Precision BioSciences Inc (NASDAQ:DTIL) Stock Falls After Q3 2025 Earnings and Revenue Miss

Precision BioSciences Inc (NASDAQ:DTIL) reported its financial results for the third quarter of 2025, delivering earnings and revenue figures that fell significantly short of analyst expectations. The company's update highlighted continued progress in its clinical-stage gene editing pipeline, though the financial performance and a contracting cash position appear to be the primary drivers behind a negative market reaction in pre-market trading.

Earnings and Revenue Miss

The clinical-stage biotechnology company reported a substantial miss on both top and bottom-line estimates for the quarter. The key financial figures compared to analyst expectations are detailed below.

• Revenue: Reported revenue was approximately $10,000, a stark contrast to the analyst estimate of $5.51 million. This represents a decline from the $0.6 million reported in the same quarter last year, which the company attributed to less billable effort under its collaboration with Novartis.
• Earnings Per Share (EPS): The company reported a non-GAAP net loss per share of $1.84, which was wider than the estimated loss of $1.37 per share. This compares to a net loss of $2.25 per share for the third quarter of 2024.
• Cash Position: Precision BioSciences reported cash, cash equivalents, and restricted cash of $71.2 million as of September 30, 2025. This is down from $108.5 million at the end of 2024. The company believes its current cash runway, supplemented by potential near-term cash from CAR T transactions and its at-the-market facility, is sufficient to fund operations into the second half of 2027.

Market Reaction

Following the earnings release, shares of Precision BioSciences were down approximately 6.9% in pre-market trading. This immediate negative price action suggests investor disappointment, likely centered on the significant revenue miss and the wider-than-expected quarterly loss. The decline occurs despite the stock showing positive momentum over the past month, with a gain of 50% in the 30 days leading up to the report.

Pipeline and Business Updates

The earnings press release placed significant emphasis on advancements within the company's gene editing portfolio, utilizing its proprietary ARCUS platform.

• PBGENE-HBV: The company's lead wholly-owned program for chronic Hepatitis B continues to advance in its Phase 1 ELIMINATE-B trial. Precision reported that PBGENE-HBV has been well-tolerated in the first two cohorts, with one patient showing a durable reduction in hepatitis B surface antigen (HBsAg) lasting seven months. The Data Monitoring Committee has recommended proceeding with dosing for the third cohort. A late-breaking oral presentation featuring new data is scheduled for a major liver disease conference in November.
• PBGENE-DMD: The development program for Duchenne muscular dystrophy (DMD) remains on track for an Investigational New Drug (IND) application by the end of 2025. Preclinical data presented in October showed durable improvements in muscle function and increased dystrophin expression in a mouse model. The company anticipates initiating a Phase 1 clinical trial in the first half of 2026.
• Partnered Programs: Partner iECURE continues to advance the ECUR-506 program for OTC deficiency, with data from the ongoing trial expected in the first half of 2026. Separately, partner Imugene reported positive updated efficacy data for azercabtagene zapreleucel (azer-cel) in lymphoma, which triggered an $8 million milestone payment to Precision in October.

Looking Ahead

The company did not provide a specific financial outlook for the coming quarter or full year in its press release. Analyst estimates for the fourth quarter of 2025 project a loss per share of approximately $0.77 on revenue of $5.51 million. For the full 2025 fiscal year, analysts are modeling a loss per share of $5.91 on revenue of $11.02 million. Investors will be closely monitoring the company's ability to hit key clinical milestones for its lead programs while managing its cash reserves.

For a detailed overview of historical earnings and future analyst estimates, review the earnings and estimates page for DTIL.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial advice, or a recommendation to buy or sell any security. The data and information cited are sourced from the company's press release and third-party estimates, which are subject to change. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.