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Applied Therapeutics, Inc. (APLT)·Q3 2025 Earnings Summary
Executive Summary
- Q3 2025 EPS of $−0.13 beat Wall Street consensus of $−0.14*, while revenue of $1.00m (license) beat consensus of $0.25m*; YoY net loss narrowed materially to $19.0m from $68.6m on lower OpEx .
- License revenue recognition drove the top-line surprise; R&D services revenue was $0 in the quarter, versus $0.122m in Q3 2024 .
- Regulatory update: FDA Type C minutes for CMT‑SORD identified open issues (surrogate endpoint, primary endpoint, carcinogenicity), and the company intends to request another Type C meeting to discuss Phase 3 design; FDA meeting for Classic Galactosemia is scheduled in Q4 2025 .
- Liquidity declined to $11.9m cash at quarter-end; leadership transition announced (Executive Chairman resigned), which could influence near‑term sentiment and governance narrative .
What Went Well and What Went Wrong
What Went Well
- EPS and revenue beat: $−0.13 vs $−0.14* EPS and $1.00m vs $0.25m* revenue, driven by license revenue recognition, with YoY OpEx lower (R&D: $9.6m vs $14.8m; G&A: $8.2m vs $15.0m) .
- Constructive FDA dialogue for CMT‑SORD; company plans an additional Type C meeting to refine Phase 3 design. Quote: “We completed a meeting with the FDA… we commenced constructive discussions as we continue to refine our regulatory strategy” — Les Funtleyder .
- Positive PMM2‑CDG single‑patient data: well tolerated, dose‑dependent sorbitol decrease, and NPCRS improved by 9 points (46%), supporting future development .
What Went Wrong
- Cash burn accelerated: cash fell to $11.9m (Sep 30, 2025) from $30.4m (Jun 30, 2025) and $50.8m (Mar 31, 2025), raising financing risk .
- CMT‑SORD regulatory uncertainties persist: FDA cited open issues on pathophysiology, surrogate endpoint (sorbitol), Phase 3 primary endpoint selection, and carcinogenicity testing .
- Galactosemia program remains under CRL; despite an FDA meeting scheduled in Q4 2025, approval timing and remediation path are unresolved .
Financial Results
Consolidated Performance vs Prior Periods and YoY
Revenue Composition
KPIs
Results vs S&P Global Consensus
Values retrieved from S&P Global.*
Guidance Changes
Earnings Call Themes & Trends
Note: No Q3 2025 earnings call transcript was available; themes are derived from press releases.
Management Commentary
- “We completed a meeting with the FDA to discuss a potential NDA submission for govorestat for the treatment of CMT‑SORD… We expect to submit another meeting request with the FDA to further discuss the design of a potential Phase 3 trial” — Les Funtleyder, interim CEO & CFO .
- “We are scheduled to meet with the FDA in the fourth quarter to review govorestat for the treatment of classic galactosemia… new data from a single patient with PMM2‑CDG… further support the potential for continued clinical development” — Les Funtleyder .
- Board leadership transition was announced; resignation was for personal reasons and not due to disagreement .
Q&A Highlights
- No Q3 2025 earnings call transcript found in the document catalog; therefore, no Q&A themes or clarifications available [SearchDocuments: none; ListDocuments: no transcript].
Estimates Context
- Q3 2025 results beat consensus on EPS ($−0.13 vs $−0.14*) and revenue ($1.00m vs $0.25m*), primarily due to license revenue recognition and lower total operating expenses vs prior year .
- Prior quarters: Q2 2025 EPS matched consensus ($−0.15 vs $−0.16* modest beat), but revenue was in line at $0 vs $0.31m*; Q1 2025 materially missed on revenue ($0 vs $5.63m*) while EPS beat ($−0.15 vs $−0.19*) .
Values retrieved from S&P Global.*
Key Takeaways for Investors
- Near‑term catalysts center on FDA interactions: additional Type C meeting for CMT‑SORD Phase 3 design and Q4 2025 FDA meeting for Classic Galactosemia; headline risk and momentum will hinge on regulatory feedback .
- Cash runway tightened materially to $11.9m; expect financing or partnering actions to be a key overhang unless non‑dilutive inflows materialize .
- Clinical narrative strengthened by PMM2‑CDG data, supporting optionality in pipeline prioritization and future trials .
- Earnings quality: revenue beat came from license revenue; durability of top‑line remains uncertain absent recurring revenue sources .
- Governance watch: Executive Chairman resignation introduces leadership transition risk but was disclosed as non‑disagreement; monitor board/management stability .
- Trading setup: stock likely sensitive to regulatory headlines; positive FDA feedback could re‑rate, while requests for additional studies (e.g., carcinogenicity) could delay timelines .
- Medium‑term thesis: execution on CMT‑SORD Phase 3 design, addressing Galactosemia CRL, and securing capital are pivotal to value realization; PMM2‑CDG progress adds strategic optionality .