Precision 2025 Q1 Earnings Significant Miss as Net Income Declines 339.5%

Precision BioSciences (DTIL) reported its fiscal 2025 Q1 earnings on May 15th, 2025. Precision's earnings report revealed a significant miss, with both revenue and net income falling short of expectations. The company did not meet the Zacks Consensus Estimate for earnings, reporting a larger-than-expected loss. Looking forward, Precision maintains its cash runway guidance into the second half of 2026, indicating ample resources to continue its clinical programs. The focus remains on advancing its PBGENE-HBV and PBGENE-DMD programs, with further data anticipated throughout 2025.

Revenue

Precision BioSciences experienced a massive decline in revenue, falling by 99.8% to just $29,000 in 2025 Q1, compared to $17.58 million in the same quarter of the previous year.

Earnings/Net Income

Precision reported a net loss of $2.21 per share in Q1 2025, contrasting sharply with a profit of $1.70 per share in Q1 2024, marking a 230.0% negative change. The company's net loss was $20.57 million, a stark deterioration from the net income of $8.59 million in the previous year. The EPS significantly underperformed market expectations.

Post-Earnings Price Action Review

The strategy of buying Precision BioSciences (DTIL) stock when revenue beats expectations and holding for 30 days has proven ineffective, resulting in notable losses. The stock has declined by 29.9% since the start of the year, underperforming the S&P 500, which gained 0.2% during the same period. The quarterly report presented a loss of $2.21 per share, starkly missing the Zacks Consensus Estimate of a $0.43 loss, representing a negative earnings surprise of 41%. Additionally, the company reported revenues of $0.03 million for the quarter ending March 2025, falling short of the Zacks Consensus Estimate by 99.71%. These factors highlight the ineffectiveness of the revenue-beat strategy and suggest potential for further losses if continued.

CEO Commentary

"We started 2025 with strong momentum and a focus on generating impactful clinical data across our in vivo gene editing pipeline," said Michael Amoroso, Chief Executive Officer of Precision BioSciences. The company has announced encouraging safety data from its Phase 1 ELIMINATE-B trial for PBGENE-HBV, and received IND approval to expand this trial, highlighting the potential of ARCUS as a curative treatment for chronic Hepatitis B. Additionally, PBGENE-DMD is prioritized for IND/CTA filing in 2025, reflecting Precision's commitment to addressing high unmet medical needs while ensuring prudent capital management.

Guidance

Precision BioSciences expects to maintain its cash runway into the second half of 2026, enabling ongoing clinical updates and data readouts from its lead programs, PBGENE-HBV and PBGENE-DMD. The company anticipates sharing further safety and antiviral efficacy data from the ELIMINATE-B trial throughout 2025, with a target to file for IND/CTA for PBGENE-DMD within the same year, reinforcing its strategic focus on advancing its clinical pipeline.

Additional News

Precision BioSciences has made significant strides in its clinical programs over the past three weeks. On April 15, 2025, the company received Fast Track designation from the U.S. FDA for its PBGENE-HBV program, targeting chronic Hepatitis B. This designation aims to facilitate the development and expedite the review of the therapy. Additionally, on May 7, 2025, Precision announced initial safety data for PBGENE-HBV from its Phase 1 ELIMINATE-B trial at the European Association for the Study of the Liver Congress, showing positive results with no serious adverse events. The company is also advancing its PBGENE-DMD program for Duchenne Muscular Dystrophy, with plans to file for IND/CTA within the year and project clinical data by 2026.