Foghorn Therapeutics Inc. (FHTX)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 was a transition quarter: collaboration revenue decelerated sequentially as the company pivoted away from FHD-286 AML and leaned into the Lilly-partnered SMARCA2 program (FHD-909), while year-end cash of $243.7M supports runway into 2027 .
• FHD-909 continued enrolling in Phase 1 for SMARCA4‑mutated cancers (primary: NSCLC); the first patient was dosed in October and trial design will be presented at AACR 2025 .
• Management discontinued independent development of FHD-286 (AML combo with decitabine) after responses did not meet the internal threshold, reallocating capital to FHD-909 and preclinical degrader programs (CBP, EP300, ARID1B) .
• S&P Global consensus was unavailable via our data connection; third‑party coverage indicates a slight EPS miss (reported ~$(0.30) vs $(0.29) consensus) and revenue below expectations, framing modest estimate risk near term .

What Went Well and What Went Wrong

• What Went Well

  • FHD-909 progressed: “FHD-909 is the first SMARCA2 selective inhibitor to enter the clinic… Dosing the first patient marks an important milestone for the program and our collaboration with Lilly.” – CEO Adrian Gottschalk .
  • ARID1B milestone: “Selective degradation of ARID1B achieved… program update expected in 2025,” strengthening the degrader pipeline narrative .
  • Balance sheet durability: $243.7M in cash, cash equivalents and marketable securities at 12/31/24; runway into 2027, preserving strategic flexibility without near‑term financing needs .

• What Went Wrong

  • FHD-286 AML: although objective responses were observed, efficacy did not meet the internal threshold; Foghorn discontinued independent development, reducing nearer-term clinical optionality in AML .
  • Q4 collaboration revenue fell sequentially as revenue recognition stepped down; Q4 implied collaboration revenue was ~$2.86M vs $7.81M in Q3 .
  • Modest estimate underperformance: external coverage cites a ~$(0.30) EPS vs $(0.29) consensus and revenue below Street, likely reflecting timing/scale of collaboration revenue recognition .

Financial Results

Note: Foghorn reports collaboration revenue (no product sales). Q4 figures are derived from FY 2024 results minus 9M 2024 results.

Additional balance sheet KPI:

Full-year context (FY 2024 vs FY 2023):

Notes: The company does not report gross/operating margins typical of product revenue businesses; collaboration accounting and lack of COGS make margin metrics less meaningful at this stage.

Guidance Changes

No formal quantitative guidance on revenue, OpEx, margins, OI&E or tax rate was provided in the Q4 materials .

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was available in our document set; we searched transcript repositories but did not retrieve a transcript. Thematic evolution is synthesized from company press releases and filings.

Management Commentary

• “In 2024, we continued our strong execution across our pipeline, which has set us up for an exciting 2025… Our balance sheet remains strong” – Adrian Gottschalk, President & CEO .
• “FHD-909 is the first SMARCA2 selective inhibitor to enter the clinic. Dosing the first patient marks an important milestone for the program and our collaboration with Lilly.” – Adrian Gottschalk .
• “While clinical responses were observed for FHD-286, we will prioritize investment into our proprietary pipeline… and our Lilly collaboration, including the clinical development of FHD-909.” – Adrian Gottschalk .

Q&A Highlights

• No public Q4 2024 call transcript was found in our sources; we searched transcript repositories and the company’s IR site without success. Based on press materials, management clarified: (i) independent discontinuation of FHD-286 AML due to not meeting internal efficacy threshold , (ii) continued enrollment and near‑term visibility for FHD-909 (trial design at AACR 2025) , and (iii) cash runway into 2027 .

Estimates Context

• S&P Global consensus data was unavailable via our connection at this time. Values were not retrieved due to a request limit; therefore, we do not present S&P Global consensus figures.
• Third‑party coverage indicates a modest EPS miss: reported ~$(0.30) vs $(0.29) consensus (Zacks) and revenue below estimates, implying slight negative estimate revisions risk near term .

Key Takeaways for Investors

• The thesis pivots more squarely to the Lilly‑partnered FHD-909 SMARCA2 program; the first‑in‑class profile and NSCLC SMARCA4‑mutant focus are central to the 2025 narrative (AACR design, enrollment progress) .
• FHD-286 setback reduces near‑term optionality in AML but sharpens capital allocation to the degrader platform and SMARCA2 inhibitor, potentially improving R&D efficiency .
• Cash of $243.7M and runway into 2027 provide a long operational horizon through multiple preclinical/clinical catalysts without immediate financing pressure .
• Sequential decline in Q4 collaboration revenue reflects timing of revenue recognition; investors should expect variability as Lilly collaboration accounting progresses .
• Watch AACR 2025 outputs (FHD-909 combination preclinical data; CBP/EP300 updates) for incremental validation of the degrader platform and combo strategy -.
• Near‑term stock drivers: clarity on FHD-909 dose escalation trajectory, 2025 program updates (ARID1B milestone), and any partnering progress for FHD-286 .

Source Documents Read

• 8-K Item 2.02 (Q4 2024 press release with FY financials)
• Q3 2024 press release (prior quarter) -
• Q2 2024 press release (two quarters prior) -
• Q4 2024 additional press releases: First patient dosed with FHD-909 (Oct 10, 2024) ; FHD-286 clinical update (Dec 16, 2024)
• 10-Q Q3 2024 for detailed quarterly figures -
• Third‑party coverage on estimates/print: Yahoo/Nasdaq
• Company IR posting of Mar 6, 2025 year‑end press release