Scynexis 2025 Q1 Earnings Misses Targets as Net Income Declines 1411.7%

Scynexis (SCYX) reported its fiscal 2025 Q1 earnings on May 15th, 2025. The company faced a challenging quarter, with a sharp decrease in revenue and earnings. Scynexis reported a significant decline in total revenue compared to the same quarter last year, missing market expectations. Despite this, the company maintains a cash runway extending into Q3 2026, but ongoing financial challenges persist. Scynexis is advancing its Phase 3 trial and expects initial Phase 1 results for SCY-247 in Q3 2025.

Revenue
Scynexis experienced a drastic reduction in total revenue for Q1 2025, down by 81.3% compared to Q1 2024. The revenue consisted entirely of $257,000 from license agreement activities, marking a steep decline from the previous year’s $1.37 million total revenue.

Earnings/Net Income
The company reported a net loss of $5.39 million in 2025 Q1, a significant downturn from the $411,000 net income in 2024 Q1. This translated to a loss of $0.11 per share, reflecting poor performance compared to the previous year’s profit of $0.01 per share.

Price Action
The stock price of Scynexis climbed 3.03% during the latest trading day, edged up 2.25% over the last full trading week, and decreased 0.83% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing SCYX stock when revenue falls short and holding for 30 days has proven bearish, as evidenced by an 11.64% decline from May 6, 2025, to June 5, 2025. This pattern highlights the risks associated with holding stocks amid negative earnings surprises. The market tends to react negatively following such events, indicating a cautious approach is advisable until the next earnings report or a reassessment of the impact of the revenue miss occurs.

CEO Commentary
David Angulo, M.D., President and CEO, highlighted the FDA's lifting of the clinical hold for ibrexafungerp as a crucial milestone. Despite a disagreement with GSK over the MARIO study, SCYNEXIS continues with its Phase 3 trial, emphasizing its commitment to addressing fungal infections like invasive candidiasis. Angulo remains optimistic about the development of SCY-247, with Phase 1 results expected in Q3 2025, reflecting a proactive approach to meeting unmet medical needs.

Guidance
SCYNEXIS projects a cash runway into Q3 2026, supported by $53.8 million in cash, cash equivalents, and investments as of March 31, 2025. The company plans to release Phase 1 study data for SCY-247 soon, focusing on safety and pharmacokinetics. Current challenges persist with a net loss of $5.4 million in Q1 2025 while pursuing strategic growth initiatives.

Additional News
In recent developments, SCYNEXIS resolved the FDA clinical hold on ibrexafungerp and resumed the Phase 3 MARIO study. Despite a dispute with GSK regarding the study's continuation, SCYNEXIS is moving forward independently, aiming to enroll subjects shortly. GSK remains committed to the commercialization of Brexafemme for VVC indications, reflecting ongoing collaboration despite the disagreement. Additionally, SCYNEXIS presented promising preclinical data for SCY-247 at the European Society of Clinical Microbiology and Infectious Diseases meeting, with Phase 1 results anticipated in Q3 2025. Hansoh's approval for ibrexafungerp in China for acute VVC treatment marks a strategic expansion, triggering milestone payments and royalties.