Crinetics Pharmaceuticals (NASDAQ:CRNX) Reports Q3 2025 Earnings Miss

Crinetics Pharmaceuticals Inc (NASDAQ:CRNX) reported its third-quarter 2025 financial results, revealing a significant earnings miss against analyst expectations. The company's financial performance reflects its ongoing transition into a commercial-stage entity following the recent U.S. launch of its first approved product, PALSONIFY™.

Financial Performance Versus Estimates

The biopharmaceutical company's Q3 2025 results showed substantial deviations from Wall Street projections, particularly in revenue generation. While the company continues to operate as a clinical-stage organization with minimal commercial revenue, the reported figures fell notably short of expectations.

• Revenue: Reported $0.1 million versus analyst estimates of $370.9 million
• EPS: Reported -$1.38 per share compared to estimated -$1.28 per share
• Net Loss: $130.1 million for Q3 2025, widening from $76.8 million in the same period last year

The revenue shortfall appears particularly stark against expectations, though it's important to note that the company only recently began commercial operations with its acromegaly treatment PALSONIFY, which received FDA approval on September 25, 2025.

Market Reaction and Trading Activity

Following the earnings release, market participants expressed disappointment through after-hours trading activity. The stock declined approximately 4.7% in post-market trading, indicating investor concern over the quarterly performance relative to expectations. This negative reaction comes despite the stock showing relative stability over recent weeks, with minimal movement over the past month and mixed performance across different timeframes.

Commercial Launch and Operational Highlights

The quarter's defining development was the commercial launch of PALSONIFY (paltusotine) for acromegaly treatment. Management characterized the launch as having a "very good start" with early positive feedback from both patients and physicians. The company reported that its commercial team had reached over 95% of top-priority healthcare providers, with approximately 95% of filled prescriptions coming from patients switching from prior therapies.

Research and development expenses increased to $90.5 million, up from $61.9 million in the prior year period, driven by expanded clinical programs and personnel growth. Selling, general and administrative expenses more than doubled to $52.3 million, reflecting costs associated with the commercial launch and organizational expansion.

Financial Position and Outlook

Despite the widening quarterly loss, Crinetics maintains a robust financial position with $1.1 billion in cash, cash equivalents, and investments as of September 30, 2025. The company reiterated its expectation that current resources will fund operations into 2029, with projected 2025 cash usage between $340 million and $370 million.

Looking ahead, analysts project Q4 2025 revenue of approximately $3.3 million with an estimated EPS of -$1.31. For the full year 2025, revenue expectations stand around $5.4 million with an estimated EPS of -$4.92. The company did not provide specific financial guidance for future periods in its release.

Pipeline Development and Upcoming Milestones

Beyond the commercial launch, Crinetics continues to advance its clinical pipeline across multiple programs. Several significant milestones are anticipated in the coming quarters, including the initiation of Phase 3 trials for paltusotine in carcinoid syndrome and for atumelnant in congenital adrenal hyperplasia. The company also expects to begin dose escalation for its nonpeptide drug conjugate candidate CRN09682 in neuroendocrine tumors during the current quarter.

For detailed earnings estimates and future projections, investors can review additional information on the earnings estimates page.

Disclaimer: This article provides financial analysis for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any security. Investors should conduct their own research and consult with financial advisors before making investment decisions.