Sign in

You're signed outSign in or to get full access.

WT

Werewolf Therapeutics, Inc. (HOWL)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 showed a typical development-stage profile: zero collaboration revenue after completing Jazz obligations, higher R&D spend, and a wider net loss per share of -$0.46; cash runway was reiterated “through at least the second quarter of 2026.”
  • Clinical execution advanced: WTX-124 expansion arms continued enrolling, with full enrollment for cutaneous melanoma monotherapy guided for 1H 2025 and combination by YE 2025; FDA pathway discussions targeted for 2H 2025.
  • Guidance timelines shifted: the company now anticipates interim data from both WTX-124 monotherapy and combination expansion arms in Q4 2025 vs prior indication of monotherapy data in 1H 2025.
  • Estimates context: S&P Global consensus data was unavailable; third-party tracking showed EPS of -$0.46 vs consensus -$0.43 (a miss of $0.03), and expected revenue of $1.0M vs actual $0.0M. These deltas reflect the completion of Jazz performance obligations in Q2 2024.

What Went Well and What Went Wrong

What Went Well

  • WTX-124 demonstrated durable clinical activity: of five previously disclosed objective responses, CRs/PRs remained progression-free, including a monotherapy CR ongoing >1 year off therapy and a combination PR upgraded to CR.
  • Clear regulatory path planning: management expects to meet the FDA in 2H 2025 to discuss potential registrational pathways, signaling advancing development maturity.
  • WTX-330 progressed with encouraging interim data and a plan to initiate a Phase 1/2 dose- and regimen-finding trial by the end of Q1 2025, supporting broader platform validation.

Selected quotes:

  • “Werewolf made considerable progress in 2024 with promising preliminary evidence of durable anti-tumor activity and tolerability…” — Daniel J. Hicklin, Ph.D., CEO.
  • “We expect to build on these promising data in 2025… These data will guide conversations with regulators on potential registrational pathways…” — Daniel J. Hicklin, Ph.D., CEO.

What Went Wrong

  • Revenue reset to zero: no collaboration revenue recognized in Q4 as Jazz obligations were substantially completed in Q2 2024, magnifying reported losses and removing a non-dilutive funding source.
  • R&D spend rose sharply YoY: Q4 R&D expenses increased to $15.7M from $9.6M, widening operating and net loss.
  • Timeline push on WTX-124: interim expansion-arm data now targeted for Q4 2025 vs prior expectation of monotherapy expansion data in 1H 2025, elongating near-term clinical catalysts.

Financial Results

Income Statement Comparison (Oldest → Newest)

MetricQ2 2024Q3 2024Q4 2024
Collaboration Revenue ($USD Millions)$1.143 $0.000 $0.000
Research & Development ($USD Millions)$15.271 $12.528 $15.727
General & Administrative ($USD Millions)$4.832 $4.596 $4.621
Total Operating Expenses ($USD Millions)$20.103 $17.124 $20.348
Operating Loss ($USD Millions)$(18.960) $(17.124) $(20.348)
Other (Expense) Income ($USD Millions)$1.711 $0.451 $(0.052)
Net Loss ($USD Millions)$(17.249) $(16.673) $(20.400)
Net Loss per Share, Basic ($USD)$(0.40) $(0.38) $(0.46)

Year-over-Year Snapshot (Q4 2023 vs Q4 2024)

MetricQ4 2023Q4 2024
Collaboration Revenue ($USD Millions)$1.501 $0.000
Research & Development ($USD Millions)$9.649 $15.727
General & Administrative ($USD Millions)$4.814 $4.621
Net Loss ($USD Millions)$(12.003) $(20.400)
Net Loss per Share, Basic ($USD)$(0.33) $(0.46)

Balance Sheet and Liquidity

MetricDec 31, 2023Jun 30, 2024Sep 30, 2024Dec 31, 2024
Cash & Cash Equivalents ($USD Millions)$134.343 $135.303 $122.827 $110.995
Working Capital ($USD Millions)$118.992 $127.346 $113.371 $97.886
Total Assets ($USD Millions)$174.833 $153.703 $140.036 $126.929
Total Notes Payable, Net ($USD Millions)$39.323 $25.163 $25.617 $26.095
Total Stockholders’ Equity ($USD Millions)$111.374 $104.018 $89.379 $73.390
Total Deferred Revenue ($USD Millions)$1.340 $— (recognized) $— $—
Restricted Cash & Equivalents ($USD Millions)$21.2 N/AN/A$1.2

Estimates vs Actuals (Q4 2024)

MetricConsensusActualBeat/Miss
EPS ($USD)$(0.43) $(0.46) Miss by $(0.03)
Revenue ($USD Millions)$1.00 $0.00 Miss (no revenue recognized)

Note: S&P Global consensus estimates were unavailable at time of analysis.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash RunwayCompany-levelThrough at least Q1 2026 (as of Q2 2024) Through at least Q2 2026 (as of Q3 2024, reiterated in Q4 2024) Raised in Q3; maintained in Q4
WTX-124 Monotherapy Expansion DataClinical milestoneInitial efficacy data in 1H 2025 (Q3 2024) Interim data (monotherapy & combo) in Q4 2025 (Q4 2024) Timeline extended
WTX-124 Enrollment (Cutaneous Melanoma)Clinical opsExpansion arms opened & enrolling (Q3 2024) Full enrollment: monotherapy 1H 2025; combo by YE 2025 (Q4 2024) Concrete timelines added
WTX-124 Regulatory PathRegulatoryIntend to engage regulators; potential accelerated approval (Q3 2024) Plan FDA discussions on registrational pathways in 2H 2025 (Q4 2024) Firmed timing
WTX-330 Next TrialClinical opsAdditional results to be shared in Q4 2024 (Q2 2024) On track to initiate Phase 1/2 by end of Q1 2025 (Q4 2024) Timeline specified

Earnings Call Themes & Trends

Note: A Q4 2024 earnings call transcript was not available.

TopicQ-2 (Q2 2024)Q-1 (Q3 2024)Current (Q4 2024)Trend
WTX-124 clinical profileASCO data: CR/PRs; RDE 18mg IV Q2W; combo generally well tolerated Expansion arms opened; biomarker data (CD8+, no Treg activation) Durable responses; expanded enrollment timelines; interim data in Q4 2025 Maturing dataset; timeline extended
WTX-330 progressInitial safety/efficacy; 23x prodrug exposure vs rhIL-12; PR in melanoma SITC interim update planned; details on enrollment SITC interim update delivered; Phase 1/2 initiation by end Q1 2025 Advancing to next study
Regulatory planningN/APlan to engage regulators for potential accelerated approval (WTX-124) FDA discussions targeted 2H 2025 Increasing regulatory clarity
Platform expansion (IBD)IL-10 INDUKINE poster at AAI Introduced WTX-921 IL-10 for IBD Continued platform breadth noted Diversifying modalities
Revenue/Jazz collaborationDeferred revenue recognized in Q2; obligations substantially complete No collaboration revenue (Q3) No collaboration revenue (Q4) Revenue tailwind ended

Management Commentary

  • “We expect to build on these promising data in 2025, targeting full enrollment… These data will guide conversations with regulators on potential registrational pathways…” — Daniel J. Hicklin, Ph.D., President and CEO.
  • WTX-124: “Promising monotherapy activity and an improved tolerability profile versus high dose IL-2… recommended dose 18 mg IV Q2W…”
  • WTX-330: “Presented an interim update… anti-tumor activity in patients with refractory solid tumors… Phase 1/2 trial expected by end of Q1 2025.”

Q&A Highlights

  • No Q4 2024 earnings call transcript was available; prepared remarks and press releases emphasize clinical timelines, regulatory plans, and cash runway.

Estimates Context

  • S&P Global consensus estimates were unavailable at time of analysis.
  • Third-party tracking indicates EPS of -$0.46 vs consensus -$0.43 (miss of $0.03) and expected revenue $1.0M vs actual $0.0M; the revenue miss is consistent with Jazz collaboration obligations being completed in Q2 2024, eliminating that revenue stream.

Key Takeaways for Investors

  • Cash runway remains “through at least Q2 2026,” supporting multi-program execution without near-term financing dependency, though equity cushion declined materially through 2024.
  • WTX-124 timelines have elongated (interim data now Q4 2025), shifting the catalyst window later; monitor enrollment pace and FDA meeting outcomes in 2H 2025.
  • Durable responses in WTX-124 and encouraging WTX-330 signals strengthen the INDUKINE thesis; achieving robust, reproducible activity in less heavily pre-treated populations will be critical for registrational path.
  • Revenue reset to zero will keep GAAP losses elevated; operating discipline on R&D and potential BD opportunities may be important to extend runway beyond current guidance.
  • Near-term stock reaction catalysts are event-driven: Phase 1/2 initiation for WTX-330 by end Q1 2025 and FDA engagement for WTX-124 in 2H 2025; interim data in Q4 2025 likely a major inflection.
  • Tracking balance sheet: declining cash and equity levels necessitate close monitoring of spend cadence versus key readouts; deferred revenue is now fully recognized.
  • Without product revenue, valuation hinges on de-risking clinical milestones; traders should anticipate volatility around regulatory and interim data events.