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Prelude Therapeutics Inc (PRLD)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered steady execution in SMARCA2 programs with PRT3789 dose escalation completed and PRT7732 enrolling rapidly; cash, cash equivalents, restricted cash and marketable securities were $103.1M, with runway maintained into Q2 2026 .
  • EPS was a smaller loss than consensus: actual diluted EPS was $(0.42) vs Wall Street consensus mean of $(0.465); revenue was $0 against a $0.0 estimate, reflecting the company’s clinical-stage profile; estimates based on 2 covering analysts; this constitutes a modest beat on EPS* .
  • Operating expenses totaled $34.6M (R&D $28.8M; G&A $5.8M); net loss was $32.1M, largely flat year over year (Q1 2024 net loss $31.4M), consistent with increased SMARCA2 clinical spend and lower G&A stock-based comp .
  • Near-term catalysts: PRT3789 updated results (monotherapy and docetaxel combo) 2H 2025; first-in-human interim data for oral PRT7732 2H 2025; ongoing Phase 2 pembrolizumab combo trial—potential readouts could influence sentiment and valuation .

What Went Well and What Went Wrong

What Went Well

  • Completed enrollment in PRT3789 monotherapy dose escalation and selected 500 mg QW IV as the RP2D; combination dose escalation with docetaxel nearing completion; Phase 2 pembrolizumab combo trial underway .
  • Rapid progress in PRT7732 (oral SMARCA2 degrader), with multiple sites activated and no DLTs or safety signals observed in initial cohorts; interim data expected in 2025 .
  • Management reiterated disciplined execution and highlighted first preclinical data in selective KAT6A degraders, aiming to enhance efficacy and safety over dual KAT6A/B inhibition: “Selectively degrading KAT6A may hold the key to enhancing the efficacy and improving the safety profile…” — Kris Vaddi, Ph.D. .

What Went Wrong

  • No product revenue; net loss widened slightly YoY to $(32.1)M from $(31.4)M as R&D increased with SMARCA2 clinical trial activity .
  • Cash and marketable securities declined from $133.6M at 12/31/2024 to $103.1M at 3/31/2025, reflecting spend rate even as runway guidance was maintained into Q2 2026 .
  • Limited visibility on near-term registrational timelines; while RP2D was set for PRT3789, narrative remains focused on dose optimization/backfills and pending data presentations, sustaining timing risk .

Financial Results

Quarterly financials comparison (oldest → newest)

MetricQ1 2024Q3 2024Q1 2025
Revenues ($USD Millions)$0.0 $3.0 $0.0
R&D Expense ($USD Millions)$27.4 $29.5 $28.8
G&A Expense ($USD Millions)$6.9 $7.9 $5.8
Total Operating Expenses ($USD Millions)$34.3 $37.4 $34.6
Other Income, net ($USD Millions)$2.9 $2.1 $2.5
Net Loss ($USD Millions)$(31.4) $(32.3) $(32.1)
Diluted EPS ($USD)$(0.42) $(0.43) $(0.42)
Weighted Avg Shares (Millions)75.736 75.856 75.986
Cash & Marketable Securities ($USD Millions)$133.6 (12/31/2024) $153.6 (9/30/2024) $103.1 (3/31/2025)

Notes: Net income margin and EBITDA margin are not meaningful given zero product revenue.

Results vs Wall Street consensus (S&P Global)

MetricConsensus Q1 2025Actual Q1 2025Surprise
Primary EPS (USD)$(0.465)*$(0.42) Beat by $0.045*
Revenue ($USD Millions)$0.0*$0.0 In line*

Values retrieved from S&P Global.*

KPIs (operational/financial)

KPIQ1 2025Prior Period
Cash, cash equivalents, restricted cash & marketable securities ($USD Millions)$103.1 (as of 3/31/2025) $133.6 (as of 12/31/2024)
Runway guidanceInto Q2 2026 Into Q2 2026
PRT3789 statusMonotherapy escalation complete; RP2D 500 mg QW; combo escalation near completion; Phase 2 pembrolizumab combo underway Monotherapy escalation nearing conclusion; combo enrollment ongoing
PRT7732 statusPhase 1 dose escalation ongoing; initial data 2H 2025 Phase 1 initiated (Q4 2024)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash runwayThrough Q2 2026Into Q2 2026 (as of 12/31/2024) Into Q2 2026 (as of 3/31/2025) Maintained
PRT3789 data update (mono & docetaxel combo)2H 2025Additional results 2H 2025 Updated data 2H 2025 Maintained
PRT7732 initial clinical update2H 2025Interim data 2H 2025 Initial first-in-human data 2H 2025 Maintained
PRT3789 + pembrolizumab Phase 2OngoingInitiated Phase 2 per Merck collaboration Enrolling patients Progressing

No formal quantitative guidance provided on revenue, margins, OpEx, OI&E, or tax rate in Q1 2025 .

Earnings Call Themes & Trends

Note: A Q1 2025 earnings call transcript was not available; themes reflect management’s Q1 press release and investor materials.

TopicPrevious Mentions (Q3 2024)Previous Mentions (FY 2024/Q4)Current Period (Q1 2025)Trend
SMARCA2 degraders (PRT3789 IV)Clinical PoC; monotherapy responses; combo acceptable safety Monotherapy escalation near conclusion; combo ongoing; Phase 2 pembrolizumab initiated Monotherapy escalation completed; RP2D 500 mg QW; combo near completion; Phase 2 pembrolizumab enrolling Advancing to defined dose, broadening combos
SMARCA2 degraders (PRT7732 oral)Phase 1 initiated Phase 1 initiated; interim data planned 2H 2025 Rapid enrollment; initial data update 2H 2025; no DLTs in early cohorts Accelerating enrollment; de-risking with safety
KAT6A selective degradersEarly preclinical described; synergy potential Program advancing; IND planned 2026 First preclinical data presented; selective degradation aimed at improved efficacy/tolerability Platform maturation; clearer path to IND
Precision ADCs (degrader payloads)First preclinical data; multiple antibody payloads Platform progress; in vivo efficacy vs cytotoxic ADC Continued validation; candidate nomination anticipated in 2025 Building toward candidate selection
Cash runway and financial disciplineRunway into 2026 Into Q2 2026 Into Q2 2026; cash $103.1M Runway maintained despite spend

Management Commentary

  • “We are making rapid progress with the development of our SMARCA2 degraders and are on track to determine the most optimal path forward for the overall program…” — Kris Vaddi, Ph.D., CEO .
  • “Selectively degrading KAT6A may hold the key to enhancing the efficacy and improving the safety profile for cancer patients beyond what has previously been demonstrated by non-selective KAT6A/B inhibitors.” — Kris Vaddi, Ph.D., CEO .
  • “Cash, cash equivalents, restricted cash and marketable securities as of March 31, 2025 were $103.1 million… fund operations into the second quarter of 2026.” .

Q&A Highlights

No Q1 2025 earnings call transcript was available; Q&A themes and clarifications could not be retrieved from primary sources.

Estimates Context

  • EPS beat: Actual diluted EPS $(0.42) vs consensus $(0.465), a positive surprise; revenue in line at $0 given clinical-stage profile.*
  • Only two estimates cover EPS and revenue, implying limited analyst participation; revisions may gravitate to operating expense run-rate and cash runway assumptions rather than top-line.*
  • With pending 2H 2025 clinical updates (PRT3789 and PRT7732), near-term estimate changes likely hinge on safety/activity signals and potential advancement paths.*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Prelude delivered an EPS beat despite zero revenue, reflecting disciplined G&A and controllable OI&E; cash runway guidance remained intact into Q2 2026, lowering financing overhang near-term .
  • Program momentum continues: PRT3789 RP2D set (500 mg QW IV), combo near completion, and pembrolizumab Phase 2 enrolling—foundation for forthcoming efficacy/safety disclosures 2H 2025 .
  • Oral PRT7732 shows de-risking signs (no initial DLTs, rapid enrollment); first clinical update in 2H 2025 could reshape SMARCA2 strategy and patient convenience narrative .
  • Selective KAT6A degraders advance with compelling preclinical efficacy and potential tolerability advantages versus dual KAT6A/B inhibitors—adds breadth to the precision oncology story and future optionality .
  • Trading setup: stock likely to be catalyst-driven around 2H 2025 readouts; interim updates could affect sentiment and capital needs expectations; maintain awareness of cash trajectory (declined to $103.1M as of 3/31/2025) .
  • Risk considerations: absence of product revenue, dependence on clinical data quality/timing, and ongoing spend in SMARCA2 programs; however, runway guidance provides visibility into mid-2026 .
  • Actionable: position sizing should reflect binary clinical inflections; monitor forthcoming congress disclosures for response durability (PRT3789) and first-in-human signals (PRT7732) to reassess probability-weighted outcomes .