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2seventy bio, Inc. (TSVT)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $22.9M, up 84% year-over-year, with positive net income of $0.5M and diluted EPS of $0.01, driven by higher collaboration revenue and a materially reduced R&D expense profile .
  • Abecma U.S. sales were $58.6M in Q1 2025 (as reported by BMS), essentially flat vs Q4’s ~$59M, after holiday-related deferrals in Q4; collaboration revenue recognized by TSVT was $19.1M for the quarter .
  • The BMS acquisition process advanced: HSR waiting period expired May 2, 2025; tender offer at $5.00 per share set to expire May 12, 2025; the company will not host an earnings call or provide 2025 guidance while the transaction is pending .
  • Cash, cash equivalents, and marketable securities were $173.4M at quarter-end, providing liquidity through the transaction process .
  • Wall Street consensus estimates via S&P Global were unavailable for TSVT in our system; comparisons to consensus could not be provided (S&P Global mapping issue).

What Went Well and What Went Wrong

What Went Well

  • Positive profitability inflection: net income of $0.5M and diluted EPS of $0.01 on $22.9M revenue; YoY R&D expense fell to $5.4M from $43.9M, reflecting the streamlined cost structure .
  • Abecma commercial execution remained steady post-holidays: Q1 U.S. sales $58.6M; collaboration revenue recognized by TSVT was $19.1M, supported by KarMMa‑3 and real‑world data positioning .
  • CEO emphasized mission continuity under BMS: “With the anticipated closing... we will continue to deliver Abecma... as part of BMS,” expressing gratitude to stakeholders and aligning strategic transition with patient impact .

What Went Wrong

  • No earnings call or 2025 guidance due to pending acquisition, reducing near-term visibility for investors and limiting narrative updates relative to prior quarters .
  • SG&A increased YoY to $14.9M from $12.7M despite overall cost reductions, partly offsetting R&D savings in the quarter .
  • S&P Global consensus estimates unavailable for TSVT, limiting our ability to flag beats/misses versus Street expectations (tool mapping issue).

Financial Results

MetricQ1 2024Q3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$12.4 $13.5 $2.9 $22.9
Net Income (Loss) ($USD Millions)$(52.7) $(9.9) $(19.5) $0.5
Diluted EPS ($USD)$(1.01) $(0.19) $(0.37) $0.01
Loss from Operations ($USD Millions)$(51.2) $(13.9) $(23.3) $(2.5)
Net Income Margin (%)(423.5%) (73.4%) (666.9%) 2.1%
Operating Margin (%)(411.3%) (102.9%) (794.9%) (11.0%)

Segment revenue breakdown:

Revenue Component ($USD Millions)Q1 2024Q3 2024Q4 2024Q1 2025
Service revenue$7.7 $2.9 $2.9 $3.8
Collaborative arrangement revenue$4.7 $10.7 $— $19.1
Royalty and other revenue$— $— $— $0.02

KPIs and operating metrics:

KPIQ1 2024Q3 2024Q4 2024Q1 2025
Abecma U.S. Sales ($USD Millions)—$77 ~$59 $58.6
Collaboration revenue recognized by TSVT ($USD Millions)$4.7 $10.7 — $19.1
R&D expense ($USD Millions)$43.9 $8.3 $8.7 $5.4
SG&A expense ($USD Millions)$12.7 $12.9 $8.5 $14.9
Cost of manufacturing for commercial collaboration ($USD Millions)$3.3 $5.8 $5.5 $5.2
Cash, cash equivalents & marketable securities ($USD Millions)—$192.4 $183.6 $173.4

Vs. estimates (S&P Global): Not available for TSVT (tool mapping issue).

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Company financial guidanceFY 2025None providedNo guidance due to pending BMS acquisition; no earnings callMaintained “no guidance” stance
Tender offer timelineQ2 2025N/AHSR expired May 2; tender offer at $5.00 per share expected to expire May 12; close expected Q2New transaction timing detail

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q1 2025)Trend
Abecma commercialization and demandQ3: class share growth; 42% sequential growth; market penetration <25% of 3L setting; seasonality expected Q4 . Q4: 2024 U.S. sales $242M; holiday deferrals into 2025 .U.S. Abecma sales $58.6M; steady post-holiday volume; continued positioning on safety/efficacy .Stable to growing underlying demand; volume normalized post-holiday.
Margin structure and breakevenQ3: margin improvement from demand and >95% manufacturing success; breakeven lowered to ~$300M U.S. sales vs prior ~$400M .No call; cost structure still streamlined as evidenced by lower R&D; positive net income .Margin tailwinds sustained; visibility limited by no call.
Regulatory/legal (transaction)Q4: definitive merger agreement with BMS at $5.00 per share; close expected Q2 2025 .HSR waiting period expired; tender offer timeline and close reiterated; delisting expected post-merger .Transaction progressing; near-term stock anchored to deal milestones.
R&D execution and portfolio focusQ3: discontinued KarMMa‑9 to conserve >$80M and focus on high unmet need; continued evidence generation .Ongoing focus solely on Abecma; reduced R&D spend to $5.4M .Continued discipline; R&D expenses materially lower.
Competition and macro seasonalityQ3: competitive CAR‑T market; seasonality in Q4 .Q1 recovery after Q4 deferrals; Abecma stable sequentially .Seasonality abated; competition remains.

Management Commentary

  • CEO perspective on mission continuity: “With the anticipated closing of the acquisition of 2seventy by Bristol Myers Squibb (BMS) this quarter, we will continue to deliver Abecma... as part of BMS” .
  • Strategic alignment: Emphasis on Abecma safety and efficacy, supported by KarMMa‑3 and real‑world data, with shared U.S. profit/loss economics in the BMS partnership .
  • Prior call reminders: CFO highlighted >95% manufacturing success rates and margin benefits; breakeven U.S. sales threshold guided closer to ~$300M vs previous ~$400M .

Q&A Highlights

  • Margin drivers and breakeven: Better margins driven by demand and manufacturing success; breakeven sales for the business now closer to ~$300M (from ~$400M prior) .
  • Seasonality and apheresis trajectory: Q4 apheresis impacted by holidays; underlying demand trend post-3L approval remains encouraging into 2025 .
  • Market penetration and competitive share: CAR‑T class building steadily; company estimates <25% penetration in 3L setting, leaving room to grow .
  • Note: No Q1 2025 call; clarifications are from Q3 2024 transcript -.

Estimates Context

  • S&P Global consensus estimates for TSVT were unavailable in our system (missing CIQ mapping), so we could not provide numeric comparisons versus Street EPS/revenue targets this quarter. Where comparisons are typically shown, they are omitted and should be revisited once mapping is restored.
  • Management did not provide 2025 guidance due to the pending BMS acquisition, further limiting forward visibility .

Key Takeaways for Investors

  • Profitability inflection: TSVT posted positive net income ($0.5M) and $0.01 diluted EPS in Q1 2025 on $22.9M revenue, reflecting lower R&D and higher collaboration revenue .
  • Abecma volume steadied post-holidays: U.S. sales of $58.6M in Q1 2025 vs. ~$59M in Q4 2024; collaboration revenue recognized by TSVT was $19.1M .
  • Transaction-driven setup: HSR expired; tender at $5.00 per share slated to expire May 12, with close expected in Q2; equity likely to trade around deal milestones near term .
  • Liquidity intact into close: $173.4M cash, cash equivalents, and marketable securities at quarter-end .
  • Operating discipline continues: R&D at $5.4M and loss from operations narrowed to $(2.5)M, aiding the path to breakeven highlighted previously .
  • Visibility limited: No earnings call or guidance provided for 2025 while acquisition is pending .
  • Clinical and safety narrative consistent: Abecma positioning supported by KarMMa‑3 and real-world data; risks and REMS program reiterated in materials .