Executive Summary

Terns reported Q2 2025 net loss of $24.1M ($0.26 per share) with total operating expenses of $27.4M and interest income of $3.35M; no revenue was reported . EPS was above S&P Global consensus by ~$0.03 (actual -$0.26 vs. -$0.286 estimate), while revenue was in line with $0.0 consensus .
Management sharpened strategic focus: prioritize oncology and rapidly advance TERN-701 toward pivotal studies; seek partners for metabolic assets and “does not plan to invest in clinical development in metabolic disease beyond year end 2025” .
Cash, cash equivalents and marketable securities of $315.4M support runway “into 2028,” enabling execution through key readouts: TERN-701 Phase 1 CARDINAL 6‑month MMR data in 4Q25 and TERN-601 Phase 2 FALCON topline in early 4Q25 .
Catalysts: September 2025 TERN-701 educational webinar; pivotal-path clarity for TERN-701 and obesity competitive/tolerability profile for TERN-601 from 4Q25 data readouts .

What Went Well and What Went Wrong

What Went Well

Rapid execution and visible catalysts: dose expansion for TERN-701 initiated at the high end of the dose range; 4Q25 readout (including 6‑month MMR) positioned to inform pivotal path .
Strong TERN-601 momentum: Phase 2 FALCON enrollment completed; 12‑week efficacy/tolerability data expected early 4Q25; Phase 1 data highlighted differentiated PK/tolerability profile and meaningful 28‑day weight loss up to 5.5% .
Balance sheet strength: $315.4M of cash and marketable securities and runway into 2028 provide funding clarity through multiple clinical readouts .
Management quote: “We are focusing the company in oncology and on rapidly advancing TERN‑701 towards a pivotal trial… The company seeks to partner… metabolic assets” .

What Went Wrong

Continued operating losses with rising R&D as development scales: net loss of $24.1M vs. $22.7M y/y; R&D $20.4M vs. $18.4M y/y .
No product revenue; income statement centers on operating expenses and interest income, underscoring dependence on external catalysts and capital markets .
Lack of published earnings call transcript for Q2 2025 constrains visibility into Q&A clarifications and near‑term OpEx trajectory or partnering timing (no transcript found in our corpus for the period).

Financial Results

P&L summary (GAAP)

Metric ($USD Millions, except per-share)	Q4 2024	Q1 2025	Q2 2025
R&D Expense	$18.00	$18.72	$20.35
G&A Expense	$7.95	$8.71	$7.03
Total Operating Expenses	$25.95	$27.43	$27.38
Interest Income	$4.14	$3.64	$3.35
Net Loss	$(21.80)	$(23.91)	$(24.09)
Net Loss per Share (Basic/Diluted)	$(0.24)	$(0.26)	$(0.26)

Notes: Company did not report revenue; loss from operations reflects operating expenses .

Balance sheet (selected)

Metric ($USD Millions)	Dec 31, 2024	Mar 31, 2025	Jun 30, 2025
Cash, Cash Equivalents & Marketable Securities	$358.16	$334.26	$315.45
Total Assets	$363.93	$339.32	$320.42
Total Liabilities	$18.06	$13.27	$15.19
Total Stockholders’ Equity	$345.87	$326.04	$305.23

Share count KPI

KPI	Q4 2024	Q1 2025	Q2 2025
Weighted Avg Shares (Basic/Diluted)	91.241M	91.474M	91.575M

Q2 2025 vs. Estimates (S&P Global)

Metric	Consensus	Actual	Delta
EPS (Primary)	$(0.286)*	$(0.26)	+$0.03*
Revenue	$0.0*	No revenue reported	N/A

Values marked with * retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cash Runway	Multi‑year	“Runway into 2028” (Q4’24/Q1’25)	“Runway into 2028” (Q2’25)	Maintained
TERN‑701 CARDINAL Data	4Q 2025	Additional safety/efficacy with 6‑mo MMR in 4Q25	4Q25 efficacy/safety including 6‑month MMR; informs pivotal path	Maintained
TERN‑601 FALCON Topline	4Q 2025	12‑week topline in 4Q25	12‑week topline in early 4Q25	Narrowed timing
Strategy for Metabolic Assets	2025+	Advancing GLP‑1 (Phase 2) and GIPR discovery; evaluate THR‑β opportunities	Focus on oncology; seek partners for metabolic assets; no further metabolic clinical development beyond YE25	New/Refined focus

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was found in our document set; themes reflect sequential disclosures across prior press releases.

Topic	Previous Mentions (Q4’24 and Q1’25)	Current Period (Q2’25)	Trend
Oncology focus / TERN‑701	Dose escalation completed; positive interim data with compelling molecular responses; no DLTs; DDI supports co‑meds	Dose expansion at high end (320/500 mg QD) with 4Q25 6‑mo MMR readout to inform pivotal path; educational webinar planned	Increasing conviction; pivotal planning
Obesity / TERN‑601	Phase 2 FALCON initiated; aims for competitive 12‑wk weight loss with simple titration	Phase 2 enrollment completed; topline early 4Q25; Phase 1 data highlighted 5.5% 28‑day WL and good tolerability	Execution on track; differentiation narrative
Strategic focus / partnering	Advancing GLP‑1; exploring THR‑β; GIPR discovery	Focus on oncology; partner metabolic assets; halt metabolic clinical spend post‑YE25	Shift toward partnering/non‑core optimization
Funding runway	Into 2028	Into 2028	Stable funding outlook

Management Commentary

“We are focusing the company in oncology and on rapidly advancing TERN‑701 towards a pivotal trial, with the goal of ultimately bringing a potential best-in-class therapy to people living with CML. The company seeks to partner our portfolio of potentially best-in-class metabolic assets and does not plan to invest in clinical development in metabolic disease beyond year end 2025.” — Amy Burroughs, CEO .
“We look forward to sharing a CARDINAL data set in the fourth quarter that will provide a read through to the primary endpoint in a registrational trial – the achievement of a major molecular response at six months.” — Amy Burroughs, CEO .
“In addition, supportive preclinical data at EHA 2025 highlighted greater potency of TERN‑701 compared to asciminib against several resistance mutations…” .

Q&A Highlights

No Q2 2025 earnings call transcript was found in our document set; therefore, Q&A themes and management clarifications from a call are unavailable for this quarter (we searched for earnings-call-transcript in Q3’25–Q3’25 window and found none).

Estimates Context

EPS modest beat: Q2 2025 EPS of $(0.26) vs. S&P Global consensus of $(0.286)*; variance likely reflects net loss consistent with stable OpEx and $3.35M interest income .
Revenue in line: No revenue reported; S&P Global consensus $0.0* .
The company did not provide non‑GAAP adjustments; results are GAAP.
Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Near‑term binary catalysts: 4Q25 readouts for TERN‑701 (6‑mo MMR) and TERN‑601 (12‑wk topline) will frame 2026 strategy and valuation inflections .
Strategic focus improves capital efficiency: oncology‑first, partner‑led path for metabolic assets, and runway into 2028 reduce financing overhang versus typical clinical-stage peers .
TERN‑701 differentiation watchpoints: EHA‑cited preclinical potency vs. asciminib and dose‑expansion design (320/500 mg) set up an efficacy/safety benchmark comparison in 4Q25 .
TERN‑601 risk/reward: Phase 2 designed to demonstrate competitive weight loss with simple titration and favorable tolerability; early 4Q25 topline is key to partnering discussions .
OpEx trending with development progress: R&D ticked higher y/y as programs advanced; monitor sequential OpEx and cash burn against 2028 runway as multiple studies scale .
Trading setup: September educational webinar may pre‑position the TERN‑701 narrative, but the primary stock drivers remain 4Q25 efficacy/safety readouts and partnering updates .

Sources: Q2 2025 press release and 8-K (including attached Exhibit 99.1) ; Q1 2025 and Q4 2024 press releases for trend ; ADA/TERN‑601 data update (June 23, 2025) . S&P Global estimates used for consensus figures (marked with *).

Terns Pharmaceuticals, Inc. (TERN)·Q2 2025 Earnings Summary