Stoke Therapeutics 2025 Q1 Earnings Beats Expectations as Net Income Swings 528%

Stoke Therapeutics (STOK) reported its fiscal 2025 Q1 earnings on May 13th, 2025. The company’s results surpassed expectations with a significant turnaround in both revenue and net income. Stoke Therapeutics announced plans to initiate the EMPEROR Phase 3 study for zorevunersen in Q2 2025, with data readout expected in the second half of 2027. The company also provided guidance indicating its current cash reserves will support operations beyond 2027, aligning with launch readiness projected for mid-2028.

Revenue
The total revenue of Stoke Therapeutics increased by 3661.1% to $158.57 million in 2025 Q1, up from $4.22 million in 2024 Q1.

Earnings/Net Income
Stoke Therapeutics returned to profitability with EPS of $1.95 in 2025 Q1, reversing from a loss of $0.57 per share in 2024 Q1 (442.1% positive change). Meanwhile, the company achieved a remarkable turnaround with net income of $112.88 million in 2025 Q1, representing a 528.0% positive swing from the net loss of $-26.37 million in 2024 Q1. This impressive performance marks a strong recovery for the company.

Price Action
The stock price of Stoke Therapeutics has tumbled 14.46% during the latest trading day, has edged up 2.06% during the most recent full trading week, and has surged 36.96% month-to-date.

Post-Earnings Price Action Review
The strategy of buying STOK after a revenue beat and holding for 30 days proved unsuccessful, resulting in a substantial loss of -36.75%. The strategy suffered from a Sharpe Ratio of -0.14 and experienced a maximum drawdown of -86.14%, significantly underperforming the benchmark with an excess return of -60.82% and a CAGR of -12.11%. This indicates substantial risk and losses for investors following this approach.

CEO Commentary
"The first quarter was defined by strong execution as we advance zorevunersen into Phase 3 development for Dravet syndrome," said Ian F. Smith, Interim Chief Executive Officer and Director of Stoke Therapeutics. He emphasized the achievement of regulatory alignment for the global Phase 3 study, highlighting the strategic collaboration with Biogen and the robust financial position that supports the company’s launch readiness. Smith noted that Stoke is well-positioned to deliver the first disease-modifying therapy for Dravet syndrome to patients worldwide while continuing to invest in its pipeline.

Guidance
Stoke Therapeutics anticipates initiating the EMPEROR Phase 3 study in the second quarter of 2025, with an expected data readout in the second half of 2027, which is projected to support global regulatory filings. The company expects its current cash and marketable securities of $380.3 million to fund operations beyond the second half of 2027 and into launch readiness projected for mid-2028.

Additional News
In recent developments, Stoke Therapeutics announced significant executive changes. On March 18, 2025, Arthur Tzianabos was appointed as Interim Executive Chairman, and Ian Smith joined the Board of Directors. Additionally, Stoke Therapeutics entered into a collaboration with Biogen in February 2025, securing $165 million upfront to develop and commercialize zorevunersen for Dravet syndrome. The agreement includes potential milestone payments of up to $385 million and tiered royalties on net sales outside the U.S., Canada, and Mexico, where Stoke retains exclusive rights.