Foghorn 2025 Q1 Earnings Narrowed Losses by 24.7%

Foghorn (FHTX) reported its fiscal 2025 Q1 earnings on May 14th, 2025. The company’s Q1 results showed a 17.9% increase in revenue to $5.95 million, in line with expectations. Earnings per share showed improvement, narrowing losses by 49.2% compared to the previous year. The company did not adjust its guidance, maintaining expectations for a cash runway into 2027, supported by its strong financial position. Despite the revenue miss, the company continues to focus on pipeline advancements and strategic initiatives.

Revenue
Foghorn's revenue increased by 17.9% to $5.95 million in the first quarter of 2025, compared to $5.05 million in the same period of 2024. The entire revenue for this quarter was attributed to collaboration efforts, reflecting the company's strategic partnerships and ongoing projects.

Earnings/Net Income
Foghorn narrowed its losses to $0.30 per share in 2025 Q1, improving from a loss of $0.59 per share in 2024 Q1, representing a 49.2% improvement. The net loss also improved, reducing by 24.7% to $18.83 million from $25.02 million in the previous year. These results indicate a positive trend in earnings per share.

Price Action
The stock price of Foghorn dropped 4.42% during the latest trading day but climbed 3.01% over the most recent full trading week. It has surged 19.13% month-to-date.

Post-Earnings Price Action Review
Investing in Foghorn Therapeutics after a revenue miss and holding for 30 days is a high-risk, high-reward strategy. Despite recent performance and broader market conditions, this strategy may be viable due to several factors. The company's pipeline progress is notable, particularly with the advancement of its Phase 1 trial for FHD-909 targeting SMARCA4-mutated cancers. Foghorn's strong financial position, with a cash runway into 2027, supports continued development without immediate funding pressures. While the company missed revenue estimates, it has previously exceeded consensus EPS expectations, indicating potential resilience. The biotech sector's inherent volatility, influenced by clinical trial updates and regulatory news, suggests that a 30-day holding period could cushion against short-term market fluctuations. However, risks include short-term volatility and a lack of positive earnings trends, which could affect short-term performance. Investors should consider their risk tolerance and broader market sentiment before adopting this strategy.

CEO Commentary
Foghorn Therapeutics Inc. (Nasdaq: FHTX) continues to advance its pipeline, particularly with the FHD-909 Phase 1 trial, as stated by Adrian Gottschalk, President and Chief Executive Officer. The combination data presented at the AACR reinforces the potential of the selective SMARCA2 inhibitor program in non-small cell lung cancer (NSCLC). Encouraging initial data for the Selective CBP degrader program suggests potential applications beyond EP300-mutant cancers. The CEO emphasized the company's robust leadership in developing selective therapeutics, supported by a strong balance sheet that positions Foghorn to deliver significant value in 2025 and beyond.

Guidance
Foghorn expects to maintain its cash runway into 2027, allowing continued investment in its promising pipeline. The company is on track for IND-enabling studies for the Selective CBP degrader program, targeting an IND in 2026. Updates for the Selective EP300 and Selective ARID1B degrader programs are anticipated in the second half of 2025. Overall, the company aims to leverage its advancements to drive value through differentiated therapeutics in the coming years.

Additional News
In recent corporate developments, Foghorn Therapeutics announced two new appointments to its Board of Directors: Neil Gallagher, M.D., Ph.D., and Stuart Duty. Dr. Gallagher brings over 20 years of executive experience in pharmaceutical and biopharmaceutical organizations, while Mr. Duty has over 30 years of experience in finance and investment banking within biotechnology and specialty pharmaceuticals. Additionally, Foghorn hosted the Second Annual Chromatin Regulation Summit in May 2025, featuring presentations and panel discussions on targeted protein degradation and induced proximity modalities for disease treatment. These strategic moves underscore Foghorn's commitment to advancing its leadership and expertise in the biotechnology sector.