CervoMed 2025 Q3 Earnings Net Loss Widens by 62.5% Amid Revenue Decline

CervoMed (CRVO) reported fiscal 2025 Q3 earnings on Nov 8, 2025, with results falling well below expectations. The company posted a quarterly loss of $0.84 per share, missing the Zacks Consensus Estimate of a $0.68 loss and worsening from a $0.55 loss in 2024 Q3. Revenue plummeted 83.4% to $322,569, missing analyst estimates of $1.417 million. The net loss surged to $7.73 million, a 62.5% increase from $4.75 million in the prior year, underscoring persistent financial challenges.

Revenue

CervoMed’s total revenue collapsed by 83.4% to $322,569 in 2025 Q3, a stark decline from $1.94 million in 2024 Q3. This sharp drop was attributed to the completion of the Initial Phase of the RewinD-LB Trial, which reduced grant revenue.

Earnings/Net Income

The company’s losses deepened to $0.84 per share in 2025 Q3, a 52.7% wider loss compared to $0.55 per share in 2024 Q3. Net loss expanded to $-7.73 million, a 62.5% increase from $-4.75 million in 2024 Q3. The EPS decline of 52.7% and a 62.5% wider net loss indicate deteriorating financial performance.

Price Action

CRVO shares fell 2.67% on the latest trading day, 1.84% in the week, and 22.25% month-to-date, reflecting investor skepticism.

Post-Earnings Price Action Review

The strategy of buying CRVO shares on earnings announcement dates and holding for 30 days yielded a 23.53% loss over three years, underperforming the -3.9% return of the SPY ETF. Quarterly declines ranged from -5.2% to -31.8%, with annual returns of -26.7% in 2023 and -10.9% in 2025. The volatility and consistent underperformance highlight the strategy’s risks.

CEO Commentary

No direct quotes from the CEO’s remarks were provided in the available data. However, the 10-Q filing noted management’s focus on advancing neflamapipimod for DLB in Phase 3 trials and addressing manufacturing challenges.

Guidance

The company plans to initiate a Phase 3 trial for neflamapipimod in DLB patients by mid-2026, targeting those without Alzheimer’s co-pathology. No specific financial guidance was provided, but the 10-Q emphasized the need for additional funding to support clinical programs.

Additional News

CervoMed’s SEC 10-Q report revealed a 14% increase in operating expenses to $8.4 million for Q3 2025, driven by R&D costs. The company also announced a stable polymorphic form of neflamapipimod to improve drug concentration. Separately, HC Wainwright upgraded CRVO to “Buy” on Nov 6, citing potential in its DLB pipeline. However, the 10-Q highlighted a $18.9 million year-to-date net loss and cash reserves of $27.3 million, raising concerns about funding for ongoing operations.

Guidance

CervoMed outlined plans to initiate a Phase 3 clinical trial for neflamapipimod in DLB patients by mid-2026. The trial will exclude participants with Alzheimer’s co-pathology using a validated blood plasma test. Management emphasized the drug’s potential as a disease-modifying treatment for DLB. No specific revenue or EPS guidance was provided, but the 10-Q reiterated the need for additional capital to advance programs.

Additional News

CervoMed’s cash balance stood at $27.3 million as of September 30, 2025, down from previous quarters, with a year-to-date net loss of $18.9 million. The company faces substantial doubt about its ability to continue as a going concern without further funding. Analysts at HC Wainwright upgraded the stock to “Buy” on Nov 6, citing long-term potential in DLB treatments, while LSEG’s mean estimate for Q3 2025 projected a $0.77-per-share loss. The 10-Q also noted manufacturing improvements for neflamapipimod, addressing prior issues with drug concentration.