Geron 2025 Q2 Earnings Beats Expectations with 80% EPS Improvement

Geron (GERN) reported its fiscal 2025 Q2 earnings on Aug 06, 2025, delivering results that exceeded both revenue and earnings expectations. The company’s GAAP earnings per share improved by 80%, and GAAP revenue beat analyst forecasts, signaling a marked improvement in its financial performance and commercial execution.

Revenue
Geron’s GAAP revenue surged to $49.0 million in Q2 2025, a staggering 5,477% increase from $882,000 in Q2 2024. This exceptional growth was driven almost entirely by RYTELO, Geron’s flagship product for lower-risk myelodysplastic syndromes. The product revenue alone reached $49.01 million, representing a 6,182% year-over-year increase. In addition, the company reported $29,000 in royalty income, further contributing to its total revenue of $49.04 million.

Earnings/Net Income
Geron narrowed its net loss significantly, reporting a loss of $0.02 per share in Q2 2025 compared to a loss of $0.10 per share in Q2 2024. On an absolute basis, the company reduced its net loss from $67.38 million to $16.38 million, a 75.7% reduction, reflecting strong cost discipline and improved operational efficiency. This substantial improvement in earnings performance is a positive indicator of the company’s progress in scaling its commercial operations.

Price Action
The stock price of Geron has shown a strong upward trend in recent trading sessions, with a 6.92% gain during the latest trading day and a 26.36% rise during the most recent full trading week. Over the past month, the stock has edged up 1.46%, demonstrating continued investor confidence in the company’s trajectory.

Post-Earnings Price Action Review
The post-earnings strategy of buying GERN when revenues miss and holding for 30 days underperformed significantly, delivering a -11.22% return compared to a 84.41% benchmark return. This negative return, coupled with a maximum drawdown of 0.00% and a Sharpe ratio of -0.03, underscores the ineffectiveness of the strategy in managing risk and generating positive returns. Investors should be cautious and consider more robust risk-adjusted performance metrics when evaluating post-earnings strategies for GERN.

CEO Commentary
Dawn Carter Bir, Interim President and CEO, highlighted the success of the sharpened sales strategy, which has driven a 24% quarter-over-quarter increase in RYTELO net product revenue. The CEO also noted a 17% rise in demand for RYTELO during Q2 2025. Geron has expanded its sales force by 20% and doubled its medical science liaisons, aiming to enhance awareness and adoption of RYTELO. With Harout Semerjian now at the helm, the CEO expressed optimism about the company's potential for continued growth and commercial success.

Guidance
Geron maintained its full-year 2025 guidance for total operating expenses, which are expected to range between $270 million and $285 million. The company emphasized its disciplined approach to European expansion, prioritizing U.S. commercialization while preparing for a potential 2026 launch in select EU countries. While no formal revenue or profit guidance was provided for upcoming quarters, the company highlighted the IMpactMF Phase 3 trial’s interim results in the second half of 2026 as a key upcoming milestone.

Additional News
On Aug 6, 2025, Geron announced that its Q2 revenue of $49.0 million exceeded both revenue and earnings estimates, marking a significant turnaround from the previous year. The company also disclosed the appointment of Harout Semerjian as CEO, a strategic leadership change aimed at driving future growth. Geron emphasized its progress in commercializing RYTELO, with a 17% quarter-over-quarter increase in patient demand following a challenging Q1 2025. The Phase 3 IMpactMF trial for imetelstat in myelofibrosis was over 95% enrolled as of July 31, 2025, with interim results anticipated in the second half of 2026. Additionally, the company secured favorable insurance coverage for 85% of U.S. patients, enhancing RYTELO’s accessibility and supporting its commercial success. Geron remains focused on expanding RYTELO’s indications and preparing for its European launch, which is expected to follow earlier 2025 regulatory approvals.