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Nkarta, Inc. (NKTX)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 results were in line-to-better on loss metrics: net loss improved to $22.98M and EPS was $(0.31), a $0.04 beat vs Wall Street consensus of $(0.35); company remains pre-revenue . EPS consensus values marked with an asterisk were retrieved from S&P Global.*
  • Operating discipline continued: R&D fell to $20.8M and G&A to $6.4M; cash and investments were $334.0M, supporting runway into 2029 .
  • Execution focus on NKX019 in autoimmune continued; preliminary data from Ntrust-1/Ntrust-2 remains targeted for H2 2025, with regimen flexibility (Flu/Cy or Cy-only) maintained to generate comparable datasets .
  • Leadership strengthened: Shawn Rose, M.D., Ph.D., appointed CMO & Head of R&D in June to bolster autoimmune clinical expertise and accelerate execution .
  • Near-term stock reaction catalysts: upcoming first NKX019 autoimmune readouts in H2’25; continued cost containment and runway confirmation; management build-out .

What Went Well and What Went Wrong

What Went Well

  • Operating efficiency: Q2 R&D expenses down to $20.8M and G&A down to $6.4M, improving net loss vs Q1 and Q4 .
  • Clear H2 data milestones: “Preliminary data from the Ntrust-1 and Ntrust-2 clinical trials is planned for release in the second half of 2025” .
  • Strengthened clinical leadership: “Welcoming Dr. Rose and other key new members of our clinical team… has provided us with world-class medical expertise” – CEO Paul Hastings ; CMO appointment press release details Rose’s autoimmune track record .

What Went Wrong

  • Pre-revenue status persists; statements of operations include only operating expenses and other income, with no product revenue reported .
  • Continued losses despite interest income: Net loss was $22.98M in Q2; interest income of $3.97M partially offsets operating loss .
  • Ongoing restructuring overhang: March workforce reduction (~34%, 53 positions) and $5.5–$6.5M estimated cash payments highlighted earlier in 2025, signaling organizational transition through year-end .

Financial Results

P&L and EPS vs Prior Periods and Estimates

MetricQ4 2024Q1 2025Q2 2025
Research & Development ($USD Millions)$23.13 $24.17 $20.78
General & Administrative ($USD Millions)$7.80 $12.39 $6.41
Total Operating Expenses ($USD Millions)$30.92 $36.56 $27.19
Interest Income ($USD Millions)$4.89 $4.38 $3.97
Net Loss ($USD Millions)$(25.94) $(31.98) $(22.98)
Diluted EPS ($USD)$(0.35) $(0.43) $(0.31)
Primary EPS Consensus Mean ($USD)$(0.40)*$(0.45)*$(0.35)*
EPS Surprise ($USD)+0.05+0.02+0.04
Revenue Consensus Mean ($USD Millions)$0.00*$0.00*$0.00*
Reported Revenue ($USD Millions)n/a n/a n/a

Values marked with an asterisk were retrieved from S&P Global.*

Balance Sheet

MetricQ4 2024Q1 2025Q2 2025
Cash, Cash Equivalents, Restricted Cash & Investments ($USD Millions)$380.49 $351.90 $334.04
Total Assets ($USD Millions)$501.20 $470.61 $448.31
Total Liabilities ($USD Millions)$93.23 $91.80 $90.64
Stockholders’ Equity ($USD Millions)$407.98 $378.81 $357.67
Weighted Avg Shares (Basic & Diluted)73.60M 73.92M 73.98M

KPIs

KPIQ4 2024Q1 2025Q2 2025
Operating Loss ($USD Millions)$(30.92) $(36.56) $(27.19)
Other Income, net ($USD Millions)$4.99 $4.58 $4.21
Non-cash charges commentary$4.9M non-cash in Q4 $4.3M non-cash in Q1 $3.4M non-cash in Q2
Cash Runway GuidanceInto 2029 Into 2029 Into 2029

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash RunwayFY2024 (Q4 PR)Into 2029 Into 2029 (Q1 & Q2 reaffirmed) Maintained
Restructuring Cash PaymentsFY2024/Q1 2025$5.5–$6.5M No incremental update in Q2 Maintained
Revenue/Margins/OpEx GuidanceQ2 2025None providedNone provided Maintained (no formal guidance)

Earnings Call Themes & Trends

No Q2 2025 earnings call transcript was available in the document catalog; therefore, themes are derived from Company 8-Ks and press releases.

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Clinical Execution & H2’25 DataInitial Ntrust-1/2 patient dosing and enrollment; H2’25 preliminary data planned Preliminary data still targeted for H2’25; enrollment ongoing across Ntrust-1/2 and ISTs Consistent timelines maintained; execution focus sustained
Lymphodepletion RegimenHarmonized to cyclophosphamide-only across trials in Q4’24 Modified to Flu/Cy with option for Cy-only to create comparable datasets ; maintained in Q2 Expanded regimen flexibility
Cash Runway & Cost ContainmentRestructuring extended runway into 2029 Runway reaffirmed into 2029 Runway reaffirmed again in Q2
Management ChangesCFO transition to President as PFO/PAO (March) Restructuring implemented CMO & Head of R&D appointment (June)
Indication Footprint (Autoimmune)LN, SSc, IIM, AAV; SLE and MG ISTs advancing Ntrust-1 expanded to pMN; MG IST opened; continued enrollment Ongoing expansion and enrollment

Management Commentary

  • “We remain focused on the execution of our clinical trials and continue to believe in the differentiated potential of NK cell therapy to address unmet needs in the treatment of autoimmune diseases.” – Paul J. Hastings, CEO .
  • “Welcoming Dr. Rose… has provided us with world-class medical expertise… as we continue to advance our NKX019 clinical trial programs.” – Paul J. Hastings, CEO .
  • “I strongly believe that Nkarta’s allogeneic NK cell platform has the potential to be a transformational approach for patients with immune-mediated inflammatory disease.” – Shawn Rose, M.D., Ph.D., CMO & Head of R&D .

Q&A Highlights

  • No Q2 2025 earnings call transcript was available; therefore, Q&A themes and clarifications cannot be assessed from a call transcript. The company hosted investor fireside chats in late July and early September, but these are not earnings calls .

Estimates Context

  • EPS beat: Q2 2025 EPS $(0.31) vs consensus $(0.35), surprise +$0.04; similar small beats in Q1 $(0.43) vs $(0.45) and Q4 $(0.35) vs $(0.40) . EPS consensus values marked with an asterisk were retrieved from S&P Global.*
  • Revenue remains pre-revenue; consensus is $0.0 in recent quarters; company did not report product revenue lines in its statements of operations .

Estimates vs Actuals

MetricQ4 2024Q1 2025Q2 2025
Primary EPS Consensus Mean ($USD)$(0.40)*$(0.45)*$(0.35)*
Diluted EPS Actual ($USD)$(0.35) $(0.43) $(0.31)
EPS Surprise ($USD)+0.05+0.02+0.04
Revenue Consensus Mean ($USD Millions)$0.00*$0.00*$0.00*
Reported Revenuen/a n/a n/a

Values marked with an asterisk were retrieved from S&P Global.*

Key Takeaways for Investors

  • EPS and net loss trends improved sequentially in Q2 on lower OpEx and continued interest income; while immaterial to long-term valuation, beats can support sentiment near-term .
  • Cash runway into 2029 repeatedly reaffirmed; combined with $334.0M cash and equivalents at Q2, funding risk is reduced through initial autoimmune proof-of-concept milestones .
  • H2 2025 preliminary data from Ntrust-1/2 is the pivotal catalyst; positive signals in LN/pMN, SSc, IIM, or AAV could materially re-rate the program; lack of signal would be a near-term overhang .
  • Regimen flexibility (Flu/Cy vs Cy-only) aims to enhance interpretability and comparability to peer datasets; safety and accessibility narratives for NK cells remain central to differentiation .
  • Leadership upgrades (CMO appointment) strengthen autoimmune execution; watch for clinical operations cadence and patient accrual updates .
  • Trading implications: pre-data period likely driven by trial enrollment updates and sector read-throughs; positioning into H2 readouts should reflect binary outcomes and funding runway buffer .
  • Medium-term thesis: if NKX019 demonstrates durable B-cell depletion with favorable safety and outpatient accessibility, NK cell therapy could occupy a meaningful niche in autoimmune, expanding indications and enabling iterative dosing paradigms .

Notes:

  • No Q2 2025 earnings call transcript was available in the document catalog.
  • All estimates marked with an asterisk were retrieved from S&P Global.