Clene 2025 Q2 Earnings Worse Losses Despite EPS Improvement

Clene reported its fiscal 2025 Q2 earnings on Aug 14, 2025, showing mixed results amid continued financial struggles. The company's revenue plummeted by 70.3% year-over-year to $27,000, driven by a sharp decline in product revenue. While the company narrowed its per-share loss from $1.06 to $0.78, net losses actually worsened, with a 9.3% year-over-year increase to $7.42 million. The earnings highlighted the company’s prolonged operational losses and ongoing challenges in generating sustainable revenue.

Revenue
Clene’s Q2 revenue dropped sharply to $27,000, a 70.3% decline from $91,000 in the same period of the prior year. The majority of this revenue came from royalty income, which totaled $26,000, while product revenue fell to $1,000, indicating a dramatic shift in the company's revenue mix. The substantial drop in product revenue suggests ongoing difficulties in commercializing its offerings and maintaining a viable business model. These figures underscore the company’s continued reliance on non-recurring and royalty-based income sources.

Earnings/Net Income
Clene reduced its per-share loss from $1.06 in 2024 Q2 to $0.78 in 2025 Q2, representing a 26.4% improvement in EPS. However, the company’s net loss increased to $7.42 million from $6.79 million year-over-year, marking a 9.3% deterioration in overall profitability. The growing net loss despite improved EPS indicates rising expenses or declining operating efficiencies. These results reinforce the company’s long-standing financial struggles and raise concerns about its path to profitability.

Price Action
Clene’s stock price gained 2.21% on the latest trading day, though it has declined by 1.91% over the past full trading week and by 2.70% month-to-date. The mixed performance reflects investor uncertainty and a lack of confidence in the company’s ability to turn its financial situation around in the near term.

Post-Earnings Price Action Review
The strategy of buying Clene shares following a revenue increase in the Q2 report and holding for 30 days performed poorly, with a CAGR of -52.37% and an excess return of -134.85%. The strategy's maximum drawdown was 0.00%, while its Sharpe ratio stood at -0.53%, indicating subpar risk-adjusted returns. The backtest showed a return of -88.37% compared to a benchmark return of 46.48%, highlighting the underperformance of the stock in the context of broader market trends.

CEO Commentary
Rob Etherington, President and CEO of Clene, emphasized the company’s engagement with the FDA in upcoming meetings to review CNM-Au8’s survival benefit in ALS and discuss the MS clinical development program. He highlighted the analysis of NIH-sponsored EAP neurofilament light biomarker data expected in Q4 2025, framing these steps as critical to the potential NDA submission for accelerated approval in ALS by year-end. The tone reflects optimism about advancing therapeutic development and commitment to the ALS community.

Guidance
Clene expects to analyze NIH-sponsored EAP neurofilament light biomarker data in Q4 2025 and to conduct a second Type C meeting in Q3 2025 to review survival benefit data from CNM-Au8. A potential NDA for CNM-Au8 in ALS is expected to be submitted by year-end. The company anticipates sufficient cash runway into Q1 2026, based on $7.3 million in cash as of June 30, 2025, $1.9 million in post-June 30 equity raises, and a $1.5 million increase in its convertible debt facility.

Additional News
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