Executive Summary

Q1 2025 was a transition quarter driven by strategic actions: WHWK divested the FYARRO business to Kaken for $102.4M (closed Mar 25) and relaunched as an ADC-focused company, producing GAAP net income of $73.0M on a one-time gain, with $231.1M cash/short-term investments at quarter-end and runway into 2028 based on current plans .
Revenue of $7.1M reflected FYARRO sales only through Mar 25, prior to the divestiture; diluted EPS was $1.83 (driven by the $87.4M gain on sale). Excluding the gain, net loss was $14.4M for the quarter .
Management reiterated pipeline timelines: first IND in Q4 2025 (HWK-007), second IND in Q4 2025 (HWK-016), and third IND (HWK-206) by mid‑2026; cash expected to fund operations into 2028, framing the next catalysts for the stock .
No Q1 2025 earnings call transcript was available; we rely on the 8‑K/press release and 10‑Q for qualitative context. S&P Global consensus estimates for Q1 2025 were unavailable; beat/miss vs Street cannot be assessed.

What Went Well and What Went Wrong

What Went Well

Strategic transformation executed: closed $100M PIPE and divested FYARRO for $102.4M, materially strengthening the balance sheet and focusing on ADCs .
Clear pipeline timelines: “remain on track to bring all three assets to IND by mid‑2026, with the first IND filed in Q4 this year,” per CEO Dave Lennon, outlining HWK‑007 (NSCLC/ovarian), HWK‑016 (cancers of female origin), HWK‑206 (neuroendocrine) .
Liquidity runway: $231.1M cash/short-term investments at Mar 31 and an expected ~$185M post upfront/license/outflow steps to fund into 2028, reducing near‑term financing risk .

“By uniting novel approaches to tumor targeting with next wave technologies… we remain on track to bring all three assets to IND by mid-2026, with the first IND filed in Q4 this year,” — Dave Lennon, President & CEO .

What Went Wrong

Underlying operating loss ex one-time gain: excluding the $87.4M gain on sale, Q1 net loss was $14.4M, reflecting the early-stage R&D profile and transition away from commercial revenue .
FYARRO revenue durability removed post-divestiture: Q1 revenue ($7.1M) only captured sales through Mar 25; post-close there is no continuing revenue until ADCs progress clinically/commercially .
R&D/SG&A still significant in transition: Q1 R&D of $8.8M and SG&A of $12.8M (with divestiture/legal/consulting effects) underscore ongoing cash burn ahead of IND filings .

Financial Results

Income Statement vs prior year and sequential context

Metric	Q1 2024	Q1 2025
Revenue ($USD Millions)	$5.353	$7.145
Cost of Goods Sold ($USD Millions)	$0.652	$0.760
Gross Profit ($USD Millions)	$4.701 (computed from revenue and COGS)	$6.385 (computed from revenue and COGS)
Net Income (Loss) ($USD Millions)	$(18.289)	$73.016 (incl. $87.443 gain on sale)
Diluted EPS ($)	$(0.68)	$1.83

Notes: Net income in Q1 2025 was driven by an $87.443M gain on sale of the FYARRO business; excluding this, net loss was $14.4M .

Balance Sheet/Liquidity

Metric	Dec 31, 2024	Mar 31, 2025
Cash & Cash Equivalents ($MM)	$28.670	$227.569
Short-term Investments ($MM)	$18.567	$3.493
Cash + ST Inv ($MM)	$47.237 (computed)	$231.062 (computed)
Total Assets ($MM)	$70.319	$234.002
Total Stockholders’ Equity ($MM)	$52.478	$221.728

Management expects ~ $185M cash post transaction-related payments and the WuXi upfront balance, funding operations into 2028 based on current plans .

Subsequent quarters (trend context, post-Q1)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($MM)	$7.145	$0.000 (post-divestiture)	$0.000 (post-divestiture)
Net (Loss)/Income ($MM)	$73.016	$(52.615)	$(17.746)
Cash + ST Inv ($MM)	$231.1 (computed from $227.6 + $3.5)	$177.2	$162.6
R&D Expense ($MM)	$8.788	$48.809 (includes $38M WuXi upfront timing)	$14.345
SG&A Expense ($MM)	$12.815	$5.940	$5.201

Segment breakdown: WHWK reports a single operating segment (oncology ADC development) .

KPIs: Near-term KPIs are pipeline milestones (IND filings) and liquidity runway; no ongoing commercial KPIs post-FYARRO divestiture .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance (Q1 2025)	Change
IND filing – HWK-007	2025	N/A	IND in Q4 2025	New
IND filing – HWK-016	2025	N/A	IND in Q4 2025	New
IND filing – HWK-206	2026	N/A	IND by mid-2026	New
Cash runway	Multi-year	N/A	Funded into 2028 based on current plans	New
Revenue/margins/OpEx	2025	N/A	No formal quantitative guidance provided; post-divestiture, no revenue expected until pipeline progresses	N/A

Subsequent updates in Q2/Q3 2025 maintained these timelines and runway language (no change) .

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was available; themes are derived from filings/press materials.

Topic	Previous Mentions (Q‑2 and Q‑1)	Current Period (Q1 2025)	Trend
Strategic focus	Q‑2 (Q3’24): Workforce reduction and halt of PRECISION1 trial; restructuring initiated . Q‑1 (Q4’24): License with WuXi for three next‑gen ADCs .	Relaunch as ADC company; FYARRO divested; three-asset ADC plan articulated .	Transition from commercial to R&D platform progressing.
Pipeline milestones	Q‑2: No ADC timelines disclosed pre-license . Q‑1: License signed Dec 19, 2024 .	First two INDs targeted Q4 2025; third by mid-2026 .	Clearer, time-bound milestones.
Liquidity & runway	Q‑2/Q‑1: Pre-divestiture liquidity; no multi-year runway stated .	$231.1M cash/ST inv; runway into 2028; post-payments ~ $185M expected .	Strengthened, multi-year runway.
Product performance	Q‑2/Q‑1: FYARRO was sole revenue source; earlier commercial operations .	FYARRO net sales $7.1M through Mar 25; post-close no ongoing revenue .	Commercial revenue removed; pivot to non-revenue stage.
Regulatory/legal	Q‑2/Q‑1: WuXi license terms/milestones outlined; royalties low- to upper-single digits .	Upfront payment balance of $38.0M paid Apr 16 (Q2); development/commercial milestones detailed .	Executing license economics and obligations.

Management Commentary

Strategic message: “Our assets target PTK7, MUC16 and SEZ6… with less competition and greater opportunity for differentiation… we remain on track to bring all three assets to IND by mid‑2026, with the first IND filed in Q4 this year.” — Dave Lennon, President & CEO .
Capital allocation: Expect ~ $185M cash post transaction-related payments; runway into 2028 .
Portfolio positioning: Three ADCs leveraging TOPO1-based “next wave” platform, aiming for improved therapeutic index vs first-generation ADCs .

Q&A Highlights

No Q1 2025 earnings call transcript was available. No Q&A themes or clarifications beyond the filings/press release could be reviewed (we searched for earnings-call-transcript and found none).

Estimates Context

S&P Global consensus for Q1 2025 EPS and revenue was unavailable in our data pull; therefore, we cannot assess beat/miss vs Street for the quarter. Management did not provide formal quantitative guidance for revenue, margins, or EPS for 2025 .

Key Takeaways for Investors

Balance sheet reset completed: divestiture + PIPE created multi‑year runway into 2028, de‑risking near‑term financing while the pipeline advances .
Clear catalyst path: two IND submissions targeted by year‑end 2025 and a third by mid‑2026; initial clinical readouts are the next potential stock drivers .
Operating optics: headline EPS strength in Q1 was one‑time; underlying P&L reflects preclinical R&D investment ahead of INDs (watch R&D cadence, especially after the WuXi upfront in Q2) .
Revenue profile reset: With FYARRO divested, no ongoing product revenue; valuation will hinge on ADC data quality, speed to clinic, and differentiation vs crowded ADC landscape .
Execution risks: license milestones/royalties, development timelines, and trial initiation/execution are key risk points to monitor per 10‑Q disclosures .
Near-term trading implication: stock likely sensitive to IND filing confirmations, early partnering signals, or preclinical updates validating PTK7/MUC16/SEZ6 differentiation .
Medium-term thesis: platform upside if WHWK demonstrates superior safety/efficacy with TOPO1 payloads at well‑chosen targets with broad expression; cash runway provides time to reach value‑inflecting data .

References

Q1 2025 8-K and press release: revenue, EPS, gain on sale, cash and guidance language .
Q1 2025 10‑Q: financial statements, liquidity/runway, license/divestiture details, restructuring, segment information .
Q2 2025 press/8‑K for subsequent trend: cash, loss, R&D, no revenue post-divestiture .
Q3 2025 press/8‑K for subsequent trend and PTK7 data commentary .

Whitehawk Therapeutics, Inc. (WHWK)·Q1 2025 Earnings Summary