Arcturus Therapeutics 2025 Q3 Earnings Widened Net Loss of 94.8%

Arcturus Therapeutics (ARCT) reported fiscal 2025 Q3 earnings on Nov 12, 2025, with results showing a significant decline in revenue and expanded losses. The company’s earnings beat expectations by $0.60 per share but failed to adjust guidance for future performance.

Revenue

Arcturus’ total revenue plummeted by 58.8% year-over-year to $17.15 million in Q3 2025, driven by reduced collaboration activity with CSL. Collaboration revenue accounted for $14.15 million, while grant revenue contributed $3 million. The decline reflects lower supply agreement activity and the transition of the KOSTAIVE vaccine from development to commercialization, which reduced upfront payment amortization.

Earnings/Net Income

The company’s net loss widened to $13.45 million, or $0.49 per share, representing a 94.8% increase compared to 2024 Q3. This marked a 88.5% wider loss per share, underscoring persistent profitability challenges. The EPS figure, while exceeding estimates by $0.60, highlights the company’s ongoing financial strain despite operational cost reductions.

Post-Earnings Price Action Review

Arcturus’ stock experienced sharp declines post-earnings, with a 5.36% drop on the latest trading day, a 5.90% weekly loss, and a 58.07% month-to-date decline. The stock’s volatility aligns with broader market skepticism, exacerbated by recent analyst downgrades and a weakened sentiment following underwhelming clinical data for its cystic fibrosis therapy.

CEO Commentary

CEO Joseph Payne emphasized progress in advancing ARCT-032 and ARCT-810 programs, noting interim Phase 2 data for cystic fibrosis and plans for a 12-week safety trial in 2026. He highlighted regulatory alignment efforts for OTC deficiency therapies and cost-cutting measures to extend the company’s cash runway. The tone was cautiously optimistic, balancing clinical progress with operational challenges.

Guidance

The company anticipates continued cost reductions in Q4 2025, with cash runway extended into 2028. Forward-looking statements include alignment with regulatory agencies for pivotal trials and potential collaboration support from CSL for KOSTAIVE commercialization in Asia and Europe.

Additional News

Recent developments include an SEC investigation by Edelson Lechtzin LLP over alleged misleading disclosures and multiple analyst downgrades, including HC Wainwright’s reduced price target from $60 to $12. Institutional investors, such as Vanguard Group, increased stakes in Q3 2025, reflecting mixed confidence in Arcturus’ long-term potential.

Arcturus remains focused on its mRNA pipeline, including KOSTAIVE and rare disease therapies, while navigating regulatory hurdles and market volatility. The company’s ability to secure partnerships and deliver positive clinical outcomes will be critical to restoring investor confidence.