Rallybio 2025 Q2 Earnings Improved Net Loss by 40.2%

Rallybio reported its 2025 Q2 earnings on August 7, 2025, showing a significant reduction in net losses compared to the previous year, with improved performance in line with management's disciplined approach. The company narrowed its net loss to $9.7 million, or $0.22 per share, a 40.2% improvement from $16.24 million, or $0.37 per share, in Q2 2024, reflecting cost management and strategic asset divestitures.

Revenue

Rallybio’s total revenue for Q2 2025 declined to $212,000, a 29.1% drop from $299,000 in Q2 2024. This reduction was primarily driven by the recognition of performance obligations under the collaboration agreement with Johnson & Johnson in the prior year. The company reported all of its $212,000 in revenue as collaboration and license income, with no other revenue streams contributing during the period.

Earnings/Net Income

The company significantly narrowed its net loss in Q2 2025, reporting a loss of $9.7 million compared to $16.24 million in the same period last year. Rallybio achieved a 40.5% per-share improvement, reducing the loss per share to $0.22 from $0.37. This improvement underscores effective cost control measures and strategic decisions made by the company.

Price Action

In the latest trading day, Rallybio’s stock fell 0.18%, but over the past week, it gained 9.89%. Month-to-date, the stock edged down by 0.08%. These figures indicate a mixed short-term investor sentiment following earnings.

Post Earnings Price Action Review

A strategy of buying Rallybio shares 30 days after the Q2 2025 earnings report has performed poorly over the last three years, yielding a return of -95.37% versus a 51.69% benchmark. The approach resulted in a -147.06% excess return and a compound annual growth rate of -64.64%, highlighting significant underperformance and risk. The high maximum drawdown of 123.46% and a Sharpe ratio of -0.52 further underscore the volatility and unprofitability of this investment strategy post-earnings.

CEO Commentary

Stephen Uden, M.D., Chief Executive Officer of Rallybio, described the second quarter as a pivotal step forward. He emphasized progress in the RLYB116 confirmatory PK/PD study and the strategic divestiture of REV102 to Recursion Pharmaceuticals for up to $25 million. Uden highlighted disciplined portfolio management, a strengthened balance sheet, and a continued focus on transformative therapies. He expressed optimism about the potential of RLYB116 to demonstrate sustained complement inhibition and improved tolerability while acknowledging ongoing challenges such as program discontinuations and resource allocation.

Guidance

Rallybio expects to release topline data from Cohort 1 of the RLYB116 confirmatory PK/PD study in Q3 2025 and from Cohort 2 in Q4 2025. The company also expects its cash runway to extend into mid-2027 following the upfront payment from the REV102 sale. Rallybio is eligible to receive up to $12.5 million in contingent equity and $5.0 million in cash milestones related to further development of REV102, along with low single-digit royalties on future net sales by Recursion.

Additional News

In July 2025, Rallybio completed a significant M&A activity by selling its interest in the preclinical ENPP1 inhibitor REV102 to Recursion Pharmaceuticals for up to $25 million, including a $7.5 million upfront equity payment. This strategic divestiture supports Rallybio’s financial stability and cash runway through mid-2027. In April 2025, Rallybio announced the discontinuation of the RLYB212 program for FNAIT due to insufficient PK data from the Phase 2 trial. Meanwhile, the company is advancing the RLYB116 program in two hematologic conditions—PTR and APS—and evaluating future development plans for RLYB332, a long-acting anti-matriptase-2 antibody with potential best-in-class attributes for diseases of iron overload.