Sangamo Therapeutics 2025 Q2 Earnings Improved Losses Despite Revenue Surge

Sangamo Therapeutics (SGMO) reported its Q2 2025 earnings on August 7, 2025, with a notable improvement in net losses and a substantial increase in revenue. The company exceeded expectations in revenue growth, though losses remained significant. Sangamo did not adjust its guidance, and no new financial projections were disclosed in the release.

Revenue
Sangamo Therapeutics posted a remarkable 5042.1% year-over-year increase in total revenue, reaching $18.31 million in Q2 2025 from just $356,000 in Q2 2024, signaling strong top-line growth.

Earnings/Net Income
Despite the revenue jump, the company’s earnings showed a modest improvement. The net loss narrowed to $19.99 million, or $0.08 per share, compared to a $36.13 million, or $0.18 per share, loss in the same period a year ago, reflecting a 44.7% reduction in losses and a 55.6% improvement in EPS. While the reduction in losses is a positive sign, the continued net loss indicates the company is still unprofitable.

Price Action
Following the earnings report, Sangamo’s stock price declined across multiple timeframes. Shares dropped 5.37% on the latest trading day, 10.15% for the week, and 5.58% month-to-date, indicating a challenging post-earnings response.

Post Earnings Price Action Review
A historical trading strategy of buying SGMO shares following a revenue increase and holding for 30 days has not yielded favorable results. Over the past three years, the strategy has returned -75.31%, significantly underperforming the benchmark return of 49.40%. The excess return of -124.70% and a CAGR of -37.57% highlight the poor performance of the strategy. Despite a Sharpe ratio of -0.39 and a maximum drawdown of 0%, the strategy remains unattractive for investors seeking positive returns.

CEO Commentary
Sandy Macrae, CEO of Sangamo, highlighted major progress across the company’s pipeline, including topline results from the registrational STAAR study in Fabry disease, a critical step toward commercialization. The company also initiated the first clinical site for the Phase 1/2 STAND study in chronic neuropathic pain, marking Sangamo’s entry into the neurology space. Macrae expressed optimism about dosing the first patient in the STAND study by fall 2025 and sharing clinical data by late 2026.

Guidance
The company expects to dose the first patient in the Phase 1/2 STAND study in fall 2025 and anticipates preliminary proof of efficacy data in Q4 2026. Additional data from the STAAR study will be presented at the 15th International Congress of Inborn Errors of Metabolism in September 2025. Sangamo also aims to submit a Biologics License Application for isaralgagene civaparvovec under the Accelerated Approval pathway as early as Q1 2026 and plans to present updated nonclinical data on ST-503 at the 9th International Congress on Neuropathic Pain in September 2025.

Additional News
In the three weeks following Sangamo’s Q2 2025 earnings release, the company made several key strategic announcements. Most notably, it expanded its clinical presence by initiating the first clinical site for the Phase 1/2 STAND study in chronic neuropathic pain, a move that marks its foray into the neurology field. Sangamo also announced plans to present additional clinical data from its STAAR study at the 15th International Congress of Inborn Errors of Metabolism in September 2025, reinforcing its commitment to advancing its rare disease programs. The company further emphasized its regulatory strategy by aiming to submit a Biologics License Application for isaralgagene civaparvovec as early as Q1 2026. While no dividend or share repurchase plans were announced during this period, the company’s leadership reiterated its focus on pipeline development and potential commercialization milestones.