Executive Summary

Q1 2025 was execution-heavy with a large top-line beat driven by license/royalty recognition tied to the 2023 YUTIQ out-license: revenue was $24.45M vs $11.68M in Q1 2024 and $11.59M in Q4 2024; GAAP EPS was ($0.65) vs ($0.55) a year ago and ($0.64) in Q4 2024 .
Versus S&P Global consensus, EYPT delivered a significant beat: revenue $24.45M vs $7.58M consensus (+$16.88M beat)* and EPS ($0.65) vs ($0.69) consensus (+$0.04 beat), with the delta primarily from higher recognition of deferred revenue/royalties (license + royalty = $23.74M) ; estimates from S&P Global.
Operating expenses rose sharply to $73.3M (vs $45.0M YoY; $56.8M QoQ), primarily due to accelerated Phase 3 spend as LUGANO and LUCIA enrollment exceeded expectations .
Strategic catalysts: Phase 3 LUGANO enrollment subsequently completed (May 27; >400 patients randomized) and LUCIA ~60% randomized; topline LUGANO mid-2026 with LUCIA to follow; cash/investments of $318.2M support runway into 2027, beyond 2026 readouts .

What Went Well and What Went Wrong

What Went Well
- Phase 3 enrollment momentum: “over 90%” randomized in LUGANO and “over 50%” in LUCIA as of Q1, supporting full enrollment in 2H 2025; pace exceeded historical wet AMD studies .
- DME (VERONA) data reinforced the DURAVYU profile: +7.1 BCVA letters and −76μm CST at 24 weeks for 2.7mg; subgroup (supplement-free) showed +10.3 letters vs +3.0 control and −117.4μm vs −43.7μm CST .
- Liquidity/cash runway: $318.2M of cash and marketable securities at 3/31/25; management affirmed runway into 2027, beyond Phase 3 topline data .
What Went Wrong
- Higher burn: Operating expenses $73.3M vs $45.0M YoY, driven by Phase 3 LUGANO/LUCIA trial costs; net loss widened to ($45.2M) vs ($29.3M) YoY .
- Core product revenue remains immaterial: net product revenue $0.7M, essentially flat YoY, and management expects product sales to remain immaterial as YUTIQ U.S. supply to ANI ends after May 31, 2025 .
- Revenue quality mix: outsized beat driven by deferred revenue/royalty recognition (license + royalty $23.7M) rather than recurring product sales; investors should calibrate future quarters accordingly .

Financial Results

Quarterly P&L summary (USD Millions)

Metric	Q3 2024	Q4 2024	Q1 2025
Total Revenue	$10.52	$11.59	$24.45
Net Product Revenue	$0.66	$0.77	$0.72
License & Collaboration	$9.56	$10.59	$11.05
Royalty Income	$0.30	$0.22	$12.69
Operating Expenses	$43.27	$56.83	$73.29
R&D Expense	$29.54	$43.37	$58.57
G&A Expense	$12.97	$12.59	$13.88
Net Loss	($29.36)	($41.40)	($45.20)
Diluted EPS ($)	($0.54)	($0.64)	($0.65)

Q1 2025 revenue composition and YoY context (USD Millions)

Metric	Q1 2024	Q1 2025
Net Product Revenue	$0.66	$0.72
License & Collaboration	$10.56	$11.05
Royalty Income	$0.46	$12.69
Total Revenue	$11.68	$24.45

Margins (computed from GAAP results)

Metric	Q3 2024	Q4 2024	Q1 2025
Net Income Margin %	-279.1%	-357.2%	-184.8%

Consensus vs Actual – Q1 2025

Metric	Actual	Consensus	Surprise
Revenue ($M)	$24.45	$7.58*	+$16.88*
EPS ($)	($0.65)	($0.69)*	+$0.04*

KPIs and Balance Sheet

KPI	Q3 2024	Q4 2024	Q1 2025
Cash, Cash Equivalents & Marketable Securities ($M)	$253.8	$371.0	$318.2
Deferred Revenue – Current ($M)	$26.00	$17.78	$5.12
Deferred Revenue – Noncurrent ($M)	$11.23	$10.85	$—
Weighted Avg Shares (M)	54.45	64.56	69.77

Guidance Changes

Metric	Period	Previous Guidance (Q4 2024)	Current Guidance (Q1 2025)	Change
Cash Runway	Through 2027	Fund ops into 2027	Fund ops into 2027	Maintained
Phase 3 Enrollment (wet AMD)	LUGANO & LUCIA	Complete both in 2H 2025	Complete both in 2H 2025; LUGANO >90%, LUCIA >50% randomized in Q1	Trajectory improved (pace ahead)
Topline Phase 3 (wet AMD)	2026	2026	2026 (LUGANO mid-2026; LUCIA 2H 2026)	Clarified timing
DME Regulatory Path	2025	EOP2 with FDA in Q2 2025	EOP2 planned for summer; proposing efficient single Phase 3	Clarified plan
Product Sales (YUTIQ U.S. supply)	2025	N/A	Supply ends after May 31, 2025; product revenue to remain immaterial	Update

Earnings Call Themes & Trends

Topic	Q3 2024 (Prior-2)	Q4 2024 (Prior-1)	Q1 2025 (Current)	Trend
Enrollment momentum (wet AMD)	First patient in LUGANO; robust interim DME data; rapid enrollment expected	LUGANO >50% enrolled; both trials exceeding expectations	LUGANO >90% randomized; LUCIA >50%; completion still guided 2H 2025	Accelerating
Manufacturing readiness	Northbridge cGMP facility opened	Registration batches planned; FDA-engaged facility build	Facility operational; >1M treatment annual capacity; U.S.-sourced API; tariff-insulated	Advancing
DME strategy	16-week interim positive (VERONA)	24-week positive; plan EOP2 in Q2 2025	Proposing efficient single Phase 3 post-EOP2	Advancing
Cash runway/financing	$161M raise; runway into 2027	Runway into 2027 affirmed	Runway into 2027 affirmed	Maintained
Biosimilars/pricing	—	—	Agnostic to aflibercept biosimilar loading; pricing to reflect replacement of ~3 anti-VEGF injections per 6 months	Framing
Regulatory (rescues/analysis)	—	—	ITT primary; FDA hasn’t set rescue-count exclusions; timing of rescues not prespecified	Clarified
Supply chain/tariffs	—	—	U.S.-based API; U.S. manufacturing; comfortable on tariff exposure	Risk-reduced

Management Commentary

“We have randomized over 90% of patients into the LUGANO trial and over 50% into the LUCIA trial… we believe DURAVYU is on track to be the first-to-market of the current investigational sustained release treatments for wet AMD.” — Jay S. Duker, CEO .
“For the quarter ended March 31, 2025, total net revenue was $24.5 million… The increase was primarily driven by recognition of remaining deferred revenue from the out-license of YUTIQ U.S. rights in 2023.” — George Elston, CFO .
“Our facility is operational and will be capable of producing more than 1 million DURAVYU treatments annually… we also source our API from a U.S.-based manufacturer.” — Jay S. Duker .
“DURAVYU 2.7mg demonstrated an early, sustained and clinically meaningful improvement in BCVA… and CST… These highly positive Phase II data will be critical in our planned engagement with the FDA this summer.” — Jay S. Duker on VERONA .

Q&A Highlights

Enrollment timing: Management acknowledged the possibility LUGANO enrollment might complete earlier than investors expect (potentially 2Q), while LUCIA trails by ~2 months; guidance remains 2H 2025 for both .
DME path: EyePoint plans an EOP2 FDA meeting by summer; proposing a single, efficient Phase 3 against SOC with BCVA primary endpoint .
Biosimilars/load strategy: Company agnostic to biosimilar aflibercept for loading; expects no clinical difference across ligand-blockers in initial loading; pricing to reflect DURAVYU potentially replacing three anti-VEGF injections per 6 months .
Supply/tariffs: U.S.-based API and in-house Massachusetts manufacturing mitigate trade/tariff risks; registration batches underway at Northbridge .
Market access factor benefitting enrollment: Absence of Good Days co-pay assistance program likely helped trial enrollment since study drugs are free to participants .

Estimates Context

Q1 2025 results vs S&P Global consensus: revenue $24.45M vs $7.58M* and EPS ($0.65) vs ($0.69); beat driven by higher license/royalty recognition (not core product sales). 12 revenue and 10 EPS estimates were included in the consensus .
Estimate recalibration: With YUTIQ U.S. supply ending after May 31, 2025 and product revenue immaterial, forward consensus should emphasize license/royalties cadence and R&D burn tied to wet AMD Phase 3 progress .

Values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

The Q1 revenue beat was quality-mixed and largely tied to non-recurring license/royalty recognition; model forward revenue conservatively with immaterial product sales post-YUTIQ supply termination .
Clinical execution remains the stock’s core driver: Phase 3 enrollment is ahead of plan (LUGANO subsequently completed; LUCIA ~60% randomized), de-risking the path to mid-/2H 2026 toplines .
Cash runway into 2027 removes near-term financing overhang ahead of pivotal readouts; focus attention on quarterly burn trending with enrollment pace .
Manufacturing and supply chain position (U.S.-sourced API, U.S. production) should mitigate CMC/tariff risks ahead of a potential NDA .
DME is a credible second leg (Phase 2 data strong); watch for EOP2 feedback and Phase 3 design choice (single efficient study) as an incremental value lever .
Near-term catalysts: formal LUGANO/LUCIA enrollment completion disclosures, EOP2 DME feedback, ARVO/RWC presentations, and ongoing trial operations updates — all narrative movers for the stock .

Appendix: Additional Data

Cash and liquidity commentary

Cash, cash equivalents, and marketable securities: $318.2M at 3/31/25 (vs $371.0M at 12/31/24); management expects runway into 2027 .

Revenue drivers and operating expenses

License/royalty revenue totaled $23.7M vs $11.0M YoY; increase primarily from deferred revenue recognition tied to 2023 out-licensing of YUTIQ U.S. rights .
Operating expenses rose to $73.3M (R&D $58.6M), driven by accelerated Phase 3 spend as enrollment outperformed expectations .

Notes

All financial figures are GAAP unless stated otherwise; the company did not provide non-GAAP adjustments in the press release .
Consensus data and estimate statistics are from S&P Global (marked with *).

EyePoint Pharmaceuticals, Inc. (EYPT)·Q1 2025 Earnings Summary