4D Molecular 2025 Q3 Earnings Widening Loss Despite 2900% Revenue Surge

4D Molecular Therapeutics (FDMT) reported its fiscal 2025 Q3 earnings on Nov 10, 2025, revealing a 2900% revenue increase to $90 million but a 29.7% wider net loss. The company maintained guidance for cash runway through 2028 despite the loss expansion.

Revenue

The total revenue of 4D Molecular surged by 2900.0% to $90,000,000 in 2025 Q3, up from $3,000,000 in 2024 Q3, driven by collaboration and license activities.

Earnings/Net Income

4D Molecular’s losses deepened to $1.01 per share in 2025 Q3, widening by 27.8% from a $0.79 loss in 2024 Q3. The net loss expanded to $56.88 million, a 29.7% increase from $43.84 million in 2024 Q3. The EPS loss widened to $1.01, underscoring persistent financial challenges despite robust revenue growth.

Post-Earnings Price Action Review

A backtest analysis of buying 4D Molecular shares after a revenue raise quarter-over-quarter shows promising returns. The average return over three years was 25.5%, with a 5 out of 6 success rate, including a 40% gain in one quarter. Cumulative returns reached 82.3%, and risk management was effective, with only a minor loss in one instance. This strategy, tailored to the biotech sector, highlights the potential for positive market sentiment following revenue growth.

CEO Commentary

David Kirn, CEO of 4D Molecular, highlighted strategic progress in Q3 2025, including the Otsuka partnership for 4D-150 in APAC, positive PRISM trial data for wet AMD, and a $11 million investment in 4D-710. The company’s $372 million cash balance is projected to fund operations through 2H 2028.

Guidance

The company expects cash runway into 2H 2028, with key milestones in 4D-150’s 4FRONT Phase 3 trials (H1 2027 for 4FRONT-1, H2 2027 for 4FRONT-2) and the SPECTRA trial in DME. Otsuka’s $85 million upfront payment and $336 million in potential milestones, alongside the Cystic Fibrosis Foundation’s $11 million investment, will advance 4D-710 into Phase 2 for CF lung disease.

Additional News

1. Morgan Stanley Upgrade: On Nov 8, Morgan Stanley upgraded FDMT to “equal weight” from “underweight,” aligning with a “Moderate Buy” consensus and $28.50 average target price.

2. Insider Sales: Insider Scott Bizily sold 2,678 shares for $32,136, reducing his ownership by 42.7%. Institutional investors collectively own 99.27% of the stock.

3. New Partnership: Otsuka’s $85 million upfront payment for APAC rights to 4D-150 and a $93.3 million November equity offering extended the company’s financial runway.

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