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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)
Notes: Net income margin and EBITDA margin are not meaningful given zero product revenue.
Results vs Wall Street consensus (S&P Global)
Values retrieved from S&P Global.*
KPIs (operational/financial)
Guidance Changes
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.
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 .