PB
Passage BIO, Inc. (PASG)·Q2 2025 Earnings Summary
Executive Summary
- Q2 2025 delivered a narrower net loss ($9.4M) with lower R&D ($5.8M) and G&A ($4.5M), and an adjusted diluted EPS of -$2.96; cash, cash equivalents and marketable securities were $57.6M with runway into 1Q 2027 .
- EPS beat Street by $1.19 (28.7%) vs S&P Global consensus of -$4.15, while revenue remained at zero; the beat was driven by continued OpEx reductions and other income *.
- Clinical execution advanced: completed dosing of FTD-GRN Cohort 2; updated interim data reaffirmed robust CSF PGRN elevation and improvement in plasma NfL vs natural history; protocol amendment submitted to sites and authorities .
- Near-term catalysts: 2H 2025 feedback on manufacturing comparability; 1H 2026 interim safety/biomarker data from Dose 2 and regulatory feedback on registrational pathway—plus a July 1-for-20 reverse split to maintain Nasdaq compliance, which also affects per-share optics .
What Went Well and What Went Wrong
What Went Well
- Completed dosing of FTD-GRN Cohort 2; Patient 9 treated with Dose 2 in July, enabling next cohorts (FTD-GRN Cohort 3 and FTD-C9orf72 Cohort 4) post-protocol amendment approvals .
- Biomarkers: Dose 1 produced robust, durable CSF PGRN increases through 18 months; first Dose 2 patient rose from 1.5 to 7.6 ng/mL at 1 month, approaching upper healthy adult range; plasma NfL annual rate of change reduced vs natural history .
- Cost discipline: R&D ($5.8M) and G&A ($4.5M) declined y/y; net loss narrowed to $9.4M; cash runway into 1Q 2027 maintained .
Management quote: “We continue to be encouraged by the emerging data from our upliFT-D clinical trial… We look forward to initiating enrollment of our third FTD-GRN and first FTD-C9orf72 patient cohorts…” — Will Chou, M.D., President & CEO .
What Went Wrong
- Safety events: cumulative SAEs include venous sinus thrombosis, hepatotoxicity (Dose 1), and a pulmonary embolism for the first Dose 2 patient amid a systemic infection; though events resolved with management, they necessitated protocol changes (prophylactic low-dose anticoagulation) .
- No revenue; sustained operating losses continue while awaiting pivotal-path clarity, with equity dilution optics highlighted by the July reverse split to preserve listing compliance .
- Equity and assets continued to decline q/q as cash was deployed (Equity fell to $38.3M from $46.7M in Q1 and $61.3M in Q4; Total assets to $79.2M from $86.0M and $102.4M) .
Financial Results
P&L Summary (quarterly)
Note: Q2 2025 EPS is adjusted for the 1-for-20 reverse split; prior periods may not be split-adjusted .
YoY Comparison (Q2)
Balance Sheet KPIs
Results vs Estimates (Q2 2025)
Values retrieved from S&P Global.*
Guidance Changes
Earnings Call Themes & Trends
Note: No Q2 2025 earnings call transcript was found in the document catalog; themes reflect prepared remarks/press releases [ListDocuments earnings-call-transcript shows no 2025 transcripts].
Management Commentary
- “We continue to be encouraged by the emerging data from our upliFT-D clinical trial… We look forward to initiating enrollment of our third FTD-GRN and first FTD-C9orf72 patient cohorts…” — Will Chou, M.D., President & CEO .
- “We made steady progress… We expect these data to foster meaningful engagement with health authorities in the first half of 2026...” — Will Chou, M.D. (Q1) .
- “We are pleased to report strong performance in 2024… delivering promising data… and are well-positioned for late-stage development.” — Will Chou, M.D. (FY 2024) .
Q&A Highlights
- No Q2 2025 earnings call transcript was found in the catalog (last available transcripts end in 2023), suggesting the company did not file a Q2 2025 call transcript; therefore, no Q&A themes are available [ListDocuments earnings-call-transcript].
Estimates Context
- EPS beat: Actual -$2.96 vs consensus -$4.15, a positive variance of $1.19 (28.7%); consensus based on 4 estimates* .
- Revenue: consensus and actual at $0.0; estimates typically reflect no product revenues for clinical-stage biotech*.
Values retrieved from S&P Global.*
Key Takeaways for Investors
- OpEx discipline is meaningful: R&D and G&A declines narrowed quarterly and y/y losses, contributing to the EPS beat vs consensus; continued cost control supports runway into 1Q 2027 .
- Clinical momentum: completion of Cohort 2 and protocol amendment set up multi-cohort progression (FTD-GRN and FTD-C9orf72) with biomarkers supporting potential best-in-class CSF PGRN elevation and NfL trajectory improvements .
- Risk management: proactive anticoagulation and refined inclusion criteria address SAE learnings, potentially improving benefit-risk perception ahead of next data updates .
- Near-term catalysts: 2H 2025 manufacturing comparability feedback and 1H 2026 regulatory feedback could reset probability-of-success assumptions and drive estimate revisions .
- Reverse split and listing optics: the 1-for-20 action preserves Nasdaq compliance, impacts per-share metrics, and may reduce perceived delisting risk—a trading sentiment consideration .
- Equity and assets trending lower as cash is deployed; expect continued need for disciplined capital planning (and potentially external capital) ahead of pivotal design clarity .
- With no revenue, stock narrative remains biomarker/safety/regulatory-catalyst driven; clear communication on registrational pathway and external controls (natural history databases) will be key for medium-term thesis .
Appendix: Source Documents Reviewed
- Q2 2025 8-K 2.02 press release and exhibits (financials and corporate presentation) .
- Prior quarters: Q1 2025 8-K 2.02 press release and exhibits ; Q4 2024 8-K 2.02 press release and exhibits .
- Other relevant press releases: Updated interim upliFT-D data (June 23, 2025) ; Reverse stock split announcement (July 10, 2025) .