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AP

Athira Pharma, Inc. (ATHA)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 was operationally tight with no revenue and materially lower operating expenses; net loss improved to $7.0M (−$0.18 EPS) vs $9.1M in Q1 and $26.9M YoY, driven by the wind-down of fosgonimeton and a leaner cost base .
  • Reported EPS of −$0.18 beat the split-adjusted S&P Global consensus of −$1.40 on a post–10-for-1 basis (reported −$0.18 → −$1.80 split-adjusted) due to lower-than-expected OpEx; revenue remained $0 .
  • Cash, cash equivalents and investments were $29.8M at quarter-end, down from $36.7M in Q1 and $51.3M at YE 2024, reflecting ongoing R&D and corporate spending while the company explores strategic alternatives .
  • Near-term catalysts: clarity on strategic alternatives/partnering and initiation plans for an ALS patient trial of ATH-1105; the September reverse split was intended to support Nasdaq compliance and broaden investor appeal .

What Went Well and What Went Wrong

What Went Well

  • Significant OpEx reduction: total operating expenses fell 24% sequentially ($9.54M → $7.29M) and 74% YoY ($28.03M → $7.29M), reflecting disciplined cost control post-fosgonimeton .
  • Pipeline progress: Phase 1 ATH-1105 safety/PK data showed favorable tolerability, dose proportional PK, and CNS penetration, supporting continued development; management reiterated readiness to initiate an ALS patient trial subject to strategic options .
  • CEO tone on ALS focus and partnering: “We have substantially completed preparation activities to enable initiation of a future clinical trial in people living with ALS… by us or in conjunction with a partner” .

What Went Wrong

  • No revenue: as a clinical-stage company, Athira reported no product revenue; losses continue albeit reduced .
  • Cash burn remains material: net cash used in operations was $21.7M for 6M’25 (vs $48.1M 6M’24), still significant given the $29.8M cash+investments balance .
  • Strategic uncertainty: formal exploration of strategic alternatives continues, and development of fosgonimeton remains paused, limiting portfolio breadth and visibility .

Financial Results

Core P&L and Balance Metrics

MetricQ2 2024Q1 2025Q2 2025
Total Operating Expenses ($USD Millions)$28.03 $9.54 $7.29
Net Loss ($USD Millions)$26.86 $9.14 $6.97
Net Loss per Share (EPS) ($USD)$(0.70) $(0.23) $(0.18)
Other Income, net ($USD Millions)$1.17 $0.39 $0.33
Cash & Equivalents ($USD Millions)—$26.42 $19.89
Cash + Short-term Investments ($USD Millions)—$36.67 $29.80

Notes:

  • No revenue reported; statements of operations present only operating expenses and other income, consistent with clinical-stage status .

Actual vs Consensus (Q2 2025)

MetricActual (Reported basis)Split-adjusted Actual (10:1)Consensus (S&P Global)Surprise
EPS ($USD)$(0.18) $(1.80) $(1.40)*Beat (lower loss than expected)
Revenue ($USD Millions)$0.00 $0.00 $0.00*In line

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

KPIs

KPIQ2 2024Q1 2025Q2 2025
R&D Expense ($USD Millions)$22.15 $4.30 $3.66
G&A Expense ($USD Millions)$5.87 $5.23 $3.63
Net Cash Used in Operations ($USD Millions, YTD)$48.10 (6M’24) $14.70 (Q1’25) $21.70 (6M’25)
Cash + Investments ($USD Millions)—$36.67 $29.80

Segment breakdown: Not applicable; Athira has no commercial segments .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
ATH-1105 ALS patient trial initiationLate 2025“On-track to enable dosing ALS patients in late 2025.” “Substantially completed preparation to enable initiation… by us or with a partner; update forthcoming.” Maintained timeline; added partnering option
Fosgonimeton (ATH-1017)OngoingDevelopment paused following LIFT-AD topline (Sept 2024) Continued pause; focus on ATH-1105 and partnering Maintained
Financial guidance (Revenue, margins, OpEx, OI&E, tax)Q2 2025None providedNone providedNo formal financial guidance

Earnings Call Themes & Trends

No Q2 2025 earnings call transcript was available via our document search [List: earnings-call-transcript none]. The themes below reflect prepared remarks and press releases.

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
ATH-1105 clinical progressHV Phase 1 completed; on track to dose ALS patients in 2025 On-track for late 2025 ALS dosing; reiterates favorable safety in HV Phase 1 data presented; favorable safety/PK and CNS penetration; prep for trial initiation; partnering option Advancing; operational readiness; partner discussions
Strategic alternativesInitiated post-LIFT-AD; Cantor engaged Continued exploration Ongoing; update anticipated Ongoing; potential partnership/transaction
Regulatory/legalDOJ settlement (NIH grant) accrued $4.1M in 2024 No new items noted No new items noted Resolved; no new developments disclosed
Cost structureHigh 2024 OpEx; focus shifting OpEx down on fosgonimeton wind-down OpEx down materially; leaner cost base Improving efficiency
Capital structure/Nasdaq——Reverse split announced (Sept 2025) to support compliance and marketability Implemented post-Q2

Management Commentary

  • CEO (Q2 PR): “We have substantially completed preparation activities to enable initiation of a future clinical trial in people living with ALS by us or in conjunction with a partner… We look forward to providing an update regarding our plans in the near future.”
  • CEO (Q1 PR): “We continue to focus our efforts on advancing ATH-1105… keeping us on-track to enable dosing ALS patients in late 2025.”
  • CMO (Aug 14 PR): “Our Phase 1 safety, tolerability, and pharmacokinetic data are encouraging and support continued development of ATH-1105.”

Q&A Highlights

  • No Q2 2025 earnings call transcript was identified, so no Q&A highlights or clarifications are available [List: earnings-call-transcript none].

Estimates Context

  • S&P Global consensus for Q2 2025 EPS was −$1.40 (two estimates); revenue $0.0 (two estimates). Reported EPS of −$0.18 equates to −$1.80 on a split-adjusted basis (10-for-1), implying a modest beat versus consensus due to lower OpEx; revenue in line at $0.0* .
  • Target price consensus mean was $4.00 (one estimate); formal consensus recommendation text unavailable*.

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

Key Takeaways for Investors

  • Cost discipline is the story: OpEx down 24% q/q and 74% y/y, narrowing quarterly losses and enabling an extended runway for ATH-1105 execution .
  • ATH-1105 continues to de-risk: Phase 1 HV data support safety/PK and CNS penetration; company-ready logistics for ALS patient trial initiation await strategic path/partner clarity .
  • Strategic alternatives remain the swing factor: expect updates that could impact capital needs, trial design, and timeline; partnering could reduce burn and accelerate development .
  • Capital structure adjustment: the September reverse split supports Nasdaq compliance and potential investor reach; model EPS on a split-adjusted basis for estimate comparisons .
  • Near-term watch items: ALS trial initiation timing, partnering announcements, OpEx trajectory into 2H25, and cash burn vs $29.8M cash+investments at Q2-end .
  • Estimate revisions: modest EPS improvements vs consensus on a split-adjusted basis may prompt slight upward adjustments to near-term loss forecasts; revenue remains at $0 absent partnering revenue*.

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