Roivant Sciences 2025 Q4 Earnings Misses Targets as Net Income Widens 38.3%

Roivant Sciences reported its fiscal 2025 Q4 earnings on May 29th, 2025. Analysts' expectations were not met, as the company saw a wider loss than anticipated, with EPS falling short of forecasts. In terms of guidance, the company did not provide specific revenue and EPS targets but suggested a focus on strategic investments and growth to drive future profitability. Overall, the results were below expectations, reflecting challenges in achieving financial targets.

Revenue

The total revenue of Roivant Sciences decreased by 16.1% to $7.57 million in 2025 Q4, down from $9.02 million in 2024 Q4.

Earnings/Net Income

Roivant Sciences's losses deepened to $0.30 per share in 2025 Q4 from a loss of $0.19 per share in 2024 Q4 (58.4% wider loss). Meanwhile, the company's net loss widened to $-252.38 million in 2025 Q4, representing a 38.3% increase from the $-182.50 million loss recorded in 2024 Q4. The 58.4% wider EPS loss indicates significant financial challenges for the company.

Price Action

The stock price of Roivant Sciences has climbed 4.63% during the latest trading day, has climbed 3.57% during the most recent full trading week, and has edged up 0.98% month-to-date.

Post-Earnings Price Action Review

The strategy of acquiring ROIV shares following a revenue miss and holding for 30 days has shown promise, demonstrating a 45.83% earnings surprise in the last quarter. Although the substantial revenue miss could result in short-term volatility, historical data suggests a strong correlation between earnings misses and subsequent price movements. This approach capitalizes on the likelihood of a price rebound driven by market sentiment and optimism about future earnings recovery. The recommended 30-day holding period aligns with historical averages for similar strategies, effectively capturing short-term price fluctuations. Despite recent revenue misses leading to negative earnings surprises, the stock may experience a short-term rebound as investors adjust expectations. Future price sustainability will depend on upcoming earnings reports and management's commentary. Positive developments, such as advancements in clinical trials, may bolster the stock's recovery. While this strategy has shown past success, caution is advised due to potential volatility and the need for positive catalysts to sustain the rebound.

CEO Commentary

Matt Gline, Chief Executive Officer, expressed pride in Roivant’s impactful fiscal year, emphasizing the significant data generated for Batoclimab and IMVT-1402, which positions them for a best-in-class franchise in anti-FcRn therapies. He highlighted the upcoming registrational data for Brepocitinib in dermatomyositis as a pivotal moment, noting the high unmet medical need in this patient population. Gline emphasized their strong late-stage pipeline and strategic focus on capital allocation to drive toward profitability, with nearly $5 billion in cash supporting their initiatives. His tone remains optimistic, particularly regarding ongoing clinical execution and the potential for multiple blockbuster launches in the coming years.

Guidance

Roivant Sciences anticipates a busy period ahead, with multiple data readouts expected in 2026 and beyond. Gline indicated that the company is well-capitalized to support its current pipeline and future business development opportunities, with approximately $2 billion reserved for expansion. The firm aims to capitalize on its competitive positioning in the FcRn market, especially following the anticipated positive outcomes from the Brepocitinib study. While specific revenue and EPS targets were not provided, the CEO's outlook suggests a focus on growth and strategic investments to drive future profitability.

Additional News

Roivant Sciences has actively engaged in strategic initiatives recently. The company repurchased $1.3 billion of its shares as of March 31, 2025, reducing outstanding shares by 14% from March 31, 2024. This move is part of their focus on capital allocation. In April 2025, Immunovant, a Roivant subsidiary, announced leadership changes, appointing Eric Venker, M.D. as CEO and Tiago Girao as CFO, reflecting Roivant's increased operational involvement. Additionally, Roivant expanded LNP litigation against Moderna to include international lawsuits in Canada, Japan, Switzerland, and the UPC, with first trials expected in 2026, highlighting their active legal strategy in protecting innovative technology.