Foghorn 2025 Q3 Earnings Narrows Net Loss by 17.1% Despite Revenue Growth

, though the stock remains under pressure amid ongoing operational challenges and a single revenue beat in the last four quarters. Analysts maintain a “buy” rating, citing long-term pipeline potential despite near-term volatility.

Revenue

, driven primarily by its collaboration revenue stream. The company’s partnership with Eli Lilly proved pivotal, . , though the lack of diversified revenue segments remains a constraint.

Earnings/Net Income

, . While this narrowing of losses is a positive sign, the continued unprofitability over six consecutive years highlights structural challenges. , but sustained profitability remains uncertain without significant revenue diversification.

Post-Earnings Price Action Review

. A proposed backtest strategy—buying FHTX after revenue beats and holding for 30 days—fails due to insufficient historical data, with only one revenue beat in the last four quarters. The recent Q3 beat coincided with a 31.6% price drop over the subsequent month, underscoring the stock’s sensitivity to broader market sentiment and clinical trial risks.

CEO Commentary

emphasized progress in FHD-909’s Phase 1 trials and strategic collaborations with Lilly, while acknowledging the departure of CFO . , providing flexibility for pipeline development but noting the need for near-term catalysts to validate long-term value.

Guidance

Foghorn outlined key milestones for 2026, including IND-readiness for CBP/EP300 degraders and in vivo proof-of-concept for ARID1B. The company reiterated its focus on advancing FHD-909 as a first-line NSCLC therapy, supported by Lilly’s financial and strategic collaboration.

Additional News

1. C-Level Transition: CFO Kristian Humer resigned effective November 14, 2025, to pursue other opportunities. No replacement or interim successor was disclosed, raising questions about short-term financial leadership.

2. Analyst Optimism: All seven covering analysts maintain “buy” or “strong buy” ratings, .

3. Strategic Alliances: The Eli Lilly partnership remains central to Foghorn’s growth narrative, with FHD-909 advancing in clinical trials and selective degrader programs nearing key development phases.