Abeona Therapeutics (NASDAQ:ABEO) Stock Falls on Revenue Miss Despite Q3 EPS Beat

Earnings Performance

Abeona Therapeutics (NASDAQ:ABEO) reported a net loss of $5.2 million for the third quarter of 2025, translating to a loss per share of $0.10. This result notably surpassed analyst expectations, which had projected a deeper loss of $0.2958 per share. The company's ability to beat EPS estimates by a significant margin was a key highlight of the quarter.

On the revenue front, the company reported no revenue for the period, falling short of analyst estimates which anticipated sales of approximately $5.64 million. This miss underscores the early, pre-revenue commercial phase the company is currently in as it prepares to launch its first product.

Market Reaction

The market's immediate response to the earnings report was negative, with the stock trading down approximately 7% in pre-market activity. This price action suggests that investors may be focusing more on the revenue miss and the delayed commercial launch timeline rather than the better-than-expected EPS figure. The negative sentiment is also reflected in the stock's recent performance, which shows declines over the past two weeks and month.

Commercial Launch and Corporate Updates

The earnings release was heavily focused on the commercial rollout of ZEVASKYN, the company's newly approved gene therapy for recessive dystrophic epidermolysis bullosa (RDEB). A central point was a shift in the timeline for the first commercial patient treatment, which has been moved to the fourth quarter of 2025. This delay was attributed to the need to optimize a product release assay after a false positive sterility result. The company has since resolved the issue and resumed patient biopsy collection.

Despite the quarter delay, Abeona presented several positive indicators for the launch:

• Growing Patient Demand: Patient identification has more than doubled at the initial Qualified Treatment Centers (QTCs), with approximately 30 eligible patients now identified.
• Expanding Treatment Network: The company has activated three QTCs, with several more in the onboarding process.
• Strong Payer Coverage: Major commercial health plans, representing a significant portion of the RDEB patient population, have already published coverage policies for ZEVASKYN.
• CMS J-Code: The Centers for Medicare & Medicaid Services has established a permanent J-code for the therapy, effective January 1, 2026, which is critical for reimbursement.

Financial Position and Outlook

Abeona’s financial position appears robust to support its commercial activities. The company reported a strong cash balance:

• Cash, cash equivalents, and short-term investments totaled $207.5 million as of September 30, 2025.
• This reserve is expected to fund operations for over two years, without accounting for any revenue from ZEVASKYN.

The press release did not provide a specific financial outlook for the coming quarters or the full year. For context, analyst estimates project full-year 2025 revenue of approximately $1.3 million and sales of $28.0 million. For the fourth quarter of 2025, analysts are estimating a loss per share of $0.087 and sales of $22.1 million. The company's ability to meet or exceed these sales estimates will be a critical factor to watch as the ZEVASKYN launch progresses.

Conclusion

Abeona's third-quarter report paints a picture of a company in a pivotal transition to commercial operations. While the EPS beat and strong cash position are positive fundamentals, the market's reaction indicates heightened sensitivity to the commercial execution timeline and the initial revenue miss. The success of the ZEVASKYN launch, beginning in the current quarter, will be the primary driver of the company's financial performance and stock valuation moving forward.

For a more detailed look at Abeona's earnings and analyst estimates, you can visit the earnings estimates page on Chartmill.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.