InMed Q3 2025 Earnings Net Loss Widens by 23.1%

InMed (INM) reported its fiscal 2025 Q3 earnings on May 12th, 2025. InMed's Q3 fiscal 2025 results show a widening net loss, missing expectations set by analysts. The company anticipates additional funding efforts despite steady revenues. Guidance remains in line with expectations, projecting cash reserves to cover expenses into the third quarter of calendar year 2025. InMed's ongoing advancements in its pharmaceutical pipeline emphasize strategic growth amidst operational challenges.

Revenue
InMed's revenue experienced a growth of 7.6%, reaching $1.26 million in Q3 of 2025, compared to $1.17 million in Q3 of 2024. The BayMedica segment contributed significantly to this increase, matching the total revenue of $1.26 million for the fiscal quarter.

Earnings/Net Income
InMed reported an improvement in EPS, narrowing losses to $1.94 per share in Q3 2025 from $3.58 per share in Q3 2024, despite a 23.1% widening of net loss. However, the EPS indicates ongoing financial challenges.

Post-Earnings Price Action Review
The post-earnings strategy of acquiring InMed shares following revenue announcements and holding for 30 days has historically yielded positive returns over the past five years. However, it slightly underperformed the broader market, with an annualized return of 21.46%, surpassing the market by 6.96%. Despite its market capitalization of $11.88 billion, InMed's compounded returns have shown significant cash growth over time. Nevertheless, the strategy's effectiveness varied significantly among specific stocks, such as AMD, Natera, and Primerica, which demonstrated different performance levels and growth potentials. Investors are advised to consider individual stock characteristics and market performance before adopting this strategy, as its success may depend on the unique factors influencing each stock.

CEO Commentary
Eric A. Adams, Chief Executive Officer of InMed Pharmaceuticals, highlighted the ongoing advancement of INM-901, emphasizing its differentiated approach to treating Alzheimer's disease by targeting neuroinflammation. He noted that while BayMedica has maintained stable revenues, the company faces challenges with gross margins due to pricing pressure. Adams expressed optimism about optimizing the product mix and operational efficiencies, which are critical focus areas for the company as it continues to navigate a competitive landscape and enhance its pharmaceutical pipeline.

Guidance
InMed Pharmaceuticals expects its cash reserves to sufficiently cover planned operating expenses and capital expenditures into the third quarter of calendar year 2025, contingent on the timing of BayMedica’s commercial revenues. The company anticipates pursuing additional funding through various channels, including equity and debt financing, to support its ongoing research and development efforts. For the upcoming fiscal periods, InMed reported a Q3 2025 revenue of $1,261,578 and an EPS of -$1.94, reflecting its financial trajectory amidst operational challenges.

Additional News
InMed Pharmaceuticals has recently achieved notable progress in its patent portfolio, with the granting of its first international Patent Cooperation Treaty (PCT) patent in Mexico for novel cannabinoid analog compounds. The patent covers therapeutic applications for pain, glaucoma, inflammatory disease, anxiety, and neurological conditions, including Parkinson's and Alzheimer's disease. This development underscores InMed's commitment to expanding its intellectual property footprint across multiple jurisdictions. Additionally, the company has entered into a Standby Equity Purchase Agreement with YA II PN to sell up to $10 million of common shares over a 36-month period, which supports its strategic funding initiatives.