Foghorn Therapeutics Inc. (FHTX)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 collaboration revenue was $6.0M, up 18% YoY and up materially vs Q4, driven by continued advancement under the Lilly collaboration; net loss narrowed to $18.8M from $25.0M YoY; cash was $220.6M, runway into 2027 .
• Versus Wall Street, revenue beat consensus by ~$1.0M (+19%), while EPS of -$0.30 was modestly below the -$0.29 consensus; the beat was primarily partnership-driven revenue recognition cadence, while EPS reflect continued R&D investment .*
• Pipeline momentum: FHD-909 Phase 1 dose escalation proceeding; preclinical combination synergy with pembrolizumab and multiple KRAS inhibitors supports clinical exploration; selective ARID1B degradation achieved; CBP and EP300 degrader programs advancing .
• Guidance cadence shifted: selective CBP degrader now targets IND in 2026 (vs prior IND-enabling in late 2024), while EP300 and ARID1B program updates expected in H2 2025; balance sheet remains robust despite sequential cash draw .

What Went Well and What Went Wrong

What Went Well

• FHD-909 program advancing with clear strategic focus on SMARCA4-mutant NSCLC; management emphasized “track record and leadership in engineering promising selective therapeutics” and highlighted AACR data informing combo plans .
• Preclinical synergy: FHD-909 plus pembrolizumab and KRAS inhibitors demonstrated enhanced anti-tumor activity across NSCLC models, including tumor regressions in stringent A549 models, bolstering the combination thesis .
• Operating discipline: R&D expenses fell to $21.6M (-15% YoY), G&A to $7.2M (-7% YoY); net loss improved to $18.8M vs $25.0M a year ago, reflecting portfolio focus and lower consulting/personnel costs .

What Went Wrong

• Timeline slippage: Selective CBP degrader IND now targeted in 2026 vs prior 2024 IND-enabling timing, pushing clinical inflection further out and likely increasing reliance on FHD-909 near-term .
• Cash decreased to $220.6M from $243.7M in Q4 and $267.4M in Q3, reflecting spend rate; though runway guidance to 2027 remains intact, the trajectory bears monitoring .
• No explicit quantitative forward guidance on revenue/OpEx; lack of an earnings call transcript for Q1 (company held an AACR investor event instead) limits real-time detail on quarterly operational metrics and timelines .

Financial Results

Notes: Values marked with * retrieved from S&P Global.

Segment/Revenue composition (company primarily reports collaboration revenue):

Key KPIs and Balance Sheet

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “The FHD-909 Phase 1 dose escalation trial is proceeding apace… combination data… reinforces the expansive potential of the selective SMARCA2 inhibitor program in non-small cell lung cancer.” — CEO Adrian Gottschalk .
• “Given the prevalence and clinical severity associated with SMARCA4 mutations… FHD-909 has multibillion-dollar potential.” — CEO Adrian Gottschalk (AACR webcast) .
• “We are currently enrolling patients in the monotherapy dose-finding portion… designing frontline combination studies in anticipation of success of the dose escalation study.” — CMO Alfonso Quintas-Cardama .
• “We saw either tumor stasis or tumor regression… in A549, FHD-909 + cisplatin/pemetrexed and with KRAS inhibitors, and with pembrolizumab led to tumor regression.” — CSO Steven Bellon .

Q&A Highlights

• Disclosure cadence: Company intends to communicate at end of dose escalation rather than piecemeal; expansion or combo decisions would be announced if earlier .
• Patient enrichment: Ability to backfill cohorts by indication and specific SMARCA4 loss-of-function mutations; identification via standard NGS panels or IHC .
• Combo start: Combinations may begin before dose escalation completes, likely near end; partners not yet selected .
• KRAS co-occurrence: ~25% of KRAS-mutated NSCLC patients have SMARCA4 alterations; attractive for combo studies .
• Business development: Open to strategic partnerships for CBP/EP300/ARID1B in next 6–24 months to maximize shareholder value .

Estimates Context

Notes: Estimates marked with * retrieved from S&P Global.

• Revenue beat reflects step-up in collaboration revenue recognition from Lilly program advancement; EPS slight miss driven by continued R&D investment despite YoY cost reductions .

Key Takeaways for Investors

• Revenue beat and improved YoY loss profile highlight disciplined OpEx and collaboration momentum; however, near-term quarterly volatility likely persists due to revenue recognition cadence .
• FHD-909 is the central value driver; multiple synergistic preclinical combo data across KRAS variants and pembrolizumab in NSCLC increase probability of success and breadth of use-case .
• Watch the next clinical disclosure: management guided to end-of-dose-escalation readout timing alignment with Lilly; any earlier move to expansion or combos would be a stock catalyst .
• Timeline change for CBP degrader (IND in 2026) shifts clinical optionality further out; EP300 and ARID1B updates in H2 2025 offer intermediate pipeline catalysts .
• Balance sheet supports multi-program execution to 2027, but sequential cash declines warrant monitoring of burn vs milestone inflows .
• Near-term trading: positive narrative skew from AACR data and continued FHD-909 enrollment; inflection on any combo initiation signal could drive momentum. Medium-term: proof-of-concept in SMARCA4-mutant NSCLC and partnership expansions will shape the thesis .

Disclosures:

• Some quarterly metrics and all consensus estimates marked with * are values retrieved from S&P Global.
• Company did not provide explicit quantitative guidance for revenue/margins/OpEx for Q1 2025.