Armata Pharmaceuticals, Inc. (ARMP)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 was operationally constructive: Armata reported $2.17M of grant and award revenue (vs. $0 in Q2’24), materially lower operating loss ($6.8M vs. $11.9M YoY), and continued cost discipline in R&D and G&A, though a non‑cash loss on the convertible loan and higher interest expense drove a net loss of $16.3M (basic EPS $(0.45)) .
• Clinical momentum remains the near-term stock catalyst: positive Phase 1b/2a diSArm topline data for IV AP‑SA02 (statistically significant efficacy, no treatment‑related SAEs) and plans for an End‑of‑Phase 2 FDA meeting in 2H25 targeting a superiority Phase 3 start in 2026 .
• Liquidity and capital structure: $4.3M cash at 6/30/25; post‑quarter Armata added a $15M secured term loan from Innoviva at 14% maturing Jan 11, 2029; current liabilities are high relative to current assets, yielding a stockholders’ deficit of $(69.5)M at quarter‑end .
• Non-dilutive support continues: an additional $4.65M DoD/MTEC award announced in Q2 to fund diSArm close‑out and End‑of‑Phase 2 preparation (award total $26.2M) .
• Estimates: S&P Global/Capital IQ consensus for revenue and EPS for Q2 2025 was unavailable; we therefore cannot score beats/misses vs. Street for this quarter (Values retrieved from S&P Global).

What Went Well and What Went Wrong

• What Went Well

  • Positive diSArm topline: AP‑SA02 met primary endpoints; significantly higher responder rate vs. placebo at TOC (88% vs. 58%, p=0.047) and 100% clinical response at TOC for BAT and EOS in AP‑SA02 vs. 22–25% non‑response in placebo; no treatment‑related SAEs. CEO: “first clear evidence in a randomized controlled trial of the effectiveness of phage in treating a serious systemic bacterial infection.” .
  • Cost discipline: R&D fell to $6.4M (from $8.5M YoY); G&A to $2.6M (from $3.4M YoY), narrowing operating loss to $(6.8)M (from $(11.9)M YoY) .
  • Strategic funding: additional $4.65M non‑dilutive DoD award; post‑quarter $15M Innoviva credit adds runway for AP‑SA02 Phase 3 prep and manufacturing scale‑up .

• What Went Wrong

  • Liquidity tight into quarter‑end: $4.3M cash at 6/30/25 vs. $9.3M at 12/31/24, necessitating subsequent debt financing .
  • Heavy current liabilities: $120.1M current liabilities vs. $7.5M current assets; stockholders’ deficit of $(69.5)M underscores balance sheet pressure and financing dependence .
  • Non‑cash and financing costs: higher interest expense ($(3.8)M) and a $(5.8)M loss on convertible loan fair value change contributed to $(16.3)M net loss and $(0.45) basic EPS .

Financial Results

Income Statement Bridge (oldest → newest)

YoY snapshot (Q2 2025 vs. Q2 2024)

Notes on margins/estimates: Armata has no product revenue; margin rates (gross/operating/net as % sales) are not meaningful. S&P Global consensus for Q2 2025 EPS and revenue was unavailable for ARMP this quarter, so no beat/miss scoring is presented (Values retrieved from S&P Global).

Balance Sheet/Liquidity (oldest → newest)

KPIs and Operating Drivers

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “These data are the first clear evidence in a randomized controlled trial of the effectiveness of phage in treating a serious systemic bacterial infection… will inform the design of a larger definitive efficacy study… End of Phase 2 meeting with the FDA… planned superiority pivotal trial design has the potential to change standard of care.” – Dr. Deborah Birx, CEO .
• “I continue to be very pleased with our progress… two promising therapeutic candidates and a state‑of‑the‑art manufacturing platform that can achieve the high purity necessary for clinical success” – Dr. Deborah Birx .
• On diSArm results detail: statistically significant responder rate improvements, faster culture clearance, biomarker declines, with efficacy across MSSA/MRSA; favorable safety on Q6h IV dosing for 5 days .

Q&A Highlights

• No Q2 2025 earnings call transcript was located in our corpus; company disclosures for the period consisted of the earnings press release and an 8‑K furnishing that press release and detailing the Innoviva credit agreement .

Estimates Context

• Wall Street consensus (S&P Global/Capital IQ) for Q2 2025 EPS and revenue was unavailable for ARMP; we therefore cannot assess beat/miss vs. Street for the quarter (Values retrieved from S&P Global).

Key Takeaways for Investors

• Clinical de‑risking: statistically significant efficacy and clean safety for AP‑SA02 in complicated S. aureus bacteremia establishes a credible path to a superiority Phase 3 in 2026, a key medium‑term value inflection .
• Regulatory visibility: EOP2 meeting in 2H25 should lock the pivotal design; strong execution and FDA alignment will be critical near‑term catalysts .
• Balance sheet watch‑item: current liabilities far exceed current assets; reliance on secured debt (14% rate) adds interest burden—expect continued need for non‑dilutive awards or additional capital ahead of Phase 3 .
• Operating efficiency: YoY reductions in R&D and G&A narrowed operating loss; sustaining cost discipline through pivotal prep could extend runway .
• Platform and manufacturing: internally controlled, high‑purity cGMP with capacity (>10,000 courses) is a differentiator for rapid scale if pivotal succeeds .
• Secondary asset (AP‑PA02) provides portfolio balance and potential antibiotic‑sparing positioning in pulmonary infections, though AP‑SA02 is the primary driver .
• Trading setup: upcoming EOP2 and pivotal design disclosure are likely stock movers; absence of Street coverage/consensus limits benchmark comparisons, making company communications and regulatory events especially impactful (Values retrieved from S&P Global) .

Sources: Q2 2025 press release and financials ; 8‑K (Item 2.02 and Innoviva credit terms) ; Q1 2025 press release ; Q4 2024 press release ; diSArm topline press release (May 19, 2025) ; DoD award press release (May 1, 2025) .