RenovoRx 2025 Q3 Earnings Revenue Misses Despite EPS in Line

RenovoRx (RNXT) reported mixed results for Q3 2025, with revenue falling short of expectations while EPS met forecasts. The company’s $266,000 revenue was 49.63% below the $397,070 estimate, while a loss of $0.08 per share aligned with projections. Guidance for 2026 remains cautious, with no specific revenue targets provided but optimism around commercial expansion and trial progress.

Revenue

RenovoRx’s Q3 revenue totaled $266,000, a stark 49.63% miss relative to the $397,070 forecast. This marked the company’s first revenue from RenovoCath sales since its commercial launch, though the figure reflected early-stage volatility. Year-to-date revenue reached $900,000, driven by 14 approved cancer centers, up from five in 2025. Despite repeat orders at five centers, the shortfall underscores challenges in scaling commercial adoption.

Earnings/Net Income

The company’s net loss widened to $2.91 million in Q3 2025, a 17.8% increase from the $2.47 million loss in Q3 2024. While EPS of -$0.08 matched forecasts, the broader loss indicates ongoing financial strain. The EPS performance was neutral, but the expanding net loss highlights the risks of relying on speculative growth from clinical trials and limited commercial traction.

Post-Earnings Price Action Review

The strategy of buying RenovoRx (RNXT) upon revenue misses and holding for 30 days shows potential risks. While the approach might be viable in a speculative scenario with high-risk tolerance, the rationale is flawed for several reasons: Recent Performance: RenovoRx's recent performance indicates challenges. The company reported a revenue shortfall in Q3 2025, with revenue falling significantly short of expectations. This performance reflects ongoing operational issues or market challenges that could persist. Market Sentiment and Reaction: The market reacted negatively to the earnings report, with the stock price dropping by 2.56% during regular trading hours. This decline suggests investor disappointment and potential skepticism about the company's future prospects. Financial Projections and Risks: Financial projections for RenovoRx are cautious, with estimated revenues for Q3 2025 at $0.41 million and full-year 2025 revenues at $1.26 million. The company is expected to report a loss of $0.08 per share for Q3 2025 and -$0.31 per share for the full year 2025. These figures indicate ongoing losses and rely on speculative future growth. Strategic Positioning and Future Outlook: While RenovoRx has seen some commercial expansion, with increased approvals for RenovoCath at cancer centers, this growth has not yet translated into significant revenue. The company's future relies on clinical trial outcomes, particularly the TIGER PACT trial for RenovoGem. The timeline for revenue growth from these initiatives is uncertain and may not align with the 30-day holding period. Securities Offering and Financial Health: RenovoRx has filed for the potential offering of securities for up to $50 million, which could indicate a need for capital to support operations or future growth. This financing activity might reflect underlying financial concerns that could impact stock performance in the short term. In conclusion, while a speculative buy-and-hold strategy might be considered in a highly optimistic scenario, the current evidence suggests caution. The risks associated with RenovoRx's revenue shortfalls, market reaction, and uncertain future growth prospects make this strategy less attractive. Investors should consider these factors and their own risk tolerance before deciding on a 30-day holding period for RNXT.

CEO Commentary

CEO Shaun Bagai emphasized RenovoCath’s expanding adoption, with 14 approved centers and strategic hires to bolster commercial growth. He highlighted the TIGER PACT trial’s progress toward enrollment completion in early 2026 and expressed confidence in leveraging real-world evidence to drive shareholder value. The tone was cautiously optimistic, balancing near-term challenges with long-term market expansion goals.

Guidance

RenovoRx expects revenue growth in 2026 as RenovoCath adoption expands, with $10 million in cash reserves sufficient to fund operations through early 2026. The company aims to complete the TIGER PACT trial by early 2026 and finalize data in 2027. No specific revenue targets were provided, but management reiterated confidence in offsetting cash burn through organic growth and capital efficiency.

Additional News

1. International Expansion Focus: RenovoRx confirmed its current focus on the U.S. market despite positive reception for its technology, citing favorable reimbursement and market size.

2. Supply Chain Strengthening: The company highlighted its U.S.-based manufacturing partnership, which has reduced COGS and increased margins, with RenovoCath’s two-year shelf life enabling scalable production.

3. Leadership Additions: Philip Stocton was hired as Senior Director of Sales & Market Development, adding 25+ years of medtech experience to accelerate commercial growth.