Absci 2025 Q3 Earnings Revenue Plummets 77.8% as Net Loss Widens by 4.8%

Absci (ABSI) reported Q3 2025 results marked by a sharp revenue decline and a widening net loss, with the company guiding to extended cash runway through mid-2028. While GAAP EPS of -$0.20 beat estimates by $0.02, revenue of $0.38 million missed expectations by $1.2 million.

Revenue

Total revenue for Q3 2025 plummeted 77.8% year-over-year to $378,000, driven entirely by partner program revenue. This marked a stark contrast to the $1.70 million reported in Q3 2024, reflecting ongoing challenges in monetizing its pipeline.

Earnings/Net Income

The company narrowed its per-share loss to $0.20 from $0.24, a 16.7% improvement. However, net loss expanded to $28.7 million, a 4.8% increase from $27.4 million in the prior-year period. The widening loss highlights persistent financial strain despite reduced per-share burn.

Price Action

ABSI shares fell 1.73% in the latest trading day, 10.76% in the week, and 7.10% month-to-date, reflecting investor skepticism amid underwhelming financials.

Post-Earnings Price Action Review

The strategy of buying ABSI shares following a revenue raise and holding for 30 days underperformed significantly over three years, with a cumulative return of -44.4% and a maximum drawdown of -54.5%. Volatility and mixed market reactions—such as post-earnings dips despite clinical trial acceleration—underscored the stock’s high-risk profile. Strategic considerations pointed to broader biotech sector challenges and Absci’s prolonged financial struggles, making the approach unsustainable.

CEO Commentary

Sean McClain emphasized reallocating resources to prioritize ABS-201 for androgenetic alopecia and endometriosis, citing its “best-in-class profile” and potential in multibillion-dollar markets. The AGA Phase I/IIa trial, now accelerated to December 2025, aims to leverage shared data with endometriosis trials to reduce costs. McClain also outlined plans to deprioritize ABS-101 post-Phase I, favoring partnerships to optimize capital allocation.

Guidance

Zach Jonasson confirmed $152.5 million in cash, cash equivalents, and marketable securities as of September 30, 2025, sufficient to fund operations through mid-2028. The AGA Phase I/IIa trial is expected to yield interim proof-of-concept data by H2 2026, while the endometriosis trial, starting Q4 2026, targets H2 2027 readouts. Jonasson also highlighted ongoing partnership discussions for ABS-101 and early-stage programs, including immuno-oncology candidates.

Additional News

Absci expanded its AI-driven drug discovery collaboration with Oracle and AMD, leveraging advanced hardware to accelerate biologics design. The company also added dermatology experts Dr. Rodney Sinclair and Dr. David Goldberg to its ABS-201 Scientific Advisory Board, bolstering its AGA program. Additionally, Absci announced a KOL seminar on December 11, 2025, to discuss ABS-201’s AGA development, alongside plans to host investor conferences in November 2025 to engage with key stakeholders.

Financial Runway and Strategic Shifts

Absci’s cash reserves, bolstered by $64 million in recent capital raises, extend operational flexibility through mid-2028. The decision to deprioritize ABS-101 post-Phase I and focus on ABS-201 reflects a strategic pivot toward high-impact indications with lower development costs. Jonasson emphasized non-dilutive funding opportunities via partnerships, positioning the company to advance dual clinical readouts by 2027 while mitigating capital constraints.

Competitive Landscape

While ABS-201’s preclinical data showed durable efficacy and low immunogenicity, the company acknowledged that ABS-101’s half-life lagged behind next-gen competitors. This prompted a shift in resource allocation to endometriosis, a less competitive field with clear unmet needs. McClain expressed confidence in ABS-201’s potential to redefine treatment paradigms, citing HMI-115 data as a de-risked foundation.

Industry Outlook

Absci’s focus on AI-driven drug discovery aligns with broader industry trends toward computational biology. However, the company faces scrutiny over its ability to translate preclinical success into clinical efficacy. With $152.5 million in cash and a revised clinical timeline, the path to profitability hinges on ABS-201’s performance in Phase I/IIa trials and strategic partnership execution.