Avidity Biosciences 2025 Q2 Earnings Significant Loss Widening Despite Revenue Surge

Avidity Biosciences (NASDAQ: RNA) reported fiscal 2025 Q2 results on August 7, 2025, showing a dramatic revenue increase but a widened net loss. The company exceeded expectations in top-line growth, but losses per share and overall net income deteriorated year-over-year, with no guidance adjustment provided.

Avidity Biosciences reported total revenue of $3.85 million for Q2 2025, reflecting a significant 88.1% increase compared to $2.04 million in Q2 2024. The entire revenue stream came from collaboration revenue, marking a continued focus on partnerships as the company advances its RNA therapeutic pipeline. This strong top-line growth highlights the growing interest in Avidity’s platform and ongoing clinical development efforts.

Avidity’s earnings performance, however, continued to deteriorate. The company’s net loss widened to $157.31 million in Q2 2025, a 122.2% increase from the $70.79 million loss in the same period of 2024. On a per-share basis, the loss expanded to $1.21 per share from $0.65 per share a year ago, a 86.2% increase in negative earnings. The company has now recorded losses in six consecutive years for the same quarter, underscoring the substantial financial challenges it continues to face in developing and commercializing its RNA-based therapies.

The stock price of Avidity Biosciences has demonstrated notable momentum in the post-earnings period. Over the latest trading day, the stock rose 1.19%, and over the past full trading week, it surged 29.45%. Month-to-date, shares have gained 62.46%, reflecting strong investor sentiment despite the earnings shortfall.

The strategy of buying Avidity shares 30 days after an earnings report with a raised revenue forecast has shown mixed results over the past three years. While the Q1 2025 earnings report yielded a robust 27.25% return—far outperforming the benchmark—Q4 2024 and Q3 2024 reports delivered returns of just 25.39%, significantly underperforming the benchmark of 89.05% in both cases. These contrasting outcomes indicate that market reaction to Avidity’s earnings is highly dependent on the quarter and broader market conditions.

Sarah Boyce, president and chief executive officer, emphasized Avidity’s leadership in RNA therapeutics and progress toward three potential Biologics License Applications (BLAs) within the next 12 months. She highlighted meaningful clinical advances in its FSHD, DMD44, and DM1 programs, noting consistent data and alignment with the FDA for accelerated and full approval pathways. Boyce expressed optimism about commercialization readiness and the company’s focus on addressing patient needs with urgency and thoughtfulness.

Mike MacLean, chief financial officer, underscored the company’s strong financial position, including robust cash reserves and a cash runway that extends to mid-2027. He also highlighted operational progress in building global infrastructure in preparation for potential product launches. Avidity remains on track to submit its first BLA for del-zota by year-end 2025 and anticipates additional BLA submissions for del-brax and del-desiran in 2026. Topline data for del-brax and del-desiran’s HARBOR trial are expected in Q2 2026, with marketing application submissions for del-desiran set to begin in H2 2026.

Additional News

Over the three weeks following Avidity’s earnings report, several key non-earnings-related news items emerged. In Nigeria, *Punch Newspapers* reported on a range of developments, including political tensions and local business activities. One of the most significant stories involved political figures in Rivers State urging President Bola Tinubu to halt the ongoing local government election and reinstate the suspended governor, Fubara. This development signals heightened political activity and potential shifts in governance ahead of key elections.

On the business front, Stanbic IBTC Bank announced a successful savings promotion, awarding 148 customers a total of N23 million in prizes. This initiative reflects growing interest in financial incentives among Nigerian consumers and the strategic use of such campaigns to enhance customer engagement and loyalty.

In the realm of education, the West African Examinations Council (WAEC) faced a crisis following the discovery of result glitches. Parents and students expressed concern over the discrepancies, prompting urgent action from the ministry to resolve the issue and provide updated results within 24 hours. This incident has sparked broader discussions on the reliability of Nigeria’s education infrastructure and the need for improved digital systems to prevent similar issues in the future.

These developments highlight the dynamic business and political landscape in Nigeria, with implications for global investors and stakeholders in related sectors.