DiaMedica Therapeutics Inc. (NASDAQ:DMAC) Reports Q2 2025 Earnings: Narrower Loss and Promising Clinical Updates Drive Stock Surge

DiaMedica Therapeutics Inc. (NASDAQ:DMAC) reported its second-quarter 2025 financial results, posting a net loss of $7.7 million, or $0.18 per share, compared to a net loss of $5.1 million, or $0.13 per share, in the same period last year. The company’s reported earnings per share (EPS) of -$0.18 slightly outperformed analyst estimates of -$0.1938, though revenue remained at $0.0, in line with expectations.

Key Financial Takeaways

• EPS Performance: Reported EPS of -$0.18 beat estimates by approximately 7%, which may have contributed to the stock's positive after-hours reaction, currently up 19.16%.
• Cash Position: The company ended the quarter with $30.0 million in cash and equivalents, bolstered by a $30.1 million private placement in July, extending its runway into the second half of 2027.
• R&D Expenses: Increased to $5.8 million (from $3.9 million YoY) due to ongoing clinical trials, including the Phase 2/3 ReMEDy2 study for acute ischemic stroke.

Clinical and Business Highlights

DiaMedica provided several updates on its pipeline, most notably:

• Positive Interim Results for DM199 in Preeclampsia: The Phase 2 trial met safety and efficacy endpoints, showing statistically significant reductions in blood pressure and improved uterine artery blood flow.
• IND Submission Plans: The company intends to file an Investigational New Drug (IND) application for DM199 in preeclampsia and fetal growth restriction, potentially advancing to a Phase 2b study.
• Russell Index Inclusion: DiaMedica was added to the Russell 2000 and 3000 indexes in June, potentially increasing institutional investor interest.

Market Reaction and Outlook

The stock’s post-earnings surge suggests investor optimism, likely driven by the better-than-expected EPS and promising clinical updates. While revenue remains nonexistent—typical for a clinical-stage biopharma—the company’s extended cash runway and progress in its pipeline provide a clearer path toward future milestones.

Analysts currently estimate full-year 2025 EPS at -$0.792, with no expected revenue. The next quarter’s EPS is projected at -$0.20.

For a deeper dive into DiaMedica’s earnings and future estimates, visit the earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research before making decisions.