Zentalis Pharmaceuticals, Inc. (ZNTL)·Q3 2025 Earnings Summary

Executive Summary

• Zentalis reported Q3 2025 net loss of $26.7M and diluted EPS of $0.37 loss, with total operating expenses down 34% year over year; cash, cash equivalents and marketable securities were $280.7M, supporting runway into late 2027 .
• EPS beat Wall Street consensus by approximately $0.11–$0.12 as actual EPS of $(0.37) outperformed the S&P Global consensus of $(0.48), while revenue remained $0 given the clinical-stage profile; prior quarters also showed EPS beats vs consensus .
• Operationally, DENALI Phase 2 remains on track with topline data anticipated by year end 2026 and potential to support accelerated approval, subject to FDA feedback; TETON (USC) completed enrollment with results planned for 1H26 .
• Stock-relevant catalysts include the accelerated approval path validation (registration-intent DENALI Part 2), confirmed 2026 Phase 3 initiation plan pending FDA feedback, and continued scientific presence (four AACR-NCI-EORTC posters on azenosertib) .

What Went Well and What Went Wrong

What Went Well

• Significant OpEx discipline: R&D fell to $23.0M (from $36.8M YoY) and G&A to $10.8M (from $14.6M YoY), driving total operating expenses down to $33.7M (from $51.4M YoY), aided by lower personnel, lab services, and clinical costs .
• Strong liquidity: $280.7M cash, cash equivalents and marketable securities with runway into late 2027 supports late-stage development and trial execution .
• Clinical momentum: Management reaffirmed that DENALI Part 2 is enrolling on plan and could support accelerated approval; CEO Julie Eastland stated, “We are pleased with our continued disciplined execution of the DENALI clinical trial... With $280.7 million in cash providing runway into late 2027, we maintain a robust financial foundation to deliver on our azenosertib objectives” .

What Went Wrong

• No revenue generation in Q3 (and recent quarters), with continued net losses reflective of clinical-stage status; Q3 net loss was $(26.7)M; EPS was $(0.37) .
• Sequential cash decline as development continued: quarter-end cash moved from $332.5M (Q1) to $303.4M (Q2) to $280.7M (Q3), consistent with spending on trials and operations .
• G&A rose sequentially to $10.8M from $8.4M in Q2 (though down YoY), highlighting some quarter-specific cost dynamics despite overall restructuring completion .

Financial Results

Quarterly P&L and Liquidity (oldest → newest)

Year-over-Year Comparison (Q3 2024 vs Q3 2025)

Estimates vs Actuals (S&P Global consensus)

Values retrieved from S&P Global.*

Segment Breakdown / KPIs

• Segment reporting: Not applicable (clinical-stage, single therapeutic focus) .
• Operational KPIs:
  • DENALI Part 2 topline timing: Year end 2026 (registration-intent) .
  • Cash runway: Into late 2027 .
  • TETON (USC) enrollment: Completed; results planned 1H26 .
  • Scientific visibility: Four AACR-NCI-EORTC posters accepted on azenosertib .

Guidance Changes

Earnings Call Themes & Trends

Note: A Q3 2025 earnings call was scheduled for November 10, 2025 at 7:00 AM ET, but a full transcript was not available in our sources at the time of analysis .

Management Commentary

• CEO perspective: “We are pleased with our continued disciplined execution of the DENALI clinical trial… With $280.7 million in cash providing runway into late 2027, we maintain a robust financial foundation to deliver on our azenosertib objectives.” — Julie Eastland, CEO .
• Clinical strategy: “The Phase 1 results and Cyclin E1 biomarker findings accepted for presentation at AACR-NCI-EORTC reinforce our biomarker-driven strategy for azenosertib in Cyclin E1-positive platinum-resistant ovarian cancer patients…” — Dr. Ingmar Bruns, CMO .

Q&A Highlights

• Transcript unavailable: A complete Q3 2025 earnings call transcript could not be located in our document corpus or public sources; the call was scheduled for Nov 10, 2025 at 7:00 AM ET .
• Based on primary documents, key focus areas likely included DENALI timelines, accelerated approval path, cash runway, and USC program status; specific Q&A clarifications are not available without the transcript .

Estimates Context

• EPS beat: Actual Q3 EPS of $(0.37) vs consensus $(0.48)* represents a meaningful beat driven by lower operating expenses and positive investment income; prior quarters also beat consensus (Q2: $(0.37) vs $(0.50857); Q1: $(0.67) vs $(0.6265)) .
• Revenue: Consensus expected $0 revenue reflecting clinical-stage status; actual revenue was $0 across periods* .

Values retrieved from S&P Global.*

Key Takeaways for Investors

• Cost discipline is working: YoY OpEx reductions (R&D and G&A) are narrowing quarterly losses while preserving late-stage development momentum .
• Liquidity supports pivotal milestones: $280.7M cash with runway into late 2027 underpins DENALI Part 2 topline by YE26 and Phase 3 initiation in 2026 pending FDA feedback .
• Clinical narrative is strengthening: Biomarker-driven approach (Cyclin E1+) continues to be reinforced by presentations and integrated datasets, supporting the accelerated approval thesis .
• Near-term catalysts: Continued enrollment/dose confirmation in DENALI Part 2; increased scientific visibility; TETON results in 1H26; formal FDA interactions that may clarify the confirmatory Phase 3 design .
• Estimate revisions: EPS beats and lower OpEx may prompt modest positive adjustments to near-term loss expectations; revenue remains appropriately modeled at $0 in the absence of commercial products* .
• Risk considerations: Single-asset concentration around azenosertib and typical clinical/regulatory uncertainties; management highlights these in forward-looking statements .

Sources: Q3 2025 8-K and press release, and corporate presentation ; Q2 2025 8-K and press release ; Q1 2025 press release ; AACR-NCI-EORTC poster acceptance PR ; call schedule reference .