Absci Corp (NASDAQ:ABSI) Q2 2025 Earnings: Revenue Miss Sparks Market Selloff

Absci Corp (NASDAQ:ABSI) Reports Q2 2025 Earnings: Revenue Misses Estimates, Market Reacts Negatively

Absci Corp (NASDAQ:ABSI) reported its second-quarter 2025 financial results, revealing a revenue miss compared to analyst expectations. The company posted revenue of $0.59 million, falling short of the estimated $1.46 million. Earnings per share (EPS) came in at -$0.24, slightly worse than the projected -$0.22. Following the release, the stock declined by approximately 5% in after-hours trading, reflecting investor disappointment.

Key Financial Takeaways

• Revenue: $0.59M (vs. $1.46M estimate) – a significant miss.
• EPS: -$0.24 (vs. -$0.22 estimate) – slightly below expectations.
• Cash Position: Strengthened by $64M in gross proceeds from a July 2025 public offering, extending the cash runway into the first half of 2028.
• Net Loss: $30.6M for Q2 2025, compared to $24.8M in the same period last year.

Market Reaction

The immediate after-hours drop suggests investors were underwhelmed by the revenue shortfall, despite the company’s progress in pipeline development and financial stability. The stock had been relatively stable in recent weeks, with minimal movement in the past month (+7.1%), but the earnings miss appears to have triggered a negative reassessment.

Operational and Pipeline Updates

Absci highlighted several key developments in its press release:

• Expanded Collaboration with Almirall: A second target was elected in their AI-driven dermatology partnership, with potential milestone payments of up to $650M across both programs.
• Clinical Progress:
  • ABS-101 (anti-TL1A): Phase 1 interim readout expected later in 2025.
  • ABS-201 (anti-PRLR): On track for Phase 1/2a initiation in early 2026, targeting androgenetic alopecia.
  • ABS-301 (immuno-oncology): Preclinical validation completed, advancing toward efficacy studies.
• Strategic AI Partnerships: Continued collaboration with AMD to scale its AI drug creation platform.

Outlook vs. Analyst Estimates

While Absci did not provide explicit forward revenue or EPS guidance, analysts currently estimate:

• Q3 2025 Revenue: $2.14M
• Q3 2025 EPS: -$0.19
• Full-Year 2025 Revenue: $7.91M
• Full-Year 2025 EPS: -$0.84

The lack of a formal outlook from management does not necessarily indicate pessimism, but the market’s reaction suggests skepticism about near-term revenue growth.

Conclusion

Absci’s Q2 earnings reflect ongoing investment in its AI-driven drug discovery platform and clinical pipeline, but the revenue miss has dampened investor sentiment. The company’s strengthened balance sheet provides financial flexibility, though execution on clinical milestones and partnerships will be critical to rebuilding confidence.

For more detailed earnings estimates and historical performance, view the full data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.