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AP

Athira Pharma, Inc. (ATHA)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 reflected a leaner operating footprint post-fosgonimeton pause: total operating expenses fell to $9.54M vs $27.69M YoY, driving net loss to $9.14M and diluted EPS of -$0.23 as reported by the company . On an S&P-normalized basis (post reverse-split effects), diluted EPS was -$2.34*, modestly better than consensus -$2.40*, a small beat driven by lower R&D and G&A .
  • Cash, cash equivalents and investments were $36.7M at March 31, 2025; net cash used in operations decreased to $14.7M vs $25.8M YoY, reflecting disciplined spend after the pipeline pivot .
  • ATH-1105 advanced: Phase 1 in healthy volunteers completed with favorable safety/tolerability; full HV data expected in 2H25; initiation of dosing ALS patients targeted for late 2025, sustaining the development timeline .
  • Strategic alternatives remain in process with Cantor engaged; the Alzheimer’s program (fosgonimeton) remains paused while partnering options are explored .
  • Near-term stock reaction catalysts: detailed Phase 1 HV data in 2H25 and clarity on ALS patient dosing timing; ongoing strategic alternatives process may also influence sentiment .

What Went Well and What Went Wrong

What Went Well

  • Management executed cost reductions: R&D fell to $4.3M (from $21.2M YoY) and G&A to $5.2M (from $6.5M YoY), lowering the quarterly burn and helping deliver a narrower net loss .
  • ATH-1105 Phase 1 completed with favorable safety/tolerability and CNS penetration; multiple preclinical models show statistically significant improvements in motor/nerve function and inflammatory/neurodegeneration biomarkers, supporting ALS clinical translation .
  • CEO tone was confident on ALS timing: “We look forward to sharing the full results from the first-in-human Phase 1 trial… in the second half of this year, keeping us on-track to enable dosing ALS patients in late 2025.” — Mark Litton, Ph.D., President & CEO .

What Went Wrong

  • No commercial revenue; results are entirely expense-driven, limiting conventional margin analysis and keeping the company dependent on external financing and strategic outcomes .
  • Cash and investments declined to $36.7M from $51.3M at year-end, though burn moderated; the reduced cash balance keeps focus on runway and funding plans .
  • Continued uncertainty from strategic alternatives and the paused fosgonimeton program underscores execution risk and reliance on ATH-1105 progression .

Financial Results

Year-over-Year (Q1 2024 → Q1 2025)

MetricQ1 2024Q1 2025YoY Change
Total Operating Expenses ($USD Millions)$27.69 $9.54 -65.6%
Net Loss ($USD Millions)$26.34 $9.14 -65.3%
Diluted EPS (Company-reported, $USD)-$0.69 -$0.23 +$0.46
Net Cash Used in Operations ($USD Millions)$25.8 $14.7 -43.0%

Sequential (Q3 2024 → Q1 2025)

MetricQ3 2024Q1 2025QoQ Change
Total Operating Expenses ($USD Millions)$29.62 $9.54 -67.8%
Net Loss ($USD Millions)$28.74 $9.14 -68.2%
Diluted EPS (Company-reported, $USD)-$0.75 -$0.23 +$0.52
Cash & Investments ($USD Millions)$68.9 $36.7 -46.7%

Consensus vs Actual (S&P-normalized basis for EPS)

MetricQ1 2025 ConsensusQ1 2025 ActualSurprise
Primary EPS ($USD)-$2.40*-$2.34*+$0.06*
Revenue ($USD Millions)$0.00*——

Values marked with * retrieved from S&P Global.

KPIs

KPIQ3 2024Q1 2025
Net Cash Used in Operations ($USD Millions)$71.2 (9M 2024) $14.7 (quarter)
Cash, Cash Equivalents & Investments ($USD Millions)$68.9 (as of 9/30/24) $36.7 (as of 3/31/25)
Weighted-average shares (basic & diluted)38,517,602 39,042,445

Notes: The company’s condensed P&L presentation omits revenue lines; results are expense-driven .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
ATH-1105: Full Phase 1 HV data release2H 2025Phase 1 completed Nov 2024 (timing not specified for full HV data) Full HV data expected in 2H25 Clarified timeline
ATH-1105: Initiate dosing in ALS patientsLate 2025On-track to enable dosing ALS patients in 2025 On-track to enable dosing ALS patients in late 2025 Narrowed timing to “late 2025”
Strategic alternativesOngoingPlans to explore strategic alternatives; Cantor engaged Continuing exploration; Cantor engaged Maintained

No quantitative financial guidance (revenue, margins, tax rate, etc.) was provided .

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was found in our document catalog or on the IR site; analysis below relies on press releases and the Q1 2025 release .

TopicPrevious Mentions (Q3 2024 and FY 2024)Current Period (Q1 2025)Trend
ATH-1105 clinical progressOngoing Phase 1 HV; target completion by YE 2024; ALS dosing planned in 2025 Phase 1 HV completed; favorable safety/tolerability and CNS penetration; full HV data in 2H25; ALS dosing late 2025 Strengthening: milestone achieved; timeline clarified
Strategic alternativesDecision to explore; Cantor engaged; fosgonimeton paused Continuing exploration; partnering options for paused AD asset; focus on ATH-1105 Maintained
Expense disciplineElevated OpEx in Q3 2024 incl. legal accrual OpEx sharply lower; R&D and G&A down YoY; burn moderated Improving
Legal/regulatoryDOJ-related legal accrual in 2024; settlement reached by FY 2024 No new legal accruals disclosed; focus on development and strategy Stabilizing
Alzheimer’s program (fosgonimeton)LIFT-AD did not meet endpoints; program paused Paused; exploring partnering; no further spend Deprioritized
External visibilityConference presentations (AAN/AAIC/NEALS/MNDA) ALS Drug Development Summit presentation (May 13, 2025) Ongoing visibility

Management Commentary

  • “We look forward to sharing the full results from the first-in-human Phase 1 trial of ATH-1105 in healthy volunteers in the second half of this year, keeping us on-track to enable dosing ALS patients in late 2025.” — Mark Litton, Ph.D., President & CEO .
  • “We are very encouraged by these first-in-human safety and pharmacokinetic data… We look forward to enabling the initiation of a clinical trial in ALS patients in late 2025 and to evaluating ATH-1105's effect on an ALS validated biomarker (NfL).” — Javier San Martin, M.D., CMO .

Q&A Highlights

  • No Q1 2025 earnings call transcript available; Q1 update provided via press release .
  • Company communications emphasized Phase 1 completion, upcoming 2H25 HV data, and late-2025 ALS dosing plans; no additional clarifications beyond the press releases were observed .

Estimates Context

  • EPS came in slightly better than S&P Global consensus: -$2.34* actual vs -$2.40* consensus for Q1 2025, reflecting lower R&D and G&A after pausing fosgonimeton and reducing personnel-related expenses .
  • Revenue consensus was $0.00* for Q1 2025; the company does not report product revenue, and the condensed P&L presentation begins at operating expenses .

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Operative reset is delivering: OpEx down ~66% YoY; burn moderating; narrower net loss supports near-term runway management .
  • ATH-1105 is the core value driver: Phase 1 HV completed; full HV dataset due 2H25; ALS patient dosing targeted for late 2025, maintaining the development cadence .
  • Strategic alternatives persist; potential partnering outcomes for the paused AD asset could influence the capital plan and focus .
  • Balance sheet: $36.7M cash/investments at 3/31/25; watch for financing or partnering to bridge to ALS patient dosing milestones .
  • EPS slightly beat S&P Global consensus on a normalized basis; drivers were mix-shift to ATH-1105 and lower spend post-fosgonimeton .
  • Near-term catalysts: ALS Summit data presentations and HV dataset publication in 2H25; mid-term catalyst is initiation of ALS patient dosing late 2025 .
  • Risk watch: execution on ALS timelines, outcomes of strategic alternatives, and funding needs absent product revenue .