IGM Biosciences 2025 Q1 Earnings Misses Targets as Net Loss Widens 6.2%

IGM Biosciences (IGMS) reported its fiscal 2025 Q1 earnings on May 13th, 2025. Despite a slight revenue increase, the company missed earnings expectations with a net loss of $-52.89 million, up from $-49.82 million in 2024 Q1. The adjusted guidance for the fiscal year remains in line with previous projections, maintaining an expected revenue of approximately $499,000 and an EPS of -0.86. The company aims to focus on strategic investments for long-term growth.

Revenue

IGM Biosciences saw a modest increase in total revenue during the first quarter of fiscal 2025, rising by 0.4% to $499,000 compared to $497,000 in the same quarter of the previous fiscal year. This revenue was entirely generated from collaboration efforts, reflecting the company's focus on strategic partnerships as a key revenue driver.

Earnings/Net Income

IGM Biosciences's losses deepened to $0.86 per share in 2025 Q1 from a loss of $0.83 per share in 2024 Q1 (3.6% wider loss). Meanwhile, the company's net loss widened to $-52.89 million in 2025 Q1, representing a 6.2% increase from the $-49.82 million loss recorded in 2024 Q1. The Company has sustained losses for 3 years over the corresponding fiscal quarter, highlighting ongoing financial headwinds. This decline in EPS indicates continued financial challenges for IGM.

Price Action

The stock price of IGM Biosciences has dropped 4.96% during the latest trading day, has edged down 1.71% during the most recent full trading week, and has jumped 8.49% month-to-date.

Post-Earnings Price Action Review

The strategy of buying IGMS stock following a revenue miss and holding for 30 days has resulted in disappointing performance. Historical backtesting revealed substantial losses of -94.16%, with negative excess returns of -118.23% and a Sharpe ratio of -0.54. This indicates that the approach failed to yield positive returns or provide risk-adjusted benefits. Such outcomes highlight the inherent risks of investing in IGMS under these conditions and underscore the need for cautious consideration before adopting similar strategies. Investors are advised to reassess their decision-making processes and explore more robust methodologies to mitigate potential losses in future transactions.

CEO Commentary

Dr. Fred Aslan, CEO of IGM Biosciences, highlighted the company's ongoing commitment to advancing its proprietary technology platform, which he believes is a key driver for future growth. He acknowledged the challenges posed by recent market dynamics but expressed optimism regarding the potential for new partnerships and increased market penetration. Dr. Aslan emphasized the importance of aligning their strategic priorities with innovative research initiatives aimed at enhancing patient outcomes, thus positioning IGM for a competitive advantage in the industry. He conveyed a cautious yet hopeful outlook, underscoring their resilience in navigating uncertainties.

Guidance

For the upcoming fiscal year, IGM Biosciences anticipates revenue to reach approximately $499,000, with an expected EPS of -0.86. The company aims to maintain a disciplined approach to capital expenditures while focusing on strategic investments that can drive long-term growth. Management expects to leverage its current cash position to fuel ongoing research and development efforts, aiming to achieve significant advancements in their pipeline.

Additional News

In recent weeks, IGM Biosciences has faced significant changes, including the termination of its collaboration with Sanofi. This decision led to substantial workforce reductions, with the company laying off 80% of its staff and closing most of its lab and office facilities. The collaboration, initially valued at over $6 billion, was focused on developing IgM antibodies for oncology and immunology targets. Following these events, IGM is down to a minimal crew and is actively exploring strategic alternatives to maximize shareholder value. Despite these challenges, IGM holds approximately $183.8 million in cash and investments, providing a financial buffer for future initiatives.