Executive Summary

Q2 2024 delivered a headline net income of $2.0 million ($0.16 EPS) driven by a one-time restructuring gain tied to lease termination and asset sales; core operations remain non-revenue generating ($0 revenue) and deeply reduced R&D/G&A spend following the February restructuring .
The company continues to explore strategic alternatives (including acquisition/merger/business combination); no timetable or decisions set, and there is no forward guidance provided; this strategic review remains the principal stock narrative and catalyst driver .
Operating expenses fell sharply YoY (R&D $2.2M vs $11.8M; G&A $1.2M vs $3.9M) reflecting workforce reduction (~90%) and organizational wind-down, while cash and cash equivalents ended Q2 at $20.0M (down from $32.3M in Q1 and $47.7M at YE 2023) .
Consensus estimates from S&P Global were unavailable to retrieve; estimate comparisons are therefore not included; notable that the positive EPS print was primarily non-recurring and tied to restructuring, not operating performance (important for any estimate recalibration) .

What Went Well and What Went Wrong

What Went Well

Achieved positive net income ($2.0M; $0.16 EPS), a stark improvement from a $(15.0)M loss in Q2 2023, driven by restructuring gain from lease termination and sale of equipment .
Substantial cost reductions: R&D fell to $2.2M (from $11.8M YoY) and G&A to $1.2M (from $3.9M YoY) as restructuring efforts materially lowered the operating cost base .
Clear strategic pathway: Board retained Lucid Capital Markets to evaluate strategic alternatives (acquisition/merger/business combination), anchoring investor focus on potential corporate actions .

Selected management quote (Feb 8): “It is with a heavy heart that we share this news, and our resulting decision to end Synpheny-3… we had expected the study to demonstrate the potential for SYNB1934 to provide an important new treatment option for those affected by PKU” — Aoife Brennan, then President & CEO .

What Went Wrong

No revenue in Q2 2024; the business ceased most operations following discontinuation of Synpheny-3, reinforcing the lack of commercial/partner revenue momentum .
Cash burn continues despite reductions: cash and equivalents declined to $20.0M from $32.3M in Q1 and $47.7M YE 2023, underscoring ongoing wind-down and restructuring costs (albeit mitigated by lease termination proceeds) .
Program failure and workforce reduction: Synpheny-3 discontinued after internal review found it unlikely to meet the primary endpoint; workforce cut by ~90%, creating execution risk and limiting future R&D optionality absent a strategic transaction .

Financial Results

Income Statement and EPS vs Prior Periods

Metric	Q2 2023	Q1 2024	Q2 2024
Revenue ($USD Thousands)	$35	$8	$0
Research & Development ($USD Thousands)	$11,765	$7,680	$2,197
General & Administrative ($USD Thousands)	$3,924	$2,884	$1,179
Restructuring and Other Charges ($USD Thousands)	$0	$28,289	$(3,795)
Total Operating Expenses ($USD Thousands)	$15,689	$38,853	$(419)
Total Other Income, Net ($USD Thousands)	$615	$7,281	$1,598
Net Income (Loss) ($USD Thousands)	$(15,048)	$(31,564)	$2,012
Diluted EPS ($USD)	$(3.21)	$(2.60)	$0.16
Weighted Avg Shares - Diluted	4,681,287	12,131,461	12,399,068

Notes:

Q2 2024 EPS upside is primarily non-recurring, driven by restructuring gain (lease termination and asset sales); core operating profitability remains negative absent such items .

Balance Sheet Snapshot

Metric	YE 2023	Q1 2024	Q2 2024
Cash, Cash Equivalents & Marketable Securities ($USD Thousands)	$47,746	$32,311	$19,966
Total Assets ($USD Thousands)	$75,550	$36,057	$21,635
Current Liabilities ($USD Thousands)	$20,404	$10,940	$5,652
Long-term Liabilities ($USD Thousands)	$12,491	$11,792	$0
Total Stockholders’ Equity ($USD Thousands)	$42,655	$13,325	$15,983

Segment breakdown: Not applicable; company is non-revenue generating and has effectively ceased operations post Synpheny-3 discontinuation .
KPIs: Operational KPIs limited; notable metrics are cash balance trajectory, operating expense reductions, and absence of revenue .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q2 2024	None provided	None provided	Maintained (no guidance)
Operating Expenses	FY/Q2 2024	None provided	None provided (restructuring-driven)	Maintained (no guidance)
EPS	FY/Q2 2024	None provided	None provided	Maintained (no guidance)
Cash Runway	FY/Q2 2024	None provided	None provided	Maintained (no guidance)

Management has explicitly focused on evaluating strategic alternatives; there was no formal quantitative guidance issued in Q2 2024 .

Earnings Call Themes & Trends

Note: An earnings call transcript for Q2 2024 was not available in the company’s filings or document catalog; we searched for “earnings-call-transcript” and found none [investor.synlogictx.com/node/12146/pdf] . The narrative below reflects disclosures from the press releases and 8-Ks.

Topic	Previous Mentions (Q4 2023 and Q1 2024)	Current Period (Q2 2024)	Trend
Strategic Alternatives	Decision to explore options following program discontinuation; focus on shareholder value	Continued review; Lucid Capital Markets retained; no timetable or decisions	Ongoing; central narrative driver
R&D Execution	Synpheny-3 discontinued after internal review indicated unlikely to meet primary endpoint; safety/tolerability not a concern	Minimal ongoing R&D activity; significantly reduced spend post restructuring	Wind-down; limited R&D
Workforce/Site Actions	~90% workforce reduction announced; majority of roles ended Feb 2024	Lease termination and asset sales contribute to restructuring gains	Wind-down actions continuing
Financial Profile	YE 2023 cash $47.7M; Q1 2024 cash $32.3M	Q2 cash $20.0M; non-recurring restructuring gain yields positive EPS	Cash declining; headline EPS boosted by one-time
Regulatory/Clinical	DMC assessment anticipated; decision pre-empted by internal review; no safety concerns	No active late-stage programs disclosed; strategic review in focus	Clinical paused/stopped

Management Commentary

“It is with a heavy heart that we share this news, and our resulting decision to end Synpheny-3… we had expected the study to demonstrate the potential for SYNB1934…” — Aoife Brennan, then President & CEO (Feb 8, 2024) .
Q2 2024 communications emphasize the strategic alternatives process and detail that restructuring gains were primarily due to lease termination and sale of property/equipment, offset by severance and accelerated stock comp .

Q&A Highlights

A Q2 2024 earnings call transcript was not available to review; no Q&A highlights or clarifications can be extracted from primary sources .
MarketBeat lists a conference call date/time for Aug 8, 2024, but does not provide a transcript; rely on press release/8-K for specifics .

Estimates Context

Consensus estimates via S&P Global were unavailable to retrieve, preventing formal EPS and revenue comparisons to Wall Street expectations for Q2 2024. Values would normally be sourced from S&P Global; due to data access limitations, estimates comparisons are not included. Note that reported EPS strength stems from a restructuring gain rather than core profitability .
Implication: Any forward estimate framework for SYBX should treat Q2 EPS as non-recurring; absent ongoing revenue and with wind-down dynamics, normalizing EPS would remove the restructuring impact .

Key Takeaways for Investors

Headline EPS beat is non-recurring; the quarter’s profitability is driven by restructuring gains, not operating traction — avoid extrapolating Q2 EPS into forward run-rate assumptions .
Rapid expense contraction and lease termination/asset sale underscore wind-down mode; cash declined to $20.0M by quarter-end, highlighting limited runway absent a transaction .
Strategic alternatives remain the primary catalyst; with no timetable or decisions, headline risk centers on transaction outcomes (acquisition/merger/combination) and timing .
R&D pipeline has effectively ceased following Synpheny-3 discontinuation; long-only fundamental interest likely shifts entirely to corporate action scenarios versus product execution .
Trading implications: Expect stock sensitivity to any disclosures around the strategic review and restructuring progress rather than to conventional operational beats/misses; headline EPS prints may be misleading without adjusting for one-time items .
Medium-term: Balance sheet contraction and lack of guidance suggest limited standalone path; investor focus should be on transaction structure/terms and potential value realization via strategic alternatives .

Citations: Q2 2024 press release and 8-K including financial tables ; Q1 2024 8-K press release and financial tables ; Q4/FY 2023 8-K press release and financial tables ; Synpheny-3 discontinuation and workforce reduction .

SYNLOGIC, INC. (SYBX)·Q2 2024 Earnings Summary