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Cartesian Therapeutics, Inc. (RNAC)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 operating performance remained loss-making at the operating line due to minimal revenue ($0.298M), but net income turned positive to $15.9M with $0.50 diluted EPS, primarily driven by fair value gains on contingent value right (CVR) liabilities and warrant liabilities .
  • The pivotal Phase 3 AURORA trial for Descartes-08 in myasthenia gravis (MG) was initiated (first participant enrolled in May 2025), validating prior guidance; cash runway continues into mid-2027, supporting completion of AURORA .
  • Near-term catalysts include preliminary Phase 2 SLE data and initiation of a pediatric basket trial in 2H25; management reiterated outpatient administration and no preconditioning chemotherapy as differentiators for Descartes-08 .
  • Wall Street consensus estimates (S&P Global) for Q2 2025 EPS and revenue were unavailable; estimate comparisons are therefore not possible. Values retrieved from S&P Global.*

What Went Well and What Went Wrong

What Went Well

  • Initiated Phase 3 AURORA in MG, aligning with prior guidance and regulatory clarity (SPA previously secured); CEO emphasized “significant momentum” entering 2H25 .
  • Strong balance sheet with $162.1M cash, cash equivalents and restricted cash at quarter-end, with runway into mid-2027 to support completion of AURORA .
  • Positive long-term MG Phase 2b data cited (e.g., 4.8-point average MG-ADL reduction at Month 12; 7.1-point reduction in biologic-naive subgroup), underpinning confidence in Descartes-08’s outpatient dosing profile and safety .

What Went Wrong

  • Revenue fell sharply YoY due to lack of milestone/partner payments ($0.298M vs $33.445M in Q2 2024), resulting in a sizable operating loss even as net income was positive via non-operating fair value changes .
  • Operating expenses increased YoY (R&D +17% to $14.9M; G&A modestly higher), reflecting Phase 3 start-up costs and facility-related expenses .
  • S&P Global Wall Street consensus for EPS and revenue was unavailable, limiting estimate-based performance benchmarking. Values retrieved from S&P Global.*

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Total Revenue ($USD Millions)$33.445 $1.100 $0.298
Operating Income ($USD Millions)$13.757 $(21.889) $(21.811)
Net Income ($USD Millions)$13.836 $(17.710) $15.886
Diluted EPS ($USD)$0.54 $(0.68) $0.50
R&D Expense ($USD Millions)$12.661 $14.674 $14.869
G&A Expense ($USD Millions)$7.027 $8.315 $7.240
Weighted Avg Shares – Diluted17,791,143 25,941,670 26,447,251

Additional drivers of net income (non-operating):

MetricQ2 2024Q1 2025Q2 2025
Interest Income ($USD Millions)$1.195 $2.015 $1.748
Change in Fair Value of Warrant Liabilities ($USD Millions)$(3.908) $1.818 $0.654
Change in Fair Value of CVR Liability ($USD Millions)$2.500 $0.346 $35.300

Liquidity:

MetricDec 31, 2024Mar 31, 2025Jun 30, 2025
Cash, Cash Equivalents & Restricted Cash ($USD Millions)$214.3 $182.1 $162.1
Expected Cash RunwayMid-2027 Mid-2027 Mid-2027

No segment revenue breakdown is applicable; revenue comprises collaboration/license and grants .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Phase 3 AURORA (Descartes-08 in MG)1H25 initiationOn track for 2Q25 initiation Initiated; first participant enrolled May 2025 Raised/achieved milestone
SLE Phase 2 preliminary data2H25Expected 2H25 Expected 2H25 Maintained
Pediatric basket trial initiation (Descartes-08)2H25Expected 2H25 Expected 2H25 Maintained
Cash runwayTo mid-2027Mid-2027 Mid-2027 Maintained

Earnings Call Themes & Trends

Note: A Q2 2025 earnings call transcript was not available through our document search. We reviewed prior earnings releases to track narrative evolution.

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
MG Phase 3 readiness and SPASPA agreement from FDA; Phase 3 on track 1H25 Phase 3 initiated; first participant enrolled Progressing to execution
Outpatient dosing / No preconditioningEmphasized as paradigm shift in both periods Reiterated as a differentiator Consistent emphasis
MG-ADL efficacy durabilityDeep/durable responses through Month 12; stronger biologic-naive subgroup Reaffirmed; sustained responses cited Reinforced confidence
SLE Phase 2 programData expected 2H25 Preliminary data expected 2H25 On track
Pediatric basket trialPlanned initiation in 2H25 Expected to initiate 2H25 On track
Balance sheet / runway$214.3M (FY-end) with runway to mid-2027 $162.1M; runway to mid-2027 Runway maintained despite cash usage

Management Commentary

  • “We have entered the second half of the year with significant momentum as we continue to advance our mission to deliver transformative cell therapies to patients with autoimmune diseases.” — Carsten Brunn, Ph.D., President & CEO .
  • “Supported by deep and sustained responses observed through month 12 in the Phase 2b trial along with a clearly defined regulatory pathway, we believe that, if approved, Descartes-08 has the potential to serve as an impactful new MG therapy… without the need for preconditioning chemotherapy.” — Carsten Brunn, Ph.D. .
  • “We remain on track to share preliminary data from our ongoing Phase 2 trial of Descartes-08 in SLE and to initiate a pediatric basket trial… by the end of this year.” — Carsten Brunn, Ph.D. .

Q&A Highlights

  • A public Q2 2025 earnings call transcript was not located; no Q&A themes to report from primary sources. We searched for earnings call transcripts and found none via our document tools and company IR. [Search results showed no transcripts via ListDocuments; IR press release available: https://ir.cartesiantherapeutics.com/news-releases/news-release-details/cartesian-therapeutics-reports-second-quarter-2025-financial]

Estimates Context

  • S&P Global Wall Street consensus estimates for Q2 2025 EPS and revenue were unavailable for RNAC; as a result, estimate comparisons cannot be presented. Values retrieved from S&P Global.*
MetricQ2 2025Q1 2025
Consensus EPS (Primary)N/A*N/A*
Consensus Revenue ($USD Millions)N/A*N/A*
# of EPS EstimatesN/A*N/A*
# of Revenue EstimatesN/A*N/A*

Key Takeaways for Investors

  • The Phase 3 AURORA initiation in MG is the principal near-term value driver; execution and enrollment cadence are critical for timelines and eventual registrational data .
  • Earnings positivity this quarter stems from non-operating fair value changes (not core operations), while operating loss persists given de minimis revenue; monitor future CVR and warrant liability marks for P&L volatility .
  • Cash runway into mid-2027 provides line-of-sight to complete AURORA and advance SLE and pediatric programs without near-term financing, subject to spend and milestone timing .
  • Clinical differentiation (outpatient dosing, no preconditioning) and durability signals in biologic-naive MG subgroup underpin potential competitive positioning if approved .
  • Upcoming 2H25 milestones (SLE preliminary data, pediatric basket initiation) are stock catalysts; absence of Street estimates limits consensus-based event trading, but qualitative clinical updates may drive sentiment .
  • Revenue variability (partner/milestone timing) and operating losses should be expected near term; focus on trial progress, safety profile, and regulatory steps as primary valuation inputs .
  • Without a Q2 call transcript, pay attention to subsequent filings (10-Q/8-Ks), conference presentations, and IR updates for incremental clarity on enrollment, endpoints, and timeline risk .

Notes:

  • Press release and 8-K (Q2 2025) primary sources: .
  • Prior quarter and FY context: .
  • IR press release PDF and site links for Q2 2025: .

*Values retrieved from S&P Global.