Executive Summary

Q1 FY2025 saw minimal operating revenue ($0.13M) and a larger net loss ($9.0M, $-0.37 EPS), driven primarily by unrealized losses on the Cyclo investment and convertible notes; cash, cash equivalents and marketable securities stood at $54.3M, providing liquidity ahead of the Cyclo merger vote targeted for 1Q CY2025 .
Year-over-year, net loss widened due to $6.0M combined unrealized losses tied to Cyclo and convertible notes versus $2.1M in the prior year; R&D and G&A rose on consolidation of Cornerstone and Day Three and higher professional fees related to the proposed merger .
Sequentially vs Q4 FY2024, revenue fell modestly (from $0.17M to $0.13M) while net loss increased (from $4.47M to $9.01M), reflecting mark-to-market pressure and Cyclo-related valuation impacts in Q1 .
Strategic focus is shifting post-merger to Trappsol Cyclo (NPC1) with Phase 3 fully enrolled; interim 48-week analysis expected mid-2025, a key clinical catalyst for investor narrative and potential valuation re-rating .

What Went Well and What Went Wrong

What Went Well

Cyclo Therapeutics’ pivotal Phase 3 Trappsol Cyclo trial fully enrolled; interim 48-week analysis expected mid-2025, reinforcing a clear pipeline catalyst path: “we believe that Trappsol® Cyclo™ has the potential to be a market leader” .
Corporate strategy clarity: management reiterated intent to focus strategic resources on Trappsol Cyclo upon merger close, evaluating other operating entities and assets for alignment and capital allocation .
Liquidity remained solid with $54.3M in cash, cash equivalents and marketable securities as of Oct 31, 2024, supporting near-term operations and merger execution .

What Went Wrong

Net loss widened materially YoY to $9.0M (EPS $-0.37) largely due to $6.0M combined unrealized losses on the Cyclo equity and convertible notes; YoY unrealized losses were $2.1M in the prior year .
Operating performance remains subscale: revenue was $0.13M, with operating loss of $3.84M and continued negative operating leverage as R&D and G&A increased with Cornerstone/Day Three consolidation and merger-related professional fees .
Sequential deterioration: vs Q4 FY2024 net loss increased from $4.47M to $9.01M and revenue declined, highlighting sensitivity to investment mark-to-market and limited recurring revenue base .

Financial Results

Metric	Q1 FY2024 (oldest)	Q4 FY2024	Q1 FY2025 (newest)
Revenue ($USD Millions)	$0.068	$0.165	$0.128
EPS (Basic & Diluted) ($)	$-0.15	$0.06 (continuing ops; total basic EPS $-0.19)	$-0.37
Operating Loss ($USD Millions)	$-2.478	$-3.845	$-3.844
Net Loss Attributable to RFL ($USD Millions)	$-3.638	$-4.468	$-9.006
Operating Loss Margin (%)	-3644% (calc from $-2.478M/$0.068M)	-2330% (calc from $-3.845M/$0.165M)	-3006% (calc from $-3.844M/$0.128M)
Net Loss Margin (%)	-5350% (calc from $-3.638M/$0.068M)	-2707% (calc from $-4.468M/$0.165M)	-7036% (calc from $-9.006M/$0.128M)
Consensus Revenue ($USD Millions)	N/A (S&P Global unavailable)	N/A (S&P Global unavailable)	N/A (S&P Global unavailable)
Consensus EPS ($)	N/A (S&P Global unavailable)	N/A (S&P Global unavailable)	N/A (S&P Global unavailable)

Note: Wall Street consensus via S&P Global was unavailable; estimates comparison not possible.

Segment breakdown: Not provided in the quarter’s press release/8-K .

KPIs and Operating Details:

KPI	Q1 FY2024 (oldest)	Q4 FY2024	Q1 FY2025 (newest)
Cash, Cash Equivalents & Marketable Securities ($USD Millions)	N/A	$65.9	$54.3
R&D Expense ($USD Millions)	$0.489	$1.543	$1.326
G&A Expense ($USD Millions)	$2.040	$2.330	$2.523
Unrealized loss on Cyclo ($USD Millions)	$2.124 loss	$3.162 loss	$4.365 loss
Unrealized loss on Cyclo convertible notes ($USD Millions)	—	$1.191 gain	$1.588 loss
Weighted Avg Shares	23,644,647	23,916,839	25,062,854

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Financial Guidance (Revenue, EPS, Margins, OpEx, OI&E, Tax)	FY2025/Q2 onward	None provided	None provided	Maintained (no formal guidance)
Strategic Focus	Post-merger	Multi-asset holding	Focus efforts/resources on Trappsol Cyclo; evaluate other operating entities/assets	Clarified strategic prioritization
Clinical Milestone	Trappsol Cyclo NPC1	Enrollment ongoing	Fully enrolled; interim 48-week analysis expected mid-2025	Milestone timing specified

Earnings Call Themes & Trends

No earnings call transcript for Q1 FY2025 was found; the company appears to have issued a press release without a published call or transcript .

Topic	Previous Mentions (Q3 FY2024)	Previous Mentions (Q4 FY2024)	Current Period (Q1 FY2025)	Trend
Cyclo/Trappsol Cyclo NPC1	Enrollment completed; strong enthusiasm for potential	Fully enrolled; interim analysis mid-2025	Fully enrolled; interim analysis mid-2025 reiterated; market leader ambition	Consistent and strengthening clinical focus
Corporate Strategy/Prioritization	Advancing portfolio; evaluating strategic investments	Merger agreement with Cyclo; focus post-close	Post-merger focus on Trappsol Cyclo; evaluating other entities/assets	Converging to a single lead program
Day Three Labs execution	Began generating revenue; operational progress	Consolidated in FY2024; G&A impact	Contributed to higher R&D/G&A YoY	Operational integration and spend elevation
Liquidity/Balance Sheet	$72.4M cash/marketable securities	$65.9M cash/marketable securities	$54.3M cash/marketable securities	Trending lower sequentially, still adequate
Investment MTM impacts	Unrealized loss on Cyclo ($4.395M)	Mixed MTM: Cyclo equity loss; convertible note gain	Cyclo equity loss ($4.365M) and convertible notes loss ($1.588M)	Continued volatility in P&L from MTM

Management Commentary

“Upon closing of the merger, the Company intends to focus its strategic efforts and resources on what will then be the Company’s lead clinical program and core asset, Trappsol® Cyclo™… we are encouraged that Cyclo Therapeutics has fully enrolled its pivotal Phase 3 study… results from the 48-week interim analysis are expected in the middle of 2025.” — CEO Bill Conkling .
“Despite recent FDA approvals of other treatments for NPC Type C1, we believe that Trappsol® Cyclo™ has the potential to be a market leader.” — CEO Bill Conkling .
FY2024 context (for trend): “We anticipate a shareholder vote and closing the merger with Cyclo Therapeutics in the coming months.” — CEO Bill Conkling .

Q&A Highlights

No Q1 FY2025 earnings call transcript or Q&A was available; the quarter communication was via press release only .

Estimates Context

Wall Street consensus estimates from S&P Global were unavailable for Q1 FY2025; we could not compare actual revenue or EPS to consensus. Coverage appears limited given the company’s structure and small reported revenue base (Values not retrieved; S&P Global data unavailable at time of request).
In absence of estimates, investors should anchor on sequential and YoY trajectories and upcoming clinical/merger milestones to frame near-term revisions risk .

Key Takeaways for Investors

Liquidity is adequate ($54.3M cash/marketable securities) to bridge merger close and near-term operations, though sequential cash/marketable securities declined versus Q4 FY2024 ($65.9M) .
P&L is driven by mark-to-market on Cyclo equity/notes ($4.365M and $1.588M unrealized losses in Q1), creating volatility unrelated to core operations; monitor CYTH price/notes valuation as catalysts for reported earnings swings .
Operating base remains subscale (Q1 revenue $0.13M; operating loss $3.84M); cost structure reflects R&D/G&A tied to Cornerstone/Day Three consolidation and merger-related fees .
Strategic pivot: post-merger, RFL becomes a more focused clinical-stage story centered on Trappsol Cyclo in NPC1; interim 48-week Phase 3 analysis mid-2025 is the key inflection point for sentiment and potential valuation re-rate .
With no formal financial guidance and limited sell-side consensus visibility, price action likely keys off merger progress, CYTH valuation, and upcoming clinical readouts rather than quarterly revenue/EPS .
Near-term trading implication: stock may be sensitive to announcements on shareholder vote timing, FDA interactions in NPC1, and any interim analysis updates; medium-term thesis hinges on clinical efficacy/safety and competitive positioning vs recent NPC1 approvals .
Continue to track OpEx discipline and cash runway as the company streamlines non-core assets post-merger; consolidation effects on R&D/G&A should normalize as programs and portfolio are prioritized .

Sources: Q1 FY2025 press release and 8-K (Dec 11, 2024) ; Q4 FY2024 press release and 8-K (Nov 6–7, 2024) ; Q3 FY2024 press release and 8-K (Jun 14, 2024) ; Company IR site and third-party listings for call/transcript availability .

Rafael Holdings, Inc. (RFL)·Q1 2025 Earnings Summary