Metagenomi 2025 Q2 Earnings Sharp Widening of Losses

Metagenomi (MGX) reported its fiscal 2025 Q2 earnings on August 12, 2025. The results marked a significant deterioration in financial performance, with revenue and losses both declining sharply. The company’s outlook for the near term remains uncertain as it continues to allocate substantial resources to R&D and strategic collaborations.

Metagenomi reported a significant revenue decline in Q2 2025, with total revenue falling to $8.51 million from $20.01 million in the same period in 2024. The drop was driven entirely by the company’s collaboration revenue, which accounted for the full $8.51 million in the quarter. This reflects a challenging market environment and the cyclical nature of its partnerships.

Net losses widened substantially in the quarter, with the company reporting a net loss of $-19.91 million in Q2 2025, an 85.4% increase from $-10.74 million in the prior-year period. On a per-share basis, the loss expanded to $0.54 from $0.29, a 86.2% increase in negative performance. These figures underscore the ongoing financial strain the company faces, with sustained losses recorded over the past three years.

The stock price of Metagenomi has shown mixed performance in the short term. While it rose by 2.73% during the latest trading day, it has declined significantly over the past week and month, falling 15.70% and 13.76%, respectively. This volatility reflects investor concern over the company’s earnings report and broader financial outlook.

Post-earnings, a strategy of buying Metagenomi shares after a revenue increase quarter-over-quarter and holding for 30 days led to substantial underperformance. Over the past three years, the strategy returned -79.51%, far below the benchmark return of 26.04%. With a compound annual growth rate (CAGR) of -67.44%, a maximum drawdown of 0.00%, and a Sharpe ratio of -0.61, the investment approach appears to be high risk with no upside potential. This underlines the difficulty in achieving positive returns in the wake of Metagenomi’s financial struggles.

CEO Brian C. Thomas, PhD, emphasized the company’s progress in advancing its MGX-001 hemophilia A program toward pre-IND and ex-U.S. regulatory meetings in 2025. He also highlighted a strategic collaboration with Ionis in cardiometabolic indications and the company’s strong balance sheet, which includes $205.0 million in cash. Thomas noted that the company plans to efficiently allocate resources toward pipeline development and its AI-driven platform, with key platform advancements presented at ASGCT, including compact nucleases and CAST technology for large gene integration.

Metagenomi expects to submit an IND and CTA for MGX-001 in 2026 and anticipates that its current cash position, as of June 30, 2025, will support operations through 2027. R&D expenses for the second quarter of 2025 were $22.5 million, down from $28.3 million in the same period in 2024, while G&A expenses were $7.0 million versus $8.6 million.

The earnings report shows a significant worsening of Metagenomi’s financial situation, with a sharp increase in net losses despite a reduction in expenses. The company’s EPS of -$0.54 highlights the deepening of its financial challenges and signals continued operational difficulties.

Additional News
Within the three weeks following Metagenomi’s earnings release, several key non-earnings related news items stood out. In Nigeria, the Chief of Army Staff called for citizens' collaboration in combating insurgency, while the Nigerian Correctional Service highlighted a mental health crisis in prisons, reporting 8,244 mentally ill inmates. In politics, Anambra State Governor Charles Soludo announced his support for President Tinubu in the 2027 elections, citing a 22-year friendship and economic reforms. The Nigerian Air Force also reported significant operations in Borno, with over 1,500 flight hours conducted and 592 terrorists killed. Lastly, Schneider Electric was named the World’s Most Sustainable Company for the second consecutive year.