ANAPTYSBIO, INC (ANAB)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 delivered a step-change in financials: collaboration revenue surged to $76.32M, driven by a $50M Jemperli milestone and higher royalties, flipping to GAAP net income of $15.1M and diluted EPS of $0.52 versus a loss last year .
• Results were a major beat versus Wall Street: revenue of $76.32M vs consensus $21.84M*, and EPS of $0.52 vs consensus -$1.25*; beats were primarily due to Jemperli milestone recognition and 80% YoY royalty growth .
• Strategic update: ANAB announced intent to separate biopharma operations from royalty assets by YE 2026; expects a further one-time $75M milestone in Q4 2025 when Jemperli hits $1B sales, and guided to ~$300M year-end cash .
• Post-quarter catalyst: on Nov 10, ANAB disclosed rosnilimab Phase 2 in UC did not meet primary/secondary endpoints at Week 12, a negative development for the biopharma narrative .

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

What Went Well and What Went Wrong

What Went Well

• Jemperli drove outsized revenue: Q3 collaboration revenue hit $76.32M, including a $50M sales milestone and $24.9M royalties (+80% YoY), enabling positive operating income and GAAP net income .
• Strategic clarity: management announced plan to separate the biopharma portfolio (rosnilimab, ANB033, ANB101) from royalty assets by YE 2026 to “unlock potential value by creating two independent, publicly traded companies” .
• Management tone confident on portfolio and royalties: “Our intent to separate our wholly owned biopharma programs from our royalty assets provides investors with the opportunity to realize and enhance the potential value of two distinct sets of assets…supporting GSK’s peak sales guidance of far more than $2.7 billion” .

What Went Wrong

• Subsequent event: disappointing UC readout. ANAB announced rosnilimab Phase 2 UC did not meet primary or secondary endpoints at Week 12 (Nov 10), raising questions on gastrointestinal expansion for the asset .
• Heavy financing burden: non-cash interest expense tied to future royalty monetization was a sizable $(22.5)M in Q3, tempering bottom-line leverage despite strong revenue .
• Continued cash burn trajectory prior to Q3 inflection: cash/investments fell from $420.8M (Dec 31, 2024) to $256.7M (Sept 30, 2025), reflecting $113.9M used for operating activities YTD and buybacks, partly offset by Vanda upfront, highlighting reliance on external milestones .

Financial Results

Summary vs Prior Periods and Estimates

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

Year-over-Year (YoY) and Sequential Dynamics

Revenue Components (Q3 2025)

Balance Sheet and Capital Allocation KPIs

Guidance Changes

Earnings Call Themes & Trends

Note: We were unable to locate a Q3 2025 earnings call transcript; analysis below leverages company press communications across quarters .

Management Commentary

• CEO framing on separation and royalties: “Our intent to separate our wholly owned biopharma programs from our royalty assets provides investors with the opportunity to realize and enhance the potential value of two distinct sets of assets…supporting GSK’s peak sales guidance of far more than $2.7 billion” — Daniel Faga, President & CEO .
• On biopharma portfolio strength: “Our biopharma portfolio is strategically positioned with multiple attractive, high-potential assets, including rosnilimab, ANB033 and ANB101... we anticipate reporting top-line Phase 2 data through Week 12 in ulcerative colitis in November or December” .
• On RA program differentiation: RA Phase 2b data showed increasing responses through Week 28 and durable off-drug effect through Week 38 with favorable safety profile .

Q&A Highlights

• No public Q3 2025 earnings call transcript located; the company disseminated results via press release. No Q&A disclosure available .

Estimates Context

• Q3 2025: Revenue $76.32M vs consensus $21.84M*; EPS $0.52 vs consensus -$1.25* — a material beat on both lines, primarily due to $50M milestone and 80% YoY royalty growth .
• Estimate breadth: 9 revenue estimates* and 8 EPS estimates* for Q3 suggest a reasonably covered small/mid-cap biotech.
• Trajectory: ANAB also beat Q1 and Q2 consensus on both revenue and EPS, setting a pattern of upside vs expectations tied to royalty/milestone timing* .

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

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

Key Takeaways for Investors

• Q3 revenue/EPS massively beat consensus due to royalty/milestone timing; expect further Q4 tailwind from the anticipated $75M Jemperli milestone accrual when $1B annual sales are crossed .
• Strategic separation by YE 2026 could unlock value by clarifying the profiles of a cash-flowing royalty entity versus a clinical-stage biopharma; monitor structure, tax, and capital allocation specifics as they emerge .
• Post-quarter UC miss introduces uncertainty to rosnilimab’s GI expansion; reassess the asset’s development strategy and focus on RA differentiation where data have been strongest .
• The royalty monetization structure carries sizeable non-cash interest expense ($22.5M in Q3), which can materially impact GAAP results; understand cash vs GAAP differences for valuation .
• Cash and investments of $256.7M at Q3 and ~$300M expected at YE 2025 provide runway to advance programs; watch buyback activity and capital deployment into ANB033/ANB101 .
• GSK’s growing Jemperli footprint and pipeline of monotherapy/combo trials support long-term royalty durability; monitor pivotal AZUR programs and incremental indications .
• Near-term trading: expect volatility around pipeline updates and any separation steps; medium-term thesis hinges on royalty streams (GSK/Vanda), capital discipline, and re-rating on corporate split execution .