Crinetics 2025 Q2 Earnings Widening Losses Despite Revenue Surge

Crinetics Pharmaceuticals reported its fiscal 2025 Q2 earnings on August 8, 2025, marking a period of significant revenue growth but deepening financial losses. Despite a strong performance in top-line growth, the company’s losses expanded year-over-year and quarter-over-quarter, underscoring continued challenges in achieving profitability.

Revenue
Crinetics’s total revenue surged by 158.4% year-over-year to $1.03 million in 2025 Q2, compared to $399,000 in the same period in 2024. The significant increase highlights early progress in commercialization efforts and potential market demand for its products.

Earnings/Net Income
The company’s financial performance deteriorated further, with losses widening to $115.64 million in 2025 Q2, representing a 56.2% increase from the $74.06 million net loss in 2024 Q2. On a per-share basis, losses deepened to $1.23 per share, up from $0.94 per share a year earlier, indicating a 30.9% wider loss. This marks the ninth consecutive year of losses in the corresponding quarter, highlighting ongoing financial challenges.

Price Action
The stock of Crinetics experienced a downturn in the short term, with a 3.17% decline during the latest trading day and a 3.56% drop over the previous full trading week. The month-to-date performance was particularly weak, with a 16.95% decline in share price.

Post-Earnings Price Action Review
A historical trading strategy of buying Crinetics shares following a revenue increase quarter-over-quarter and holding for 30 days has demonstrated strong performance over the past three years. This strategy returned 72.81%, outperforming the 50.18% benchmark return by 22.63%. With a compound annual growth rate of 20.36% and no maximum drawdown, the strategy has shown robust risk-adjusted returns, characterized by a Sharpe ratio of 0.33 and a volatility of 61.60%.

CEO Commentary
Scott Struthers, Ph.D., CEO of Crinetics Pharmaceuticals, emphasized the company’s progress toward becoming a commercial-stage enterprise. Notably, regulatory interactions for PALSONIFY are on track for a September 25, 2025 PDUFA date. Struthers highlighted the completion of a premier commercial organization and the potential for rapid availability of PALSONIFY post-approval. He also underscored the momentum in clinical programs, including late-stage trials for carcinoid syndrome, congenital adrenal hyperplasia (CAH), and the development of the first nonpeptide drug-conjugate, CRN09682. The CEO noted that Crinetics is in its strongest position historically, with multiple candidates in development and a solid financial foundation to support operations through 2029.

Guidance
Crinetics expects to initiate multiple late-stage trials in the second half of 2025, including CAREFNDR in carcinoid syndrome, as well as CALM-CAH and BALANCE-CAH for CAH. Additionally, the company anticipates starting a Phase 2/3 trial for atumelnant in ACTH-dependent Cushing’s syndrome in early 2026 and a Phase 1/2 trial for CRN09682, its first NDC candidate, in 2025. Ongoing regulatory planning for the TSH antagonist and continued development of the SST3 agonist and PTH antagonist are also in progress. With $1.2 billion in cash, cash equivalents, and investment securities as of June 30, 2025, the company is confident in its financial runway into 2029.

Additional News
Recent news highlights broader developments in the pharmaceutical and technology sectors. Notably, the OpenAI release of GPT-5 is expected to influence AI-related developments and business strategies across various industries. Additionally, regulatory and policy changes in brain-computer interface (BCI) technology, supported by a seven-department policy blueprint, are expected to accelerate innovation and commercialization. Meanwhile, in corporate governance, leadership transitions at several major companies, including new appointments at China Construction Bank and Shanghai Commercial and Savings Bank, reflect strategic shifts in the financial sector.