Upstream Bio 2025 Q1 Earnings Misses Targets as Net Loss Widens 150.3%

Upstream Bio (UPB) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The total revenue of Upstream Bio decreased by 11.6% to $566,000 in 2025 Q1, down from $640,000 in 2024 Q1. Despite narrowing losses per share, the net loss widened significantly compared to the previous year. The company's cash position and guidance adjustments suggest an extended timeline for clinical milestones. Upstream Bio anticipates reporting top-line data from its Phase 2 clinical trial in chronic rhinosinusitis with nasal polyps in Q3 2025 and expects to dose the first patient in its COPD Phase 2 trial by mid-2025.

Revenue

The total revenue of Upstream Bio in 2025 Q1 decreased by 11.6% to $566,000, compared to $640,000 in 2024 Q1.

Earnings/Net Income

Upstream Bio narrowed losses to $0.51 per share in 2025 Q1 from a loss of $4.68 per share in 2024 Q1, marking an 89.1% improvement. However, the net loss widened significantly to $-27.27 million in 2025 Q1, a 150.3% increase from the $-10.89 million loss recorded in 2024 Q1. The EPS remains concerning.

Price Action

The stock price of Upstream Bio has dropped 4.20% during the latest trading day, has tumbled 8.57% during the most recent full trading week, and has surged 30.32% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Upstream Bio shares after a revenue increase and holding for 30 days proved ineffective over the past five years. It resulted in a negative return of -21.12%, significantly underperforming the benchmark return of -9.05%, with an excess return of -12.07%. The Sharpe ratio stood at -0.83, indicating substantial risk and poor returns. The strategy experienced a maximum drawdown of -37.58% and showed volatility at 44.10%. Despite the recent surge in stock price month-to-date, the historical performance suggests caution for investors relying on this strategy.

CEO Commentary

Dr. Rand Sutherland, Chief Executive Officer of Upstream Bio, expressed optimism regarding the company’s advancements with verekitug, highlighting significant progress in clinical development across multiple severe respiratory diseases. He emphasized the acceleration of guidance for upcoming clinical milestones, including the anticipated top-line data readout from the Phase 2 trial in chronic rhinosinusitis with nasal polyps, expected in Q3 2025, and the severe asthma trial data projected for the first half of 2026. Dr. Sutherland noted the unique mechanism of action of verekitug and its potential for differentiated efficacy, reinforcing the company's commitment to addressing severe respiratory conditions.

Guidance

Upstream Bio expects to report top-line data from the Phase 2 clinical trial of verekitug in chronic rhinosinusitis with nasal polyps in the third quarter of 2025. The company now anticipates top-line data for the severe asthma trial in the first half of 2026. Additionally, the first patient in the Phase 2 clinical trial for chronic obstructive pulmonary disease is expected to be dosed in mid-2025. The company’s financial position, with cash and equivalents of $431.4 million, is projected to support operations through 2027.

Additional News

Recently, Upstream Bio appointed Allison Ambrose as General Counsel, bringing over 15 years of legal leadership experience to oversee all legal functions. Furthermore, Upstream Bio announced its addition to the Russell 2000® Index, effective December 23, 2024, marking a significant milestone for the company in the small-cap equity market segment. The company also participated in the Piper Sandler 36th Annual Healthcare Conference, where CEO Rand Sutherland engaged in discussions about severe respiratory disorders and the company's innovative treatments, emphasizing Upstream Bio's strategic advancements and future potential in the biotechnology sector.