Wave Life Sciences 2025 Q3 Earnings Narrowed Losses Amid Clinical Progress

Wave Life Sciences (WVE) reported fiscal 2025 Q3 earnings on Nov 11, 2025, with mixed results: revenue surged year-over-year but missed expectations, while losses improved. The company highlighted clinical advancements in obesity and AATD therapies, extending its cash runway into 2027.

Revenue

Total revenue rose to $7.61 million in Q3 2025, driven entirely by the Collaboration Agreement segment, which accounted for the full $7.61 million. This marked a 199.1% increase from the $-7.68 million reported in Q3 2024, though fell short of the $12.6 million FactSet estimate.

Earnings/Net Income

Wave narrowed its net loss to $-53.85 million ($0.32 per share) in Q3 2025, a 12.8% improvement from the $-61.78 million ($0.47 per share) loss in Q3 2024. Despite this reduction, the company has sustained losses for nine consecutive years, underscoring ongoing financial challenges. The EPS improvement reflects disciplined cost management but remains a red flag for long-term profitability.

Post-Earnings Price Action Review

Following the earnings release, Wave’s stock price fluctuated sharply: a 3.71% gain in the latest trading day was offset by a 9.36% decline over the prior week and a 4.47% month-to-date drop. The mixed performance highlights investor uncertainty, balancing optimism over clinical milestones with concerns about recurring losses and revenue shortfalls.

CEO Commentary

Paul Bolno, CEO, emphasized clinical progress, stating, “Key objectives with WVE-007 and WVE-006 validate our RNA platform’s potential. The durable Activin E reductions in obesity trials and AATD treatment goals achieved position us to disrupt therapeutic paradigms.” He also noted the extended cash runway through 2027, though acknowledged the need for continued innovation to address unmet medical needs.

Guidance

Wave did not provide forward-looking revenue or EPS guidance. However, the company outlined upcoming milestones, including data readouts from INLIGHT and RestorAATion-2 trials, and regulatory filings for WVE-N531 and WVE-003 in 2026.

Additional News

Wave announced promising clinical results for WVE-007 (obesity) and WVE-006 (AATD), with INLIGHT trial data showing 85% Activin E reductions and RestorAATion-2 achieving 60% Z-AAT reduction. The company also reported $196.2 million in cash as of September 30, 2025, with an extended runway to Q2 2027 via ATM proceeds and GSK milestones. An investor conference call was held to discuss these updates.

Wave Life Sciences’ Q3 earnings underscored a strategic pivot from financial metrics to clinical breakthroughs. While revenue shortfalls and recurring losses persist, advancements in obesity and AATD therapies, coupled with a robust cash position, signal resilience. Investors remain cautiously optimistic, balancing near-term challenges with the potential for transformative drug approvals in 2026.