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Passage BIO, Inc. (PASG)·Q3 2025 Earnings Summary
Executive Summary
- Q3 2025 EPS beat: PASG reported GAAP diluted EPS of -$2.44 vs Wall Street consensus -$2.97, driven by lower R&D and G&A spend; revenue remained $0 as the company is pre-commercial . EPS beats also occurred in Q2; Q1 missed versus consensus as reported on a post-split basis *.
- Operating expenses declined materially year over year: R&D fell to $4.3M (from $8.7M) and G&A to $4.3M (from $7.3M), narrowing net loss to $7.7M (from $19.3M) .
- Key strategic progress: FDA alignment on analytical comparability for the suspension-based PBFT02 process, active enrollment of Cohort 3 (FTD-GRN) and Cohort 4 (FTD-C9orf72) in upliFT-D, and cash runway guided into 1Q 2027, supporting late-stage development readiness .
- Near-term catalysts: Updated interim safety/biomarker data from Dose 2 and FDA feedback on FTD-GRN registrational study design targeted for 1H 2026; continued enrollment updates can drive sentiment .
- No public Q3 2025 earnings call transcript located; analysis relies on 8-K press release and corporate presentation (Q3 2025) .
What Went Well and What Went Wrong
What Went Well
- FDA alignment on analytical comparability to enable future use of high-productivity suspension-based manufacturing for PBFT02 in a registrational study; single batch estimated to yield >1,000 doses at Dose 2 with >90% purity and >70% full capsids . “We completed a successful meeting with the FDA where we aligned on key elements of an analytical comparability plan…” — Will Chou, CEO .
- Clinical execution: Enrollment opened for Cohort 3 (FTD-GRN, Dose 2) and Cohort 4 (FTD-C9orf72, Dose 2), with protocol amendments implemented across sites to optimize patient eligibility and add prophylactic anticoagulation .
- Expense discipline: Y/Y reductions in R&D ($4.3M vs $8.7M) and G&A ($4.3M vs $7.3M) narrowed net loss ($7.7M vs $19.3M) and supported an EPS beat vs consensus *.
What Went Wrong
- Pre-revenue status persists (no product revenue), leaving results reliant on operating expense control rather than top-line growth .
- Ongoing safety management within upliFT-D: prior quarters referenced venous sinus thrombosis and hepatotoxicity in certain patients (mitigated with revised immunosuppression and low-dose anticoagulation), highlighting clinical risk profile typical for gene therapy .
- Continued cash burn despite lower OpEx: cash, cash equivalents and marketable securities declined to $52.8M (from $57.6M in Q2 and $63.4M in Q1), maintaining the need for capital discipline ahead of 1H 2026 milestones .
Financial Results
EPS vs Prior Periods and Estimates
Values marked with * retrieved from S&P Global.
Revenue and Margins
Values marked with * retrieved from S&P Global.
Operating Expense and Cash Trend
Segment breakdown: Not applicable (no reported revenue segments) .
KPIs: Clinical progress indicators (cohort enrollment milestones, biomarker updates) disclosed in press release and corporate presentation, with CSF PGRN durability and plasma NfL trends referenced as program metrics rather than commercial KPIs .
Guidance Changes
Earnings Call Themes & Trends
Note: No public Q3 2025 earnings call transcript located; themes tracked from quarterly press materials and corporate presentations .
Management Commentary
- “We are pleased to report that we have opened enrollment in our third FTD-GRN and first FTD-C9orf72 patient cohorts in our ongoing upliFT-D clinical trial of PBFT02… we completed a successful meeting with the FDA where we aligned on key elements of an analytical comparability plan…” — Will Chou, M.D., President & CEO .
- “We continue to be encouraged by the emerging data from our upliFT-D clinical trial, which underscore the potential of PBFT02…” — Will Chou, M.D., on Cohort 2 completion and protocol submission .
Strategic messages:
- Focus on advancing PBFT02 with strong biomarker readouts and safety management, building toward a potential single-arm registrational design leveraging natural history data .
- Manufacturing readiness via suspension-based process with aligned analytical comparability supports late-stage and potential commercialization scale .
Q&A Highlights
- No publicly available Q3 2025 earnings call transcript was found; no Q&A themes to report .
Estimates Context
- Q3 2025: EPS actual -$2.44 vs consensus -$2.97 — beat by $0.53; revenue in-line at $0.0 (pre-commercial) *.
- Q2 2025: EPS actual -$2.96 vs consensus -$4.15 — beat by $1.19; revenue in-line at $0.0 *.
- Q1 2025: EPS actual -$5.00 (post-split equivalent) vs consensus -$4.47 — miss by $0.53; revenue in-line at $0.0 *.
Values marked with * retrieved from S&P Global.
Where estimates may need to adjust:
- Continued OpEx control and protocol amendments that facilitate enrollment could bias near-term EPS estimates modestly upward (less negative) absent unforeseen clinical or regulatory spend; revenue estimates remain at $0 until commercialization .
Key Takeaways for Investors
- EPS beats in Q2 and Q3 were achieved via disciplined OpEx control; with zero revenue, near-term earnings trajectory hinges on expense management and financing runway *.
- FDA alignment on analytical comparability is a meaningful de-risking milestone for PBFT02’s suspension-based manufacturing, supporting a registrational pathway discussion in 1H 2026 .
- Clinical momentum (Cohorts 3 and 4 enrollment) and planned biomarker/safety updates in 1H 2026 are key stock catalysts; watch for CSF PGRN durability and plasma NfL trends .
- Cash runway into 1Q 2027 reduces near-term financing risk but is sensitive to trial pace and scale-up costs; monitor quarterly cash and net loss trends .
- Safety management via revised immunosuppression and prophylactic anticoagulation addresses prior events; any new SAE disclosures could impact sentiment .
- Regulatory posture appears constructive; if FDA signals receptivity to single-arm natural history comparisons, the program’s timeline and risk profile improve .
- Near-term trading setup: headlines around enrollment progress and manufacturing readiness could support speculative momentum; downside risks include clinical AEs, regulatory delays, or cash pressure without partnering.
Additional sources:
- Q3 2025 Press Release via Yahoo/GlobeNewswire mirrors 8-K Exhibit 99.1 content .