Lineage Cell Therapeutics Inc. (NYSEARCA:LCTX) Reports Q2 2025 Revenue Beat but Wider Loss

Lineage Cell Therapeutics Reports Q2 2025 Results: Revenue Beats, Loss Widens

Lineage Cell Therapeutics Inc. (NYSEARCA:LCTX) reported its second-quarter 2025 financial results, delivering mixed performance relative to analyst expectations. The clinical-stage biotechnology company, focused on developing novel cell therapies for neurological and ophthalmic conditions, posted revenue of $2.77 million, surpassing the consensus estimate of $1.50 million. However, the net loss per share came in at -$0.13, deeper than the anticipated -$0.03.

Financial Highlights vs. Estimates

• Revenue: $2.77M (vs. $1.50M expected) – +84.6% beat
• EPS: -$0.13 (vs. -$0.03 expected) – wider loss than projected
• Cash Position: $42.3M in cash and equivalents, expected to fund operations into Q1 2027

The revenue outperformance was driven by increased collaboration revenue from deferred payments under the Roche agreement, as well as recognition of deferred revenue from a terminated collaboration deal. However, operating expenses surged to $22.5 million, primarily due to a $14.8 million impairment charge related to an intangible asset. Excluding this one-time expense, R&D and G&A costs remained relatively stable.

Market Reaction

Following the earnings release, Lineage’s stock declined ~4.95% in after-hours trading, reflecting investor concerns over the widening net loss despite the revenue beat. Over the past month, shares have slipped 5.6%, though they remain relatively flat on a weekly basis.

Key Business Updates

1. OpRegen Retinal Cell Therapy (Licensed to Roche/Genentech)

   • Positive 36-month Phase 1/2a data showed sustained visual acuity improvements in patients with geographic atrophy (GA).
   • Patients with extensive cell therapy coverage demonstrated a mean improvement of +9.0 letters in vision tests.
   • Ongoing Phase 2a "GAlette Study" evaluating surgical delivery methods.

2. OPC1 Spinal Cord Injury Program

   • First chronic spinal cord injury patient treated using a new delivery system.
   • Continued progress in the DOSED clinical trial.

3. Manufacturing Advancements

   • Successfully completed a GMP production run for two cell therapy candidates, demonstrating scalability with potential for "millions of doses."

4. Pipeline Progress

   • Continued development of ReSonance™ for sensorineural hearing loss and other early-stage programs.

Outlook vs. Analyst Estimates

While Lineage did not provide explicit forward revenue or EPS guidance, analysts currently project:

• Q3 2025 Revenue Estimate: $1.93M
• Q3 2025 EPS Estimate: -$0.02
• Full-Year 2025 Revenue Estimate: $6.83M
• Full-Year 2025 EPS Estimate: -$0.09

The company’s cash runway into early 2027 provides stability, but investors will be watching for clinical milestones, particularly in the Roche-partnered OpRegen program, to drive long-term optimism.

Conclusion

Lineage’s Q2 results reflect progress in its clinical programs and manufacturing capabilities, but the market reaction suggests caution due to the higher-than-expected net loss. The revenue beat indicates strong execution in partnerships, though profitability remains a challenge.

For more detailed earnings estimates and historical performance, visit Lineage Cell Therapeutics' earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.