Cue Biopharma 2025 Q3 Earnings Narrowed Losses by 58.8% Despite Revenue Decline

Cue Biopharma (CUE) reported fiscal 2025 Q3 results on Nov 13, 2025, with revenue declining 35.6% year-over-year and net losses narrowing by 14%. The stock has fallen sharply in recent weeks, raising questions about the sustainability of its strategic initiatives.

Cue Biopharma’s quarterly revenue of $2.15 million missed expectations by 14.04%, marking a 35.6% drop from $3.34 million in 2024 Q3. The decline was driven by reduced collaboration revenue, which accounted for the entirety of the $2.15 million total. This represents a significant reversal from prior-year performance, underscoring challenges in monetizing its pipeline.

Revenue

Collaboration revenue, the sole revenue stream for the quarter, totaled $2.15 million, reflecting a sharp contraction from $3.34 million in the prior-year period. This decline highlights the company’s ongoing reliance on external partnerships to sustain operations, with no diversification in revenue sources identified in the report.

Earnings/Net Income

The company narrowed its per-share loss to $0.07 from $0.17, a 58.8% improvement, while reducing its net loss to $7.45 million—a 14.0% decline from $8.66 million in 2024 Q3. Despite these improvements, Cue Biopharma has posted losses for seven consecutive years in the corresponding quarter, underscoring persistent financial challenges.

Post-Earnings Price Action Review

The strategy of buying Cue Biopharma shares on revenue announcements and holding for 30 days yielded mixed results over three years. A 15% gain followed Q3 2023’s revenue raise, but a 25% loss in Q3 2025 offset gains, resulting in a cumulative -10% return. Key events, including a $15 million collaboration with ImmunoScape and volatile stock movements, highlighted the company’s reliance on strategic deals and market sentiment. The stock’s sharp post-earnings declines—25% in Q2 2025—underscored its susceptibility to investor reassessments of growth prospects.

CEO Commentary

Usman Azam, M.D., emphasized progress in Q3 2025, including the implementation of a “plan of optionality” and leadership transition. CUE-401, a tolerogenic bifunctional molecule, was highlighted as a key asset for autoimmune disease treatment. The CEO reiterated confidence in the Immuno-STAT® platform and the $15 million collaboration with ImmunoScape, including a 40% equity stake, as catalysts for future growth.

Guidance

The company plans to advance CUE-401 toward clinical trials, leveraging its Immuno-STAT® platform to re-establish immune tolerance. Financial commitments include $10 million in Q4 2025 and $5 million in November 2026 from the ImmunoScape deal. While no explicit 2025 financial metrics were provided, the focus remains on strategic partnerships and platform development to drive long-term value.

Additional News

Cue Biopharma announced a strategic collaboration and license agreement with ImmunoScape, securing $15 million in upfront payments and a 40% equity stake. This partnership, focused on advancing T cell therapy for solid tumors, marks a pivotal step in expanding its cell therapy pipeline. Additionally, the company completed a leadership transition, appointing Usman Azam as CEO to drive its next growth phase. These moves reflect a broader industry trend of leveraging partnerships to mitigate R&D risks and accelerate innovation in biotech.