Nkarta, Inc. (NKTX)·Q3 2025 Earnings Summary

Executive Summary

• Nkarta reported Q3 2025 net loss of $21.7M and diluted EPS of $0.29, a modest beat versus Wall Street consensus EPS of -$0.303, aided by higher “Other income” while operating expenses were broadly stable quarter-over-quarter .*
• Clinical execution improved: FDA-cleared protocol changes eliminated patient-by-patient stagger, enabled parallel dosing within cohorts, and enrollment began in the second dose-escalation cohort; complete B-cell depletion observed with fludarabine + cyclophosphamide versus partial depletion with cyclophosphamide alone .
• Guidance on initial clinical data timing shifted from “second half of 2025” to “medical conference in 2026,” extending the near-term catalyst timeline .
• Cash, cash equivalents, restricted cash, and investments were $316.5M at quarter-end, with runway into 2029, supporting continued trial execution despite the timeline push .

What Went Well and What Went Wrong

What Went Well

• Enrollment efficiency and dose escalation improved after FDA engagement; a combined iDSMB now guides dose decisions and patient stagger was removed, allowing simultaneous dosing per cohort: “strengthens the efficiency of our trial enrollment” .
• Deeper pharmacodynamic effect: “complete B-cell depletion in all patients treated to date” with fludarabine + cyclophosphamide lymphodepletion versus partial depletion on cyclophosphamide alone .
• Strong liquidity: $316.5M in cash and investments at 9/30, with runway “into 2029,” providing resilience to extend trials and reach clinical milestones .

What Went Wrong

• Catalyst timing deferred: preliminary data previously guided for H2’25 was updated to presentation in 2026, pushing the timeline for potential value inflections .
• Continued losses typical of clinical-stage biotech: net loss of $21.7M and absence of reported revenue line items (operating loss equals total operating expenses), highlighting reliance on financing and non-operating income .
• Interest income fell year-over-year in Q3 ($3.852M vs $5.453M), partially offset by higher other income (expense), net, but still reflecting pressure as cash balances decline with spend .

Financial Results

Quarterly P&L and Cash (oldest → newest)

Q3 Year-over-Year Comparison

Estimates vs Actuals (Q3 2025)

Values retrieved from S&P Global.*

KPIs and Operational Metrics

Guidance Changes

Earnings Call Themes & Trends

(Transcript unavailable in our document set; trends derived from Q1–Q3 press releases.)

Management Commentary

• “Following productive engagement with the FDA, we streamlined enrollment across our Ntrust-1 and Ntrust-2 clinical trials under a combined iDSMB… removal of a patient-by-patient stagger… strengthens the efficiency of our trial enrollment and underscores the consistency of NKX019’s emerging safety profile.” — Paul J. Hastings, CEO .
• “With the modification of our lymphodepletion regimen… we are now seeing complete B-cell depletion in all patients treated to date… compared with partial B-cell depletion observed with patients receiving cyclophosphamide alone.” — Paul J. Hastings, CEO .
• “We plan to present data… at a medical conference in 2026… With a strong balance sheet projected to fund operations into 2029, we are now poised to meaningfully advance our clinical program in this challenging capital environment.” — Paul J. Hastings, CEO .

Q&A Highlights

• An earnings call transcript was not available in our document set or Nkarta’s IR page for Q3 2025; this recap relies on press releases for narrative and clarifications .

Estimates Context

• EPS modestly beat consensus by ~$0.013 (actual -$0.29 vs -$0.303), reflecting slightly higher total other income and stable operating expense levels .*
• Revenue consensus was $0.00; the company did not disclose a revenue figure and reported no revenue line item in condensed statements, consistent with clinical-stage status .*
• Given the timing shift to 2026 for initial data, near-term estimates may need to reflect fewer imminent clinical catalysts and extended timelines for potential de-risking .*

Values retrieved from S&P Global.*

Key Takeaways for Investors

• Protocol and governance changes (combined iDSMB; no stagger; parallel dosing) should accelerate trial throughput, potentially compressing timelines within dose escalation despite the shift in external data presentation to 2026 .
• Pharmacodynamic signal strengthened: complete B-cell depletion with dual lymphodepletion increases confidence in mechanism-of-action for B-cell–driven autoimmune diseases .
• Liquidity remains a strategic advantage (runway into 2029), allowing disciplined execution without near-term financing overhang, despite ongoing operating losses typical of clinical-stage biotechs .
• Near-term stock narrative likely pivots to operational cadence (cohort progress, enrollment rates) rather than major data catalysts in 2025; watch investor conference commentary and IR events for incremental updates .
• EPS beat was minor; financial trajectory driven by operating spend and other income; watch quarterly cash burn and any shifts in interest income as cash balances step down .
• The H2’25 → 2026 data timing update is a negative for immediate catalysts; however, the improved enrollment mechanics and PD signal can offset sentiment if execution remains consistent .
• Key upcoming signals: confirmation of safety consistency at higher doses, enrollment velocity in cohort 2, and any indications of early clinical response measures shared at medical meetings .