Corvus Pharmaceuticals, Inc. (CRVS)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 was an execution-heavy quarter: Corvus advanced soquelitinib across atopic dermatitis (AD), PTCL, and ALPS, while reporting a net loss of $8.0M and cash/marketable securities of $74.4M following full warrant exercises producing $35.7M in proceeds .
• EPS modestly beat S&P Global consensus: Primary EPS consensus was -$0.13; actual Primary EPS was -$0.13, a ~$0.00 beat. Revenue consensus was $0.0 and the company reported no product revenue (pre-commercial stage) [Values retrieved from S&P Global].
• AD Phase 1 Cohort 3 delivered earlier and deeper responses vs cohorts 1–2 and placebo; extension Cohort 4 (200 mg BID, 8 weeks) is enrolling with data expected in Q4 2025; Phase 2 AD trial is targeted to initiate before year-end 2025 .
• Near-term stock catalysts: Q4 2025 AD Cohort 4 readout, Phase 2 AD initiation by YE25, ESMO October oral presentation for ciforadenant in RCC, and Phase 3 PTCL enrollment progression; management reiterated PTCL interim data timing in late 2026 .

What Went Well and What Went Wrong

• What Went Well

  • Cohort 3 in AD showed stronger efficacy and faster onset: 28-day mean EASI reduction 64.8% vs 54.6% (cohorts 1–2 combined) and 34.4% placebo; 50% of evaluable patients achieved ≥4-point PP-NRS itch reduction by day 28, with improvement visible by day 8 .
  • Program momentum: Extension Cohort 4 enrolling at 200 mg BID for 8 weeks with data anticipated Q4 2025; Phase 2 AD trial design is near-final, targeting ~200 patients, 12-week treatment, multiple dosing arms; trial initiation before YE25 .
  • Balance sheet strengthened: All remaining warrants exercised, adding $35.7M; quarter-end cash and marketable securities reached $74.4M, funding runway into Q4 2026 .

• What Went Wrong

  • Increased R&D spend: Q2 R&D expenses rose to $7.9M (vs $4.1M Y/Y) on higher trial/manufacturing and personnel costs; net loss widened to $8.0M Y/Y despite a $2.0M gain from warrant liability revaluation .
  • No revenue recognized (pre-commercial): The P&L remains driven by operating expenses and non-cash items, complicating EPS comparability Q/Q due to warrant liability fair-value swings .
  • Limited quantitative visibility in AD beyond Phase 1: Key efficacy signals are strong, but investors still need longer-duration, larger-scale (Phase 2) data to gauge durability and dose selection; Cohort 4 and Phase 2 design should address this .

Financial Results

Notes:

• Corvus reported no product revenue; condensed statements present operating expenses and net results (pre-commercial status) .
• EPS volatility Q/Q reflects warrant liability fair-value changes ($25.1M gain in Q1; $2.0M gain in Q2) .

KPIs – Atopic Dermatitis Phase 1

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Our main focus continues to be the development of socolitinib for atopic dermatitis… with an oral medication featuring a novel mechanism of action that so far has shown favorable safety and efficacy” .
• On Phase 2 AD: “The trial will be… randomized… ~200 patients… four cohorts: 200 mg QD, 200 mg BID, 400 mg QD or placebo… 12 weeks… primary endpoint percent change in EASI” .
• On timelines/enrollment: “We’ll start the trial in December… enrollment 12–15 months… results in 18 months… allowing patients who have failed systemic therapies” .
• On next indications: “Likely targets… hidradenitis suppurativa… and asthma, where we see excellent activity… a novel approach via inhibition of innate lymphoid cells” .

Q&A Highlights

• AD Phase 2 dose selection: FDA precedent to study multiple doses; Cohort 3 BID dose showed better response; 400 mg QD arm to test once-daily feasibility at same total dose .
• Phase 2 timelines: Initiation in December; 12–15 months enrollment, ~18 months to results; broader eligibility including prior systemic therapy failures to speed enrollment .
• PTCL Phase 3: ~20 centers open; interim data guide remains late 2026; confidence reinforced by Phase 1 data set for ASH presentation .
• RCC (ciforadenant): ESMO oral presentation in October; focus on durability/PFS in first-line ipinivo combo; next steps contingent on data .

Estimates Context

• Q2 2025 S&P Global consensus vs actual:
  • Primary EPS consensus: -$0.13; Actual Primary EPS: -$0.13; Beat of ~$0.00; 6 estimates [Values retrieved from S&P Global].
  • Revenue consensus: $0.00; Actual revenue: pre-commercial stage; no product revenue recognized [Values retrieved from S&P Global].
• Implications: Modest EPS beat driven by operating expense profile and non-cash warrant liability fair-value gain ($2.0M) offsetting higher R&D; with no revenue line, estimate revisions hinge on operating spend and pipeline milestones rather than top-line .

Key Takeaways for Investors

• AD program de-risks with strong Phase 1 Cohort 3 signals and imminent Cohort 4 (8-week) readout in Q4 2025; Phase 2 initiation by YE25 creates a near-term catalyst stack .
• Dose-ranging Phase 2 design may identify an optimal once-daily regimen (400 mg QD) to maximize convenience and adherence, potentially broadening commercial appeal .
• Balance sheet is fortified (Q2 warrant exercises); runway to Q4 2026 supports multi-indication execution without immediate financing risk .
• PTCL Phase 3 remains pivotal for oncology value; interim timing late 2026 sustained; ASH Phase 1 final results in Dec could heighten awareness and site engagement .
• RCC data at ESMO in October could add optionality for ciforadenant; durability/PFS outcomes in first-line ipinivo combo are the watch points .
• No revenue yet; EPS swings are sensitive to non-cash warrant liability marks—focus on R&D cadence and trial readouts for stock-moving narrative .
• Management’s expansion thinking (HS, asthma) leverages ITK biology; preclinical support in pulmonary models adds medium-term pipeline breadth .