Arbutus Biopharma 2025 Q3 Earnings Revenue Misses Estimates, 60.7% Net Loss Reduction

Arbutus Biopharma (ABUS) reported its fiscal 2025 Q3 earnings on Nov 13, 2025, with results missing revenue and net income estimates. The company narrowed losses by 60.7% compared to 2024 Q3, driven by cost-cutting measures and litigation updates.

Revenue

Arbutus Biopharma's total revenue for 2025 Q3 declined by 60.5% to $529,000, a sharp drop from $1.34 million in 2024 Q3. The decline was primarily attributed to reduced license and royalty revenues. Collaborations and licenses contributed $280,000, while non-cash royalty revenue accounted for $249,000. The absence of other revenue streams further compounded the decline, underscoring the company's dependence on a narrow range of income sources.

Earnings/Net Income

The company narrowed its net loss to $-7.74 million in 2025 Q3, representing a 60.7% reduction from the $-19.72 million loss in 2024 Q3. Earnings per share (EPS) improved to a loss of $0.04 from $0.10, marking a 60% improvement. Despite these gains, Arbutus Biopharma has sustained losses for 13 consecutive years, reflecting ongoing financial challenges.

Price Action

Arbutus Biopharma's stock price experienced mixed performance post-earnings. Shares fell 4.60% during the latest trading day but rebounded with a 2.70% gain over the week. The stock has shown resilience, climbing 7.55% month-to-date, suggesting investor optimism amid clinical progress and legal developments.

Post-Earnings Price Action Review

Arbutus Biopharma's stock faced a 4.60% decline during the latest trading day, contrasting with a 2.70% weekly rebound. The 7.55% monthly gain indicates investor confidence in the company's long-term prospects, particularly in light of promising clinical data for imdusiran and favorable legal rulings. While the earnings miss raised concerns about revenue sustainability, the reduced net loss and litigation updates appear to have buoyed market sentiment, highlighting a balance between near-term challenges and strategic progress.

CEO Commentary

Lindsay Androski, President and CEO of Arbutus Biopharma, emphasized the company's disciplined focus on strategic priorities, noting the successful reduction in losses and the promising clinical data from imdusiran trials. She highlighted the 46% of Phase 2a patients who discontinued all treatment and the long-term follow-up results, underscoring the potential for a functional cure in chronic hepatitis B treatment. Androski reiterated the company's commitment to advancing imdusiran's development and defending its intellectual property.

Guidance

Arbutus Biopharma did not provide specific quantitative guidance for future periods but indicated a continued focus on reducing net cash burn through cost management and restructuring efforts. The company aims to advance its cHBV development programs and pursue legal actions related to its LNP technology patents.

Additional News

Arbutus Biopharma concluded a strategic partnership with Qilu Pharmaceutical Co., Ltd. in June 2025, returning global rights for imdusiran to the company. Previously deferred revenue from this partnership was recognized in the second quarter of 2025. The company also highlighted favorable legal rulings in its ongoing litigation against Pfizer/BioNTech and scheduled trials with Moderna, underscoring its commitment to protecting its intellectual property. Additionally, Arbutus maintains royalty entitlements from Alnylam Pharmaceuticals for ONPATTRO sales, with a portion of these rights sold to OMERS, while retaining a second royalty interest from Acuitas Therapeutics.