Absci 2025 Q3 Earnings Widened Losses Amid Revenue Plunge

Absci (ABSI) reported Q3 2025 earnings with a GAAP EPS of -$0.20, matching estimates but underscoring a 4.8% year-over-year increase in net losses. Revenue plummeted 77.8% to $378,000, missing expectations by $1.2 million. The company maintains a $152.5 million cash runway through mid-2028, with strategic shifts prioritizing ABS-201 development for androgenetic alopecia and endometriosis.

Revenue

Absci’s total revenue for Q3 2025 collapsed to $378,000, a 77.8% decline from $1.7 million in the prior-year period. The entire $378,000 was generated through its partner program, reflecting a stark contraction in revenue streams and operational activity. This single-source revenue highlights the company’s reliance on collaborative ventures amid declining market demand.

Earnings/Net Income

The company narrowed its per-share loss to $0.20 in Q3 2025 from $0.24 in Q3 2024, a 16.7% improvement. However, net losses expanded to $28.7 million, a 4.8% increase from $27.4 million in the prior year. While EPS showed modest progress, the widening net loss underscores ongoing financial challenges, as R&D expenses surged to $19.2 million. The mixed results reflect aggressive cost-cutting in some areas and rising investment in others.

Price Action

Post-Earnings Price Action Review

A strategy of purchasing Absci shares following revenue announcements and holding for 30 days has proven highly ineffective over the past three years. Investors who adopted this approach faced an absolute loss of 58.2%, far outpacing the benchmark NASDAQ Composite Index’s 27.7% decline. The strategy’s worst performance occurred in the first year, with a 40.7% drop, followed by a persistent, gradual decline that culminated in a 29.7% loss in 2025 versus the benchmark’s 24.9% drop. This underperformance underscores the stock’s vulnerability to prolonged downward trends and the inherent risks of investing in biotech firms with unproven revenue models.

CEO Commentary

Sean McClain emphasized Absci’s strategic pivot to ABS-201, targeting androgenetic alopecia and endometriosis, leveraging shared Phase I/IIa data to reduce costs and accelerate timelines. The CEO highlighted ABS-201’s potential for durable hair regrowth and disease-modifying effects in endometriosis, calling it the “strongest value creation opportunity.” McClain acknowledged reallocating resources from ABS-101 to endometriosis and AGA, citing superior unmet need and competitive advantages in these indications.

Guidance

Zachariah Jonasson confirmed a cash runway through mid-2028, with $152.5 million in cash as of September 30, 2025. The company plans to advance ABS-201’s Phase I/IIa trial in AGA (interim data H2 2026) and initiate a Phase II trial in endometriosis (Q4 2026, interim readout H2 2027). Jonasson reiterated confidence in capital-efficient development via shared trial data and aims to secure one or more drug creation partnerships by year-end.

Additional News

Absci expanded its ABS-201 program, accelerating its Phase I/IIa trial for androgenetic alopecia to December 2025 and initiating a Phase II trial in endometriosis by Q4 2026. The company also announced a strategic collaboration with Oracle Cloud Infrastructure and AMD to enhance its AI-driven drug discovery platform, leveraging advanced hardware for faster biologics design. Additionally, Absci bolstered its scientific advisory board by adding dermatology experts Dr. Rodney Sinclair and Dr. David Goldberg to guide ABS-201’s development for hair loss treatments.