Surrozen 2025 Q3 Earnings Net Loss Widens 4896% Amid RD Costs

Surrozen (SRZN) reported a 90.2% revenue decline and a 4896% wider net loss in Q3 2025, driven by elevated R&D expenses. Despite missing expectations, the company highlighted progress in ophthalmology pipeline advancements and strategic leadership changes. Analysts remain optimistic, citing long-term growth potential in retinal disease therapies.

Revenue

Total revenue plummeted to $983,000 in Q3 2025, a 90.2% decrease from $10 million in the prior year. The sole revenue contributor was research services from a related party, underscoring a sharp decline in collaboration income. The absence of diversified revenue streams highlights reliance on limited partnerships.

Earnings/Net Income

Surrozen’s net loss widened to $71.64 million ($8.36 per share) in Q3 2025, a 4896% increase from $1.43 million ($0.44 per share) in Q3 2024. The EPS and net loss reflect a substantial deterioration in financial performance due to elevated R&D expenses and non-cash valuation adjustments.

Post-Earnings Price Action Review

The strategy of buying SRZN on revenue beats and holding for 30 days appears supported by the company’s ophthalmology pipeline advancements, including the 2026 IND submission for SZN-8141. Analysts maintain a bullish stance, with a median $37.00 price target despite the widening net loss. Institutional investor activity shows mixed positions, but overall sentiment remains positive. While historical data on this strategy is limited, the combination of favorable ratings and growth potential in retinal therapies suggests viability, though R&D costs and regulatory risks persist.

CEO Commentary

CEO Craig Parker emphasized progress in ophthalmology programs, including the appointment of Andrew Maleki as CFO. Strategic partnerships, such as the Boehringer Ingelheim collaboration for SZN-413, and scientific presentations at key conferences underscore confidence in the pipeline’s potential to address unmet medical needs in retinal diseases.

Guidance

Surrozen anticipates submitting an IND application for SZN-8141 in 2026 and advancing its ophthalmology programs. The partnership with Boehringer Ingelheim includes up to $586.5 million in milestone payments and royalties. No explicit financial guidance was provided beyond Q3 2025 results.

Additional News

1. C-Level Changes: Andrew Maleki joined as CFO, strengthening leadership with expertise in biotech fundraising and strategy.

2. IND Submission: Surrozen remains on track for a 2026 IND filing for SZN-8141, a key milestone for its retinal disease pipeline.

3. Partnership Expansion: The collaboration with Boehringer Ingelheim for SZN-413, offering up to $586.5 million in milestones, reinforces Surrozen’s focus on commercialization.