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EO

Elevation Oncology, Inc. (ELEV)·Q1 2025 Earnings Summary

Executive Summary

  • Elevation Oncology pivoted its strategy in Q1 2025: discontinued EO-3021 following underwhelming efficacy, implemented ~70% workforce reduction, and focused resources on HER3 ADC EO-1022 while initiating a strategic alternatives process .
  • Liquidity remained solid: $80.7M in cash, cash equivalents, and marketable securities at 3/31/2025; debt was voluntarily prepaid on 5/2/2025 ($32.3M aggregate principal, interest, fees), extending runway into 2H 2026 and guiding Q2 quarter-end cash to $30–$35M .
  • Financials: Q1 OpEx rose on restructuring charges; net loss was $14.2M and EPS $(0.24), up from $(0.21) YoY, with R&D $6.9M (+$0.9M YoY) and G&A $4.0M (+$0.1M YoY) .
  • Subsequent event: merger agreement to be acquired by Concentra Biosciences for $0.36 per share plus a CVR; tender expected to commence by 6/23/2025—material stock catalyst beyond the quarter .

What Went Well and What Went Wrong

What Went Well

  • EO-1022 advanced with late‑breaking AACR poster showing site-specific glycan conjugation stability (DAR=4), minimal free payload vs benchmark ADCs, and activity across HER3 expression levels; IND planned for 2026 .
  • Balance sheet actions improved durability: $80.7M cash at quarter-end and voluntary prepayment of loan obligations on 5/2/2025, supporting runway into 2H 2026 .
  • Strategic focus clarified: management began exploring strategic alternatives to maximize shareholder value amid pipeline refocus. “We…are engaged in efforts to explore a range of strategic alternatives…in the best interest of our shareholders” .

What Went Wrong

  • EO-3021 monotherapy efficacy fell short: updated ORR 22.2% and DCR 72.2% in the biomarker‑enriched population (≥20% Claudin 18.2 at IHC 2+/3+) drove program discontinuation; prior dose‑escalation signal was higher (42.8% ORR) in a small subset .
  • Restructuring costs inflated Q1 OpEx: $3.4M restructuring charges tied to workforce reduction, lifting total OpEx to $14.2M vs $9.9M YoY .
  • Estimates comparison unavailable: S&P Global consensus for Q1 2025 EPS/Revenue could not be retrieved for ELEV this quarter, limiting beat/miss analysis.

Financial Results

P&L and EPS vs prior periods

MetricQ1 2024Q3 2024Q4 2024Q1 2025
Total Operating Expenses ($USD Millions)$9.869 $13.229 $10.642 $14.216
Net Loss ($USD Millions)$10.707 $12.881 $10.436 $14.211
Net Loss per Share ($)$(0.21) $(0.22) $(0.18) $(0.24)
Weighted Avg Shares (Millions)51.812 59.109 59.122 59.174

Note: The company did not disclose a revenue line item in these releases (development-stage biotech) .

Liquidity and Capital Structure

MetricDec 31 2023Sep 30 2024Dec 31 2024Mar 31 2025
Cash, Cash Equivalents & Marketable Securities ($USD Millions)$83.107 $103.070 $93.184 $80.659
Working Capital ($USD Millions)$83.819 $99.397 $90.259 $77.958
Total Assets ($USD Millions)$89.091 $106.302 $95.626 $82.223
Long-term Debt, net of discount ($USD Millions)$30.137 $31.021 $31.134 $31.253
Total Stockholders’ Equity ($USD Millions)$54.809 $69.355 $60.025 $46.734

Operating Expense Composition

MetricQ1 2024Q1 2025
R&D ($USD Millions)$6.011 $6.876
G&A ($USD Millions)$3.858 $3.965
Restructuring Charges ($USD Millions)— $3.375

Clinical KPIs (EO-3021 program references for context)

KPIQ2 2024 (data cutoff 6/10/2024)Q1 2025 Update
ORR in Claudin 18.2 ≥20% at IHC 2+/3+42.8% (3 confirmed PRs) 22.2% (95% CI: 10, 39; 1 CR, 7 PRs)
DCR in same cohort71.4% 72.2% (95% CI: 55, 86)
Safety highlightsNo neutropenia or peripheral neuropathy/hypoesthesia; minimal payload‑associated toxicity in safety population (n=32) Generally well‑tolerated (n=85); minimal hematologic/hepatotoxicity; no peripheral neuropathy/hypoesthesia

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash RunwayMulti‑yearInto 2026 (as of 12/31/2024) Into 2H 2026 (post restructuring; Q1 update) Raised/extended
Cash Balance (Forecast)As of 6/30/2025Not provided prior$30–$35M New guidance
DebtPost‑quarter (5/2/2025)Long‑term debt $31.134M at 12/31/2024 Voluntary prepayment of $32.3M aggregate principal, interest, fees on 5/2/2025 Lowered/reduced leverage
EO-3021 Program Status2025Continue monotherapy and initiate combo cohorts Discontinued due to efficacy below threshold Lowered/terminated
EO-1022 IND Timing2026IND in 2026 IND in 2026 Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q1 2025)Trend
R&D ExecutionQ3 2024: dose expansion for EO‑3021; FDA Fast Track; initial data signal Discontinued EO‑3021; focus on EO‑1022 preclinical and IND prep Pivot from Claudin 18.2 to HER3
Combination StrategyQ3/Q4 2024: plan combos (ramucirumab, dostarlimab), supply agreements After discontinuation, combination path moot for EO‑3021 Winding down
Regulatory/LegalFast Track (EO‑3021) in 9/2024 Strategic alternatives process Shift to corporate actions
Liquidity & Capital AllocationCash $103.1M (Q3), $93.2M (FY‑end), runway into 2026 $80.7M cash at 3/31; debt prepaid; runway into 2H 2026 Conserving cash; deleveraging
Technology Initiatives (ADC)HER3 ADC candidate nomination and preclinical plans AACR late‑breaking poster shows differentiated profile; IND 2026 Building momentum

Management Commentary

  • “We recently presented preclinical proof‑of‑concept data for EO‑1022…supporting our goal of providing a safer and more effective option for patients with HER3‑expressing solid tumors. In parallel, we are engaged in efforts to explore a range of strategic alternatives…” — Joseph Ferra, President & CEO .
  • “We are turning our focus to our potentially differentiated HER3 ADC, EO‑1022…With cash into the second half of 2026 and a disciplined operating strategy, we are well‑positioned to advance EO‑1022…” — Joseph Ferra .
  • “We continue to advance our Claudin 18.2 ADC program, EO‑3021…” (prior quarter outlook) — Joseph Ferra .

Q&A Highlights

  • No Q1 2025 earnings call transcript was available in our document set; therefore, Q&A details and any guidance clarifications from a call could not be assessed this quarter (no “earnings‑call‑transcript” found for the period).

Estimates Context

  • Wall Street consensus via S&P Global for Q1 2025 EPS and Revenue was unavailable for ELEV due to missing mapping in S&P Global systems, so formal beat/miss analysis versus consensus could not be performed this quarter.
  • Given the program discontinuation and restructuring charges, future modeling will likely emphasize lower OpEx profile, HER3 ADC timelines, and cash runway; however, formal estimate revisions are not presented here due to data unavailability.

Key Takeaways for Investors

  • Strategy pivot reduces clinical risk on EO‑3021 and concentrates capital on EO‑1022; near‑term catalysts center on EO‑1022 preclinical progress and IND preparation for 2026 .
  • Liquidity and de‑risking actions (loan prepayment) extend runway into 2H 2026 and lower financing risk, but Q2 cash is expected to decline to $30–$35M following restructuring and debt payments .
  • Q1 financials reflect restructuring drag (OpEx up, EPS down sequentially vs Q4), with no disclosed revenue; watch for stabilized OpEx run‑rate in H2 2025 after one‑time costs .
  • Clinical read‑through: EO‑3021’s efficacy profile (22.2% ORR in enriched cohort) drove discontinuation, highlighting discipline in capital allocation and bar for clinical competitiveness .
  • Corporate event risk high: subsequent merger agreement with Concentra ($0.36/share + CVR) introduces near‑term trading dynamics tied to tender outcomes and CVR mechanics .
  • Execution priorities: maintain EO‑1022 momentum, preserve cash, and provide clarity on strategic alternatives timeline .
  • Monitoring items: CVR value realization, EO‑1022 partnering/disposition options, and any additional corporate updates impacting the strategic path .