Executive Summary

Q3 2025 printed a headline EPS of $0.36 driven by $22.5M “Gain on sale of joint venture and other income,” producing net income of $16.0M despite minimal revenue of $0.21M; the beat vs consensus EPS -$0.21* and revenue $0.07M* was material and largely non-recurring .
Corporate actions strengthened liquidity: $20M received from Recursion ($7.5M upfront equity + $12.5M milestone) extended cash runway to 2027; quarter-end cash, cash equivalents, and marketable securities were $59.3M .
RLYB116 execution advanced: Cohort 1 dosing completion and continued progress toward 4Q 2025 data; note timing shift from prior guidance (Cohort 1 readout moved from 3Q to 4Q 2025) .
Narrative drivers: non-dilutive capital, portfolio focus on complement-dysregulation, and upcoming RLYB116 PK/PD readouts; watch for confirmation of complete/sustained complement inhibition and tolerability in Cohort 1/2 data .

Values with * are retrieved from S&P Global.

What Went Well and What Went Wrong

Non-dilutive capital strengthened balance sheet: $20M from Recursion (upfront $7.5M equity and $12.5M milestone) and runway extended through 2027 .
RLYB116 progressed: Cohort 1 dosing completed; management reaffirmed confidence in efficacy and differentiation, aiming for hematologic indications PTR and refractory APS. CEO: “we remain on track to report data in the fourth quarter of 2025 and are increasingly confident in RLYB116's potential to be an effective therapeutic” .
Expense discipline: R&D and G&A fell meaningfully YoY due to program reprioritization (RLYB212 discontinuation) and workforce actions, improving operating loss vs prior year .

Timing slippage: prior guidance targeted Cohort 1 data in 3Q 2025, now expected 4Q 2025; investors should watch for whether Cohort 2 remains on schedule .
Revenue softness: collaboration revenue declined YoY (Q3 2025 $0.21M vs $0.30M), reflecting prior-year J&J collaboration recognition; continued minimal top-line constrains traditional margin analysis .
Headline profitability driven by one-time other income (JV sale); core operating loss persisted (-$6.9M in Q3), underscoring dependence on external funding and milestones pre-clinical readouts .

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$0.299	$0.212	$0.212	$0.212
Net Income ($USD Millions)	-$11.466	-$9.439	-$9.703	$16.016
Diluted EPS ($USD)	-$0.26	-$0.21	-$0.22	$0.36
Operating Income ($USD Millions)	-$12.066	-$9.670	-$10.057	-$6.925
Total Operating Expenses ($USD Millions)	$12.365	$9.882	$10.269	$7.137
Cash, Cash Equivalents & Marketable Securities ($USD Millions)	N/A	$54.495	$45.749	$59.319

KPI	Q3 2024	Q1 2025	Q2 2025	Q3 2025
R&D Expense ($USD Millions)	$8.240	$5.725	$6.074	$4.143
G&A Expense ($USD Millions)	$4.125	$4.157	$4.195	$2.994
Interest Income ($USD Millions)	$0.986	$0.644	$0.523	$0.462
Gain on sale of JV & Other Income ($USD Millions)	$0.251	$0.174	$0.118	$22.479
Weighted Avg Shares (Basic & Diluted)	44,593,221	44,774,602	44,841,140	45,058,591

Metric	Consensus	Actual	Surprise
Revenue ($USD Millions)	$0.067*	$0.212	$0.145M beat
Primary EPS ($USD)	-$0.21*	$0.36	$0.57 beat (driven by JV sale gain)

Values with * are retrieved from S&P Global.

Metric	Period	Previous Guidance	Current Guidance	Change
RLYB116 PK/PD Cohort 1 topline	2H 2025	3Q 2025 data expected	4Q 2025 data expected	Lowered (timing slip)
RLYB116 PK/PD Cohort 2 topline	2H 2025	4Q 2025 data expected	4Q 2025 (unchanged)	Maintained
Indication focus (PTR, refractory APS)	Ongoing	Announced focus (Jun-2025)	Reiterated focus	Maintained
Cash runway	Multi-year	Into mid-2027	Through 2027	Raised (extended)
REV102 monetization	Near-term	Up to $25M deal announced (Jul-2025)	$20M received in Q3 ($7.5M upfront equity + $12.5M milestone)	Executed milestones

(Full Q3 2025 call transcript not available; themes derived from press releases and filings.)

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
RLYB116 execution (PK/PD)	Plan to initiate dosing in 2Q; Cohort 1/2 data in 3Q/4Q	Dosing initiated; Cohort 1/2 data timeline reaffirmed	Cohort 1 dosing completed; data now in 4Q; confidence reiterated	Slight delay but progressing
Indication strategy (PTR, APS)	Focus outlined	Reiterated	Reiterated	Stable
Portfolio optimization / BD	Workforce reduction; pipeline reprioritization	REV102 sale up to $25M	$20M received; non-dilutive capital	Strengthening balance sheet
Cost discipline	Lower R&D/G&A YoY	Continued OpEx reductions	Further OpEx reductions	Improving
Liquidity / runway	Into 1H 2027	Mid-2027	Through 2027	Improving

CEO focus on disciplined execution and confidence in RLYB116: “we remain on track to report data in the fourth quarter of 2025 and are increasingly confident in RLYB116's potential to be an effective therapeutic” .
Strategic capital allocation: monetization of REV102 interest delivered $20M in Q3, providing non-dilutive support for development priorities .
R&D prioritization: continued emphasis on complement-mediated hematologic conditions; Cohort 1 data intended to demonstrate complete/sustained terminal complement inhibition with favorable tolerability .

The Q3 2025 earnings call transcript was not available via our document tools or IR site at the time of analysis; no Q&A content to report (search returned no transcript documents) .

Rallybio materially beat Street EPS and revenue in Q3 2025, but the beat was driven by the $22.5M gain on JV sale rather than operating performance; core revenue remained ~$0.21M .
Consensus EPS was -$0.21* vs actual $0.36; consensus revenue was $0.067M* vs actual $0.212M. Expect models to adjust for non-recurring other income and maintain focus on RLYB116 clinical milestones rather than near-term revenue.

Values retrieved from S&P Global.

Headline profitability is not reflective of recurring operations; the JV sale gain produced the EPS beat—monitor sustainability of cash runway and upcoming clinical catalysts, not GAAP EPS momentum .
RLYB116 remains the core value driver; Cohort 1 readout shifted to 4Q 2025—near-term stock reaction likely tied to strength of PD/PK and tolerability signals .
Balance sheet improved without dilution; $59.3M cash, equivalents & marketable securities and runway through 2027 reduce immediate financing overhang, enhancing optionality for BD or trial expansion .
Expense discipline is evident; continued R&D/G&A reductions tighten operating loss, but revenue remains minimal—expect valuation to be catalyst-driven rather than fundamentals-driven until pivotal clinical data .
Watch Recursion milestones around REV102 for any additional proceeds and potential read-through to non-dilutive funding capacity .
Risk factors: timing risk on PK/PD data, competitive C5 landscape, and need for robust tolerability to differentiate—position sizing should reflect binary catalyst risk .

Rallybio completes dosing of first cohort in RLYB116 PK/PD study (Sep 25, 2025) .
Rallybio receives $12.5M equity milestone payment from Recursion for REV102 (Sep 3, 2025) .