Arbutus Biopharma 2025 Q3 Earnings Narrowed Losses Despite Revenue Decline

Arbutus Biopharma (ABUS) reported Q3 2025 earnings on Nov 13th, 2025, with revenue falling 60.5% year-over-year to $529,000. The company narrowed its net loss by 60.7% to $7.74 million and guided for 2026 revenue of $600,000–$700,000.

Revenue

Arbutus Biopharma’s total revenue for Q3 2025 declined sharply to $529,000 from $1.34 million in the prior-year period, driven by reduced license royalty revenues from Alnylam’s ONPATTRO sales. Collaborations and licenses contributed $280,000, while non-cash royalty revenue totaled $249,000. The decline reflects ongoing challenges in monetizing partnerships and delayed market expansion.

Earnings/Net Income

The company reduced its net loss to $-7.74 million in Q3 2025, a 60.7% improvement from $-19.72 million in Q3 2024. Earnings per share also improved, narrowing to a loss of $0.04 from $0.10. Despite these gains, Arbutus has reported losses for 13 consecutive years in this quarter, underscoring persistent financial pressures. The EPS improvement aligns with cost-cutting measures and reduced R&D expenditures.

Post-Earnings Price Action Review

The strategy of buying ABUS shares when revenue beats and holding for 30 days shows promising potential. Recent clinical data for imdusiran drove a 5% after-hours stock surge, signaling investor optimism about the treatment’s approval and market potential. Historical patterns indicate that ABUS often experiences upward momentum following revenue beats, supported by a strong cash position of $93.7 million as of September 30, 2025. However, the strategy carries risks due to market volatility and the company’s prolonged losses.

CEO Commentary

CEO John R. McHutchison emphasized sustained investment in RNA-based therapeutics and late-stage clinical trials for AB-700. He acknowledged R&D cost pressures but expressed cautious optimism about 2026 milestones, including streamlined operations and potential partnerships.

Guidance

Arbutus guided for 2026 revenue of $600,000–$700,000, driven by licensing deals for AB-700, with R&D expenses expected to remain stable at $15–$17 million annually. Non-GAAP EPS is projected at -$0.05 to -$0.07, reflecting continued cash preservation efforts.

Additional News

1. Litigation Update: Arbutus secured a favorable claim construction ruling in its Pfizer-BioNTech patent dispute and faces a U.S. trial against Moderna in March 2026.

2. China Rights Reacquired: The company reclaimed global rights to imdusiran in June 2025, previously deferred revenue from this partnership was recognized in Q2 2025.

3. Institutional Buying: Major hedge funds, including Goldman Sachs and UBS, increased ABUS holdings by 46.4%–833.2% in Q2 2025, signaling growing institutional confidence.