Executive Summary

Q3 2025 collaboration revenue rose to $8.15M, up 4.4% YoY and 7.9% QoQ, and EPS improved to ($0.25); both metrics beat S&P Global consensus (Revenue: +$1.96M; EPS: +$0.05). Strong balance sheet at $180.3M cash, cash equivalents and marketable securities with runway into 2028 .*
FHD-909 Phase 1 dose-escalation in SMARCA4-mutated cancers (primary NSCLC) progressing well; management highlighted combinational potential with pembrolizumab and KRAS inhibitors based on preclinical synergy .
Wholly-owned degrader programs advanced: Selective CBP degrader entered non-GLP tox (IND-ready in 2026), Selective EP300 degrader targeting IND-enabling studies in 2026, and Selective ARID1B degrader advancing toward in vivo proof-of-concept in 2026 .
CFO transition announced (effective Nov 14, 2025); company began search for successor—no disagreement on operations/policies—potential near-term headline risk .

What Went Well and What Went Wrong

What Went Well

“This quarter marked continued execution across our portfolio… FHD-909… advancing in a Phase 1 dose escalation trial… with a focus on NSCLC” .
“Momentum is strong for our wholly-owned, first-in-class selective degrader programs targeting CBP, EP300 and ARID1B… Selective CBP entered non-GLP toxicology studies in Q4 2025… advancing towards IND in 2026” .
“Strong balance sheet… $180.3 million… cash runway into 2028,” supporting execution through multiple near-term milestones .

What Went Wrong

Continued operating losses despite QoQ improvement: net loss ($15.85M) vs ($17.94M) in Q2; interest income fell vs prior year as average marketable securities balance declined .
Revenue remains entirely collaboration-based and recognized via percentage-of-completion under Lilly agreement (timing inherently variable), sustaining dependence on partner execution and milestone cadence .
CFO departure introduces near-term leadership transition risk, although no issues cited with financial controls or audits .

Financial Results

Quarterly Performance (actuals)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$5.95	$7.56	$8.15
Net Loss ($USD Millions)	($18.83)	($17.94)	($15.85)
Diluted EPS	($0.30)	($0.28)	($0.25)

Year-over-Year (Q3)

Metric	Q3 2024	Q3 2025
Revenue ($USD Millions)	$7.81	$8.15
Diluted EPS	($0.31)	($0.25)

Margins

Metric	Q1 2025	Q2 2025	Q3 2025
Net Income Margin %	N/A*	(237.34%)*	(194.39%)*
EBITDA Margin %	N/A*	(267.91%)*	(216.47%)*

Values with asterisk retrieved from S&P Global.

KPIs and Operating Profile

KPI	Q1 2025	Q2 2025	Q3 2025
R&D Expense ($USD Millions)	$21.63	$21.79	$20.00
G&A Expense ($USD Millions)	$7.24	$6.86	$6.65
Cash and Equivalents ($USD Millions)	$61.03	$72.57	$89.33
Cash, Cash Equivalents & Marketable Securities ($USD Millions)	$220.59	$198.67	$180.28
Deferred Revenue ($USD Millions)	$274.11	$266.55	$258.40

Results vs Consensus (S&P Global)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue Actual ($USD)	$5,952,000	$7,557,000	$8,153,000
Revenue Consensus Mean ($USD)	$4,970,000*	$7,096,800*	$6,196,830*
Revenue Surprise ($USD / %)	+$982,000 / +19.8%	+$460,200 / +6.5%	+$1,956,170 / +31.6%
EPS Actual	($0.30)	($0.28)	($0.25)
Primary EPS Consensus Mean	($0.29)*	($0.318)*	($0.30)*
EPS Surprise ($)	($0.01) miss	+$0.04 beat	+$0.05 beat

Values with asterisk retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cash Runway	Multi-year	Into 2027 (Q1 2025)	Into 2028 (Q2 & Q3 2025)	Raised (Q2), Maintained (Q3)
FHD-909 (SMARCA2 inhibitor)	Phase 1	Enrollment ongoing (Q1/Q2)	Enrollment progressing well; NSCLC primary target population (Q3)	Maintained trajectory
Selective CBP Degrader	Regulatory	Targeting IND in 2026 (Q1/Q2)	Entered non-GLP tox in Q4 2025; IND-ready in 2026 (Q3)	Maintained, execution milestone achieved
Selective EP300 Degrader	Regulatory	Program update H2/Q4 2025 (Q1/Q2)	IND-enabling studies expected in 2026 (Q3)	Formalized 2026 timeline
Selective ARID1B Degrader	Program Milestones	Update H2/Q4 2025 (Q1/Q2)	In vivo proof-of-concept targeted for 2026 (Q3)	New explicit 2026 milestone

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
Collaboration with Lilly (FHD-909)	Phase 1 dose escalation ongoing; AACR data on combos	Enrollment “progressing well”; NSCLC primary target; synergy with pembrolizumab/KRAS informs plan	Consistent execution; expanding combo rationale
Degrader Platform (CBP, EP300, ARID1B)	CBP: IND 2026 target; EP300/ARID1B preclinical progress	CBP in non-GLP tox; EP300 IND-enabling in 2026; ARID1B POC targeted 2026	Milestone advances; clearer timelines
Financial Runway	Into 2027 (Q1), into 2028 (Q2)	Into 2028; $180.3M balance	Maintained improved runway
Macro/Costs	Lease modification lowered facility costs (Q2)	Continued OpEx discipline; R&D down YoY, G&A down YoY	Cost optimization persists
Regulatory/Clinical Execution	Phase 1 FHD-909 start Oct 2024; AACR disclosure	Phase 1 progressing; preclinical combos emphasize path to potential frontline NSCLC	Steady clinical progress

Note: Company furnished press release and investor presentation; no earnings call transcript was furnished within the Q3 8-K .

Management Commentary

“FHD-909… is advancing in a Phase 1 dose escalation trial… Based on our preclinical monotherapy and combination data, we are enthusiastic… with the goal of developing it as a front-line therapy in NSCLC.” — Adrian Gottschalk, CEO .
“Momentum is strong for our… selective degrader programs… Our Selective CBP degrader… entered non-GLP toxicology studies in Q4 2025 and is advancing towards IND in 2026… Our Selective EP300 degrader continues to show broad spectrum efficacy… Our Selective ARID1B degrader is progressing towards in vivo proof-of-concept in 2026…” — Adrian Gottschalk .
“Strong balance sheet… cash runway into 2028.” — Company statement .
CFO transition: “Kristian Humer… will be departing… effective November 14, 2025… not due to any disagreement…” .

Q&A Highlights

No formal Q3 earnings call transcript was provided alongside the company’s Q3 8-K; investor communications centered on the earnings press release and the November investor presentation .

Estimates Context

Revenue beat: Actual $8.15M vs $6.20M consensus (+31.6%); EPS beat: ($0.25) vs ($0.30) consensus (+$0.05). Beats reflect percentage-of-completion recognition tied to progression under the Lilly collaboration and OpEx discipline reducing quarterly loss .*
Prior quarters also exceeded revenue consensus (Q1: +19.8%, Q2: +6.5%); EPS beat in Q2 and Q3, slight miss in Q1.*
Implication: Street models likely to adjust upward collaboration revenue pacing and modestly reduce projected losses as OpEx trends stabilize.*

Values marked with asterisk retrieved from S&P Global.

Key Takeaways for Investors

Collaboration-driven revenue beat and EPS beat; continuity in clinical execution and clearer 2026 milestones across degrader programs are likely positive sentiment drivers .
FHD-909’s combination potential (pembrolizumab/KRAS) could broaden addressable NSCLC settings; upcoming Phase 1 progress and any early signals will be stock catalysts .
Cash runway into 2028 and reduced facility costs support multi-program advancement without near-term financing overhang, though ongoing net losses persist .
Watch for 2026 regulatory milestones (CBP IND-ready, EP300 IND-enabling, ARID1B in vivo POC) and Lilly-collaboration updates that could reset valuation frameworks .
Leadership transition (CFO) is a headline risk; absence of disagreement limits governance concerns, but monitor replacement timing and any capital markets commentary .
Revenue recognition depends on collaboration progress; quarter-to-quarter variability should be expected; prioritize trend over single-quarter prints .
Near-term trading: constructive into program updates and any FHD-909 clinical disclosures; medium-term thesis hinges on advancing selective degrader portfolio and demonstrating clinical differentiation .

*Values retrieved from S&P Global.

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