Korro Bio 2025 Q3 Earnings Narrows Net Loss by 14% Despite Missed Clinical Trial Targets

Korro Bio (KRRO) reported fiscal 2025 Q3 earnings on Nov 13, 2025, with mixed results. The company narrowed its net loss by 14% year-over-year to $18.06 million but faced significant stock price declines following disappointing clinical trial data for its lead candidate, KRRO-110. Management outlined strategic shifts, including a pivot to GalNAc delivery for AATD and a 34% workforce reduction to extend its cash runway into mid-2027.

Revenue

Korro Bio’s total revenue for Q3 2025 rose to $1.09 million, driven entirely by collaboration revenue, a significant increase from $0 in the same period last year. This growth reflects ongoing partnerships, though the company remains reliant on external collaborations for revenue generation.

Earnings/Net Income

The company reduced its net loss to $18.06 million in Q3 2025, a 14% improvement from $21 million in Q3 2024. Per-share losses also narrowed to $1.92 from $2.26. However, persistent losses over three consecutive years highlight ongoing financial challenges, with the biotech sector’s high R&D costs and clinical risks continuing to weigh on profitability. While the per-share loss improved by 15%, the persistent net losses underscore ongoing financial challenges.

Post-Earnings Price Action Review

The strategy of buying Korro Bio shares post-earnings and holding for 30 days yielded a -26.78% return over three years, reflecting consistent underperformance. This volatility stemmed from mixed market reactions to clinical updates and broader biotech sector dynamics. Investors noted that pre-earnings expectations and sector-specific news often overshadowed company-specific results, complicating timing-based strategies.

CEO Commentary

Ram Aiyar, CEO, emphasized progress in RNA editing pipeline programs despite KRRO-110’s subpar performance in AATD trials. The company is transitioning to a GalNAc-conjugated construct for AATD, with a development candidate nomination expected by mid-2026. Strategic restructuring, including a 34% workforce reduction, aims to conserve cash for clinical milestones and partnership opportunities.

Guidance

Korro Bio expects to nominate a GalNAc-conjugated development candidate for AATD by mid-2026 and advance KRRO-121 into first-in-human trials by late 2026. The company anticipates extending its cash runway into late 2027 through cost-cutting measures, though no explicit revenue or EPS guidance was provided for 2026.

Additional News

1. Collaboration Pause with Novo Nordisk: Korro Bio suspended its 12-month research partnership with Novo Nordisk, halting joint development of cardiometabolic programs.

2. Leadership Changes: Chief Medical Officer Dr. Kemi Olugemo resigned, and the CFO stepped down in October 2025, signaling internal restructuring.

3. Analyst Downgrades: Raymond James and Chardan Capital downgraded KRRO to Market Perform and Neutral, respectively, citing uncertainty around KRRO-110’s technical hurdles and platform viability.

Key Milestones

• KRRO-110: Transitioning to GalNAc delivery for AATD; clinical data expected to inform next steps.

• KRRO-121: First-in-human trials for hyperammonemia slated for late 2026.

• Cash Runway: Restructuring aims to extend liquidity into late 2027, prioritizing pipeline advancements.

Risks and Outlook

Investors face elevated risks from clinical setbacks, high R&D costs, and sector volatility. While the RNA editing platform shows promise, execution challenges and dependence on partnerships remain critical hurdles. The stock’s near-term trajectory will likely hinge on progress in GalNAc-based programs and broader biotech market sentiment.