Pulmatrix 2024 Q4 Earnings Narrowed Losses Amid Revenue Plunge

Pulmatrix (PULM) reported its fiscal 2024 Q4 earnings on May 15th, 2025. The company experienced a dramatic revenue decline, with total revenue dropping by 99.9% to $3,000 in 2024 Q4, compared to $2.20 million in 2023 Q4. Despite this, Pulmatrix managed to narrow its losses, reporting a net loss of $1.99 million, a 4.7% improvement from the $2.08 million loss in the previous year. The earnings per share (EPS) loss improved slightly to $0.54 from $0.57, marking a 4.6% enhancement. The company’s guidance anticipates completing the proposed merger with Cullgen in June 2025, subject to certain conditions. This merger is expected to pivot Pulmatrix's focus to targeted protein degradation technology.

Revenue

Earnings/Net Income
Pulmatrix narrowed its EPS loss to $0.54 in 2024 Q4 from $0.57 in 2023 Q4, reflecting a slight improvement in financial performance.

Price Action
The stock price of Pulmatrix edged down 0.44% on the latest trading day, climbed 7.08% over the past week, and surged 20.98% month-to-date.

Post Earnings Price Action Review
The strategy of purchasing Pulmatrix (PULM) shares after the revenue announcement and holding for 30 days has proven successful over the past five years, yielding an annualized return of 26.01%, which surpasses the market average. This outperformance is attributed to the company's positive earnings surprise, which potentially boosted investor confidence and drove up the stock price. The strategy resulted in a total value of $3,176.48 for a $1,000 investment, highlighting the significant impact of investor sentiment following earnings announcements. Historically, Pulmatrix has demonstrated the capacity to exceed market expectations, suggesting that its strategic moves and financial performance can significantly influence stock valuation positively. This trend underscores the importance of timely information and strategic stock purchases in capitalizing on earnings reports.

CEO Commentary
Peter Ludlum, Interim Chief Executive Officer of Pulmatrix, emphasized that the company’s primary focus during the first quarter has been on advancing the proposed merger with Cullgen, a clinical-stage biopharmaceutical company. Ludlum noted that if the merger is successful, it would result in a Nasdaq-listed entity centered on targeted protein degradation technology, which includes three degrader programs currently in Phase 1 trials. He also highlighted that Pulmatrix is in the process of divesting its clinical assets, including the Phase 2-ready acute migraine candidate PUR3100 and its iSPERSE™ technology.

Guidance
Pulmatrix anticipates completing the proposed merger with Cullgen in June 2025, contingent on satisfying certain closing conditions. The company is actively working to divest its clinical assets, which include PUR3100 and its proprietary iSPERSE™ technology, in alignment with the merger strategy. The exact timing of the merger's closing cannot be predicted, reflecting a cautious outlook amid ongoing strategic transitions.

Additional News
Pulmatrix is nearing a pivotal transformation with its proposed merger with Cullgen, expected to conclude in June 2025. This strategic move represents a significant shift from Pulmatrix's traditional respiratory focus to Cullgen's targeted protein degradation platform, a promising area in biopharmaceuticals. As part of this transition, Pulmatrix plans to divest its entire drug portfolio, including its iSPERSE™ technology, to streamline operations and focus on Cullgen’s innovative programs. This merger is anticipated to create a Nasdaq-listed company with a stronger market position and enhanced research capabilities. Additionally, Pulmatrix has reported zero revenue for Q1 2025, reflecting its ongoing transition and winding down of previous clinical programs in preparation for the merger. These developments highlight Pulmatrix's strategic redirection and commitment to advancing in the biopharmaceutical industry.