MeiraGTx 2025 Q3 Earnings Revenue Plummets 96.2%, Net Loss Widens to $50.5M

MeiraGTx Holdings (MGTX) reported Q3 2025 earnings marked by a sharp revenue decline and widened losses. The company’s total revenue fell to $0.41 million, missing estimates by 89.95%, while net losses expanded to $50.51 million, or $0.62 per share, compared to $39.33 million, or $0.55 per share, in the prior year. Analysts remain cautiously optimistic, citing strategic partnerships and potential milestone payments.

Revenue

MeiraGTx’s total revenue for Q3 2025 plummeted 96.2% year-over-year to $0.41 million, driven entirely by service revenue from a related party. This represents a stark contrast to the $10.91 million in revenue recorded in the same period in 2024, as process performance qualification (PPQ) services under the asset purchase agreement with Johnson & Johnson were largely completed by quarter-end. The absence of diversified revenue streams highlights the company’s reliance on a single partnership for financial stability.

Earnings/Net Income

The company’s net loss widened to $50.51 million in Q3 2025, or $0.62 per share, from $39.33 million, or $0.55 per share, in the prior-year period. Research and development expenses surged by $6.3 million, reflecting higher manufacturing costs and clinical trial advancements. The annual net loss now stands at $129.29 million, underscoring persistent operational challenges and the high costs of gene therapy development. The EPS decline signals deteriorating profitability despite recent collaborations.

Post-Earnings Price Action Review

The strategy of buying MeiraGTx shares after revenue misses carries speculative risks but may offer recovery potential. The partnership with Eli Lilly, including a $75 million upfront payment and $400 million in milestone potential, could bolster the pipeline and market position. However, the company’s financial health remains fragile, with a 28.4% increase in net losses and a Zacks Rank #2 (Buy) rating despite unchanged EPS estimates. Analysts like RBC Capital raised the price target to $16, citing long-term optimism, but risks include further revenue shortfalls and regulatory delays. Investors must weigh these factors against management’s progress in advancing clinical trials and securing approvals.

CEO Commentary

CEO Alexandria Forbes emphasized progress in scaling manufacturing capabilities and advancing clinical trials for lead programs, including AAV-hAQP1 for xerostomia and AAV-GAD for Parkinson’s. She highlighted ongoing collaboration with Eli Lilly and Hologen AI, noting the potential for milestone payments to fund operations through 2027. However, challenges remain in addressing supply chain bottlenecks and ensuring disciplined capital allocation for long-term sustainability.

Guidance

MeiraGTx did not provide explicit forward-looking guidance during the earnings call, leaving investors to rely on management’s commentary and external analyst projections. The absence of quantitative targets underscores uncertainty around future revenue streams and profitability timelines.

Additional News

MeiraGTx’s collaboration with Eli Lilly and Hologen AI has reshaped its financial outlook. The $75 million upfront payment from Lilly and $50 million from Hologen (with $150 million pending) provide critical funding for clinical programs and manufacturing. Additionally, RBC Capital raised its price target to $16, citing the strategic value of these partnerships. Meanwhile, insider sales and a weak Altman Z-Score of -5.66 highlight liquidity concerns, though institutional ownership remains strong at 80.07%. These developments position MeiraGTx for potential catalysts but require close monitoring of regulatory and operational milestones.