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Editas Medicine, Inc. (EDIT)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $3.58M, a significant beat versus S&P Global consensus, while EPS of -$0.63 missed consensus; revenue strength was driven by recognized deliverables, and EPS was pressured by restructuring and impairment charges . Estimates marked with * are from S&P Global.
  • Management expects to select its first in vivo lead development candidate in September 2025, file an IND by mid-2026, and achieve human proof-of-concept by year-end 2026, sustaining a cash runway into Q2 2027 .
  • Collaboration with Bristol Myers Squibb advanced: the first IND/CTA for the CD19 HD Allo CAR T program was accepted, triggering a milestone payment to Editas and validating clinical use of its in-house technology in the allogeneic CAR-T setting .
  • Operating model continues to pivot to in vivo gene upregulation; R&D and G&A declined YoY on reni-cel discontinuation and workforce reduction, while restructuring/impairment costs weighed on quarterly losses .

What Went Well and What Went Wrong

What Went Well

  • Strong execution on in vivo strategy: lead candidate selection slated for September, IND mid-2026, human proof-of-concept by end-2026, underscoring line-of-sight to clinical milestones . “We are on track to file an IND for our lead program by mid-2026 and achieve human proof-of-concept by the end of 2026” — CEO Gilmore O’Neill .
  • Collaboration validation: first IND/CTA accepted for CD19 HD Allo CAR T with BMS, triggering a milestone payment; first clinical use of Editas’ in-house technology in allogeneic CAR-T for potential autoimmune disease treatment .
  • Preclinical data momentum: presented data at ASGCT/TIDES/EHA validating gene upregulation strategy and tLNP delivery; NHP and mouse studies showed therapeutically relevant editing and biomarker reductions .

What Went Wrong

  • EPS miss driven by restructuring and impairment charges ($26.1M) related to reni-cel discontinuation, workforce reduction, and asset impairments; GAAP net loss remained elevated at -$53.2M .
  • Cash balance continued to decline with operating burn: cash, cash equivalents, and marketable securities fell to $178.5M from $221.0M in Q1 and $269.9M in Q4 2024, despite runway guidance unchanged to Q2 2027 .
  • Limited revenue visibility: collaboration and other R&D revenues rose to $3.6M on specified deliverables, but remain opportunistic and non-recurring, limiting near-term predictability .

Financial Results

Quarterly Comparison (oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$30.6 $4.7 $3.6
Net Loss ($USD Millions)$(45.4) $(76.1) $(53.2)
Diluted EPS ($USD)$(0.55) $(0.92) $(0.63)
Operating Loss ($USD Millions)$(46.6) $(76.2) $(51.5)
R&D Expense ($USD Millions)$48.6 $26.6 $16.2
G&A Expense ($USD Millions)$16.4 $13.4 $12.9
Restructuring/Impairment ($USD Millions)$12.2 $40.9 $26.1
Weighted Avg Shares (Millions)82.6 83.1 84.4

Year-over-Year Comparison

MetricQ2 2024Q2 2025
Revenue ($USD Millions)$0.5 $3.6
Net Loss ($USD Millions)$(67.6) $(53.2)
Diluted EPS ($USD)$(0.82) $(0.63)
R&D Expense ($USD Millions)$54.2 $16.2
G&A Expense ($USD Millions)$18.2 $12.9
Restructuring/Impairment ($USD Millions)$0.0 $26.1

Actual vs Consensus (S&P Global) – Q2 2025

MetricActualConsensus
Revenue ($USD)$3,578,000 $1,804,830*
Primary EPS ($USD)$(0.63) $(0.3799)*

Values marked with * retrieved from S&P Global.

Balance Sheet KPIs (oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
Cash & Equivalents ($USD Millions)$269.9 $221.0 $178.5
Working Capital ($USD Millions)$212.1 $151.7 $116.9
Total Assets ($USD Millions)$341.6 $263.7 $210.6
Total Stockholders’ Equity ($USD Millions)$134.3 $62.4 $19.2

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Lead development candidate selection2025“Declare two in vivo development candidates mid-2025” “Select lead development candidate in September 2025” Clarified timeline (specific month)
IND filing (lead program)2026N/A“File IND by mid-2026” New guidance issued
Human proof-of-concept2026N/A“Achieve human PoC by year-end 2026” New guidance issued
Additional target cell/tissue2025“Establish and disclose one additional target cell/tissue by year-end 2025” “On track to establish and disclose a further target cell/tissue by end of 2025” Maintained
Cash runway2025–2027“Runway into Q2 2027” “Runway into Q2 2027” reaffirmed Maintained
Investor relations cadenceOngoing“No quarterly earnings conference calls” “No quarterly earnings conference calls” Maintained

Earnings Call Themes & Trends

Note: The company discontinued quarterly earnings calls; themes are drawn from earnings materials and press releases.

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
In vivo gene upregulation strategyAchieved proof-of-concept; positioned as “plug ‘n play” across tissues Reinforced across ASGCT/TIDES/EHA presentations; roadmap to IND and human PoC Strengthening execution
HSC tLNP delivery/editingEffective delivery; on track to declare HSC candidate mid-2025 NHP/mouse data show therapeutically relevant editing; mean 58% NHP editing at 5 months Data quality improving
Liver upregulation programInitial POC; undisclosed target validated ~70% editing in disease mouse model; >80% biomarker reduction; >15-fold protein upregulation in primate hepatocytes Compelling POC data
Partnership/regulatoryVertex payments support runway First IND/CTA accepted for BMS CD19 HD Allo CAR T; milestone payment External validation rising
R&D execution/costsR&D elevated in 2024 with reni-cel; restructuring initiated R&D/G&A down YoY; restructuring/impairment still sizable Leaner cost base; one-time charges
IP/legal contextFederal Circuit vacated PTAB decision; remand to PTAB Continues to assert IP strength Ongoing, watch legal outcomes
Cash runwayInto Q2 2027 Reaffirmed into Q2 2027 Stable guidance

Management Commentary

  • “We are on track to file an IND for our lead program by mid-2026 and achieve human proof-of-concept by the end of 2026.” — Gilmore O’Neill, President & CEO .
  • “These findings are very encouraging and further support our approach to developing a potentially first- and best-in-class in vivo gene edited medicine for the treatment of sickle cell disease and beta thalassemia.” — Linda C. Burkly, Ph.D., CSO (ASGCT presentation) .
  • “Latest data… resulted in mean on-target editing levels… of 58% in HSCs” (EHA poster), validating high-efficiency delivery and favorable biodistribution in NHPs .
  • “Maximal liver editing (~70%)… robust target protein upregulation with >80% disease biomarker reduction in mice; >15-fold protein upregulation in primate hepatocytes.” (ASGCT/TIDES liver POC) .

Q&A Highlights

  • No earnings call was held; company has discontinued quarterly earnings calls . Clarifications provided in press materials:
    • Revenue driver: Increased collaboration and other R&D revenues to $3.6M due to recognition of revenue tied to specified deliverables achieved in Q2 2025 .
    • Expense dynamics: R&D down materially YoY on reni-cel discontinuation; G&A down on reduced headcount; restructuring/impairment charges of $26.1M tied to reni-cel wind-down and asset life changes .
    • Cash runway reaffirmed into Q2 2027, supported by cash/marketable securities and retained portions of Vertex payments .

Estimates Context

  • Q2 2025 results versus S&P Global consensus: revenue beat ($3.58M vs $1.80M*) and EPS miss (-$0.63 vs -$0.38*). Values marked with * retrieved from S&P Global. Actuals from company materials .
  • Estimate implications: Revenue outperformance was driven by recognized deliverables and milestone-related activity, suggesting non-recurring upside; EPS miss reflects one-time restructuring/impairment charges, which may limit forward EPS relevance absent recurring charges .

Key Takeaways for Investors

  • The quarter’s narrative is defined by a pipeline transition: in vivo gene upregulation strategy now has multiple high-quality POC datasets across HSC and liver, strengthening clinical visibility to IND mid-2026 and human PoC by end-2026 .
  • Revenue upside was collaboration/milestone-driven; expect quarterly volatility with limited recurring revenue until clinical progression drives sustained partnering or platform monetization .
  • EPS miss was largely non-operational (restructuring/impairment); core OpEx is trending down YoY given reni-cel exit and workforce reductions, supportive of runway durability into Q2 2027 .
  • External validation via BMS IND/CTA acceptance is a positive catalyst for credibility and partnering optionality; watch for additional partnership milestones and the September lead candidate announcement .
  • Liquidity is adequate but declining; cash fell to $178.5M with equity down to $19.2M — monitor burn trajectory and potential financing needs around IND initiation or expansion of in vivo programs .
  • Near-term stock drivers: September lead candidate selection, disclosure of additional target cell/tissue by YE 2025, and continued preclinical readouts; beats/misses likely tied to collaboration timing rather than fundamental product revenues .
  • Medium-term thesis: If in vivo upregulation translates clinically (HSC and liver), Editas could unlock one-time dosing therapies across multiple indications; regulatory execution and IP landscape (PTAB remand) remain key risk gates .

Values marked with * retrieved from S&P Global.