Executive Summary

Rapport reported a GAAP net loss of $18.1 million and EPS of $(1.70) for Q2 2024; no revenue was reported. Operating expenses increased sharply versus prior year as the company ramped clinical development post-IPO .
EPS materially missed Wall Street consensus (MarketBeat: $(0.68)), driven by higher R&D and G&A spending; S&P Global estimates were unavailable at time of writing due to access limits. Consensus data is third‑party and may differ from S&P Global .
Liquidity strengthened: cash, cash equivalents and short‑term investments rose to $336.1 million as of June 30, 2024, primarily from the June IPO and private placement; management reiterated runway through end‑2026 .
Clinical catalysts ahead: Phase 2a trial initiation for RAP‑219 in focal epilepsy in Q3 2024 with topline mid‑2025; additional RAP‑219 proof‑of‑concept trials planned in peripheral neuropathic pain (2H 2024) and bipolar disorder (2025) .

What Went Well and What Went Wrong

What Went Well

Strong balance sheet post‑IPO: Ended Q2 with $336.1 million in cash and investments; net offering proceeds of $157.6 million to fund pipeline .
Clear clinical execution roadmap: On track to initiate RAP‑219 Phase 2a in focal epilepsy in Q3 2024; PET study underway to confirm receptor occupancy; MAD‑2 ongoing with data in 2H 2024 .
Management conviction and platform positioning: “Our RAP technology platform provides a foundation for a portfolio of precision neuroscience product candidates designed to overcome the limitations of existing standards of care,” said CEO Abraham N. Ceesay .

What Went Wrong

Operating expense growth drove losses: R&D rose to $15.7 million (+$11.0 million YoY) and G&A to $5.1 million (+$3.2 million YoY), expanding net loss to $18.1 million vs $6.4 million prior year .
EPS miss versus consensus: Reported $(1.70) vs MarketBeat consensus of $(0.68), reflecting opex scaling and share count changes post‑IPO; S&P Global estimate data was unavailable for verification .
No reported revenue: As a clinical‑stage company, no product revenue to offset expenses, which heightens sensitivity of EPS to opex and financing costs .

Financial Results

Metric	Q2 2023	Q2 2024
Revenue ($USD Millions)	N/A	N/A
Net Loss ($USD Millions)	$6.41	$18.12
EPS (Basic & Diluted) ($USD)	$(4.45)	$(1.70)
Total Operating Expenses ($USD Millions)	$6.63	$20.80
R&D Expense ($USD Millions)	$4.72	$15.69
G&A Expense ($USD Millions)	$1.91	$5.11

Liquidity and Capital	As of Mar 31, 2024	As of Jun 30, 2024
Cash & Cash Equivalents ($USD Millions)	$193.2 (cash, cash equivalents and ST investments total)	$336.1 (cash, cash equivalents and ST investments total)
Cash & Cash Equivalents ($USD Millions)	$70.17	$110.16
Short‑Term Investments ($USD Millions)	$77.31	$225.98
Cash Runway Guidance	Through end‑2026	Through end‑2026

Estimates Comparison (EPS)	Consensus EPS	Actual EPS	Surprise
Q2 2024 ($USD)	$(0.68) (MarketBeat)	$(1.70)	Miss of $(1.02) (MarketBeat consensus; S&P Global data unavailable)

Note: S&P Global consensus estimates were unavailable due to access limits at time of writing.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cash Runway	Through end‑2026	Through end‑2026 (as of prior communications)	Through end‑2026	Maintained
RAP‑219 Phase 2a (Focal Epilepsy)	Initiation timing	On track Q3 2024 (company narrative)	On track Q3 2024; topline mid‑2025	Maintained with timing specificity
RAP‑219 PET Trial	Readout timing	Initiated; results expected H1 2025	H1 2025	Maintained
RAP‑219 MAD‑2	Readout timing	Initiated; results 2H 2024	2H 2024	Maintained
RAP‑219 Peripheral Neuropathic Pain (PoC)	Initiation timing	2H 2024	2H 2024	Maintained
RAP‑219 Bipolar Disorder (PoC)	Initiation timing	2025	2025	Maintained

Earnings Call Themes & Trends

Note: No Q2 2024 earnings call transcript or call details were found; MarketBeat shows conference call N/A for 8/8/2024 .

Topic	Previous Mentions (Q‑2 and Q‑1)	Current Period (Q2 2024)	Trend
RAP‑219 Focal Epilepsy	N/A (prior quarter releases not available; company was private pre‑IPO)	On track to initiate Phase 2a in Q3 2024; topline mid‑2025	Execution plan clarified; timeline specificity increased
PET Receptor Occupancy	N/A	PET trial initiated; results expected H1 2025	Program initiated; validation focus
MAD‑2 Dosing Optimization	N/A	MAD‑2 initiated; results expected 2H 2024	Dosing strategy optimization underway
Peripheral Neuropathic Pain	N/A	PoC trial planned 2H 2024; preclinical analgesic activity presented at IASP	Indication expansion progressing
Bipolar Disorder (Acute Mania)	N/A	PoC trial planned in 2025	Pipeline‑in‑a‑product strategy broadening
Cash Runway/Capital	N/A	Runway through end‑2026; IPO proceeds to fund pipeline	Strengthened liquidity

Management Commentary

CEO framing on platform: “Our receptor associated protein (RAP) technology platform provides a foundation for a portfolio of precision neuroscience product candidates designed to overcome the limitations of existing standards of care.” — Abraham N. Ceesay, CEO .
Execution milestones: “We are on track to initiate a Phase 2a trial in the third quarter of 2024 for our lead product candidate, RAP‑219, in patients with focal epilepsy…” — Abraham N. Ceesay .
Board update indicating governance alignment post‑IPO: Terry‑Ann Burrell to transition off the Board following the Form 10‑Q filing .

Q&A Highlights

No Q2 2024 earnings call transcript or Q&A content was available; MarketBeat lists conference call as N/A for 8/8/2024. Accordingly, no guidance clarifications or tone assessments from live Q&A can be provided for this period .

Estimates Context

EPS vs consensus: Rapport reported $(1.70) vs MarketBeat consensus of $(0.68), a miss of $(1.02). S&P Global consensus estimates were unavailable at time of writing due to access limits; therefore comparisons are anchored to third‑party sources and may differ from S&P Global .
Revenue: No revenue reported; consensus revenue was not applicable for this clinical‑stage period .
Implications: Given opex trajectory (R&D + G&A up materially YoY), sell‑side EPS estimates are likely to be recalibrated lower near‑term absent offsetting non‑operating income; longer‑term adjustments will hinge on clinical milestone timing and any changes to trial initiation/readout dates .

Key Takeaways for Investors

Liquidity runway to end‑2026 reduces near‑term financing overhang; focus will shift to clinical execution in RAP‑219 across epilepsy, pain, and bipolar indications .
The EPS miss reflects deliberate investment in R&D/G&A post‑IPO; absent revenue, quarterly losses will track development pace until catalysts convert to data readouts .
Near‑term stock catalysts: RAP‑219 Phase 2a initiation (Q3 2024) and MAD‑2 data (2H 2024); medium‑term catalyst is mid‑2025 epilepsy topline, which could drive estimate revisions and valuation re‑rating depending on biomarker‑based efficacy signals .
Risk monitoring: Execution risks in trial start‑up and regulatory interactions; costs associated with operating as a public company continue to scale G&A .
Narrative: Precision neuroscience targeting TARPγ8 positions RAP‑219 for potentially differentiated tolerability/activity profile versus traditional ASMs; investor focus should be on PET occupancy and MAD‑2 dosing insights as leading indicators of Phase 2a success .
With no revenue, liquidity and clinical timelines are primary valuation anchors; maintain vigilance on cash burn trajectory versus runway guidance and any changes to trial schedules .

Sources: Rapport Therapeutics Q2 2024 Form 8‑K and Exhibit 99.1 press release including financials and business update ; IR and GlobeNewswire press release postings ; MarketBeat and InvestorPlace for consensus/coverage when S&P Global data was unavailable .

Rapport Therapeutics, Inc. (RAPP)·Q2 2024 Earnings Summary