Arbutus Biopharma 2025 Q3 Earnings Revenue Misses Estimates, 60.7% Net Loss Reduction

Arbutus Biopharma (ABUS) reported Q3 2025 earnings on Nov 13, 2025, with revenue falling short of estimates and a significant reduction in net losses. The company highlighted progress in its hepatitis B treatment pipeline despite financial challenges.

Revenue

Collaborations and licenses contributed $280,000, while non-cash royalty revenue amounted to $249,000, bringing total revenue to $529,000—a 60.5% decline from $1.34 million in Q3 2024. The drop was primarily attributed to reduced license royalty revenues from Alnylam’s ONPATTRO sales.

Earnings/Net Income

Arbutus narrowed its net loss to $7.74 million (or $0.04 per share) in Q3 2025, a 60.7% improvement from $19.72 million (or $0.10 per share) in Q3 2024. Despite sustained losses over 13 years, the reduction reflects cost-cutting measures and operational efficiency. The EPS improvement, though still in deficit, signals progress in managing financial headwinds.

Price Action

The stock price dropped 4.60% during the latest trading day but gained 2.70% weekly and 7.55% month-to-date.

Post-Earnings Price Action Review

Despite missing revenue estimates, ABUS shares rose 5% in after-hours trading following promising clinical data for imdusiran, its hepatitis B treatment. The market’s positive reaction underscores anticipation for future revenue growth through regulatory approvals. Analysts have maintained buy ratings, with Goldman Sachs raising its price target to $24, reflecting optimism about the pipeline. However, the decline in license royalties from Alnylam highlights the need for ABUS to rely on internal revenue drivers like imdusiran. With $93.7 million in cash as of September 30, 2025, the company is well-positioned to fund development and strategic initiatives. While the buy-and-hold strategy for 30 days appears viable due to strong clinical data and analyst support, investors must remain cautious about regulatory risks and litigation outcomes.

CEO Commentary

CEO Dr. Lindsay Androski emphasized disciplined execution of strategic priorities, including accelerating imdusiran development and expanding collaborations to mitigate high-cost therapeutic risks. The company remains optimistic about its pipeline despite ongoing financial challenges.

Guidance

Arbutus expects to reduce net cash burn in 2025 compared to 2024 through restructuring and cost management.

Additional News

1. Partnership Update: In June 2025, Arbutus reacquired global rights to imdusiran from Qilu Pharmaceutical, enabling full control over its hepatitis B treatment pipeline.

2. Litigation Progress: A favorable claim construction ruling in the Pfizer-BioNTech LNP patent lawsuit was issued in September 2025, strengthening Arbutus’s position. The Moderna U.S. trial is scheduled for March 2026.

3. Institutional Investor Activity: Goldman Sachs and UBS significantly increased ABUS holdings in Q2 2025, signaling confidence in the company’s strategic direction and pipeline potential.

Arbutus Biopharma’s imdusiran clinical trials showed 46% of Phase 2a patients discontinued all treatment, with 94% remaining off therapy for over two years.