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Werewolf Therapeutics, Inc. (HOWL)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 showed disciplined spend and steady losses as the company executes on clinical milestones: net loss of $18.0M and EPS of ($0.40) vs ($0.40) a year ago; R&D and G&A both declined YoY as Jazz collaboration revenue rolled off to $0 . Versus consensus, EPS modestly missed by ~$0.03 (–$0.40 vs –$0.373*) while revenue was in-line at $0 vs $0 estimate* .
  • Pipeline catalysts unchanged and on track: WTX-124 interim data in Q4 2025 and FDA engagement in H2 2025; WTX-330 regimen determination by YE 2025; new INDUCER T‑cell engager WTX-1011 (STEAP1) announced in Q2 .
  • Liquidity remains adequate with $77.6M cash at 6/30/25 and runway “into Q4 2026,” consistent with Q1 guidance; cash declined $14.4M Q/Q as trials progress .
  • Management emphasized confidence in PREDATOR platform and WTX‑124’s registrational potential in melanoma, framing Q4 interim data and H2 FDA discussions as key stock catalysts .

What Went Well and What Went Wrong

What Went Well

  • Cost discipline: R&D fell to $13.1M (–14% YoY) and G&A to $4.4M (–9% YoY), narrowing total operating expenses to $17.5M (–13% YoY) .
  • Clear clinical momentum: “on track for an interim data readout… in the fourth quarter of 2025” for WTX‑124 and planned H2 FDA engagement for potential registrational paths in cutaneous melanoma .
  • Portfolio expansion: Announced WTX‑1011, first INDUCER T‑cell engager targeting STEAP1 with preclinical data showing anti‑tumor activity while reducing peripheral activation and cytokine release risk .

What Went Wrong

  • No revenue recognized (vs $1.143M YoY), reflecting the unwind of Jazz collaboration revenue; net loss modestly higher YoY at $18.0M (vs $17.2M) as clinical execution continued .
  • Non-operating headwind: other swung to ($0.4M) expense vs $1.7M income YoY, limiting bottom-line progress despite lower OpEx .
  • Cash burn: cash fell to $77.6M from $92.0M in Q1 (–$14.4M Q/Q), highlighting continued funding needs beyond current catalysts despite runway into Q4 2026 .

Financial Results

P&L snapshot vs prior year/quarter and consensus

MetricQ2 2024Q1 2025Q2 2025
Collaboration Revenue ($M)$1.143 $0.742 $0.000
Research & Development ($M)$15.271 $13.120 $13.143
General & Administrative ($M)$4.832 $4.871 $4.399
Total Operating Expenses ($M)$20.103 $17.991 $17.542
Operating Loss ($M)($18.960) ($17.991) ($17.542)
Other (Expense) Income ($M)$1.711 ($0.098) ($0.440)
Net Loss ($M)($17.249) ($18.089) ($17.982)
EPS, Basic ($)($0.40) ($0.40) ($0.40)
Weighted Avg Shares (Basic) (M)43.522 44.827 44.982

Balance sheet snapshot

MetricDec 31, 2024Mar 31, 2025Jun 30, 2025
Cash & Cash Equivalents ($M)$111.0 $92.0 $77.6
Working Capital ($M)$97.9 $82.8 $65.3
Total Assets ($M)$126.9 $107.2 $92.6
Notes Payable, net ($M)$26.1 $26.6 $27.1
Stockholders’ Equity ($M)$73.4 $57.3 $41.5

Consensus vs Actual (Q2 2025)

MetricConsensusActual
EPS (Primary)($0.373)*($0.40)
Revenue ($M)$0.0*$0.0
# EPS Estimates3*—
# Revenue Estimates4*—
Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash runwayThroughInto Q4 2026 (as of 3/31/25) Into Q4 2026 (as of 6/30/25) Maintained
WTX‑124 interim dataTiming2H25 / Q4 2025 Q4 2025 Maintained
WTX‑124 FDA engagementTimingH2 2025 H2 2025 Maintained
WTX‑330 regimen decisionTimingInitiate P1b/2 in Q1’25; regimen by YE 2025 (implied) Regimen by YE 2025 Maintained
INDUCER T‑cell engagerMilestoneFirst candidate targeted by end of Q2 2025 WTX‑1011 (STEAP1) announced New/Introduced

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available in our document system; analysis is based on the press release and corporate presentation .

TopicPrevious Mentions (Q-2: Q4’24)Previous Mentions (Q-1: Q1’25)Current Period (Q2’25)Trend
WTX‑124 timing/registrationPlan for full enrollment and H2’25 FDA discussions; Q4’25 interim data On track for Q4’25 interim; H2’25 FDA discussions On track Q4’25 interim; H2’25 FDA engagement in melanoma Consistent; execution focus
WTX‑330 developmentP1/2 regimen-finding to start by Q1’25 P1b/2 initiated; optimize exposure Actively enrolling; regimen by YE’25 Progressing on plan
Cash runwayThrough at least Q2’26 (YE’24) Into Q4’26 (update) Into Q4’26 confirmed Stable guidance
INDUCER (TCE) strategyPlatform progress; targeting 2025 development work First INDUCER candidate targeted by end Q2’25 WTX‑1011 STEAP1 candidate announced; favorable preclinical profile Advancing; added asset
Regulatory pathwayRegistrational discussions in H2’25 (mono/combo) FDA discussions H2’25 (potential accelerated strategies) Engage FDA H2’25 for melanoma pathways Focus narrowing to melanoma

Management Commentary

  • “We remain on track for an interim data readout of our Phase 1/1b clinical trial in the fourth quarter of 2025... We also anticipate meeting with the FDA later this year to discuss potential registrational pathways.” — Daniel J. Hicklin, Ph.D., President & CEO .
  • “We continue to advance the differentiated technology born out of our PREDATOR platform... we are excited to introduce WTX‑1011, our first INDUCER T‑cell engager candidate, targeting STEAP1.” .

Q&A Highlights

No Q2 2025 earnings call transcript was available; the company’s materials did not include a Q&A. We monitored press releases and the 8‑K for clarifications on timelines and cash runway, which were consistent with prior disclosures .

Estimates Context

  • Q2 EPS missed consensus modestly: ($0.40) vs ($0.373); revenue in-line at $0 vs $0 estimate, reflecting the wind-down of collaboration revenue .
  • With lower OpEx YoY and steady losses, forward estimate revisions are likely to hinge on Q4’25 WTX‑124 interim efficacy/tolerability and any FDA feedback; absent revenue catalysts, models remain driven by R&D pacing/cash runway (no new numerical guidance provided) .
    Values retrieved from S&P Global.

Key Takeaways for Investors

  • Near-term stock catalysts are clinical and regulatory: WTX‑124 interim data (Q4’25) and H2’25 FDA engagement in melanoma; positive signals could expand valuation despite pre‑revenue status .
  • Cost trajectory is favorable YoY, but cash burn persists; $77.6M cash and runway into Q4’26 offer execution runway through key readouts, though financing over the medium term remains a consideration .
  • Introduction of WTX‑1011 establishes a second modality (INDUCER TCEs) alongside INDUKINE cytokines, broadening optionality and partnership potential .
  • WTX‑330 is a 2026 story: regimen optimization in 2025 should set up indication-specific expansion; interim melanoma/MSS CRC signals remain supportive .
  • Trading lens: Q4’25 becomes a binary‑tilted period for WTX‑124; maintaining de‑risked exposure ahead of the readout may be prudent given consistent timelines and FDA dialogue plans .
  • Watch for any additional corporate updates (partnering, IND-enabling progress in preclinical assets) that could extend runway or validate platform economics .

Appendix: Additional Details and KPIs

  • Program status highlights: all WTX‑124 expansion arms actively enrolling at 18 mg IV Q2W (mono + pembrolizumab combo); WTX‑330 P1b/2 enrolling with regimen decision targeted by YE 2025; WTX‑1011 announced with favorable NHP PK and reduced cytokine release .
  • Cash/waterfall context: cash fell from $92.0M at 3/31/25 to $77.6M at 6/30/25; equity of $41.5M at 6/30/25; notes payable ~$27.1M .

References: Q2 2025 8‑K press release and exhibits –; Q1 2025 8‑K press release and exhibits ; Q1 press release duplicate –.