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C4 Therapeutics, Inc. (CCCC)·Q3 2025 Earnings Summary

Executive Summary

  • C4 Therapeutics delivered a clean execution quarter: collaboration revenue rose sequentially to $11.2M, and the company extended cash runway to end of 2028 via a $125M October equity raise; management reiterated a Q1 2026 start for the single‑arm Phase 2 MOMENTUM trial of cemsidomide+dexamethasone and added a new Pfizer supply collaboration for an elranatamab combo Phase 1b in Q2 2026 .
  • Results vs consensus: revenue beat materially (+$4.95M; +78.8% vs S&P Global), and Primary EPS (SPGI definition) beat, though GAAP EPS was pressured by a $10.7M non‑cash impairment, underscoring the importance of basis in EPS comparisons .
  • Clinically, multiple myeloma Phase 1 data continued to support a potential best‑in‑class profile (ORR 53% at 100 µg; median DOR 9.3 months) and the MM program is transitioning into registrational development in early 2026 .
  • Strategic shifts: Merck will conclude the research collaboration in late November; Biogen progressed IRAK4 degrader BIIB142 and triggered a $2M milestone, adding external validation and near‑term non‑dilutive cash .

What Went Well and What Went Wrong

  • What Went Well

    • Strong top‑line vs expectations: collaboration revenue of $11.2M materially exceeded consensus, driven by deferred revenue recognition from Merck and progress on other programs .
    • Compelling MM data and pipeline momentum: cemsidomide achieved 53% ORR at 100 µg with a differentiated safety/tolerability profile and 9.3‑month median DOR; MM registrational plan locked for early 2026 and Pfizer combo added for earlier‑line exploration .
    • Balance sheet fortified: $125M gross proceeds raised post‑quarter, extending runway to end‑2028; Q3 included $7.5M net ATM proceeds .
    • Quote: “Recent months have been transformative for C4T… we are in a strong position to rapidly advance cemsidomide registrational development… With a successful raise of $125 million… we have extended our runway to the end of 2028…” — Andrew Hirsch, CEO .

  • What Went Wrong

    • GAAP loss widened: net loss increased to $(32.2)M vs $(24.7)M YoY, with GAAP EPS of $(0.44), impacted by a $10.7M impairment of long‑lived assets .
    • Collaboration headwind ahead: Merck decision to conclude the research collaboration reduces a source of potential milestones, though some deferred revenue was recognized this quarter .
    • Revenue still lumpy YoY: revenue declined vs Q3’24 due to the absence of an $8.0M prior‑year Biogen milestone, highlighting milestone timing variability .

Financial Results

Income statement snapshot (GAAP)

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($, millions)15.362 7.238 6.463 11.230
Research & Development ($, millions)31.838 27.072 26.197 25.989
General & Administrative ($, millions)11.768 9.330 8.767 8.920
Impairment of long‑lived assets ($, millions)— — — 10.733
Total Operating Expenses ($, millions)43.606 36.402 34.964 45.642
Net Loss ($, millions)(24.666) (26.322) (26.020) (32.166)
GAAP EPS (basic/diluted, $)(0.35) (0.37) (0.37) (0.44)
Weighted Avg Shares (millions)69.627 70.833 71.006 72.563

Liquidity

MetricQ1 2025Q2 2025Q3 2025
Cash, cash equivalents & marketable securities ($, millions)234.706 222.973 199.759
Note on capital raise——$125M gross proceeds in Oct 2025, not in 9/30 balance

Results vs S&P Global consensus (Q3 2025)

MetricActualConsensus MeanSurprise
Revenue ($, millions)11.230 6.280*+4.950 (+78.8%)*
Primary EPS ($)−0.2954*−0.4086*+0.1132*
GAAP EPS ($, company-reported)−0.44 ——
# of Estimates (Rev / EPS)—5 / 5*—

Values marked with * retrieved from S&P Global.

Context: Q3 included a $10.733M non‑cash impairment; GAAP EPS reflects this while SPGI “Primary EPS” likely normalizes it, explaining the divergence in reported vs SPGI actual EPS in beat/miss framing .

KPIs and operational highlights

KPICurrent Quarter Detail
Cemsidomide MM ORR53% at 100 µg; 40% at 75 µg; one MRD‑negative CR at 100 µg
Cemsidomide MM DORMedian 9.3 months across all doses
NHL activityMonotherapy cemsidomide showed compelling anti‑lymphoma activity; in PTCL, 9/22 had partial response or better (investigator assessed)
CollaborationsPfizer supply agreement for elranatamab combo trial (Q2’26 start) ; Biogen $2M milestone upon dosing BIIB142 patient
Financing$7.5M net ATM in Q3; $125M gross equity raise in Oct extends runway to end‑2028

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash runwayCorporateFunded to mid‑2027 (6/30/25 baseline) Funded to end‑2028 post Oct equity raise Raised
Cemsidomide MM – FDA alignment on Phase 2 doseBy YE 2025Align by YE 2025 Align by YE 2025 Maintained
Cemsidomide MM – Phase 2 MOMENTUM (cemsidomide+dex)Start timing“Early 2026” Q1 2026 Clarified timing
Cemsidomide MM – Phase 1b combo with elranatamabStart timing“Early 2026” (enable initiation) Q2 2026; Pfizer to supply at no cost Clarified timing

Earnings Call Themes & Trends

Note: A Q3 2025 earnings call transcript was not available in the document set; themes draw from the company’s Q1–Q3 press releases and 8‑K disclosures.

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Financing & runwayCash $234.7M (3/31); runway into 2027 . Cash $223.0M (6/30); runway to mid‑2027 .$125M raise in Oct; runway to end‑2028; $199.8M at 9/30 (ex‑raise) .Improving
Cemsidomide MM efficacyORR 50% at 100 µg; 40% at 75 µg (as of 4/30); one MRD‑neg CR .ORR 53% at 100 µg; median DOR 9.3 months; supports registrational plan .Strengthening
Regulatory pathType C meeting refined plan; align on Ph2 dose by YE 2025 .Reiterated alignment by YE 2025 .On track
Registrational timelinesEnable initiation “early 2026” .Q1 2026 MOMENTUM single‑arm; Q2 2026 1b elranatamab combo .Clarity increased
PartnershipsRoche/MKDG preclinical milestones in H1 .Pfizer supply agreement; Biogen patient‑dosing milestone; Merck to conclude collaboration .Mixed (adds Pfizer/Biogen; Merck concludes)
Portfolio focusPrioritized MM; BRAF program to seek partner .Continued MM focus; NHL data prepared; MM combos prioritized .Consistent

Management Commentary

  • “Recent months have been transformative for C4T… We remain laser‑focused on initiating cemsidomide’s next phase of development in early 2026… With a successful raise of $125 million… we have extended our runway to the end of 2028…” — Andrew Hirsch, President & CEO .
  • “We look forward to initiating this trial to evaluate cemsidomide in combination with elranatamab… Our supply agreement with Pfizer creates an opportunity… in a growing market.” — Andrew Hirsch, President & CEO .

Q&A Highlights

  • No Q3 2025 earnings call transcript was available in the document set; management’s strategy and clarifications are reflected in the press release and 8‑K disclosures, including precise timing for MOMENTUM (Q1’26) and the elranatamab combo (Q2’26) and runway extension to end‑2028 .

Estimates Context

  • Revenue beat: $11.23M actual vs $6.28M consensus; +$4.95M (+78.8%)* .
  • EPS basis matters: SPGI “Primary EPS” shows an actual of −$0.2954 vs −$0.4086 consensus (beat), while company GAAP EPS was −$0.44 due to a $10.733M impairment recorded in Q3 .
  • Estimate breadth: 5 estimates each for revenue and EPS in Q3 2025; prior quarter had 4; YoY had 5–6, indicating moderate coverage*.

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • The narrative is shifting to a registrational story in MM with near‑term catalysts: FDA dose alignment by YE 2025, MOMENTUM initiation in Q1 2026, and the Pfizer‑supported combo start in Q2 2026; execution on these timelines is the principal stock driver .
  • The balance sheet inflection (runway to end‑2028) materially reduces financing overhang through key value inflections (Phase 2 and 1b readouts), improving risk‑adjusted positioning for mid‑’26/’27 catalysts .
  • Revenue outperformance highlights collaboration leverage (deferred revenue, milestones), but investors should assume continued lumpiness; durability requires sustained partner progress and/or additional deals .
  • Be mindful of EPS optics: non‑cash impairment depressed GAAP EPS; on an SPGI “Primary EPS” basis, the company beat consensus — reinforcing the need to normalize for one‑offs in a development‑stage biotech .
  • The Pfizer combo opens an earlier‑line path and synergy potential with BCMAxCD3 T‑cell engagers; this could expand cemsidomide’s addressable opportunity beyond late‑line MM if data confirm immunomodulatory enhancement .
  • Collaboration mix is evolving: Biogen progress (BIIB142 milestone) supports external validation; Merck’s collaboration conclusion removes a potential milestone stream but was offset this quarter by deferred revenue recognition .
  • Near‑term watchlist: YE 2025 FDA alignment, any additional BD updates replacing Merck, and clinical operations readiness for Q1/Q2 2026 trial starts .

Sources

  • Q3 2025 8‑K and Exhibit 99.1 press release, including detailed financial statements and business updates .
  • Q2 2025 press release and 8‑K for sequential comps and prior guidance .
  • Q1 2025 press release for earlier‑period comps and portfolio decisions .
  • Additional Q3‑period press releases: Pfizer supply agreement (Oct 1), Biogen IND acceptance and milestone framework (Sep 4), IMS oral presentation announcement (Sep 3) .

S&P Global consensus and Primary EPS “actual” values used for estimate comparisons are marked with * and noted as: Values retrieved from S&P Global.