Relay Therapeutics Inc (NASDAQ:RLAY) reported its fourth quarter and full year 2025 financial results, delivering a revenue beat while its net loss per share came in narrower than analysts had anticipated. The clinical-stage biotech firm also outlined a series of anticipated clinical milestones for 2026, a year it describes as "pivotal" for its lead drug candidate, zovegalisib.
Earnings and Revenue Performance Versus Estimates
For the quarter ending December 31, 2025, Relay Therapeutics posted revenue of $7.0 million, derived from its license agreement with Elevar Therapeutics. This figure notably surpassed the analyst consensus estimate of approximately $5.06 million. The company's net loss per share (non-GAAP) was $0.32, which was less severe than the estimated loss of $0.41 per share that analysts had projected.
The full-year 2025 results showed a similar trend:
- Full-Year Revenue: $15.4 million, compared to $10.0 million in 2024.
- Full-Year Net Loss per Share: $1.61, an improvement from a net loss of $2.36 per share in the prior year.
This performance against estimates, particularly the revenue beat, appears to be a positive factor for investors. In after-hours trading following the announcement, the stock was up approximately 3.2%.
Financial Position and Cash Runway
A key point of strength highlighted in the release is the company's solid balance sheet. Relay Therapeutics ended 2025 with approximately $554.5 million in cash, cash equivalents, and investments. Management stated that this capital is expected to fund its operating expenses and capital expenditure requirements into 2029, providing a substantial runway to execute its clinical plans without the immediate need for additional financing.
A Look Ahead: The 2026 Clinical Milestones
The earnings report was framed around the upcoming catalysts for zovegalisib, a novel PI3Kα inhibitor that recently received Breakthrough Therapy designation from the FDA. The company's 2026 agenda is packed with expected data disclosures:
- Imminent Data Presentation: Initial Phase 1/2 data for zovegalisib combined with fulvestrant in breast cancer patients will be presented at the ESMO TAT Congress on March 16, 2026.
- Mid-Year Catalyst: Initial Phase 1 clinical data from a trial in PIK3CA-driven vascular anomalies is planned for the first half of 2026.
- Additional 2026 Plans: The company anticipates providing breast cancer triplet combination data and outlining its frontline Phase 3 study design later in the year.
These milestones represent critical inflection points for validating zovegalisib's efficacy and safety across two major disease areas with significant unmet need.
Market Reaction and Context
The positive after-market move suggests investors are encouraged by the better-than-expected financial metrics and the clear, near-term clinical roadmap. The extended cash runway alleviates near-term dilution concerns, allowing the market to focus squarely on the upcoming data readouts. The most immediate catalyst is now the ESMO TAT presentation in mid-March, which will offer an updated look at the drug's performance in advanced breast cancer.
For a detailed view of past performance and future estimates, review Relay Therapeutics' earnings and estimates 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. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
