Executive Summary

Q2 2025 revenue was $4.42M and diluted EPS was $(2.34), both missing Wall Street consensus; revenue came in below the $5.36M consensus and EPS below $(1.79) consensus, driven by a steep drop in collaboration revenue vs prior year and one‑time charges (restructuring and tax valuation allowance). Bold miss: revenue and EPS both missed consensus estimates.*
Net loss widened to $125.8M versus net income of $66.9M in Q2 2024, reflecting $32.6M restructuring costs tied to discontinuation of birtamimab and workforce reduction, plus $44.9M non‑cash tax expense to book a full valuation allowance .
FY25 guidance updated: net cash burn maintained at $170–$178M, year‑end cash lowered to ~$298M (midpoint), and estimated net loss raised to $240–$248M; management also proposed an EGM by year‑end to create reserves enabling a potential share redemption program .
Pipeline catalysts: Roche advancing prasinezumab to Phase 3 for early Parkinson’s by year‑end 2025; initial PRX012 Phase 1 ASCENT data expected in August 2025; Novo Nordisk coramitug Phase 2 results expected in 2H 2025—key narrative drivers for stock reaction .

What Went Well and What Went Wrong

What Went Well

Roche will advance prasinezumab into Phase 3 for early-stage Parkinson's by end of 2025; Roche cites >$3B peak sales potential and potential first disease‑modifying therapy, strengthening the partnered pipeline .
Initial PRX012 Phase 1 ASCENT data expected in August 2025; CEO: “Later this month we plan to share initial data from the Phase 1 ASCENT clinical trials of our wholly‑owned PRX012 program in Alzheimer’s disease” (Gene Kinney) .
Optionable milestone visibility: potential to earn up to $105M in aggregate clinical milestones in 2026 tied to coramitug and PRX019 advancement by partners Novo Nordisk and Bristol Myers Squibb .

What Went Wrong

Birtamimab Phase 3 AFFIRM‑AL failed to meet primary and secondary endpoints; development discontinued, removing a late‑stage asset and precipitating restructuring .
Company initiated ~63% workforce reduction to align spend, reflecting pipeline reprioritization and discontinuation of birtamimab .
Q2 GAAP results deteriorated YoY: revenue fell from $132.0M to $4.4M, net income swung to a $125.8M net loss, and included $32.6M restructuring and $44.9M non‑cash tax expense; investors will scrutinize sustainability of collaboration revenue cadence .

Financial Results

P&L Summary (USD)

Metric	Q4 2024	Q1 2025	Q2 2025
Total Revenue ($M)	$2.12	$2.83	$4.42
Research & Development ($M)	$50.17	$50.81	$40.52
General & Administrative ($M)	$16.85	$17.60	$15.91
Restructuring Costs ($M)	—	—	$32.61
Total Operating Expenses ($M)	$67.02	$68.41	$89.04
Operating Income (Loss) ($M)	$(64.90)	$(65.58)	$(84.62)
Other Income, net ($M)	$5.40	$4.21	$3.65
Provision (Benefit) for Income Taxes ($M)	$(1.55)	$(1.18)	$44.80
Net Income (Loss) ($M)	$(57.96)	$(60.20)	$(125.77)
Diluted EPS ($)	$(1.08)	$(1.12)	$(2.34)

Revenue and EPS vs Prior Year/Quarter and Consensus

Metric	Q2 2024	Q1 2025	Q2 2025 Actual	Q2 2025 Consensus
Revenue ($M)	$132.01	$2.83	$4.42	$5.36*
Diluted EPS ($)	$1.22	$(1.12)	$(2.34)	$(1.79)*

Values with asterisk (*) retrieved from S&P Global.

Notes:

Q2 2025 revenue and EPS both missed consensus; the miss was driven by normalization of collaboration revenue vs Q2 2024 and one‑time charges (restructuring and valuation allowance) impacting EPS .

Margins (computed)

Metric	Q4 2024	Q1 2025	Q2 2025
Net Income Margin %	(−2730%)	(−2129%)	(−2845%)

Computed as Net Income / Total Revenue; inputs cited per period.

Revenue Breakdown

Revenue Component	Q4 2024	Q1 2025	Q2 2025
Collaboration Revenue ($M)	$2.12	$2.78	$4.42
License & IP Revenue ($M)	$0.00	$0.05	$0.00
Total Revenue ($M)	$2.12	$2.83	$4.42

KPIs

KPI	Q4 2024	Q1 2025	Q2 2025
Cash, Cash Equivalents & Restricted Cash ($M)	$472.25	$418.80	$372.30
Net Cash Used in Operating & Investing ($M)	$47.8 (Q4)	$53.4 (Q1)	$46.4 (Q2)
Shares Outstanding (Millions)	53.8 (as of Feb 13, 2025)	53.8 (as of May 1, 2025)	53.8 (as of Jul 25, 2025)
Restructuring Liability ($M)	—	—	$30.33

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Cash Used in Operating & Investing ($M)	FY 2025	$168–$175	$170–$178	Raised
Year‑End Cash ($M, midpoint)	FY 2025	~$301	~$298	Lowered
Estimated GAAP Net Loss ($M)	FY 2025	$197–$205	$240–$248	Raised
Non‑cash Share‑Based Comp ($M)	FY 2025	~$41	~$36	Lowered
Non‑cash Tax Expense (valuation allowance) ($M)	FY 2025	~$45	$44.9	Maintained
Share Redemption Program (EGM to create distributable reserves)	FY 2025	Not disclosed prior	EGM by year‑end; potential program subject to Board discretion and court confirmation	New initiative

Drivers: updated guidance reflects birtamimab discontinuation and restructuring (approx. $96M decrease in annualized net cash burn per restructuring release), alongside valuation allowance booking and lower SBC .

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available in our document set; themes below reflect press releases and 8‑K disclosures for narrative continuity.

Topic	Previous Mentions (Q4 2024)	Previous Mentions (Q1 2025)	Current Period (Q2 2025)	Trend
Alzheimer’s (PRX012)	Phase 1 ASCENT design; multiple readouts starting mid‑2025	Multiple readouts around mid‑2025; ~260 patients enrolled	Initial ASCENT data expected August 2025; plan to advance via non‑dilutive structures	Building toward near‑term data
Parkinson’s (prasinezumab)	PADOVA missed primary but showed positive trends; OLEs ongoing	AD/PD presentations; possible benefit; next steps mid‑2025	Roche advancing to Phase 3 by YE 2025; peak sales potential >$3B	Positive inflection
ATTR‑CM (coramitug)	Phase 2 enrolled; completion 1H 2025	Phase 2 completion 1H 2025; results 2H 2025	Phase 2 completed; results expected 2H 2025	Data pending
Birtamimab (AL Amyloidosis)	Topline expected Q2 2025	Topline expected Q2 2025	Phase 3 failed; program discontinued; restructuring	Negative; exit
Corporate/Capital	FY25 cash burn $168–$175M	Same	FY25 cash burn $170–$178M; EGM for potential share redemption	Conserving cash; optionality on capital return
Tax/Valuation Allowance	Not discussed	Not discussed	$44.9M non‑cash tax expense for valuation allowance	Accounting adjustment headwind

Management Commentary

Gene Kinney (CEO): “We are excited that our partner Roche is advancing prasinezumab into Phase 3 development… Later this month we plan to share initial data from the Phase 1 ASCENT clinical trials of our wholly-owned PRX012 program in Alzheimer’s disease.”
On pipeline monetization and milestones: “There is a potential for us to earn up to $105 million in aggregate clinical milestone payments if Novo Nordisk advances coramitug and Bristol Myers Squibb decides to advance PRX019.”
On restructuring: “We have incredible Prothenians… I want to express my sincere gratitude to each Prothenian being affected by today’s announcement… ” (approx. 63% workforce reduction)

Q&A Highlights

No Q2 2025 earnings call transcript was available in our document set; the company’s disclosures were via 8‑K and press releases. Key clarifications embedded in guidance and corporate updates:

FY25 guidance maintained for cash burn but net loss raised due to restructuring and valuation allowance .
EGM planned to create distributable reserves for potential share redemption program, subject to Irish High Court confirmation and Board discretion .

Estimates Context

Q2 2025 vs consensus: Revenue $4.42M vs $5.36M consensus (miss); Diluted EPS $(2.34) vs $(1.79) consensus (miss).*
Near‑term Street outlook: Q3 2025 revenue consensus ~$6.64M and EPS consensus ~$(0.69), implying sequential improvement post‑restructuring and ahead of PRX012/prasinezumab catalysts.*
Target price consensus: ~$18.33 with 6 estimates, suggesting balanced expectations around partnered milestones and PRX012 data.*

Values marked with asterisk (*) retrieved from S&P Global.

Key Takeaways for Investors

Q2 was a “reset” quarter with normalized collaboration revenue and significant one‑time charges; both revenue and EPS missed consensus as restructuring and valuation allowance impacted GAAP results .
Cash runway remains substantial at $372.3M with FY25 cash burn guided to $170–$178M; year‑end cash expected around $298M, providing flexibility ahead of multiple readouts .
Pipeline momentum: prasinezumab’s progression to Phase 3 by Roche and imminent PRX012 ASCENT data are primary near‑term catalysts; coramitug Phase 2 readout in 2H 2025 adds partnered optionality .
Strategic capital allocation: ~63% workforce reduction and program discontinuation are expected to reduce annualized net cash burn by ~$96M (midpoint) post‑birtamimab exit .
Potential capital return: planned EGM to enable distributable reserves and a possible share redemption program, adding a shareholder return angle contingent on court approval and Board discretion .
Trading implications (short term): Expect narrative to pivot from Q2 miss to upcoming clinical milestones (PRX012 August data; Roche Phase 3 initiation headlines) as key stock drivers; watch for guidance reaffirmations and partner updates .
Medium‑term thesis: Value hinges on Alzheimer’s and Parkinson’s assets (PRX012, prasinezumab) and partner‑led programs (BMS‑986446, PRX019, coramitug), with milestone economics and non‑dilutive structures guiding funding strategy .

PROTHENA CORP PUBLIC LTD CO (PRTA)·Q2 2025 Earnings Summary