Ultragenyx 2025 Q3 Earnings Net Loss Widens 35.1% Despite 14.7% Revenue Growth

Ultragenyx (RARE) reported fiscal 2025 Q3 results on Nov 6, 2025, with revenue rising 14.7% to $159.93 million, exceeding Zacks’ $167.55 million estimate but falling short of FactSet’s $166.8M. The net loss widened 35.1% to $180.4M, and the company reaffirmed its 2025 revenue guidance of $640M–$670M.

Revenue

Product sales accounted for $94.99 million, while royalty revenue contributed $64.94 million, bringing the total revenue to $159.93 million. The revenue growth was driven by strong performance in key therapeutic areas, with Crysvita and Dojolvi outperforming expectations in certain segments.

Earnings/Net Income

Ultragenyx’s losses deepened to $1.81 per share in Q3, representing a 29.3% wider loss compared to the prior year. The net loss widened to $180.41 million, reflecting a 35.1% increase from $133.52 million in 2024 Q3. The EPS of -$1.81 reflects a significant deterioration in profitability, underscoring ongoing financial challenges.

Post-Earnings Price Action Review

The strategy of buying Ultragenyx shares on the date of its revenue release and holding for 30 days yielded cumulative returns of 14.95% over the past three years, with an average annual return of 4.98%. This moderate gain suggests the market partially recognized the revenue strength despite the widening loss.

Additional News

Ultragenyx secured $400 million through a royalty agreement with OMERS, selling an additional 25% of future Crysvita royalties in the U.S. and Canada. The company also appointed Eric Olson as Chief Business Officer, bringing expertise from biotech transactions exceeding $15 billion. Additionally, positive 96-week data from the DTX401 trial for Glycogen Storage Disease Type Ia demonstrated sustained cornstarch reduction and improved patient quality of life.

Guidance

Ultragenyx reaffirmed its 2025 revenue guidance of $640M–$670M, reflecting 14%–20% growth over 2024. Crysvita revenue is expected to reach $460M–$480M, while the company outlined a path to GAAP profitability by 2027, supported by the $400M OMERS deal.

CEO Commentary

CEO Emil Kakkis highlighted the company’s progress in advancing late-stage programs like UX 143 and GTX-102, emphasizing transformative potential for rare disease markets. Despite the Q3 net loss, he noted that the OMERS financing strengthens liquidity and supports upcoming product launches, aligning with the 2027 profitability target.

Analyst Reactions

Analysts maintained a “Buy” consensus, with a $82.27 average price target. TD Cowen lowered its target to $75, while HC Wainwright and Canaccord Genuity reaffirmed “Buy” ratings. The stock remains speculative, with a P/S ratio of 5.13 and a P/B of 20.68, reflecting high valuation risks.

Risks

Persistent net losses, high R&D costs, and regulatory uncertainties for key clinical programs pose near-term risks. Institutional ownership at 97.67% and insider sales of 10,456 shares in Q3 highlight liquidity and confidence concerns.