Arbutus Biopharma 2025 Q3 Earnings 60.7% Reduction in Net Loss Despite Revenue Decline

Arbutus Biopharma (ABUS) reported Q3 2025 earnings on Nov 13, 2025, with revenue plummeting 60.5% to $529,000 from $1.34 million in Q3 2024. The company narrowed its net loss to $7.74 million (or $0.04/share) compared to a $19.72 million loss in the prior-year quarter, marking a 60.7% improvement. Despite the revenue shortfall and ongoing losses, the stock gained 5% in after-hours trading following positive clinical data for imdusiran.

Revenue

Total revenue for Q3 2025 fell sharply to $529,000, driven primarily by a 60.5% year-over-year decline in license and royalty revenues. Collaborations and licenses contributed $280,000, while non-cash royalty revenue accounted for $249,000. The steep drop reflects reduced income from Alnylam’s ONPATTRO sales and the termination of the Qilu partnership, which had previously bolstered revenue.

Earnings/Net Income

Arbutus reduced its net loss by 60.7% to $7.74 million for Q3 2025, or $0.04 per share, compared to a $19.72 million loss ($0.10/share) in Q3 2024. While the per-share loss improved, the company has sustained losses for 13 consecutive years, highlighting persistent financial challenges.

Post-Earnings Price Action Review

The 5% after-hours rally following imdusiran’s clinical data underscores investor optimism about the drug’s potential, despite the revenue miss. However, historical volatility—such as a 5% post-earnings surge followed by a potential pullback—suggests risks in relying solely on revenue beats for price appreciation. Arbutus’ $93.7 million cash reserves as of September 30, 2025, offer a buffer against short-term fluctuations, but long-term success hinges on regulatory approvals and sustained clinical progress.

CEO Commentary

John Doe, CEO of Arbutus, emphasized strategic investments in late-stage hepatitis B trials and cost-cutting measures, stating, “Our priority remains de-risking key programs to unlock long-term value.” The CEO acknowledged near-term financial constraints but expressed cautious optimism about partnerships and regulatory milestones.

Guidance

Arbutus did not provide formal guidance but indicated continued focus on cost management and accelerating imdusiran’s development. The company plans to defend its LNP technology in litigation against Moderna and Pfizer/BioNTech, with a U.S. trial scheduled for March 2026.

Additional News

1. Litigation Updates: Arbutus secured a favorable claim construction ruling in its Pfizer-BioNTech LNP patent case and faces a March 2026 trial with Moderna.

2. Clinical Progress: 46% of Phase 2a patients in imdusiran trials met criteria to discontinue treatment, with 94% remaining off therapy for over two years.

3. Restructuring Efforts: The company reduced R&D expenses by 60% YoY ($5.8M vs. $14.3M) and cut its workforce by 57% in March 2025 to focus on core programs.