Assembly Biosciences 2025 Q2 Earnings Loss Narrows with 32.8% EPS Improvement

Assembly Biosciences reported its fiscal 2025 Q2 earnings on Aug 07th, 2025. The company saw revenue growth and a narrowing net loss, though it remains in a long-term deficit.

The results were in line with expectations, with revenue up 12.8% and net loss reduced by 8.6% year-over-year. The company did not raise guidance and remains in a seven-year period of losses, indicating continued financial pressure despite recent progress.

Revenue

Total revenue for the second quarter of 2025 reached $9.63 million, a 12.8% increase from $8.53 million in the same period the previous year. This growth was primarily driven by collaboration revenue from Gilead Sciences, which accounted for the full $9.63 million in revenue. The increase reflects higher research and development activities under the collaboration and additional funding from an amended agreement in December 2024.

Earnings/Net Income

Assembly Biosciences narrowed its net loss to $-10.20 million for the quarter, or $1.33 per share, compared to a loss of $-11.15 million, or $1.98 per share, in the prior-year period. This represents a 32.8% improvement in earnings per share and an 8.6% reduction in net loss. Despite these improvements, the company has reported losses for seven consecutive years, highlighting ongoing financial challenges.

Price Action

The stock price of Assembly Biosciences has shown positive momentum in recent weeks. It has climbed 4.01% during the latest trading day, 8.55% for the most recent full trading week, and 4.69% month-to-date.

Post Earnings Price Action Review

The post-earnings price strategy for Assembly Biosciences has historically underperformed. A strategy of buying shares following a revenue increase quarter-over-quarter and holding for 30 days has yielded a negative return of -54.93% over the past three years, significantly underperforming the 51.69% benchmark return. This strategy had a Sharpe ratio of -0.26, indicating poor risk-adjusted performance, and experienced a maximum drawdown of 0.00%, showing investors struggled to avoid losses.

CEO Commentary

CEO Jason Okazaki highlighted the company’s progress in advancing its pipeline, particularly in the field of viral diseases. He emphasized the delivery of two key datasets from hepatitis programs, including positive results for ABI-4334 and interim data for ABI-6250. Looking ahead, the company is on track to report proof-of-concept Phase 1b data for ABI-5366 and ABI-1179 in recurrent genital herpes by fall 2025, reflecting a strong focus on clinical development.

Guidance

Assembly Biosciences expects its current cash position of $75.0 million to fund operations into mid-2026. The company remains focused on generating meaningful clinical data for its four development candidates in 2025 and advancing its pipeline across viral disease indications.

Additional News

The company has continued to make progress in its clinical development programs. ABI-4334 reported positive topline results in its Phase 1b study for chronic HBV, and ABI-6250 provided interim data supporting target engagement in healthy volunteers. Assembly Biosciences also shared four posters at the STI & HIV 2025 World Congress and presented preclinical and clinical data at the International Herpesvirus Workshop. The company is on track to present preclinical data for ABI-6250 at the International HBV Meeting in September 2025. These developments underscore Assembly Biosciences’ commitment to advancing its pipeline and delivering impactful clinical results.