Executive Summary

Syros reported no revenue in Q2 2016 and a net loss of $12.0M as R&D and G&A expenses ramped with the transition to clinical stage; EPS was $(5.42), worsening year over year due to higher operating spend and preferred dividends prior to the July IPO .
Cash and equivalents were $50.1M at quarter-end (pre-IPO); pro forma for ~$49.9M net IPO proceeds in July, management guided cash runway “at least through mid-2018,” a key de-risking catalyst amid upcoming clinical milestones .
Operational guidance maintained: SY-1425 Phase 2 dosing to begin in Q3 2016 (enrollment opened), and SY-1365 Phase 1/2 initiation remains on track for 1H 2017; Q2 highlights included IND acceptance for SY-1425 (May 31) and EHA presentations (June) .
As a newly public, pre-revenue biotech, Wall Street consensus EPS/revenue estimates were unavailable in S&P Global for Q2 2016; stock reaction is likely driven by clinical progress and IPO completion rather than quarterly financial variances .

What Went Well and What Went Wrong

What Went Well

Transition to clinical-stage with SY-1425: “We transitioned to a clinical-stage company with the FDA’s acceptance of the IND… and with the opening of our Phase 2 trial for patient enrollment,” signaling pipeline momentum .
Strengthened balance sheet: Completed IPO in July, raising $57.5M gross; pro forma liquidity supports operations to mid-2018, reducing near-term financing risk .
Platform visibility: Presented data on SY-1425 and SY-1365 at EHA, reinforcing scientific leadership and program potential ahead of first patient dosing .

What Went Wrong

Operating loss widened YoY as R&D rose to $9.5M (+75% YoY) and G&A to $2.5M (+158% YoY), reflecting accelerated development and public-company costs .
No collaboration revenue recognized in Q2 2016 vs. $0.3M in Q2 2015, modestly increasing reported loss from operations .
EPS deterioration to $(5.42) vs. $(4.16) YoY, amplified by accrued preferred dividends prior to IPO conversion, a non-operational but dilutive effect on reported per-share metrics .

Financial Results

Metric	Q2 2015	Q2 2016
Collaboration Revenue ($USD Millions)	$0.32	$0.00
R&D Expense ($USD Millions)	$5.43	$9.53
G&A Expense ($USD Millions)	$0.98	$2.54
Net Loss ($USD Millions)	$(6.10)	$(12.02)
Net Loss to Common ($USD Millions)	$(7.33)	$(13.84)
Diluted EPS ($USD)	$(4.16)	$(5.42)
Weighted Avg Shares (Millions)	1.76	2.55

Balance Sheet KPIs	Dec 31, 2015	Jun 30, 2016
Cash & Equivalents ($USD Millions)	$35.91	$50.12
Working Capital ($USD Millions)	$28.49	$46.00
Total Assets ($USD Millions)	$43.63	$60.95

R&D Program Mix (External + Internal) ($USD Thousands)	Q2 2015	Q2 2016
SY-1365 & CDK7 Program External Costs	$1,883	$2,428
SY-1425 External Costs	$136	$2,075
Other Research & Platform External Costs	$1,311	$1,321
Employee-related incl. SBC	$1,785	$3,063
Facilities & Other	$313	$638
Total R&D	$5,428	$9,525

Note: No reportable segments; the company operates in one segment (United States) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
SY-1425 Phase 2: Start of dosing	Q3 2016	Initiate Phase 2 in mid-2016	On track to begin dosing Q3 2016; enrollment opened	Maintained timeline
SY-1365 Phase 1/2 initiation	1H 2017	Plan to initiate in 1H 2017	Remains on track for 1H 2017; GLP tox in-life completed	Maintained timeline
Cash runway	Through mid-2018	N/A	Cash and IPO proceeds fund operations at least through mid-2018	New disclosure

Earnings Call Themes & Trends

Note: A Q2 2016 earnings call transcript was not found; themes reflect the Q2 press release and 10-Q.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q2 2016)	Trend
R&D execution	Plan to initiate SY-1425 Phase 2 mid-2016; build pipeline; preclinical progress	IND accepted; Phase 2 enrollment opened for SY-1425; SY-1365 GLP tox in-life completed	Positive momentum; timelines maintained
Regulatory/legal	IND acceptance targeted; companion diagnostic planning	IND accepted for SY-1425; continued regulatory preparations	Executed key regulatory step
Financing	Private rounds; IPO planning (S-1 filed)	IPO completed in July; $57.5M gross proceeds	Liquidity improved
Scientific visibility	Preclinical data; conference plans	EHA presentations on SY-1425 and SY-1365	Increased outreach
Risk/Enrollment	Small genomically-defined subsets noted as an execution risk	Enrollment screening underway; dosing to begin Q3	Watchlist risk remains

Management Commentary

“The first half of 2016 has been a period of tremendous growth for Syros… We transitioned to a clinical-stage company… We also became a publicly traded enterprise with the successful completion of our IPO…” — Nancy Simonian, M.D., CEO .
Upcoming milestones reiterated: begin dosing SY-1425 in Q3; initiate SY-1365 in 1H 2017 .
Financial position: “We believe… cash and IPO proceeds will enable [us] to fund… at least through mid-2018.” (Q2 10-Q) .

Q&A Highlights

A Q2 2016 earnings call transcript was not available; no Q&A highlights could be sourced. We searched SEC filings and public transcript repositories and found no Q2 2016 call, likely reflecting the company’s recent IPO timing .

Estimates Context

Wall Street consensus estimates (S&P Global) for Q2 2016 revenue and EPS were unavailable due to missing SPGI mapping for SYRS at the time of query; as a newly public, pre-revenue biotech, coverage may have been limited. This constrains formal beat/miss analysis [GetEstimates error; see tool attempt].
Given no product revenue and higher operating costs, estimate revisions (where covered) would likely focus on cash runway and clinical timelines rather than near-term P&L.

Key Takeaways for Investors

Liquidity de-risked: cash and IPO proceeds extend runway to mid-2018, covering first clinical data readouts for both lead programs; reduces near-term financing overhang .
Near-term catalysts: SY-1425 dosing start in Q3 and initial data expected ~12 months after first patient; SY-1365 IND-enabling work completed with 1H 2017 initiation on track—both can drive stock on clinical signals .
Spend ramp is intentional: YoY increases in R&D and G&A reflect program advancement and public-company infrastructure; monitor cash burn against milestones .
Execution risk remains: enrollment in biomarker-defined AML/MDS cohorts and companion diagnostic development are critical to program success; prior NSCLC tamibarotene data underscore indication- and combination-specific risks .
No quarterly revenue/EPS catalysts: absent revenue, stock reaction hinges on scientific/regulatory progress and strategic communications rather than P&L variances .
Position sizing should reflect binary clinical outcomes in mid-2017; consider catalysts sequencing and potential need for follow-on financing if timelines slip –.

References and additional Q2 2016 documents read:

Q2 2016 8‑K and press release: financial results and business update .
Q2 2016 10‑Q: full financials, risk factors, liquidity and guidance – – – –.
Other relevant Q2 press releases: IND acceptance for SY‑1425 (May 31, 2016) ; EHA presentations (May/June 2016) .
IPO closing (July 6, 2016) context and corporate governance 8‑K –.

Syros Pharmaceuticals, Inc. (SYRS)·Q2 2016 Earnings Summary