Arbutus Biopharma 2025 Q3 Earnings Narrowed Losses Despite Revenue Decline

Arbutus Biopharma reported Q3 2025 earnings with a significant reduction in net losses but revenue fell well below expectations. The company narrowed its net loss to $7.74 million, a 60.7% improvement from $19.72 million in 2024 Q3, while revenue dropped 60.5% to $529,000. The results missed analyst forecasts, but the CEO highlighted progress in clinical trials and cost-cutting measures.

Revenue

Total revenue declined sharply to $529,000 in Q3 2025, a 60.5% drop from $1.34 million in the prior-year period. The decline was driven by reduced license royalty revenues, particularly from Alnylam’s ONPATTRO sales.

Earnings/Net Income

Arbutus narrowed its net loss to $7.74 million, or $0.04 per share, compared to a $19.72 million loss ($0.10 per share) in 2024 Q3. The improvement reflects disciplined cost management, with R&D expenses falling to $5.8 million from $14.3 million YoY. The reduced losses indicate progress in controlling costs despite ongoing operational challenges.

Price Action

The stock price of Arbutus Biopharma dropped 4.60% during the latest trading day but edged up 2.70% during the most recent full trading week. Month-to-date, the stock has climbed 7.55%.

Post-Earnings Price Action Review

Despite missing revenue and earnings estimates, Arbutus shares rose 5% in after-hours trading as investors focused on promising imdusiran clinical data. The stock’s mixed short-term performance reflects optimism over the hepatitis B treatment’s potential, though broader revenue challenges and legal battles with Moderna and Pfizer/BioNTech remain headwinds.

CEO Commentary

Lindsay Androski, President and CEO, emphasized the company’s disciplined execution of strategic priorities, including cost reductions and advancements in imdusiran development. “The strength of our third quarter performance reflects our focus on advancing key programs and optimizing financial resources,” Androski stated. She highlighted the 46% of Phase 2a patients who met criteria to discontinue treatment, underscoring imdusiran’s potential.

Guidance

The company did not provide specific forward-looking guidance in the report but reiterated its focus on accelerating imdusiran’s development and defending LNP technology patents.

Additional News

Arbutus announced a strategic partnership with Qilu Pharmaceutical, returning global rights for imdusiran to the company. Legal battles with Moderna and Pfizer/BioNTech over LNP technology continue, with a U.S. trial against Moderna scheduled for March 2026. Promising imdusiran data, including 46% of Phase 2a patients discontinuing treatment and 94% remaining off therapy for over two years, reinforced the drug’s potential.

Arbutus maintains $93.7 million in cash and marketable securities as of September 30, 2025, supporting its R&D and litigation efforts. Institutional investors increased holdings, with Goldman Sachs and UBS among the largest buyers in Q2 2025. Analysts remain cautiously optimistic, with a median 12-month price target of $5.00.