Madrigal 2025 Q2 Earnings Strong Revenue Surge, Narrowed Losses

Madrigal Pharmaceuticals (MDGL) reported its fiscal 2025 Q2 earnings on August 5, 2025, with significant revenue growth and improved net losses compared to the prior year. The results reflect strong demand for its lead product, Rezdiffra, and continued strategic execution.

Madrigal significantly outperformed expectations in revenue while narrowing its net loss by 72.2% year-over-year. The company did not provide updated guidance in the earnings report, and results remain in line with previous expectations.

Revenue
Madrigal’s total revenue surged by 1353.8% year-over-year to $212.80 million in Q2 2025, driven entirely by product revenue, which reached $212.80 million compared to just $14.64 million in the same period in 2024. This dramatic increase reflects robust commercial demand for Rezdiffra across the U.S., with over 23,000 patients now on treatment.

Earnings/Net Income
Madrigal narrowed its net loss to $42.28 million in Q2 2025, a 72.2% reduction from the $151.97 million net loss in Q2 2024. On a per-share basis, the company reduced its loss to $1.90 per share from $7.10 per share in the prior year, representing a 73.2% improvement. Despite these improvements, Madrigal has posted losses for seven consecutive years during this fiscal quarter, underscoring ongoing financial challenges.

Although the reduction in losses indicates progress, the EPS remains negative, highlighting the company’s continued unprofitability.

Post Earnings Price Action Review
A strategy of buying Madrigal shares after its quarterly earnings report and holding for 30 days has historically returned 1.2% over the past three years. This underperforms the 7.6% benchmark return of the S&P 500. The approach maintains a low-risk profile, with a Sharpe ratio of 0.27 and a maximum drawdown of 0.00%, suggesting steady but limited growth. While the strategy offers stability, it lacks the return potential to match broader market benchmarks.

CEO Commentary
Bill Sibold, Chief Executive Officer, highlighted the exceptional performance of the second quarter, attributing it to sustained strong demand for Rezdiffra. He emphasized strategic milestones, including securing a new U.S. patent extending Rezdiffra’s protection through 2045, entering into a global licensing agreement for SYH2086—an oral GLP-1 development candidate—and advancing plans for European market entry. Sibold also noted the company's $500 million non-dilutive financing and the successful presentation of compelling two-year F4c MASH data.

Guidance
Madrigal expects to advance SYH2086 into the clinic in the first half of 2026 and to report data from the MAESTRO-NASH OUTCOMES trial in 2027. The company anticipates further expansion into the F4c MASH market if Rezdiffra is approved. It also plans to leverage up to $500 million in senior secured credit, including a $350 million initial term loan and a $150 million delayed draw facility through 2027, with potential for additional funding through 2027.

Additional News
Madrigal has made significant corporate announcements in the three weeks following its Q2 earnings. The company announced a licensing agreement with CSPC Pharma for SYH2086, an oral GLP-1 development candidate, which supports its strategy to develop innovative combination therapies for MASH. In July, Madrigal secured up to $500 million in senior secured credit from Blue Owl Capital, providing non-dilutive funding to advance its pipeline. Additionally, Dan Brennan, former CFO of Boston Scientific, was appointed to Madrigal’s Board of Directors in August, bolstering its leadership with seasoned financial expertise. The company also received a positive CHMP opinion for Rezdiffra in Europe and presented compelling two-year F4c MASH data at the EASL Congress, supporting its long-term leadership in the MASH market.