Executive Summary

Q3 2025 was a transitional, cost-controlled quarter: operating expenses fell to $11.9M, driving a narrower net loss of $10.8M ($0.22 per share) versus $27.9M ($0.58 per share) in Q3 2024, with cash and equivalents of $106.1M at quarter-end .
Guidance was significantly improved: year-end 2025 cash raised to $92–$96M (from $61–$65M in Q2), reflecting lower expected cash use in Q4 ($10–$14M) and uncertain timing of a potential $31.25M litigation settlement payment; management now expects cash to support operations into 2027 .
Strategic pivot continued: simufilam advanced toward an H1 2026 proof-of-concept study in TSC-related epilepsy, supported by positive preclinical data and key leadership additions (CMO Dr. Joseph Hulihan and independent director Dawn C. Bir) .
Near-term stock reaction catalysts: raised year-end cash guidance and extended runway, clarity on litigation settlement timing, and incremental clinical/regulatory milestones for the TSC program .

What Went Well and What Went Wrong

What Went Well

Operating discipline: total operating expenses fell to $11.9M (vs. $30.6M prior year), with R&D at $4.0M and G&A at $7.9M; lower spend tied to phase-out of the Alzheimer’s program and reduced legal/compensation costs .
Strategic progress in TSC: “We launched a program for simufilam focused on TSC-related epilepsy... We are excited to be working with the TSC Alliance... to create a proof-of-concept study which we intend to initiate in the first half of 2026” — Rick Barry, CEO .
Strengthened leadership/board: appointment of CMO (Dr. Hulihan) and independent director (Dawn C. Bir) to align clinical development and commercial strategy for the TSC program .

What Went Wrong

Litigation overhang persists: company maintained a $31.25M estimated loss contingency related to a potential securities litigation settlement recorded in Q2 2025; payment timing remains unclear and was previously included in cash use guidance .
Cash declined sequentially as expected: cash and equivalents moved from $117.3M (Q1) to $112.4M (Q2) to $106.1M (Q3), reflecting ongoing operating spend and program transition costs .
Revenue remains non-existent and margins inapplicable: with no product revenue, margin metrics are not meaningful; performance is driven by expense control and cash management .

Financial Results

Core P&L and Cash Trends (USD)

Metric	Q1 2025	Q2 2025	Q3 2025
Net Loss ($USD Millions)	$(23.4)	$(44.2)	$(10.8)
Diluted EPS ($USD)	$(0.48)	$(0.92)	$(0.22)
Total Operating Expenses ($USD Millions)	$24.6	$45.4	$11.9
Cash And Equivalents ($USD Millions)	$117.3	$112.4	$106.1

Year-over-Year (Q3 Specific)

Metric	Q3 2024	Q3 2025
Net Loss ($USD Millions)	$(27.9)	$(10.8)
Diluted EPS ($USD)	$(0.58)	$(0.22)
Total Operating Expenses ($USD Millions)	$30.6	$11.9

Operating KPIs (Expense Detail)

KPI	Q1 2025	Q2 2025	Q3 2025
Research & Development ($USD Millions)	$13.7	$5.1	$4.0
General & Administrative ($USD Millions)	$10.9	$40.3	$7.9
Net Cash Used in Operations (period YTD) ($USD Millions)	$11.3	$16.3 (H1)	$22.5 (9M)

Note: SAVA reported no product or collaboration revenue in these periods; margin metrics are not applicable in a pre-revenue context .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Year-end Cash ($USD Millions)	FY 2025	$61–$65	$92–$96	Raised
Net Cash Use (H2 2025) ($USD Millions)	H2 2025	$47–$51 (incl. $31.25M contingency)	Downward revision; now expect Q4 incremental cash use $10–$14	Lowered
Cash Runway	Multi-year	Not disclosed previously	Expected to support operations into 2027	New/Extended
Litigation Settlement Contingency ($USD Millions)	Event timing	$31.25 recorded (Q2)	Maintained; timing unclear and excluded from current cash use	Timing revised/uncertain

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was available as of Nov 20, 2025; themes reflect press releases and 8-Ks .

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
TSC-related epilepsy clinical timeline	Targeting H1 2026 initiation; pre-IND/regulatory planning	Confirms H1 2026; positive preclinical data in TSC model	Confirms H1 2026; collaboration with TSC Alliance; dose-dependent preclinical signals	Consistent progress
Alzheimer’s program	Program wind-down by end of Q2	Completed discontinuation drives R&D decline	R&D down 78% YoY on phase-out	Completed pivot
Legal/litigation	$3.0M loss accrual; legal costs elevated	$31.25M settlement contingency; guidance reflected payment	Contingency maintained; payment timing unclear; guidance excludes it	Overhang persists
Cash guidance/runway	No runway disclosed; $117.3M cash	YE cash $61–$65M	YE cash raised to $92–$96M; runway into 2027	Improved
Leadership changes	SVP Neuroscience/Clinical roles added	Appointed CMO (Dr. Hulihan)	Added independent director Dawn C. Bir	Strengthening bench

Management Commentary

“We launched a program for simufilam focused on TSC-related epilepsy… We are excited to be working with the TSC Alliance… to create a proof-of-concept study which we intend to initiate in the first half of 2026.” — Rick Barry, President & CEO .
“Cash and cash equivalents were $106.1 million… The Company estimates cash at year-end 2025 in a range from $92 to $96 million, including incremental cash use of $10 to $14 million expected in Q4 2025.” — Company release .
“R&D expenses… were $4.0 million… [down] due primarily to the phase out of the Alzheimer's disease development program… G&A… $7.9 million… due primarily to a $2.5 million decrease in legal related costs… [and lower] compensation costs.” — Company release .

Q&A Highlights

No Q3 2025 earnings call transcript was available in SEC/IR sources as of Nov 20, 2025; consequently, there are no Q&A clarifications to report .

Estimates Context

Metric	Q3 2025 Consensus	Notes
Revenue Consensus Mean ($USD Millions)	$0.00*	# of estimates: 1*; pre-revenue biotech status consistent [GetEstimates]
Primary EPS Consensus Mean ($USD)	N/A*	No published EPS consensus; limited analyst coverage* [GetEstimates]
Actual Diluted EPS ($USD)	$(0.22)	Comparisons to consensus EPS not available due to data absence

Values retrieved from S&P Global.*

Implications: Lack of EPS consensus and zero revenue expectations mean investor focus stays on expense control, cash runway, and program milestones rather than near-term earnings beats/misses .

Key Takeaways for Investors

Expense discipline is materially reducing quarterly losses; continued control of R&D/G&A supports an extended runway into 2027, reducing near-term financing risk .
Guidance reset is positive: YE cash lifted to $92–$96M and Q4 cash use trimmed to $10–$14M; watch for any settlement payment timing that could shift cash trajectories .
Clinical pivot is accelerating: multiple preclinical data points support simufilam’s development in TSC-related epilepsy, with proof-of-concept study targeted for H1 2026; upcoming regulatory steps are key catalysts .
Leadership additions (CMO and independent director) are aligned to bridge clinical development with commercialization strategy in a rare disease setting; expect clearer trial design and timelines in coming months .
Litigation remains a swing factor: $31.25M contingency is unchanged; clarity on timing will be an event risk for cash balances and sentiment .
Trading setup: near-term moves likely tied to guidance confidence and any litigation updates; medium-term thesis hinges on trial initiation and early clinical signals in TSC, with orphan indication potential .
With no revenue and limited estimate coverage, valuation will track cash runway, program derisking, and legal outcomes rather than near-term P&L metrics [GetEstimates].

CASSAVA SCIENCES INC (SAVA)·Q3 2025 Earnings Summary