Executive Summary

Cash runway remained intact at $31.9M as of June 30, 2025, with management reiterating funding into 1Q 2026; operating loss widened YoY on higher R&D as KPI-012 advanced toward the CHASE Phase 2b topline readout .
EPS beat on S&P Global Primary EPS versus consensus: actual -$1.32 vs estimate -$1.70, reflecting lower normalized loss and modest other income; GAAP EPS was -$1.71, wider sequentially vs Q1’s -$1.41 * *.
Clinical execution was the quarter’s catalyst: CHASE Phase 2b enrollment completed (79 randomized across 37 sites) with topline data guided for end of September 2025; management believes the trial could serve as pivotal for a potential BLA, contingent on positive results .
Balance sheet actions included a $2.5M principal/fee prepayment on debt, reducing long-term debt to $18.8M; working capital decreased to $17.6M as trial costs ramped .

What Went Well and What Went Wrong

Completion of CHASE Phase 2b enrollment and tightened topline timing (“end of September 2025”), increasing visibility to a near-term clinical catalyst .
Clear strategic framing of KPI-012’s multifactorial mechanism and potential to treat all PCED etiologies; “We are well-positioned heading into our key readout… which we believe has the potential to serve as a pivotal trial required to support a BLA” — Todd Bazemore, Interim CEO .
Continued non-dilutive support via grant income ($0.55M in Q2) and disciplined G&A growth (+$0.3M YoY) while prioritizing R&D for KPI-012 .

Loss widened YoY: operating loss -$11.0M vs -$9.6M; net loss -$11.2M vs -$9.6M, reflecting higher R&D and lower grant income YoY .
Sequential degradation vs Q1: GAAP EPS -$1.71 vs -$1.41; grant income fell to $0.55M vs $2.35M in Q1, increasing net loss despite steady Opex .
Working capital declined ($17.6M vs $22.7M in Q1) as cash decreased due to operations and debt prepayment, compressing liquidity buffer into the key data readout .

Metric	Q4 2024	Q1 2025	Q2 2025
Cash and Cash Equivalents ($MM)	$51.2	$42.2	$31.9
Working Capital ($MM)	$35.8	$22.7	$17.6
Long-term Debt, net ($MM)	$20.1	$15.1	$18.8
G&A Expense ($MM)	$4.2	$4.6	$4.6
R&D Expense ($MM)	$5.3	$6.1	$6.2
Total Operating Expenses ($MM)	$9.5	$10.7	$11.0
Operating Loss ($MM)	-$9.5	-$10.7	-$11.0
Interest Income ($MM)	$0.48	$0.46	$0.41
Interest Expense ($MM)	-$1.39	-$1.09	-$1.08
Grant Income ($MM)	$2.20	$2.35	$0.55
Net Loss ($MM)	-$8.18	-$8.95	-$11.16
GAAP EPS	-$1.74	-$1.41	-$1.71
Weighted Avg Shares (MM)	4.69	6.35	6.51

Notes: Company reports no revenue line items; margins not meaningful for development-stage period .

Metric	Consensus	Actual	Surprise
Primary EPS (S&P)	-$1.70*	-$1.32*	+$0.38*
Revenue ($MM) (S&P)	$0.00*	N/A (no revenue reported)	N/A

Values retrieved from S&P Global. GAAP EPS for Q2 2025 was -$1.71 .

KPI	Q4 2024	Q1 2025	Q2 2025
CHASE Phase 2b Randomized Patients	87	Ongoing enrollment; LATAM sites activated	79 verified for primary analysis
Sites Activated	n/a	LATAM sites activated	37 U.S. & LATAM
Topline Data Timing	3Q 2025	3Q 2025	End of September 2025
Cash Runway Guidance	Into 1Q 2026	Into 1Q 2026	Into 1Q 2026

Metric	Period	Previous Guidance	Current Guidance	Change
CHASE Phase 2b Topline Timing	3Q 2025	“3Q 2025”	“End of September 2025”	Narrowed window
Cash Runway	Through early 2026	“Into 1Q 2026”	“Into 1Q 2026”	Maintained
Debt Principal Prepayment	Q2 2025	n/a	$2.5M prepayment of principal/fees	Balance sheet de-risking

No revenue, margin, tax, or dividend guidance provided; company is development-stage .

No Q2 2025 earnings call transcript was available in the document set; themes reflect management commentary across press releases.

Topic	Previous Mentions (Q4 2024 & Q1 2025)	Current Period (Q2 2025)	Trend
R&D execution (KPI-012 in PCED)	Enrollment progressing; targeting 3Q topline; LATAM activation	Enrollment completed; 79 randomized; topline end of September	Positive progress; milestone achieved
Regulatory path	Potential first of two pivotal trials for BLA	Potential pivotal trial for BLA contingent on positive results	Maintained confidence; clarity increasing
KOL and market education	Building KOL engagement	KOL event underscored unmet need and mechanism	Strengthening narrative
Balance sheet/runway	Runway into 1Q 2026	Runway into 1Q 2026; $2.5M debt prepayment	Stable runway; reduced debt
Platform expansion (KPI-014)	Preclinical retinal programs described	Continued preclinical positioning; neuroprotective rationale	Ongoing

“We are well-positioned heading into our key readout of the CHASE trial, which we believe has the potential to serve as a pivotal trial required to support a BLA… remain on track to report topline results at the end of September” — Todd Bazemore, Interim CEO .
“KOLs… underscored the high unmet need for patients with PCED and highlighted the potential of KPI-012’s multifactorial mechanism of action to address all underlying etiologies” — Todd Bazemore .
“The completion of enrollment in the CHASE trial is a significant milestone… we believe KPI-012 could be a significant advance for the treatment of… 100,000 people with PCED in the United States” — Kim Brazzell, Ph.D., CMO .

No earnings call transcript or Q&A was found for Q2 2025 in the available documents [ListDocuments returned none].

S&P Global Primary EPS consensus for Q2 2025 was -$1.70 with 3 estimates; S&P actual Primary EPS was -$1.32, a beat of +$0.38. GAAP EPS reported by KALA was -$1.71, indicating differences between normalized “Primary EPS” and GAAP net loss per share [GetEstimates]* .
Revenue consensus was $0.00 with 3 estimates; company reported no revenue, consistent with development-stage status [GetEstimates]* .
Values retrieved from S&P Global.

Near-term catalyst: CHASE Phase 2b topline at end of September 2025; management views trial as potentially pivotal for BLA if positive, a decisive stock driver .
EPS beat on S&P normalized basis despite GAAP loss widening sequentially; grant income variability and R&D timing will continue to drive quarterly EPS volatility *.
Liquidity remains adequate into 1Q 2026; debt prepayment ($2.5M) supports balance sheet de-risking ahead of data .
If topline is positive, expect rapid engagement with FDA and potential clarity on registrational path; KOL support and unmet need narrative strengthen commercial prospects in PCED .
Execution risk remains elevated given single-asset concentration; watch for magnitude of efficacy (complete healing endpoint) and safety in the 3U/mL vs 1U/mL dosing arms .
Estimate revisions likely: Analysts may tighten EPS trajectories post-data and update probability-weighted timelines for commercialization and funding needs [GetEstimates]*.
Trading lens: Data readout timing and press cycle (KOLs, conferences) are key for sentiment; downside risk if efficacy misses or if regulatory view requires additional trials beyond CHASE .