Absci 2025 Q1 Earnings Misses Targets as Net Income Declines 19.9%

Absci Corporation (ABSI) reported its fiscal 2025 Q1 earnings on May 13th, 2025. Absci's Q1 2025 earnings fell short of expectations, with a net loss widening by 19.9% compared to 2024 Q1. The company's guidance remains in-line, with cash expected to fund operations into the first half of 2027. Despite the revenue miss, analysts maintain an "Outperform" status, signaling confidence in Absci's future prospects. Investors should remain cautious, considering Absci's ongoing financial challenges and substantial R&D expenses.

Revenue
Absci reported a total revenue increase of 31.3% for Q1 2025, reaching $1.18 million, compared to $898,000 in Q1 2024. This growth was driven entirely by their partner program revenue, which also totaled $1.18 million, showcasing the company's consistent performance in this segment.

Earnings/Net Income
Absci narrowed its losses slightly to $0.21 per share in Q1 2025 from $0.22 per share in Q1 2024. However, the net loss widened to $26.35 million, a 19.9% increase from the previous year's $21.98 million loss. The EPS performance shows a slight improvement despite overall challenges.

Price Action
The stock price of Absci rose 1.72% during the latest trading day, surged 11.70% over the past week, and increased 20.57% month-to-date.

Post-Earnings Price Action Review
The strategy of buying ABSI stock following revenue misses and holding for 30 days carries significant risk and may not be consistently profitable. Absci has frequently missed revenue and earnings targets, as evidenced by its recent quarterly loss of $0.21 per share versus a projected loss of $0.23. Despite this, analysts have maintained an "Outperform" status with an average recommendation of 1.9, indicating optimism about the company's future prospects. Absci's financials reveal a net loss of $26.3 million and increased R&D expenses of $16.4 million, suggesting a loss-making phase with substantial investment in research and development. Technical analysis shows a potential growth opportunity, with an average target stock price of $9.13, ranging from $7.00 to $13.00. Furthermore, Absci is a clinical-stage biotech company, with promising developments like the ABS-101 trial and potential upside from pipeline innovations, such as ABS-201. Investors should weigh their risk tolerance and investment horizon carefully before adopting strategies based on revenue misses, while closely monitoring Absci's financial performance and pipeline updates.

CEO Commentary
Sean McClain, Chief Executive Officer, expressed pride in Absci's transition to a clinical-stage biotech with the initiation of the ABS-101 trial, highlighting a significant milestone for the company. He emphasized the robust capabilities of their AI platform in developing therapeutics, with ABS-101 expected to yield interim results by year-end. McClain discussed the promising profile of ABS-201 for androgenic alopecia, aiming for a Phase I trial in early 2026. He conveyed optimism about partnerships, anticipating collaborations with large pharma and underscoring the company's commitment to leveraging innovation for patient benefit amidst ongoing industry challenges.

Guidance
For the first quarter of 2025, Absci reported revenue of $1.2 million and an EPS of -$0.21. The company expects its existing cash and equivalents to fund operations into the first half of 2027, with potential upside from new collaborations and asset transactions. Additionally, interim efficacy data for ABS-201 is anticipated later in 2026, aligning with their strategy to retain maximum value through internal development.

Additional News
Absci Corporation has recently made significant strides outside of its earnings report. The company initiated its first clinical trial with ABS-101, marking its transition into a clinical-stage biotech. This trial positions Absci in the competitive inflammatory disease space, where TL1A inhibitors have shown promise. Furthermore, Absci's ABS-201 program targeting androgenetic alopecia is advancing with impressive preclinical data, suggesting potential for infrequent dosing intervals and high bioavailability in non-human primates. The hair loss market targeted by ABS-201 represents a substantial opportunity, with millions of potential patients in the U.S. alone. Finally, Absci anticipates signing additional partnerships, including with large pharma companies, in 2025, which could strengthen its capital position and diversify risk.