Executive Summary

Q2 2025 delivered modest beats on both revenue and EPS versus S&P Global consensus, driven by higher collaboration revenue and lower operating expenses year over year; cash runway extended into 2028, which is a key support for the stock near term . Revenue was $7.56M vs $7.10M consensus* and EPS was -$0.28 vs -$0.32 consensus* .
Management emphasized continued progress of FHD-909 (selective SMARCA2 inhibitor) Phase 1 dose escalation with NSCLC as the primary target population, and highlighted preclinical combination synergies with pembrolizumab and KRAS inhibitors that support future clinical exploration .
Operating profile improved YoY: R&D declined to $21.8M (from $23.8M), G&A fell to $6.9M (from $7.3M), and net loss narrowed to $17.9M (from $23.0M) .
Near-term catalysts: FHD-909 Phase 1 progress, Q4 2025 program updates for the Selective EP300 and ARID1B degrader programs, and continued collaboration advancement with Lilly .

What Went Well and What Went Wrong

What Went Well

FHD-909 Phase 1 enrollment “progressing well” and on track; NSCLC remains the primary expansion target, underpinned by strong rationale in SMARCA4-mutated tumors . “We continue to make meaningful progress advancing our pipeline...” — Adrian Gottschalk, CEO .
Preclinical combination data for FHD-909 showed enhanced anti-tumor activity with pembrolizumab and multiple KRAS inhibitors, supporting clinical evaluation in difficult-to-treat NSCLC settings .
Operating discipline: YoY declines in R&D and G&A, narrowing net loss; cash, cash equivalents and marketable securities at $198.7M with runway into 2028, improving visibility to key readouts .

What Went Wrong

Still early: no clinical efficacy/safety data disclosed for FHD-909; progress is largely operational and preclinical in nature in Q2 2025 .
Cash trended lower sequentially ($220.6M at 3/31/25 to $198.7M at 6/30/25), reflecting ongoing operating losses despite improved YoY expense profile .
Balance sheet shows stockholders’ deficit of $(76.7)M due to significant deferred revenue liabilities ($266.6M), highlighting accounting asymmetry from collaboration economics .

Financial Results

P&L and EPS (oldest → newest)

Metric	Q2 2024	Q1 2025	Q2 2025
Collaboration Revenue ($, Millions)	$6.89	$5.95	$7.56
Research & Development ($, Millions)	$23.80	$21.63	$21.79
General & Administrative ($, Millions)	$7.33	$7.24	$6.86
Loss from Operations ($, Millions)	$(26.63)	$(22.91)	$(21.10)
Total Other Income ($, Millions)	$3.65	$4.08	$3.16
Net Loss ($, Millions)	$(22.98)	$(18.83)	$(17.94)
Diluted EPS ($)	$(0.45)	$(0.30)	$(0.28)
Net Income Margin (%)	-333.7% (calc. from $6.89M, $(22.98)M)	-316.5% (calc. from $5.95M, $(18.83)M)	-237.4% (calc. from $7.56M, $(17.94)M)

Notes: Net income margin calculated using collaboration revenue and net loss; inputs cited per cell above .

Versus Consensus (Q2 2025)

Metric	Consensus*	Actual	Surprise	Direction
Revenue ($, Millions)	$7.10*	$7.56	+$0.46 (+6.5%) (calc.)	Beat
Diluted EPS ($)	-0.318*	-0.28	+$0.04 (less negative) (calc.)	Beat

Consensus values marked with * are from S&P Global.

Cash and Liquidity (quarterly trend)

Metric	Dec 31, 2024	Mar 31, 2025	Jun 30, 2025
Cash, Cash Equivalents & Marketable Securities ($, Millions)	$243.75	$220.59	$198.67
Cash Runway (Management)	Into 2027	Into 2027	Into 2028

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Financial Guidance (Revenue/Margins/OpEx)	FY	None provided	None provided	Maintained (no guidance)
Cash Runway	Multi-year	Into 2027 (Mar & May 2025 updates)	Into 2028 (Aug 2025)	Raised/Extended

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript located in our document set; themes below reflect disclosures from the 8-K press release and investor presentation.

Topic	Previous Mentions (Q-2: FY 2024 update; Q-1: Q1 2025)	Current Period (Q2 2025)	Trend
FHD-909 Phase 1 enrollment	First patient dosed Oct 2024; Phase 1 advancing; AACR poster on trial design (FY update Mar 6)	Enrollment “progressing well” and on track; NSCLC primary target population	Positive operational momentum
Combination strategy (KRAS, pembrolizumab)	Planned/presented AACR preclinical data on KRAS and pembrolizumab combinations (Q1 PR)	Reinforced synergy claims; investor deck details synergy data and models	Expanding evidence base (preclinical)
CBP degrader timeline	Progress toward IND; combination data in ER+ breast cancer; IND target 2026 (Q1 PR)	“On track” for IND-enabling and 2026 IND	On track
EP300 degrader	Hematologic malignancy data; program update H2 2025 (Q1 PR)	Program update expected Q4 2025	Timeline firming
ARID1B degrader	Selective degradation achieved; 2025 update planned (FY update & Q1 PR)	Program update expected Q4 2025	Timeline firming
Cash runway	Into 2027 (FY and Q1)	Into 2028	Improved

Management Commentary

“We continue to make meaningful progress advancing our pipeline to treat a wide range of cancers. The FHD-909 dose escalation trial…is enrolling well and remains on track. Additionally, preclinical synergistic activity of FHD-909 in combination with KRAS inhibitors and pembrolizumab supports clinical exploration of FHD-909 in difficult-to-treat NSCLC.” — Adrian Gottschalk, President & CEO .
“Our wholly owned selective degrader programs targeting CBP, EP300 and ARID1B, continue to advance with strong momentum…Backed by a strong balance sheet and a cash runway into 2028, we are well positioned to further advance our differentiated programs.” — Adrian Gottschalk .

Q&A Highlights

No Q2 2025 earnings call transcript was available in our document set; therefore, no Q&A themes or guidance clarifications were disclosed beyond the press release and investor presentation .

Estimates Context

Revenue modestly beat ($7.56M vs $7.10M consensus*) and EPS loss was narrower than expected (-$0.28 vs -$0.32 consensus*), aided by higher collaboration revenue and lower operating expenses YoY .
Sequential revenue growth of 27.0% (calc. from $5.95M to $7.56M) and YoY growth of 9.7% (calc. from $6.89M to $7.56M) could prompt minor upward tweaks to near-term collaboration revenue expectations if sustained .
With no new clinical readouts in Q2 and expenses trending steadily, estimate revisions are likely to be modest and focused on operating line-item timing rather than magnitude.
Consensus values marked with * are from S&P Global.

Key Takeaways for Investors

Small beats on revenue and EPS with improved YoY cost profile and extended runway into 2028 de-risk the funding path to key 2025–2026 milestones .
FHD-909’s preclinical combination synergies (KRAS inhibitors, pembrolizumab) strengthen the case for combination strategies in SMARCA4-mutant NSCLC, a clinically challenging subset; watch for trial expansion signals .
2H25 pipeline catalysts: program updates for Selective EP300 and ARID1B degraders in Q4 2025; monitor for clarity on biomarkers, initial clinical plans, and potential IND timing confirmation .
Collaboration with Lilly continues to be a strategic asset, supporting development and extending financial flexibility; investor deck reiterates 50/50 U.S. economics on lead programs and potential ex-U.S. royalties .
Trendline: sequential revenue growth (+27.0% QoQ) and narrowing net loss suggest disciplined execution; however, absent human efficacy data, the stock remains primarily catalyst-driven on pipeline readouts .
Risk checks: stockholders’ deficit driven by substantial deferred revenue is an accounting artifact of collaboration structure; liquidity remains robust at $198.7M cash equivalents .

Supporting detail and sources:

Q2 2025 8-K/press release (financials, ops update, cash/runway): .
Q1 2025 press release (trend analysis, cash/runway): .
FY 2024 update (baseline, cash/runway): .
FHD-909 status and combination data: .
CBP/EP300/ARID1B program timelines: .

Consensus estimates marked with * are from S&P Global.

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