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EM

Editas Medicine, Inc. (EDIT)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered notable upside: revenue $7.54M vs Wall Street consensus $4.94M*, and EPS -$0.28 vs -$0.38*, driven primarily by milestone revenue recognition and disciplined OpEx control, resulting in a significantly narrower net loss quarter-over-quarter . Values retrieved from S&P Global.*
  • Management highlighted ≥90% LDL-C reduction in non-human primates for the lead in vivo candidate EDIT-401 and reaffirmed IND/CTA by mid-2026 with initial human proof-of-concept by year-end 2026, positioning a clear development catalyst path .
  • Cash runway extended into Q3 2027, supported by $17.8M gross ATM proceeds in Q3 and $17.3M raised after quarter-end; cash at 9/30 stood at $165.6M, with working capital of $115.1M .
  • Strong sequential improvement vs Q2: revenue up 110% and EPS improved by $0.35; YoY revenue surged as EDIT recognized collaboration milestones (notably BMS), while R&D and G&A fell materially following the reni-cel discontinuation and workforce reduction .

What Went Well and What Went Wrong

What Went Well

  • EDIT-401 progress and data: “We recently presented data at AHA and ESGCT demonstrating the ability of EDIT-401 to reduce mean LDL cholesterol levels by over 90 percent in non-human primates,” and management reiterated plans for IND/CTA by mid-2026 and human proof-of-concept by end-2026 . CSO added: “EDIT-401 achieved robust efficacy… ≥90% mean LDL-C reduction” with upregulation of LDLR .
  • Financial discipline: R&D fell to $19.8M (from $47.6M YoY), G&A to $12.3M (from $18.1M YoY), reflecting discontinuation of reni-cel and reduced headcount; no restructuring charges in Q3 (vs heavy charges in H1) .
  • Cash runway: Extended into Q3 2027 via ATM and retained license receipts (Vertex), reducing near-term financing risk and enabling progression beyond initial human PoC for EDIT-401 .

What Went Wrong

  • Continued losses and erosion of equity: Net loss was $25.1M (EPS -$0.28); stockholders’ equity declined to $13.5M at Sept 30 from $134.3M at Dec 31, highlighting balance sheet sensitivity despite improved P&L .
  • Reliance on milestone/collaboration revenues: Q3 revenue uplift to $7.54M was driven by milestone recognition (BMS), underscoring limited recurring top-line visibility until clinical progress de-risks the pipeline .
  • Interest expense on sale of future revenues and lower interest income: Other net in Q3 included $2.399M interest expense related to sale of future revenues and weaker interest income vs prior year, modestly offsetting operating improvements .

Financial Results

P&L Snapshot (Amounts in $USD Millions unless noted)

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Collaboration & other R&D revenues$0.061 $4.658 $3.578 $7.543
Research & development$47.639 $26.593 $16.181 $19.775
General & administrative$18.088 $13.375 $12.859 $12.316
Restructuring & impairment$0.000 $40.853 $26.082 $0.000
Total operating expenses$65.727 $80.821 $55.122 $32.091
Operating loss$(65.666) $(76.163) $(51.544) $(24.548)
Total other (expense) income, net$3.525 $0.075 $(1.691) $(0.569)
Net loss$(62.141) $(76.088) $(53.235) $(25.117)
EPS (basic & diluted)$(0.75) $(0.92) $(0.63) $(0.28)
Weighted avg shares (Millions)82.485 83.055 84.412 90.090

Estimates vs Actual (Q3 2025)

MetricConsensusActual
Revenue ($USD Millions)$4.9446*$7.543
EPS ($USD)$(0.3845)*$(0.28)
# of Estimates (Revenue / EPS)12 / 6*—

Values retrieved from S&P Global.*

Balance Sheet & Liquidity KPIs

KPIQ1 2025 (3/31)Q2 2025 (6/30)Q3 2025 (9/30)
Cash, cash equivalents & marketable securities ($M)$220.964 $178.501 $165.648
Working capital ($M)$151.729 $116.859 $115.118
Total assets ($M)$263.652 $210.581 $201.751
Deferred revenue, non-current ($M)$54.204 $54.204 $54.204
Total stockholders’ equity ($M)$62.420 $19.189 $13.453
ATM gross equity raised ($M)——$17.8

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash runwayOperating runwayInto Q2 2027 Into Q3 2027 Raised/Extended
EDIT-401 IND/CTATimingMid-2026 Mid-2026 Maintained
EDIT-401 initial human PoCTimingBy year-end 2026 By year-end 2026 Maintained
Additional target cell/tissue disclosureTimingBy end of 2025 By end of 2025 Maintained

Earnings Call Themes & Trends

Note: The company disclosed it no longer hosts quarterly earnings conference calls (no Q&A); themes reflect press releases and 8-Ks .

TopicQ1 2025 (Prior-2)Q2 2025 (Prior-1)Q3 2025 (Current)Trend
In vivo platform & EDIT-401 efficacyAnnounced upcoming ASGCT/TIDES in vivo data; liver target PoC; HSC delivery via tLNPs Planned lead candidate selection in Sept; presented PoC in liver and HSC; high tLNP efficacy ≥90% LDL-C reduction in NHP/mice; LDLR upregulation; durability; multiple presentations at ESGCT/AHA Strengthening, more granular efficacy data
R&D execution & cost disciplineReni-cel discontinuation drove restructuring; R&D/G&A easing began Significant restructuring charges in Q2; R&D/G&A reduced No restructuring charges; R&D/G&A sustained lower run rate Improved cost profile
Partnerships & milestonesVertex license receipts, IP monetization BMS CD19 HD Allo CAR-T IND/CTA accepted → milestone payment BMS milestone recognized in revenue Ongoing external validation & cash inflows
IP/regulatory backdropFederal Circuit vacated & remanded CRISPR/Cas9 interference; confidence in Broad patents ——Stable stance
Investor communicationsCompany ceases quarterly calls ——Continued no-call approach
Liquidity/runwayRunway into Q2 2027 Runway into Q2 2027 Runway into Q3 2027; ATM proceeds Extended runway

Management Commentary

  • “We recently presented data at AHA and ESGCT demonstrating the ability of EDIT-401 to reduce mean LDL cholesterol levels by over 90 percent in non-human primates… we have extended our cash runway into the third quarter of 2027 and remain on track to submit an investigational new drug or clinical trial application for EDIT-401 by mid-2026, with the goal of achieving in vivo human proof-of-concept data by the end of 2026.” — Gilmore O’Neill, President & CEO .
  • “In preclinical non-human primate studies, EDIT-401 achieved robust efficacy data with a ≥90% mean LDL-C reduction. These data strengthen our conviction that EDIT-401 represents a novel therapeutic approach…” — Linda C. Burkly, EVP & CSO .

Q&A Highlights

  • No quarterly earnings call or Q&A; the company previously disclosed it is no longer hosting quarterly earnings conference calls .

Estimates Context

  • Q3 2025 beat on both top-line and EPS vs Wall Street consensus: revenue $7.54M vs $4.94M*, EPS -$0.28 vs -$0.38*, with 12 revenue and 6 EPS estimates contributing to consensus. The beat was driven by milestone recognition under the BMS collaboration and continued OpEx reductions post reni-cel discontinuation . Values retrieved from S&P Global.*

Key Takeaways for Investors

  • EDIT-401 is emerging as a potential best-in-class, one-time therapy for LDL-C reduction with ≥90% reductions in NHPs and fast onset, creating a tangible 2026 human PoC catalyst; watch for continued preclinical disclosures and IND/CTA progress .
  • Near-term revenues remain milestone-driven; Q3’s beat reflected BMS-related revenue recognition—lack of recurring revenue will keep investor focus on pipeline milestones and cash runway .
  • OpEx reset is largely complete: no restructuring in Q3 and lower R&D/G&A levels vs 2024 support narrower losses and extend cash runway into Q3 2027; additional ATM capacity remains a tactical lever .
  • Balance sheet caution: equity shrank materially to $13.5M; continued disciplined spend and external funding opportunities are key to bridge to clinical inflection points .
  • Trading setup: Strong sequential improvement and credible PoC data are positive sentiment drivers; incremental preclinical or regulatory updates (AHA/ESGCT follow-ups) and clarity on IND/CTA timing can catalyze the stock near term .
  • Medium-term thesis: If human PoC mirrors NHP efficacy, EDIT-401 could reset the lipid-management landscape; execution on IND/CTA, manufacturing scalability, and safety profile will determine value realization .
  • Monitor collaboration pipeline and IP: External milestones (e.g., BMS programs) provide non-dilutive cash, while the CRISPR IP framework remains a strategic asset to monetize/selectively partner .