Arbutus Biopharma 2025 Q2 Earnings Strong Performance as Net Income Surges 112.7%

Arbutus Biopharma (ABUS) reported its fiscal 2025 Q2 earnings on Aug 07th, 2025. The company significantly exceeded expectations, posting a net income of $2.52 million, a 112.7% positive swing from a net loss of $-19.80 million in the same period last year. The report marked a notable financial turnaround, driven by the reacquisition of rights to its key compound, imdusiran, and a restructured cost base, though the company has yet to provide explicit forward-looking guidance.

Revenue
The company’s total revenue surged by 522.2% year-over-year, reaching $10.74 million in Q2 2025. This remarkable increase was primarily driven by the recognition of previously deferred revenue following the conclusion of its Greater China partnership for imdusiran. Collaborations and licenses revenue was the largest contributor, totaling $10.21 million. This was supplemented by non-cash royalty revenue of $526,000. The overall performance underscores the strategic shift to reacquiring global rights and the impact of restructuring efforts.

Earnings/Net Income
Arbutus Biopharma returned to profitability, posting a net income of $2.52 million in Q2 2025, a dramatic reversal from a net loss of $19.80 million a year earlier. The company’s earnings per share (EPS) improved to $0.01, compared to a loss of $0.11 per share in the prior year period, reflecting a 109.1% positive change. Despite this positive swing, the company has historically faced losses for 13 consecutive years, highlighting the ongoing challenges it has had to overcome.

Price Action
Arbutus Biopharma’s stock has shown a strong upward trend, rising 0.87% during the latest trading day, 5.15% over the past week, and 10.51% month-to-date. This performance suggests growing investor confidence in the company’s strategic direction and recent earnings turnaround.

Post-Earnings Price Action Review
The strategy of purchasing ABUS shares after a revenue drop quarter-over-quarter and holding for 30 days generated a return of 19.36% over the past three years, outperforming the 49.40% benchmark return by a modest margin. However, the strategy underperformed the market with an excess return of -30.04%. The compound annual growth rate (CAGR) was 6.14%, with a maximum drawdown of 0.00% and a Sharpe ratio of 0.13, indicating a conservative and low-risk investment approach.

CEO Commentary
Lindsay Androski, President and CEO of Arbutus Biopharma, highlighted the company’s Q2 performance, attributing it to the reacquisition of global rights for imdusiran and the formation of a late-stage Scientific Advisory Board. Androski also welcomed new board member Dr. Roger Sawhney and advisory board member Dr. Harry Janssen, both of whom bring valuable expertise in biopharmaceutical development and clinical strategy. The CEO emphasized the company’s commitment to advancing its cHBV programs and leveraging its intellectual property.

Guidance
Arbutus did not provide explicit forward-looking financial guidance in its Q2 2025 earnings report. However, the company indicated that restructuring-related payments are expected to be completed in the second half of 2025 and reiterated its focus on advancing imdusiran and AB-101 development, while pursuing litigation for its patented LNP technology.

Additional News
Arbutus Biopharma has been actively involved in major legal actions against Moderna and Pfizer/BioNTech concerning its patented lipid nanoparticle (LNP) technology. These lawsuits, centered on the use of Arbutus’s LNP technology in the development of the companies’ COVID-19 vaccines, are currently progressing through the courts, with key hearings expected in late 2025 and 2026. Additionally, the company recently reacquired global rights to imdusiran after terminating its partnership with Qilu Pharmaceutical in Greater China. This strategic move marks a significant milestone in the company’s long-term vision. Other notable changes include the resignation of Anuj Hasija from the board and the addition of Dr. Roger Sawhney to the board, bringing further leadership expertise to Arbutus.