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Prime Medicine, Inc. (PRME)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered the first clinical proof-of-concept for Prime Editing in humans (CGD), alongside a leadership transition and restructuring; however, financials remained pre-revenue with modest collaboration revenue and continued net losses .
  • EPS of -$0.41 missed Wall Street consensus of -$0.34 by -$0.07*, and revenue of $1.12M missed the $3.00M consensus by -$1.89M*, driven by limited collaboration revenue recognition and an R&D-heavy investment profile .
  • Cash runway materially extended: post follow-on offering and CF Foundation funding, management guided pro-forma liquidity to fund operations into 2027 vs prior guidance of into H1 2026 .
  • Strategic focus sharpened on the liver franchise (Wilson’s Disease, AATD), CF (with CF Foundation funding), and BMS-partnered Prime Edited CAR-T; regulatory interactions planned for CGD to explore efficient patient access pathways .

Values retrieved from S&P Global for estimate figures.

What Went Well and What Went Wrong

What Went Well

  • Positive clinical data from two CGD patients: rapid engraftment, restored NADPH oxidase activity well above therapeutic threshold, and normalization of inflammatory markers (fecal calprotectin from 15x ULN to normal by Day 45) .
  • Balance sheet strengthened: completed underwritten follow-on for $144.2M gross; CF Foundation committed up to $24M additional funding specifically for CF Prime Editors .
  • Clear strategic focus and cost discipline: restructuring and workforce reduction designed to cut anticipated cash needs by almost half through 2027; management emphasized “operating with efficiency and financial discipline” .
    • “Recent months have been transformative… providing the first clinical evidence that Prime Editing may cure genetic diseases in humans…” — Allan Reine, M.D., CEO .

What Went Wrong

  • Revenue and EPS missed consensus: revenue $1.12M vs $3.00M*, EPS -$0.41 vs -$0.34*, reflecting limited collaboration revenue and ongoing R&D investment .
  • R&D intensity remains high despite cuts: R&D expenses of $41.4M in Q2 (down YoY but still elevated), as the company advances multiple IND-enabling programs in liver and CF .
  • Net loss remains substantial at -$52.6M, though improved YoY; G&A rose YoY due to severance and legal costs, reflecting restructuring friction .

Values retrieved from S&P Global for estimate figures.

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$0.00 $1.45 $1.12
Net Loss ($USD Millions)$55.33 $51.89 $52.59
EPS ($USD)-$0.46 -$0.40 -$0.41
R&D Expenses ($USD Millions)$43.07 $40.56 $41.38
G&A Expenses ($USD Millions)$12.60 $13.28 $13.12
Revenue Composition ($USD Millions)Q2 2024Q1 2025Q2 2025
Collaboration revenue — related party$0.00 $1.45 $1.12
Collaboration revenue (other)$0.00 $0.00 $0.00
Total revenue$0.00 $1.45 $1.12
LiquidityQ1 2025Q2 2025
Cash, cash equivalents, investments, and restricted cash ($USD Millions)$158.30 $115.40
Pro-forma liquidity and runway guidanceNAPro-forma $259.6M; runway into 2027
Actuals vs S&P Global EstimatesQ1 2025Q2 2025
Revenue: Actual ($USD Millions)$1.45 $1.12
Revenue: Consensus* ($USD Millions)$3.43*$3.00*
Revenue Surprise ($USD Millions)-$1.98-$1.89
EPS: Actual ($USD)-$0.40 -$0.41
EPS: Consensus* ($USD)-$0.31*-$0.34*
EPS Surprise ($USD)-$0.09-$0.07

Values retrieved from S&P Global for estimate figures.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash runwayCorporate“into H1 2026” (as of 3/31/2025) “into 2027” (pro-forma $259.6M liquidity) Raised
PM577 (Wilson’s Disease) IND/CTA timingProgramFile IND/CTA in H1 2026 IND/CTA H1 2026; initial clinical data expected in 2027 Maintained timeline; added data timing
AATD IND/CTA timingProgramFile IND/CTA mid-2026 IND/CTA mid-2026; initial clinical data expected in 2027 Maintained timeline; added data timing
CGD (PM359) development pathProgramInitial data expected in 2025 Positive patient data; company will engage FDA; not advancing independently Strategic pivot toward regulatory interaction/partnerships

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available in our document and web searches; themes below reflect press releases and corporate presentation content .

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Regulatory/legalAnticipated CGD initial readout in 2025; Wilson’s IND/CTA in H1 2026 Plan FDA interactions on CGD dataset; maintain IND/CTA timelines; initial liver program data in 2027 Increasing regulatory engagement
R&D executionAdvancing liver (Wilson’s) and CF programs; unveiled AATD program Positive CGD clinical data; focused liver franchise; CF G542X prioritized Strengthened validation and prioritization
Funding/liquidityRunway into H1 2026 $144.2M follow-on; CF Foundation up to $24M; runway into 2027 Improved
PartnershipsOngoing BMS CAR-T collaboration BMS collaboration reaffirmed; CF Foundation expanded funding Expanding external support
Corporate strategyPipeline across liver, lung, immunology/oncology Leadership transition; restructuring to cut cash needs ~half through 2027 Tighter focus, cost discipline

Management Commentary

  • “We announced initial data from our CGD program, providing the first clinical evidence that Prime Editing may cure genetic diseases in humans... we enter the second half of 2025 in a position of strength, laser-focused on advancing our internally-funded programs to treat Wilson’s Disease and Alpha-1 Antitrypsin Deficiency...” — Allan Reine, M.D., CEO .
  • “Together, these [financing and CF Foundation funding] reflect a widespread belief in the transformative power of Prime Editing… conviction in our focused strategy…” — Allan Reine, M.D., CEO .
  • Prior quarter tone: “We look forward to initiating clinical trials in both indications in 2026… our forthcoming CGD data could provide important readthrough across our pipeline.” — Keith Gottesdiener, M.D., then CEO .

Q&A Highlights

  • A Q2 2025 earnings call transcript was not available in SEC filings or investor relations materials; no Q&A content to report based on our exhaustive search and document listings [ListDocuments: earnings-call-transcript returned 0 for PRME in Q3 2025 window] .

Estimates Context

  • Q2 2025: Revenue $1.12M vs $3.00M consensus*; EPS -$0.41 vs -$0.34 consensus* — both misses, reflecting limited collaboration revenue recognition and ongoing R&D investment .
  • Q1 2025: Revenue $1.45M vs $3.43M consensus*; EPS -$0.40 vs -$0.31 consensus* — similar pattern; consensus may need to recalibrate near-term revenue expectations given collaboration timing and focus on IND-enabling work rather than revenue-generating milestones .

Values retrieved from S&P Global for estimate figures.

Key Takeaways for Investors

  • Clinical validation: Positive CGD data materially de-risks Prime Editing platform; near-term catalyst is FDA interaction path for CGD .
  • Liquidity extended: Runway into 2027 supported by $144.2M follow-on and CF Foundation funding; reduces financing overhang medium term .
  • Focused execution: Restructuring and leadership transition sharpen focus on liver programs (Wilson’s, AATD) and partnered programs (BMS CAR-T, CF) .
  • Near-term P&L remains investment-heavy: Expect continued net losses while advancing IND-enabling and preclinical work; revenue recognition likely lumpy due to collaboration timing .
  • Watch for 2026 IND/CTA filings (Wilson’s, AATD) and 2027 initial clinical data; success could be inflection points for valuation .
  • Strategic optionality: CGD will not be advanced independently; regulatory interactions and potential partnerships could unlock value while conserving cash .
  • Trading lens: Headlines around CGD regulatory dialogue, CF funding milestones, and IND timing are likely to drive stock moves; estimate revisions may stay cautious on revenue until collaboration cadence is clearer .

Values retrieved from S&P Global for estimate figures.