DiaMedica Therapeutics Inc (NASDAQ:DMAC) Reports Q3 2025 Earnings and Clinical Progress

DiaMedica Therapeutics Inc (NASDAQ:DMAC), a clinical-stage biopharmaceutical company, has reported its financial results for the third quarter of 2025. The company continues to focus its resources on advancing its lead candidate, DM199, through clinical trials for preeclampsia and acute ischemic stroke. The earnings release provides a snapshot of the company's financial health and clinical progress as it moves its key programs forward.

Earnings and Revenue Versus Estimates

For the quarter, DiaMedica reported a net loss per share of $0.17, which came in slightly wider than the analyst consensus estimate of a $0.16 loss. The company, as is typical for clinical-stage biotech firms without a commercial product, reported no revenue for the period, matching analyst expectations of $0.0 million.

The market's reaction to the earnings report appears muted in the immediate aftermath. However, the stock has faced downward pressure over recent weeks, with key performance metrics showing:

• A decline of approximately 5.1% over the past week.
• A drop of around 10.5% over the past month.

This negative price action in the lead-up to and following the earnings release suggests investor caution, likely influenced by the increased net loss and the ongoing cash burn required to fund the company's expansive clinical programs.

Financial Position and Cash Runway

A critical point for any pre-revenue biotech is its ability to fund operations while advancing its pipeline. DiaMedica provided a clear update on this front. The company reported cash, cash equivalents, and marketable securities totaling $55.3 million as of September 30, 2025, an increase from $44.1 million at the end of 2024, bolstered by a private placement in July.

Management stated that based on current plans, this financial reserve is expected to fund planned clinical studies and corporate operations into the second half of 2027. This provides a clear operational runway of nearly two years, a key detail for investors assessing the company's financial sustainability.

Clinical Development Highlights

The press release detailed meaningful progress across the company's two main clinical programs:

• Preeclampsia Program: The Phase 2 investigator-sponsored trial (IST) continues to advance. The company completed cohort 10 and has initiated an expansion cohort, with completion expected in the first half of 2026. DiaMedica also highlighted a recent in-person pre-IND meeting with the FDA, a constructive step as it prepares to submit an Investigational New Drug application for its preeclampsia program in the United States.
• Acute Ischemic Stroke Program: Enrollment continues in the ReMEDy2 Phase 2/3 trial, with the company nearing 50% of its interim analysis target of 200 participants.

Expenses and Net Loss

The increased investment in clinical activities was reflected in the company's financials. Research and development expenses rose to $6.4 million for the quarter, up from $5.0 million in the same period last year, driven by the progress of the ReMEDy2 and preeclampsia trials. General and administrative expenses also increased to $2.6 million. Consequently, the net loss for Q3 2025 was $8.6 million, compared to a net loss of $6.3 million for Q3 2024.

Looking Ahead

With no explicit financial guidance provided for the upcoming quarters, investor focus will remain squarely on clinical milestones. The company's ability to execute on its stated timelines for its preeclampsia and stroke trials will be the primary driver of value. The extended cash runway offers the company time to generate these crucial data points without the immediate pressure of needing to raise additional capital.

For a detailed look at historical earnings and future analyst estimates for DiaMedica Therapeutics, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The information presented should not be used as the sole basis for any investment decisions.