Enanta Pharmaceuticals Inc (NASDAQ:ENTA) Reports Mixed Q4 and Full-Year 2025 Results

Enanta Pharmaceuticals Inc (NASDAQ:ENTA) reported its fiscal fourth quarter and full-year 2025 financial results, delivering a mixed performance against analyst expectations. The clinical-stage biotechnology company, focused on developing small molecule drugs for viral infections and immunological diseases, fell short on revenue while surpassing earnings per share estimates, leading to a nuanced market reaction in after-hours trading.

Earnings and Revenue Performance

For the quarter ended September 30, 2025, Enanta reported total revenue of $15.1 million, derived entirely from royalties on AbbVie’s hepatitis C virus regimen MAVYRET®/MAVIRET®. This figure came in below the analyst consensus estimate of $16.3 million. Despite the top-line miss, the company demonstrated improved cost management, reporting a net loss of $18.7 million, or a loss of $0.87 per diluted share. This performance notably exceeded the estimated loss of $1.04 per share.

Key financial metrics for the quarter include:

• Reported Revenue: $15.1 million
• Estimated Revenue: $16.3 million
• Reported EPS (Non-GAAP): -$0.87
• Estimated EPS (Non-GAAP): -$1.04
• Net Loss: $18.7 million, an improvement from a net loss of $28.8 million in the same quarter last year.

The reduction in net loss was primarily driven by decreased operating expenses. Research and development costs fell to $23.8 million from $30.8 million in the prior year period, reflecting the timing of clinical trials in the company's RSV programs. General and administrative expenses also saw a significant decrease to $9.7 million from $13.7 million, due to lower legal and stock-based compensation expenses.

Pipeline and Operational Highlights

Beyond the financials, the earnings report highlighted substantial progress in Enanta's development pipeline, particularly in its virology and immunology segments.

In virology, the company reported positive Phase 2b data for zelicapavir, its lead respiratory syncytial virus (RSV) candidate. The study demonstrated a clinically meaningful reduction in the duration of RSV symptoms in high-risk adult outpatients. The company also presented additional data for zelicapavir in pediatric patients and for its second RSV candidate, EDP-323, at a recent medical conference, reinforcing the potential of its RSV portfolio.

In immunology, Enanta nominated two new development candidates:

• EPS-3903: An oral STAT6 inhibitor for type 2 immune-driven diseases, with an Investigational New Drug (IND) application targeted for the second half of 2026.
• EDP-978: An oral KIT inhibitor for mast-cell driven diseases, with an IND planned for the first quarter of 2026.

Financial Position and Outlook

Enanta ended the fiscal year with a strong cash position. As of September 30, 2025, the company held cash, cash equivalents, and marketable securities totaling $188.9 million. This financial runway was further extended by a successful public offering in October 2025, which generated gross proceeds of approximately $74.8 million. The company stated that its current financial resources are expected to fund its operations and development programs into fiscal 2029.

The press release did not provide specific financial guidance for the coming quarters or fiscal year 2026. This leaves investors to rely on current analyst projections, which estimate a revenue of $16.9 million and an EPS loss of $1.04 for the first quarter of 2026.

Market Reaction and Investor Perspective

The market's initial reaction to the earnings report was negative, with the stock declining approximately 3.7% in after-hours trading. This suggests that investors may be focusing more on the revenue miss and the lack of forward financial guidance rather than the better-than-expected EPS and promising pipeline updates. The company's value proposition remains heavily tied to the future success of its clinical assets, particularly in the competitive RSV treatment landscape.

For a detailed breakdown of future earnings estimates and historical performance, review the earnings and estimates data for ENTA.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any securities. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.