Sign in

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

AP

Armata Pharmaceuticals, Inc. (ARMP)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 reflected clinical and operational progress but mixed financials: grant revenue fell year over year to $1.16M, operating loss narrowed to $(7.78)M, and net loss widened to $(26.68)M, driven primarily by a large non‑cash loss from the convertible loan’s fair value and higher interest expense .
  • Management highlighted compelling Phase 1b/2a diSArm data for AP‑SA02 in complicated S. aureus bacteremia (higher and earlier cure; 0% relapse/non‑response vs ~25% for placebo) and formally commissioned its Los Angeles cGMP facility, positioning the company for a planned Phase 3 pivotal trial start in 2026 (pending FDA feedback) .
  • No formal financial guidance provided; the company reiterated its plan/timing for regulatory interactions and potential pivotal development in 2026; S&P Global consensus estimates for revenue and EPS were unavailable for Q1–Q3 2025 as of this report (S&P Global) .
  • Near‑term stock catalysts center on regulatory engagement (End‑of‑Phase‑2 alignment), publication/visibility of AP‑SA02 data, and manufacturing readiness updates that de‑risk late‑stage execution .

What Went Well and What Went Wrong

What Went Well

  • Clinically positive diSArm results: AP‑SA02 + BAT showed higher day‑12 cure (PI 88% vs 58%; AC 83% vs 58%) and 0% relapse/non‑response vs ~25% for placebo at both later timepoints; AP‑SA02 was well‑tolerated across MRSA/MSSA .
  • Manufacturing readiness achieved: the 56,000 sq. ft. cGMP facility was formally commissioned; full production runs completed with no issues, supporting late‑stage and potential commercial supply .
  • Strategic posture and tone: “Compelling efficacy data… provide strong rationale for advancement of AP‑SA02 into late‑stage clinical development,” and intention to “develop a superiority pivotal trial” to establish a new SoC in complicated S. aureus bacteremia (CEO Dr. Deborah Birx) .

What Went Wrong

  • Top line softness and mix: grant and award revenue declined to $1.16M from $2.97M YoY as MTEC cost‑share recognition fluctuated with program cadence .
  • Bottom line pressure from non‑cash and financing items: net loss widened to $(26.68)M (vs $(5.48)M YoY) driven by $(14.64)M negative change in convertible loan fair value and $(4.35)M interest expense in the quarter .
  • Balance sheet strain optics: stockholders’ deficit deepened to $(95.59)M; current liabilities increased markedly (reflecting reclassifications/term debt) relative to total assets of $89.52M as of 9/30/25 .

Financial Results

Income Statement and EPS (Quarterly)

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Grant & Award Revenue ($M)$2.973 $0.491 $2.169 $1.159
R&D Expense ($M)$9.485 $5.429 $6.394 $5.824
G&A Expense ($M)$3.244 $3.253 $2.619 $3.111
Total Opex ($M)$12.729 $8.682 $9.013 $8.935
Operating Income (Loss) ($M)$(9.756) $(8.191) $(6.844) $(7.776)
Interest Income ($M)$0.294 $0.059 $0.108 $0.090
Interest Expense ($M)$(2.923) $(3.602) $(3.808) $(4.346)
Change in FV – Convertible Loan ($M)$6.904 $5.203 $(5.751) $(14.643)
Net Income (Loss) ($M)$(5.481) $(6.531) $(16.295) $(26.675)
EPS, Basic (USD)$(0.15) $(0.18) $(0.45) $(0.74)
Weighted Avg Shares (M)36.180 36.185 36.193 36.226

Notes: Operating Income approximates “Operating loss” presented; all figures from company’s condensed statements or press release tables.

Balance Sheet and Liquidity Snapshots

MetricDec 31, 2024Q1 2025Q2 2025Q3 2025
Cash & Cash Equivalents ($M)$9.291 $11.688 $4.328 $14.756
Total Assets ($M)$86.437 $87.250 $80.790 $89.516
Total Liabilities ($M)$134.456 $141.033 $150.293 $185.104
Stockholders’ Deficit ($M)$(48.019) $(53.783) $(69.503) $(95.588)

Drivers of Net Loss (Quarterly Detail)

ComponentQ1 2025Q2 2025Q3 2025
Operating Loss ($M)$(8.191) $(6.844) $(7.776)
Interest Expense ($M)$(3.602) $(3.808) $(4.346)
Change in FV – Convertible Loan ($M)$5.203 $(5.751) $(14.643)
Net Income (Loss) ($M)$(6.531) $(16.295) $(26.675)

Clinical and Operating KPIs (Recent)

KPIQ1 2025Q2 2025Q3 2025
AP‑SA02 diSArm: Day‑12 clinical response (PI/AC)Topline anticipated; no detail Positive topline; met primary endpoints (safety, tolerability, clinical response) –88%/83% vs 58%/58% (PI/AC)
AP‑SA02 diSArm: Non‑response/relapse at TOC for BAT and EOS——0% AP‑SA02 vs ~25% placebo (both timepoints)
Manufacturing readiness——cGMP facility commissioned; full runs completed without issues
Cash & Equivalents ($M)$11.69 $4.33 $14.76

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Financial Guidance (Revenue, Margins, EPS)FY/QtrNone providedNone providedMaintained (no formal guidance)
AP‑SA02 regulatory path2H 2025 → 2026Plan End‑of‑Phase‑2 meeting 2H25; intent to start Phase 3 in 2026 Reiterated plan to pursue pivotal superiority trial start in 2026, subject to FDA feedback Maintained

Earnings Call Themes & Trends

Note: No earnings call transcript was available in the document set as of this analysis; themes reflect quarterly disclosures in press releases and 8‑K.

TopicQ1 2025 (prior)Q2 2025 (prior)Q3 2025 (current)Trend
AP‑SA02 efficacy and path to pivotalAnticipated topline; plan EoP2 meeting Positive topline; superiority design envisioned; EoP2 in 2H25 –Detailed response/relapse data; reiterate pivotal start in 2026, subject to FDA – Strengthening clinical narrative
Manufacturing readiness——LA cGMP facility commissioned; full runs completed Execution de‑risking
Funding/liquidity$10M secured credit; extended maturities Additional $15M secured credit (matures 2029) Reiterated $15M loan; cash improved QoQ Liquidity actions ongoing
DoD/MTEC supportAdditional $4.65M award Additional $4.65M award supports EoP2 Ongoing recognition in grant revenue Sustained non‑dilutive support
OpEx disciplineR&D down YoY –R&D down YoY; lower G&A R&D down YoY; G&A stable YoY Improved efficiency YoY

Management Commentary

  • “Compelling efficacy data… provide strong rationale for advancement of AP‑SA02 into late‑stage clinical development… we are committed to developing a superiority pivotal trial with the goal of introducing AP‑SA02 as a new standard of care for complicated Staphylococcus aureus bacteremia…” — Dr. Deborah Birx, CEO .
  • “With the full commissioning of our state‑of‑the‑art cGMP manufacturing facility… we are now operationally ready to scale production for late‑stage clinical development… with line‑of‑site to the potential initiation of a Phase 3 study in 2026…” — Dr. Deborah Birx, CEO .
  • “The results of the diSArm study confirm, for the first time in a randomized clinical trial, the efficacy of intravenous phage therapy for S. aureus bacteremia…” — Dr. Loren G. Miller (IDWeek oral presenter) .

Q&A Highlights

  • No earnings call transcript was available; no Q&A themes or clarifications were published in the company documents reviewed for Q3 2025.

Estimates Context

  • Wall Street consensus (S&P Global) for revenue and EPS for Q1–Q3 2025 was unavailable as of this report; consequently, we cannot quantify beats/misses versus consensus (Values retrieved from S&P Global).
  • Given the development‑stage profile and grant‑driven revenue, estimate frameworks likely focus on cash runway, OpEx cadence, and milestone timing rather than top‑line/EPS sensitivity (S&P Global).

Key Takeaways for Investors

  • Clinical validation emerging: randomized diSArm data (higher cure; zero relapse) support a planned pivotal superiority trial and strengthen the probability of technical success for AP‑SA02 in SAB –.
  • Execution de‑risking: commissioning of the LA cGMP facility reduces manufacturing risk heading into late‑stage development and potential partnering/CMO optionality .
  • Pivotal timing: management is targeting a Phase 3 initiation in 2026 pending FDA feedback; near‑term catalysts include EoP2 alignment and potential additional data disclosures .
  • Financial profile: operating loss narrowed YoY on lower R&D, but net loss widened due to non‑cash convertible loan fair‑value losses and rising interest expense; cash improved QoQ to $14.8M with support from Innoviva credit facilities –.
  • Balance sheet optics: liabilities/current reclassifications and deficit are notable; investors should monitor debt terms, fair‑value swings, and financing plans as Phase 3 approaches .
  • Estimate setup: lack of S&P Global consensus limits near‑term “beat/miss” trading, shifting focus to regulatory/milestone catalysts and operating cash burn trajectory (S&P Global).

Appendix: Additional Quantitative Detail (Q3 2025 vs Prior Year and Quarter)

ItemQ3 2025Q2 2025Q3 2024
Grant & Award Revenue ($M)$1.159 $2.169 $2.973
R&D Expense ($M)$5.824 $6.394 $9.485
G&A Expense ($M)$3.111 $2.619 $3.244
Operating Loss ($M)$(7.776) $(6.844) $(9.756)
Interest Expense ($M)$(4.346) $(3.808) $(2.923)
Change in FV – Convertible Loan ($M)$(14.643) $(5.751) $6.904
Net Loss ($M)$(26.675) $(16.295) $(5.481)
EPS, Basic (USD)$(0.74) $(0.45) $(0.15)
Cash & Equivalents ($M, period end)$14.756 $4.328 —

Sources: Q3 2025 8‑K (Item 2.02 and Exhibit 99.1), associated press releases, and prior quarter press releases as cited above.