Absci 2025 Q3 Earnings Widening Net Loss Amid Revenue Decline

Absci (ABSI) reported Q3 2025 earnings marked by a 77.8% revenue decline and a widened net loss, despite beating EPS estimates by $0.02. The company’s cash reserves remain robust, with $152.5 million in liquidity, sufficient to fund operations through mid-2028. Strategic shifts, including prioritizing ABS-201 for androgenetic alopecia and endometriosis, underscore efforts to de-risk its pipeline and accelerate clinical milestones.

Revenue

The company’s total revenue for the quarter was $378,000, with all revenue stemming from its partner program. This represents a sharp 77.8% decline from $1.70 million in the prior-year period, reflecting ongoing challenges in monetizing its therapeutic candidates.

Earnings/Net Income

Absci narrowed its per-share loss to $0.20 in Q3 2025 from $0.24 in Q3 2024, a 16.7% improvement. However, the net loss expanded to $28.71 million from $27.40 million, driven by elevated R&D and SG&A expenses. The company has now posted losses for six consecutive years in the same quarter, underscoring persistent financial pressures.

Post-Earnings Price Action Review

The strategy of buying Absci shares on the date of its revenue release and holding for 30 days yielded a 30.8% return over three years, despite significant volatility. Annualized returns averaged 10.4%, though quarterly performance varied sharply, with a 25.6% gain after Q1 2023 earnings and a 14.8% drop post-Q2 2023. This volatility highlights the stock’s dependence on clinical trial progress and regulatory outcomes.

CEO Commentary

Sean McClain emphasized the strategic reallocation of resources to ABS-201, prioritizing androgenetic alopecia and endometriosis. He cited the compound’s potential for durable hair regrowth and a de-risked mechanism validated by HMI-115 data. McClain expressed optimism about 2026–2027 proof-of-concept milestones, with interim AGA data expected by late 2026 and endometriosis data by late 2027.

Guidance

Absci reported $378,000 in Q3 2025 revenue (vs. $400,000 in guidance) and a net loss of $28.7 million. The company’s cash balances of $152.5 million as of September 30, 2025, are expected to fund operations through mid-2028. Key milestones include the initiation of the ABS-201 Phase I/IIa AGA trial in December 2025 and a Phase 2 endometriosis trial in Q4 2026.

Additional News

Absci expanded its ABS-201 program to include endometriosis, with a Phase 2 trial slated for Q4 2026. The company also strengthened its partnership with Almirall, adding a second dermatology target under a collaboration that could yield up to $650 million in milestone payments. Additionally, Absci announced a strategic collaboration with Oracle and AMD to enhance its AI-driven drug discovery platform, leveraging advanced computing infrastructure to accelerate biologics design.