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LT

LEAP THERAPEUTICS, INC. (LPTX)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 net loss narrowed to $16.6M from $20.4M YoY; EPS was -$0.40 vs -$0.52 in Q2 2024, driven by lower R&D and G&A, partially offset by a $4.5M restructuring charge .
  • The Board initiated a formal strategic alternatives process and engaged Raymond James; management completed patient treatment in DeFianCe and executed an additional ~75% workforce reduction to preserve capital .
  • Cash and equivalents were $18.1M at June 30, 2025, down from $32.7M at March 31 as operating cash outflows accelerated in Q2 (-$14.486M) .
  • EPS missed Wall Street consensus for Q2 (-$0.40 vs -$0.29), while revenue remained de minimis; Q1 had a slight EPS beat (-$0.37 vs -$0.38)*.
  • Near-term stock reaction catalysts: formal update on strategic alternatives “in the coming weeks,” clarity on restructuring costs timing and any BD outcomes for sirexatamab and FL-501 .

What Went Well and What Went Wrong

What Went Well

  • Significant operating cost reduction: R&D fell to $10.5M from $17.9M YoY and G&A to $1.8M from $3.4M YoY, tightening the net loss to $16.6M from $20.4M .
  • Clinical signal sustained: Updated DeFianCe data showed statistically significant benefits (ORR/PFS) in DKK1-high and VEGF‑naïve CRC subgroups; management: “we undertook a strategic realignment to focus…corporate development opportunities for sirexatamab and FL-501” .
  • Strategic focus and advisory: Formal exploration of strategic alternatives and engagement of Raymond James to maximize shareholder value .

What Went Wrong

  • EPS missed consensus in Q2 (-$0.40 vs -$0.29)*; restructuring charges ($4.5M) weighed on results .
  • Cash burn intensified: Operating cash outflows of -$14.486M in Q2 drove cash down to $18.1M at quarter-end .
  • Sequential net loss increased (Q2: -$16.6M vs Q1: -$15.4M) as restructuring costs were incurred and R&D remained elevated vs Q1 .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Net Loss ($USD Millions)$20.128 $15.435 $16.643
Basic & Diluted EPS ($USD)-$0.52 -$0.37 -$0.40
Research & Development ($USD Millions)$17.885 $12.911 $10.537
General & Administrative ($USD Millions)$3.367 $3.006 $1.817
Restructuring Charges ($USD Millions)$0.000 $0.000 $4.527
Cash and Equivalents ($USD Millions)N/A$32.713 $18.130
Cash Used in Operations ($USD Millions)N/A-$14.480 -$14.486
Estimates vs ActualsQ1 2025Q2 2025
EPS Consensus Mean ($)-$0.38*-$0.29*
EPS Actual ($)-$0.37 -$0.40
Revenue Consensus Mean ($USD Millions)$0.00*$0.00*
Revenue Actual ($USD Millions)N/AN/A
  • Values with asterisks (*) retrieved from S&P Global.

KPIs (operating profile):

  • Weighted average shares outstanding: 39.123M (Q2 2024), 41.269M (Q1 2025), 41.445M (Q2 2025) .
  • Interest income: $0.865M (Q2 2024), $0.437M (Q1 2025), $0.246M (Q2 2025) .
  • Australian R&D incentives: $0.056M (Q2 2024), $0.055M (Q1 2025), $1.253M (Q2 2025) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Strategic alternatives processQ2 2025Engaged advisor to explore BD (Q4/Q1) Board initiated formal process; Raymond James engaged Advanced/Introduced
Workforce reduction2H 2025~50% reduction (Q1) Additional ~75% reduction announced Raised cost actions
Restructuring costsQ3–Q4 2025~$3.2M majority in Q3 (June release) ~$4.5M, majority recognized Q3–Q4 2025 Raised
Cash conservationQ2 2025Emphasis on cost control “Taking additional steps to reduce spending and preserve capital” Maintained/Amplified

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2: Q4 2024)Previous Mentions (Q-1: Q1 2025)Current Period (Q2 2025)Trend
Strategic alternatives / BDEngaged leading advisor; large CRC market sizing Continued BD focus; strategic restructuring Formal process initiated; Raymond James engaged Intensifying
R&D execution (sirexatamab/DeFianCe)Updated data: significant ORR/PFS in DKK1-high & VEGF-naïve; Phase 3 contemplated Positive data maintained; KOL event hosted Updated analysis confirms subgroup benefits; patient treatment completed Transitioning to BD/next steps
FL-501 (GDF-15)Preclinical program progressing New preclinical data at AACR 2025 Focus on corporate development; no new Q2 data Steady preclinical; BD-oriented
Cost structure / RestructuringYear-end G&A/R&D trends ~50% workforce reduction announced Additional ~75% reduction; $4.5M restructuring Aggressive cost cutting
Cash & runwayCash $47.2M at 12/31/24 Cash $32.7M at 3/31/25 Cash $18.1M at 6/30/25 Declining; conservation priority

Management Commentary

  • “We undertook a strategic realignment to focus our resources on corporate development opportunities for sirexatamab and FL-501… completed patient treatment in the DeFianCe trial, further reduced internal expenses, and initiated a review of strategic alternatives to maximize value for our shareholders. We intend to provide a further update in the coming weeks.” — Douglas E. Onsi, President & CEO .
  • “Sirexatamab demonstrated a statistically significant benefit… in patients with high levels of DKK1, no prior exposure to anti-VEGF therapy, or liver metastasis…” (updated analysis as of May 22, 2025) .

Q&A Highlights

  • No Q2 2025 earnings call transcript was available in the document catalog; management communication for Q2 was via press release .

Estimates Context

  • Q2 2025 EPS missed consensus: actual -$0.40 vs -$0.29 (1 estimate); Q1 2025 was a slight beat: -$0.37 vs -$0.38 (1 estimate).

  • Revenue consensus for Q1 and Q2 was $0.0; actual reported revenues were not disclosed (pre-revenue biotech profile)*.

  • Implication: Street models should reflect restructuring charges timing and lower operating expense run-rate; EPS variability may persist pending strategic outcomes.

  • Values with asterisks (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Operating discipline is evident: R&D and G&A down sharply YoY, though Q2 EPS missed due to one-time restructuring charges; watch for sustained lower OpEx in 2H 2025 .
  • Strategic alternatives are the key near-term catalyst; a sale/partnership for sirexatamab or FL-501 would be stock-moving; management signaled an update “in the coming weeks” .
  • Cash declined to $18.1M amid -$14.486M operating outflows; preservation actions (75% workforce reduction, reduced activities) are critical to extend runway .
  • Clinical narrative remains supportive in defined CRC subgroups (DKK1-high, VEGF‑naïve); this underpins BD potential despite the DeFianCe wind-down .
  • Near-term trading setup: headline sensitivity to any BD announcement, restructuring cost recognition cadence (Q3–Q4), and cash runway disclosures .
  • Medium-term thesis hinges on securing partnership financing/strategic deal to advance sirexatamab toward registrational trials, and clarity on FL-501 path .
  • Risk factors: continued cash burn trajectory, absence of revenue, and execution risk on strategic transactions as outlined in forward-looking statements .