Entrada Therapeutics 2025 Q2 Earnings Misses Targets with Net Loss Widens 178.3%

Entrada Therapeutics (TRDA) reported its fiscal 2025 Q2 earnings on Aug 06th, 2025. The results fell significantly short of expectations, marked by a sharp decline in revenue and a substantial net loss. The company also provided updates on clinical progress and cash runway, but no forward guidance was issued.

Revenue
Entrada Therapeutics reported total revenue of $1.95 million in Q2 2025, a 97.9% drop from $94.69 million in the same period last year. The decline is primarily attributed to the near completion of the collaboration activities related to the VX-670 program.

Earnings/Net Income
The company swung to a net loss of $43.10 million in Q2 2025, compared to a net income of $55.03 million in Q2 2024, representing a 178.3% deterioration. Earnings per share (EPS) turned negative at $1.04, compared to a positive $1.61 in the prior-year period. The significant shift reflects increased R&D and G&A expenses, coupled with declining collaboration revenue.

The EPS result is notably negative, highlighting a deteriorating financial position in Q2 2025 compared to the prior year.

Price Action
The stock price of Entrada Therapeutics has climbed 4.94% during the latest trading day, has tumbled 10.39% during the most recent full trading week, and has tumbled 14.63% month-to-date.

Post-Earnings Price Action Review
A strategy of buying Entrada Therapeutics (TRDA) shares after a revenue increase quarter-over-quarter on the financial report release date and holding for 30 days performed poorly over the past three years, yielding a return of -50.66%—well below the benchmark return of 48.58%. The strategy was marked by high volatility (86.33%) and a Sharpe ratio of -0.25, indicating a high-risk approach with minimal risk-adjusted returns.

CEO Commentary
Dipal Doshi, CEO of Entrada Therapeutics, emphasized the growing need for safer DMD therapies and highlighted key clinical milestones, including the first patient dosed in ELEVATE-44-201 and progress in activating multiple trial sites for ELEVATE-44-201 and ELEVATE-45-201. He noted upcoming regulatory submissions for ELEVATE-50 and ELEVATE-51 and emphasized the strategic hiring of senior leadership to support growth while maintaining financial discipline. The tone of the commentary reflects optimism regarding clinical momentum and organizational strengthening.

Guidance
The company did not provide updated financial guidance for the remainder of 2025. However, it expects its current cash, cash equivalents, and marketable securities of $354 million, as of June 30, 2025, to support operations through Q2 2027.

Additional News
Entrada Therapeutics advanced multiple clinical trials, including the initiation of ELEVATE-45-201 and the dosing of the first patient in ELEVATE-44-201. The company also announced key leadership additions, including Navid Khan, PhD, as Senior Vice President of Medical Affairs, and Kiran Patki, MD, MSc, as Senior Vice President of Clinical Development. These appointments are expected to strengthen the organization's clinical and medical capabilities. Additionally, Entrada expects to file for regulatory approvals for ENTR-601-50 and ENTR-601-51 later in 2025 and 2026, respectively.