Tango Therapeutics 2025 Q2 Earnings Misses Targets as Net Loss Widens 52%

Tango Therapeutics (TNGX) reported its fiscal 2025 Q2 earnings on August 5, 2025. The results fell well below expectations, with a steep revenue decline and a wider-than-expected net loss. Management did not adjust its guidance for the remainder of the year, maintaining prior expectations amid ongoing financial pressures.

Revenue
Tango Therapeutics’s GAAP revenue for Q2 2025 plunged 84.0% year-over-year to $3.18 million, a significant drop from $19.88 million in Q2 2024. This decline was primarily driven by the absence of license revenue and a reduction in collaboration income, notably from the Gilead partnership, which is set to terminate in August 2025. The company does not currently generate revenue from product sales, and this loss of recurring revenue streams has intensified financial uncertainty.

Earnings/Net Income
The company’s GAAP loss per share widened to ($0.35) in Q2 2025, a 45.8% increase in loss per share compared to ($0.24) in the prior year. Total net loss expanded to $-38.85 million, up 52.1% from $-25.55 million in Q2 2024. These figures highlight a deteriorating financial outlook, with losses persisting for the fifth consecutive year in this quarter. The widening net loss signals growing financial pressure despite ongoing R&D progress.

Price Action
The stock price of Tango Therapeutics has shown a positive trend in recent weeks. Shares rose 2.83% in the latest trading day, climbed 7.05% over the past week, and surged 21.23% month-to-date. Despite these gains, the company’s shares remain highly volatile, reflecting market uncertainty around its financial sustainability and pipeline progress.

Post Earnings Price Action Review
A post-earnings trading strategy involving buying shares after a revenue raise quarter-over-quarter and holding for 30 days generated a 1.82% return, aligning with the benchmark of 0.00%. The Sharpe ratio of 0.01 suggests a low risk-adjusted return, while the maximum drawdown of 0.00% indicates that the strategy did not experience significant losses during the backtest period. However, the strategy’s low returns and volatility underscore the high-risk nature of investing in Tango Therapeutics at this stage.

CEO Commentary
Barbara Weber, M.D., President and CEO of Tango Therapeutics, expressed optimism about TNG462’s potential as a best-in-class PRMT5 inhibitor for MTAP-deleted cancers. She highlighted the importance of upcoming monotherapy data in 2H 2025, which will inform a registrational trial in pancreatic cancer and guide development in lung cancer. Weber also emphasized progress in the TNG462 combination trial with Revolution Medicines and the initiation of the TNG456 Phase 1/2 trial for glioblastoma, underscoring confidence in the early clinical results.

Guidance
Tango Therapeutics indicated that its cash, cash equivalents, and marketable securities of $180.8 million as of June 30, 2025, should fund operations through Q1 2027. This includes the recognition of $53.8 million in deferred revenue from Gilead in Q3 2025. However, the company did not issue updated financial guidance for 2025 and has not provided new revenue forecasts.

Additional News
Tango Therapeutics announced significant clinical progress in its pipeline during the quarter. TNG462 began a new combination trial with Revolution Medicines’ RAS(ON) inhibitors, and TNG456 started its Phase 1/2 trial in glioblastoma. TNG260 also advanced in combination with pembrolizumab for lung cancer. These developments reflect a focus on high-impact oncology indications where current therapies offer limited benefits. The company is closely monitoring Phase 1/2 data readouts for TNG462 and TNG260, expected in 2H 2025. Additionally, the Gilead collaboration, once a key source of collaboration revenue, is winding down, with the research portion ending a year early. While Tango retains future milestones and royalties from Gilead, the loss of new collaboration revenue remains a critical concern for the company’s financial trajectory.