat $1.62M by ~$9.12M (+~562%)* and EPS of $0.01 beat $(0.05)* by ~$0.06, turning profitable on the quarter. Beat drivers: recognition of previously deferred Qilu revenue and materially lower OpEx from restructuring .
  • Estimate dispersion was modest (4 estimates for revenue and EPS), suggesting broad underappreciation of the one-time revenue recognition mechanics.

Values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

  • Q2’s headline beat was largely non-recurring; normalize for deferred revenue and the recurring revenue base remains low .
  • Structural cost reset is real and broad-based (R&D and G&A down >50% YoY), improving operating leverage ahead of potential late-stage imdusiran developments .
  • Strategic optionality improved with reacquisition of Greater China rights and a bolstered SAB; expect clearer Phase 2b imdusiran path as SAB input is incorporated .
  • Cash and securities declined to $98.1M; H1 operating cash outflow of $29.1M underscores the importance of continued spend discipline and potential partnering optionality .
  • Litigation milestones are a significant swing factor: summary judgment developments and the March 2026 Moderna trial date, plus potential Pfizer/BioNTech claim construction ruling timing .
  • Near-term setup: watch for updates on imdusiran Phase 2b design/timing and any monetization/settlement signals from LNP litigation; trading likely to react to litigation headlines and pipeline clarity .

Additional Detail and Source Citations

  • Q2 2025 press release with financials and updates:
  • 8-K (Item 2.02, 5.02, 8.01) incorporating the press release and litigation timing:
  • Q1 2025 press release (comparatives, clinical updates):
  • Q4 2024 press release (baseline, restructuring, guidance context):
  • Reacquisition of Greater China rights and SAB announcement: