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Prelude Therapeutics Inc (PRLD)·Q2 2025 Earnings Summary

Executive Summary

  • EPS modest beat on lower OpEx: Q2 2025 GAAP EPS was -$0.41 vs S&P Global consensus -$0.43, a ~$0.02 beat, driven by lower R&D and G&A year over year; no revenue was recognized . R&D fell to $25.8M (vs $29.5M YoY) and G&A to $6.4M (vs $7.7M YoY) .
  • Strategic pivot: Company completed Phase 1 for IV SMARCA2 degrader PRT3789 and will pause further internal development to focus resources on oral SMARCA2 degrader PRT7732 (now in dose cohort 7, 125 mg QD; initial PK/PD, safety, and activity update by YE25) .
  • Pipeline milestones maintained: Final PRT3789 Phase 1 data by YE25; KAT6A oral degrader on track for IND in 1H26 .
  • Liquidity: $77.3M cash, cash equivalents, restricted cash, and marketable securities at 6/30/25; runway into 2Q26, consistent with prior communication .

What Went Well and What Went Wrong

  • What Went Well

    • Focused capital allocation and operating discipline reduced OpEx YoY; management cited lower SMARCA2 trial costs in R&D and lower valuation-driven stock comp in G&A as key drivers .
    • Oral SMARCA2 degrader PRT7732 advancing rapidly through dose escalation (seventh cohort, 125 mg QD), with >90% target degradation and once-daily oral profile positioning for broader clinical exploration .
    • KAT6A program progressing to a development candidate; IND timing reiterated for 1H26, supported by preclinical data suggesting potency, selectivity, and potential tolerability advantages vs dual KAT6A/B inhibitors .

  • What Went Wrong

    • IV SMARCA2 degrader PRT3789 paused for further internal development despite completing Phase 1; decision reflects need for higher target coverage across dosing interval and capital prioritization, introducing program discontinuity risk absent a partner .
    • Continued losses with no recognized product revenue; Q2 net loss was $31.2M (vs $34.7M YoY), underscoring ongoing financing dependence despite runway into 2Q26 .
    • Listing risk context from prior quarter persists: company disclosed Nasdaq minimum bid price deficiency notice in Q1 10-Q, adding market overhang until resolved .

Financial Results

Note: Prelude did not present revenue; statements of operations comprised operating expenses, other income, and net loss.

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)— — —
Research & Development Expense ($M)$29.51 $28.82 $25.78
General & Administrative Expense ($M)$7.66 $5.79 $6.41
Total Operating Expenses ($M)$37.16 $34.61 $32.19
Loss from Operations ($M)$(37.16) $(34.61) $(32.19)
Other Income, net ($M)$2.42 $2.52 $0.96
Net Loss ($M)$(34.74) $(32.09) $(31.23)
GAAP Diluted EPS ($)$(0.46) $(0.42) $(0.41)
Weighted Avg Shares (Basic & Diluted) (M)75.76 75.99 75.99
Cash, Cash Equivalents, Restricted Cash & Marketable Securities (Period-End) ($M)$133.6 (12/31/24) $103.1 (3/31/25) $77.3 (6/30/25)

Estimate comparison (S&P Global consensus):

MetricQ2 2024Q1 2025Q2 2025
GAAP EPS Actual ($)$(0.46) $(0.42) $(0.41)
GAAP EPS Consensus Mean ($)$(0.43)*$(0.47)*$(0.43)*
Beat/(Miss) vs Consensus ($)$(0.03)*+$0.05*+$0.02*

Values retrieved from S&P Global.

KPIs and Operating Items:

KPIQ2 2024Q1 2025Q2 2025
PRT7732 Dose Cohort—Enrolling cohort 5 (60 mg QD) Enrolling cohort 7 (125 mg QD)
PRT3789 StatusPhase 1 ongoing Phase 1 nearing completion Phase 1 completed; paused internally; partner-only path
Cash Runway—Company indicated cash not sufficient for 12 months at filing; substantial doubt (pre-8/14 update) Runway into 2Q26

Segment reporting: Company operates as a single segment .

Guidance Changes

Metric/ProgramPeriodPrevious GuidanceCurrent GuidanceChange
PRT7732 (oral SMARCA2) initial data update (PK/PD, safety, initial activity)2H 2025“Interim data update in 2H 2025” “Initial first-in-human data incl. PK/PD, safety, initial activity by YE 2025” Maintained (timing refined)
PRT3789 (IV SMARCA2) development path2025+Phase 1 monotherapy/combination ongoing; KEYTRUDA combo initiated Phase 1 completed; further advancement only in context of partnership; internal resources focused on PRT7732 Lowered/Paused internally
PRT3789 final Phase 1 dataYE 2025“Additional results 2H 2025” “Final data by YE 2025” Clarified/maintained
KAT6A oral degrader IND1H 2026“On track for IND 1H 2026” “On track for IND 1H 2026” Maintained
Cash runwayThrough 2Q26“Runway into 2Q26” (12/31/24) “Runway into 2Q26” (6/30/25) Maintained

Earnings Call Themes & Trends

Note: An earnings call transcript for Q2 2025 was not available in our document set; themes below draw from the press release and the 8‑K investor presentation.

TopicPrevious Mentions (Q4 2024; Q1 2025)Current Period (Q2 2025)Trend
SMARCA2 strategy3789 Phase 1 progressing; proof-of-concept signals; KEYTRUDA combo initiated; 7732 Phase 1 initiated, rapid enrollment 3789 Phase 1 completed; internal pause; focus shifts to oral 7732 with cohort 7, YE25 first data Shift to oral-only internal focus
R&D execution and OpEx disciplineRising SMARCA2 trial spend; overall OpEx managed; no revenue YoY R&D and G&A down; lower SMARCA2 trial costs and lower stock comp Improved cost discipline
KAT6A programAdvancing selective KAT6A degraders; preclinical data supporting potency/selectivity; IND 1H26 Advancing a development candidate; IND 1H26 reiterated On plan
Precision ADCs / AbCellera partnershipExpanding degrader payload platform; initial POC presented; up to five programs with AbCellera Continued platform progress; multiple payload generations and tumor models highlighted in investor deck Broadening preclinical base
Capital/Listing riskSubstantial doubt and Nasdaq bid price notice disclosed in Q1 10-Q Runway updated to 2Q26; listing risk context unchanged in Q2 materials Liquidity reiterated; listing risk still relevant (from Q1)

Management Commentary

  • “We’ve decided to pause further development of PRT3789, and focus solely on PRT7732 as our go-forward strategy for our SMARCA2 Program…including the potential need for higher target coverage throughout the dosing interval, and capital needs to continue to advance both agents.” – Kris (Krisna) Vaddi, Ph.D., CEO .
  • “PRT7732…is currently enrolling our seventh dose cohort of 125 mg [QD]…positions us well to explore the potential for this mechanism in SMARCA4 deleted cancers and determine the path forward for continued development by year end.” – CEO .
  • “We’ve made significant progress across our…R&D organization, while employing disciplined capital management…advance our KAT6A degrader program, on track for IND filing in the first half of 2026…” – CEO .

Q&A Highlights

  • No Q2 2025 earnings call transcript was available in our document set; therefore, Q&A themes and any on-call guidance clarifications could not be reviewed. We searched for “earnings-call-transcript” for PRLD between 2025-06-01 and 2025-09-30 and found none in the repository; only investor conference transcripts were available [Goldman Sachs, Jefferies] .

Estimates Context

  • EPS beat: GAAP EPS -$0.41 vs -$0.43 consensus; beat $0.02 on lower YoY OpEx (R&D/G&A), as management cited reduced SMARCA2 clinical trial costs and lower stock-based comp ; Q1 2025 EPS also beat ($0.05) while Q2 2024 missed (~$0.03) *.
  • Revenue: Consensus modeled $0 in each period; no product revenue reported *.

Values retrieved from S&P Global.

Key Takeaways for Investors

  • Strategic consolidation to oral SMARCA2 (PRT7732) should streamline development and capital deployment; look for YE25 interim data as the next major catalyst .
  • Decision to pause internal work on PRT3789 reduces spend and complexity but introduces partnering execution risk for any further advancement of the IV asset .
  • Operating discipline is visible: YoY reductions in R&D and G&A narrowed net loss and supported the modest EPS beat, despite lower other income in Q2 .
  • KAT6A degrader remains a 2026 IND event with compelling preclinical differentiation; watch for continued preclinical disclosures and partnering interest .
  • Liquidity runway into 2Q26 provides time to reach PRT7732 and PRT3789 YE25 data milestones; however, financing and listing overhang from Q1 disclosures remain broader risk considerations until resolved .
  • Trading setup: Near-term stock catalysts hinge on 2H25/YE25 readouts (PRT7732, PRT3789 final Phase 1 data); interim news flow from KAT6A and Precision ADC preclinical updates could incrementally shape sentiment –.

Footnotes:

  • Values retrieved from S&P Global.

Citations:

  • Q2 2025 press release (financials, strategy, cash):
  • 8‑K with Item 2.02 and investor presentation excerpts: – –
  • Q1 2025 10‑Q (sequential comps, segment, risk context):
  • FY24 press release (prior context): –
  • AACR press release (KAT6A/PRT3789 preclinical): –