Editas Medicine, Inc. (EDIT)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 delivered a mixed print: revenue of $4.66M materially beat Wall Street consensus ($0.71M), while EPS of $(0.92) missed expectations ($(0.59)) amid restructuring/impairment charges tied to the December 2024 reni‑cel wind-down . Consensus values from S&P Global.*
• Operating realignment is visible in opex: R&D fell 45% YoY to $26.6M and G&A fell 31% YoY to $13.4M, but one‑time restructuring/impairment of $40.9M drove the EPS miss .
• Liquidity remains solid with cash and marketable securities of $221.0M and runway into Q2 2027; equity fell to $62.4M on restructuring impacts .
• Strategic narrative is firmly “in vivo” gene upregulation (HSCs, liver) with mid‑2025 development candidate declarations and near‑term catalysts at ASGCT and TIDES; no quarterly earnings calls going forward .
• IP update: Federal Circuit vacated and remanded a PTAB decision in the CRISPR/Cas9 interference matter; management remains confident in Broad IP strength and licenses unaffected .

What Went Well and What Went Wrong

What Went Well

• In vivo platform momentum and near‑term milestones: management reiterated mid‑2025 timing to declare two development candidates (HSC and liver) and present new preclinical data at ASGCT/TIDES. CEO: “We achieved notable progress… to become a leader in in vivo gene editing… breakthroughs that bolster our confidence in the near‑term potential” .
• Revenue upside: collaboration and other R&D revenue rose to $4.7M, primarily from recognition of remaining deferred revenue upon closing a collaboration agreement .
• Cost alignment underway: R&D down to $26.6M (from $48.8M YoY) and G&A down to $13.4M (from $19.3M YoY) following reni‑cel discontinuation and lower stock‑based compensation versus a performance‑vesting event in Q1 2024 .

What Went Wrong

• EPS miss driven by one‑offs: restructuring and impairment charges of $40.9M related to reni‑cel discontinuation, workforce reduction, and asset impairments, plus accelerated depreciation on leasehold improvements/software/ROU asset, pressured profitability .
• Equity contraction and asset step‑down: total stockholders’ equity fell to $62.4M (from $134.3M at year‑end), total assets fell to $263.7M, reflecting restructuring impacts and cash usage .
• No earnings call/Q&A: the company ceased quarterly conference calls, limiting real‑time detail on timing/quantitative targets beyond press releases .

Financial Results

Core P&L and Opex (Quarterly)

Liquidity and Capital (Quarterly KPIs)

Q1 2025 vs. Q1 2024 (YoY reference)

Q1 2025 vs. Consensus (S&P Global)

Note: Estimates values retrieved from S&P Global.*

Drivers:

• Revenue beat driven by recognition of remaining deferred revenue upon closing a collaboration agreement .
• EPS miss driven by $40.9M restructuring/impairment and interest related to sale of future revenues $(2.22)M, partially offset by interest income $2.72M .

Guidance Changes

Earnings Call Themes & Trends

(Company no longer hosts quarterly earnings calls; themes from earnings materials)

Management Commentary

• CEO perspective: “We achieved notable progress… fueled by recent scientific breakthroughs that bolster our confidence in the near‑term potential of CRISPR‑based in vivo gene editing therapies.”
• Strategic framing: “We believe… gene upregulation holds the potential to significantly expand addressable therapeutic possibilities… poised to make meaningful progress towards the clinic.”
• CFO transition: “Amy… track record of financial decision‑making… made her the natural choice for the role.” and appointment confirmed .
• IP stance: “We remain confident in the strength of our IP portfolio… This decision does not affect our ability to license our IP.”

Q&A Highlights

• The company no longer hosts quarterly earnings conference calls; therefore there was no Q&A or call commentary this quarter .

Estimates Context

• Q1 2025 revenue beat consensus ($4.66M vs. $0.71M*) driven by deferred revenue recognition on collaboration close‑out .
• Q1 2025 EPS missed ($(0.92) vs. $(0.59)*) due to $40.9M restructuring/impairment and interest related to sale of future revenues .
• Prior quarters: Q4 2024 revenue undershot consensus ($30.60M actual vs. $37.17M*) while EPS missed ($(0.55) vs. $(0.33)) . Q3 2024 EPS was slightly better than consensus ($(0.75) vs. $(0.77)) with minimal revenue . Estimates values retrieved from S&P Global.*

Key Takeaways for Investors

• Near‑term catalysts: Mid‑2025 declaration of two in vivo development candidates (HSCs and liver) and data disclosures at ASGCT/TIDES should drive narrative and stock reaction; monitor undisclosed liver target specifics and biomarker reductions .
• Opex base reset: With reni‑cel discontinued, structural R&D and G&A reductions are evident; expect EPS variability near‑term due to one‑offs, but underlying cash burn should improve as restructuring normalizes .
• Liquidity adequate: $221.0M cash and stated runway into Q2 2027 reduce financing overhang in the near term, though equity has contracted on restructuring impacts .
• IP watch: Federal Circuit vacate/remand raises headline risk but management states Cas12a unaffected and licensing intact; risk‑reward tied to PTAB remand outcomes and ongoing licensing revenues .
• Communication cadence: No quarterly calls; rely on press releases, scientific conferences, and investor events for updates; fewer real‑time disclosures may increase volatility around data drops .
• Trading lens: Revenue prints can be lumpy given collaboration accounting; EPS is sensitive to one‑time charges; price action likely more correlated to in vivo data milestones and candidate declarations than quarterly P&L in 2025 .
• Medium‑term thesis: If in vivo upregulation demonstrates human PoC per the 2026 plan, platform value could re‑rate; watch IND/CTA timelines and extrahepatic “plug ‘n play” targeting progress .

Sources: All financial and operational data cited from company filings and press releases; estimates from S&P Global.