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Prime Medicine, Inc. (PRME)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered modest collaboration revenue but a wider GAAP net loss; EPS of $-0.40 missed S&P Global consensus of $-0.31*, while revenue of $1.45M was below the $3.43M* consensus .
  • Operating expense growth (lab buildout and personnel) drove the loss; R&D rose to $40.6M and G&A to $13.3M YoY .
  • Guidance maintained: cash, cash equivalents, investments, and restricted cash of $158.3M fund operations into 1H 2026 .
  • Near-term catalyst: initial clinical data from Cohort 1 in PM359 for p47phox CGD expected in 2025; management sees potential pipeline read-through if positive .

What Went Well and What Went Wrong

What Went Well

  • Pipeline execution: management highlighted advancing liver franchise (Wilson’s Disease PM577 IND/CTA 1H 2026) and unveiling an AATD program targeting the SERPINA1 E342K mutation with in vivo restoration of wild-type protein to normal range .
  • Strategic confidence: “If positive, these data would demonstrate the potential of Prime Editing…potentially capable of offering curative benefit to patients following a single treatment” — CEO Keith Gottesdiener .
  • Revenue increased YoY: total revenue rose to $1.454M vs. $0.591M in Q1 2024, driven by related-party collaboration revenue .

What Went Wrong

  • EPS and revenue missed S&P Global consensus: EPS $-0.40 vs. $-0.31*; revenue $1.45M vs. $3.43M* — a notable shortfall vs. sell-side expectations .
  • Elevated OpEx: R&D expenses increased to $40.6M (lab expansion/buildout), G&A to $13.3M (personnel), pressuring GAAP net loss to $51.9M from $45.8M YoY .
  • Cash drawdown: cash, cash equivalents, investments, and restricted cash fell to $158.3M from $204.5M at year-end 2024, reflecting funding of ongoing programs .

Financial Results

Income Statement Comparison vs Prior Year and Prior Quarter (GAAP)

MetricQ1 2024Q3 2024Q1 2025
Revenue ($USD Millions)$0.591 $0.209 $1.454
Diluted EPS ($USD)$-0.44 $-0.44 $-0.40
Total Operating Expenses ($USD Millions)$48.932 $54.441 $53.846
Net Loss ($USD Millions)$45.761 $52.518 $51.890

Q1 2025 Actuals vs S&P Global Consensus

MetricS&P Global ConsensusActualOutcome
Revenue ($USD)$3,432,330*$1,454,000 Miss
Primary EPS ($USD)$-0.3126*$-0.40 Miss
# of Estimates (EPS / Revenue)8* / 9*——

Values retrieved from S&P Global.*

Revenue Breakdown

Metric ($USD Thousands)Q1 2024Q1 2025
Collaboration revenue — related party$0 $1,454
Collaboration revenue — non-related party$591 $0
Total Revenue$591 $1,454

KPIs and Operating Drivers

KPIQ1 2024Q3 2024Q1 2025
R&D Expense ($USD Millions)$37.774 $40.340 $40.562
G&A Expense ($USD Millions)$11.158 $14.101 $13.284
Weighted-Average Shares (Basic & Diluted)104,466,178 119,764,270 130,884,490
Cash, cash equivalents, investments + restricted cash ($USD Millions)—$189.6 $158.3
Cash, cash equivalents, and investments ($USD Thousands)—$175,527 $144,256

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash runwayAs of 9/30/2024 (Q3 2024) → forwardInto 1H 2026 ——
Cash runwayAs of 12/31/2024 (FY 2024) → forwardInto 1H 2026 ——
Cash runwayAs of 3/31/2025 (Q1 2025) → forward—Into 1H 2026 Maintained

No revenue, margin, OpEx, OI&E, tax, dividend guidance was provided in Q1 2025 materials .

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript was available; investor site lists the press release and related materials but not a transcript as of the publication date .

TopicPrevious Mentions (Q3 2024 & FY 2024)Current Period (Q1 2025)Trend
CGD (PM359) clinical data timingPhase 1/2 initiated; initial data in 2025 Initial Cohort 1 data expected 2025; read-through potential across pipeline Steady toward catalyst
Wilson’s Disease (PM577)In vivo PoC; IND/CTA 1H 2026; LNP platform detail IND/CTA remains on-track for 1H 2026 Consistent progression
AATD programNot highlighted in Q3/FY press releaseUnveiled program; in vivo data restoring M-AAT to normal range; IND/CTA mid-2026 New positive addition
Partnerships (BMS)$110M upfront + >$3.5B milestones potential Mentioned as part of broader pipeline support Ongoing strategic pillar
CF programSupported by Cystic Fibrosis Foundation Continued progression noted Ongoing execution

Management Commentary

  • “We recently unveiled our AATD program…Both our Wilson’s Disease and AATD programs are advancing through preclinical development, and we look forward to initiating clinical trials in both indications in 2026.” — Keith Gottesdiener, M.D., President & CEO .
  • “We remain on track to report initial data from our Phase 1/2 trial of PM359 in CGD this year, and continue to progress our efforts in CF.” — Keith Gottesdiener, M.D. .
  • “If positive, these data would demonstrate the potential of Prime Editing…potentially capable of offering curative benefit to patients following a single treatment.” — Keith Gottesdiener, M.D. .

Q&A Highlights

No Q1 2025 earnings call transcript was available from company IR resources as of the press release publication; therefore, Q&A highlights are not available .

Estimates Context

  • Q1 2025 EPS of $-0.40 missed S&P Global consensus of $-0.3126*; revenue of $1.454M missed $3.432M*, reflecting lower-than-expected collaboration revenue recognition in the quarter .
  • Sell-side models may need to reflect higher near-term OpEx (lab buildout, personnel) and cadence of collaboration revenue; monitor upcoming PM359 data as the key driver of estimate revisions rather than near-term revenue .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • EPS and revenue missed S&P Global consensus in Q1; near-term stock narrative hinges on PM359 CGD data expected in 2025 and perceived pipeline read-through if positive .
  • OpEx discipline will be critical; R&D and G&A growth (lab expansion and personnel) were the principal drivers of the wider net loss .
  • Guidance maintained: cash runway into 1H 2026; cash, cash equivalents, investments, and restricted cash at $158.3M (cash & investments on balance sheet $144.3M) .
  • Liver franchise strengthening with AATD added and Wilson’s on-track for clinical entry in 1H 2026; positioning for broader liver indications over time .
  • Short-term trading implication: sentiment likely tied to CGD readout timing and quality; a positive dataset could catalyze a re-rating given management’s emphasis on cross-pipeline validation .
  • Medium-term thesis: platform durability and safety (LNP delivery, lack of detectable off-target edits in preclinical data for Wilson’s) remain central to value creation, alongside strategic partnerships .
  • Monitor collaboration revenue cadence versus expectations to avoid quarterly estimate gaps; S&P Global consensus variances in Q1 highlight sensitivity to timing of revenue recognition.*

References:
Q1 2025 8-K press release and exhibits ; FY 2024 press release ; Q3 2024 press release .