SoftBank Reports Q1 Profit, Driven by Nvidia and AI Investments

SoftBank Group reported Q1 net sales of 1.82 trillion yen ($12.54 bln), up 8% YoY. Arm net sales rose 4% to 152.9 bln yen ($1.05 bln), while Arm incurred a loss of 8.7 bln yen ($60 mln) due to higher R&D expenses. SoftBank's net income was 421.8 bln yen ($2.91 bln), compared to a loss of 174.3 bln yen a year ago. The company is aggressively investing in AI, leading a $40 bln funding round into ChatGPT developer OpenAI.

Nuvalent (NASDAQ:NUVL), a clinical-stage biotechnology company focused on developing therapies for cancers driven by kinase mutations, released its second quarter 2025 earnings results on August 7, 2025. The company reported a GAAP net loss of $99.7 million, up from $57.2 million in Q2 2024. Research and development (R&D) expenses climbed 64.6% year over year to $80.9 million, while general and administrative (G&A) expenses increased 48.1% to $23.7 million [1].

Nuvalent's cash position as of June 30, 2025, stood at $1.01 billion, providing a runway into 2028. The company's cash, cash equivalents, and marketable securities totaled $1.01 billion, down from $1.12 billion at the end of 2024. Despite the decline, management expects this amount to cover planned expenses into 2028, assuming no significant development setbacks or major spending increases [1].

The company's clinical pipeline advanced as planned during the quarter. Nuvalent began rolling submission of a New Drug Application (NDA) for zidesamtinib in the ROS1 program for ROS1-positive non-small cell lung cancer (NSCLC). The company also progressed neladalkib, another kinase inhibitor drug candidate, to a Phase 3 clinical trial named ALKAZAR for ALK-positive NSCLC patients who had not received a TKI. Preliminary data for neladalkib in non-NSCLC solid tumors will be presented at the European Society for Medical Oncology (ESMO) Congress in October 2025 [1].

Nuvalent promoted Jason Waters to Senior Vice President, Commercial, and expanded its board to establish a commercial infrastructure for its first possible drug launch as early as 2026. The company aims to sell its lead products directly, rather than through licensing deals [1].

Looking ahead, Nuvalent has not issued detailed financial guidance for the next quarter or full fiscal year. Instead, it emphasized milestones, including completing the zidesamtinib NDA in Q3 2025 and reporting pivotal data for neladalkib in TKI-pretreated lung cancer by year-end 2025. Management expects the company's cash resources to be sufficient to fund current operations through 2028, covering the ramp-up to potential market launches if clinical and regulatory timelines hold [1].

Investors should closely monitor Nuvalent's spending trends, as the company's costs have surged year over year. Continued progress in late-stage trials and timely regulatory milestones are also key factors, as any delays or negative data could put more pressure on the cash runway and slow time to potential revenue [1].

References:
[1] https://www.nasdaq.com/articles/nuvalent-nuvl-q2-rd-65