Nektar Therapeutics 2025 Q3 Earnings Beats Estimates with Narrowed Loss and Strong Revenue

Nektar Therapeutics (NKTR) delivered better-than-expected results in Q3 2025, with a narrower-than-anticipated loss and revenue exceeding analyst forecasts. The company improved its cash position and extended its financial runway, while its lead candidate, rezpegaldesleukin, showed promising pipeline advancements.

Revenue

Nektar Therapeutics reported total revenue of $11.79 million in Q3 2025, a 51.1% decline from $24.12 million in the same period last year. This reduction was primarily driven by the cessation of product sales following the sale of its Huntsville manufacturing facility in December 2024. Non-cash royalty revenue contributed $11.49 million, reflecting ongoing licensing agreements, while license, collaboration, and other revenue added $300,000. Despite the significant year-over-year drop, the $11.79 million figure surpassed the Zacks Consensus Estimate by 11.42%, highlighting resilience in its royalty-based income streams.

Earnings/Net Income

The company narrowed its net loss to $35.52 million in Q3 2025, or $1.87 per share, compared to $37.06 million ($2.66 per share) in Q3 2024, representing a 4.1% reduction in losses. The adjusted loss of $1.85 per share (excluding non-cash losses from equity method investments) exceeded the Zacks Consensus Estimate of $2.85 per share, signaling improved operational efficiency. The narrower loss reflects cost-cutting measures and reduced R&D expenses, underscoring progress in managing financial challenges.

Post-Earnings Price Action Review

Nektar Therapeutics’ stock edged down 0.05% on the latest trading day but gained 4.3% in after-hours trading following the earnings beat. The improved revenue and narrower loss, combined with positive pipeline developments for rezpegaldesleukin, suggest potential upward momentum. Analysts’ consistent EPS estimates and the Zacks Rank #2 (Buy) rating reinforce investor confidence. However, short-term volatility remains a risk, with a 13.80% weekly decline and 1.04% monthly drop. The lead candidate’s Phase 2b results and extended cash runway into Q2 2027 position the stock for strategic consideration, though investors should weigh market risks.

CEO Commentary

CEO Howard W. Robin emphasized advancements in rezpegaldesleukin, noting its “highly differentiated” mechanism and recognition in Nobel Prize background documents. He highlighted the REZOLVE-AD study’s success in addressing comorbid asthma in atopic dermatitis and the upcoming December 2025 topline results for alopecia areata. Robin also cited the company’s strengthened financial position, with $270.2 million in cash and investments, extending its runway to Q2 2027. CFO Sandra Gardiner reiterated confidence in the extended cash runway and raised year-end cash guidance to $240 million.

Additional News

1. ACAAI Presentation: Nektar presented late-breaking data on rezpegaldesleukin’s efficacy in atopic dermatitis and comorbid asthma at the 2025 ACAAI meeting.

2. Fast Track Designations: The FDA granted Fast Track status for rezpegaldesleukin in treating severe alopecia areata and moderate-to-severe atopic dermatitis, accelerating potential regulatory pathways.

3. Cash Runway Extension: The company’s cash runway was extended into Q2 2027, supported by $270.2 million in cash and investments, surpassing prior guidance of $100–$185 million.

Guidance

Nektar Therapeutics expects to present 52-week maintenance data from the REZOLVE-AD study in Q1 2026 and topline results from the REZOLVE-AA study in December 2025. The company aims to initiate Phase III trials for rezpegaldesleukin in atopic dermatitis following an FDA End-of-Phase II meeting by year-end. R&D expenses are projected between $125–$130 million for 2025, with G&A expenses estimated at $70–$75 million. Cash and investments are expected to remain above $240 million at year-end, supporting operations through Q2 2027.