Metagenomi 2025 Q3 Earnings Widening Loss Amid Strategic Restructuring

Metagenomi (MGX) reported fiscal 2025 Q3 earnings on Nov 13, 2025, with results that beat Wall Street’s EPS expectations by $0.03 and revenue estimates by $0.78 million. Despite the financial beat, the company’s strategic restructuring—including a 25% workforce reduction and leadership changes—sparked investor concerns, driving shares down 8.11% in the latest trading day.

Revenue

Collaboration revenue accounted for the entirety of Metagenomi’s total revenue of $8.66 million in Q3 2025, reflecting a 24.8% year-over-year decline from $11.51 million in 2024 Q3. The absence of additional revenue segments underscores the company’s current operational focus on a single collaborative initiative.

Earnings/Net Income

The company’s losses widened to $0.55 per share, a 7.8% increase in deficit from $0.51 per share in 2024 Q3. Net loss expanded to $20.39 million, an 8.6% rise compared to $18.77 million in the prior-year period. This marks the third consecutive year of losses for the same quarter, underscoring persistent financial challenges.

Price Action

Following the earnings release, Metagenomi’s stock price plummeted 8.11% on the day, 23.42% over the preceding week, and 41.38% month-to-date. The steep declines reflect investor skepticism about the company’s restructuring efforts and future profitability, despite meeting financial expectations.

Post-Earnings Price Action Review

The stock’s sharp post-earnings decline highlights market concerns over the company’s strategic overhaul, which includes a 25% workforce reduction and a shift in leadership. While the Q3 results exceeded analyst forecasts, the restructuring moves—aimed at extending the cash runway into 2027—were perceived as signals of operational stress. Investors appear focused on whether the cost-cutting measures will stabilize the business or exacerbate execution risks, particularly as the company advances its hemophilia A program toward clinical trials.

CEO Commentary

Jian Irish, Ph.D., the newly appointed CEO, emphasized the company’s commitment to high-probability programs like MGX-001 for hemophilia A, stating, “We are capitalizing on our most advanced gene editing technologies while maintaining financial discipline to drive sustainable growth.” The tone was cautiously optimistic, acknowledging the need for strategic focus amid ongoing losses.

Guidance

Management reiterated its prioritization of MGX-001, with a pre-IND meeting expected in Q4 2025 and IND/CTA submissions by Q4 2026. Forward-looking statements include extending cash runway to 2027 and reducing R&D expenses, though no specific revenue or EPS targets were provided.

Additional News

Metagenomi announced a 25% workforce reduction and the appointment of Jian Irish as CEO, replacing Brian Thomas, who will remain on the board. The company also unveiled new preclinical data for its hemophilia A program, demonstrating curative factor VIII activity in non-human primates. Additionally, Metagenomi reported $184.1 million in cash reserves as of Sept 30, 2025, which it anticipates will fund operations until Q4 2027.

The strategic restructuring and focus on MGX-001 reflect Metagenomi’s attempt to streamline operations and accelerate its most promising pipeline. Investors will closely watch the pre-IND meeting and subsequent regulatory milestones to gauge the company’s path to clinical development and financial sustainability.