Prime Medicine 2025 Q3 Earnings Narrows Loss by 3.7% Despite Revenue Surge

Prime Medicine (PRME) reported fiscal 2025 Q3 earnings on Nov 8, 2025, with revenue surging 486.1% to $1.23 million and losses narrowing by 3.7% to $50.58 million. The company missed both revenue and EPS estimates, with GAAP EPS at -$0.32 (vs. -$0.28 expected) and revenue falling $1.6 million short of expectations. Management reaffirmed a cash runway into 2027 but emphasized continued R&D prioritization for liver-focused programs.

Revenue

Total revenue soared to $1.23 million in Q3 2025, a 486.1% increase from $209,000 in Q3 2024. The surge reflects collaboration revenue growth, though the $1.2 million shortfall from estimates highlights market skepticism.

Earnings/Net Income

Prime Medicine reduced its net loss to $50.58 million for Q3 2025, a 3.7% improvement from $52.52 million in Q3 2024. EPS narrowed to -$0.32 from -$0.44, representing a 27.3% per-share improvement. Despite these gains, the company remains unprofitable, with losses sustained for three consecutive years. The EPS improvement is a positive sign, though ongoing financial challenges persist.

Price Action

Post-Earnings Price Action Review

The strategy of buying Prime Medicine (PRME) shares on the date of its revenue raise and holding for 30 days shows poor performance over the past three years. The annualized return is -46.5%, indicating significant losses during this period. This suggests that this strategy failed to capitalize on the positive revenue raise, likely due to broader market dynamics or specific company developments that overshadowed the revenue growth.

The stock price of Prime Medicine has dropped 4.75% during the latest trading day, plummeted 22.87% during the most recent full trading week, and declined 40.93% month-to-date. The underperformance underscores investor skepticism despite revenue growth, with losses and guidance concerns overshadowing short-term gains.

CEO Commentary

Allan Reine, CEO of Prime Medicine, highlighted progress in liver-targeted programs, including PM647 nomination for AATD and PM577 preclinical data for Wilson’s Disease.

The CEO emphasized strategic focus on advancing IND/CTA filings for both programs, with clinical data expected in 2027. Leadership additions, such as Matthew Hawryluk’s appointment, signal confidence in leveraging partnerships and platform versatility. Reine noted the company’s strong cash position ($227 million as of Sept 30, 2025) to fund operations into 2027, balancing optimism with caution on regulatory and clinical timelines.

Guidance

Prime Medicine expects to file IND/CTA applications for Wilson’s Disease in H1 2027 and AATD in mid-2026, with initial clinical data anticipated in 2027. The company maintains a cash runway into 2027 based on current operating plans, though R&D expenses of $44 million and G&A costs of $11.2 million in Q3 highlight ongoing financial pressures. Management emphasized prioritization of core liver programs over non-core initiatives like CGD to align resources with strategic goals.

Additional News

Prime Medicine announced the appointment of Matthew Hawryluk as Chief Business Officer, strengthening its leadership team to advance strategic collaborations. The company is set to present new preclinical data for PM577 at the AASLD conference on Nov 9, 2025, and host a virtual KOL event on Nov 12 to discuss its Wilson’s Disease strategy. Additionally, Prime Medicine secured $24 million in funding from the Cystic Fibrosis Foundation to accelerate its in vivo CF program, underscoring its commitment to expanding therapeutic applications of its Prime Editing platform.