Revolution Medicines Inc (NASDAQ:RVMD) Reports Q2 2025 Earnings Miss, Shares Drop 4.5% After-Hours

Revolution Medicines Inc (NASDAQ:RVMD) reported its second-quarter 2025 financial results, missing analyst expectations on both revenue and earnings per share (EPS). The clinical-stage oncology company posted no revenue for the quarter, compared to an estimated $2.87 million, while its EPS came in at -$1.31, worse than the consensus estimate of -$1.16. Following the earnings release, the stock declined approximately 4.5% in after-hours trading, reflecting investor disappointment.

Key Financial Takeaways

• Revenue Miss: Reported $0.00 in revenue vs. an estimated $2.87 million.
• Wider Loss per Share: EPS of -$1.31 vs. the expected -$1.16.
• Market Reaction: Shares fell ~4.5% in after-hours trading, extending a recent downtrend that has seen the stock decline ~4.8% over the past month.

Pipeline and Operational Updates

The company highlighted progress in its clinical programs, particularly its Phase 3 trials for daraxonrasib, a key drug candidate targeting RAS-addicted cancers. Additionally, Revolution Medicines noted that enrollment for its RASolute 302 trial is winding down in the U.S., with completion expected soon. These developments suggest continued execution in its late-stage pipeline, though the financials indicate that commercialization remains distant.

Forward-Looking Estimates vs. Press Release Outlook

While the press release did not provide explicit financial guidance, analyst estimates for the full year 2025 project an EPS of -$4.66 and sales of $8.61 million. For Q3 2025, expectations are set at an EPS of -$1.10 and revenue of $2.87 million. The lack of revenue in Q2 raises questions about the company’s ability to meet these projections, particularly as it remains pre-revenue and heavily reliant on clinical trial progress.

Market Sentiment and Performance

The immediate after-hours sell-off suggests that investors were hoping for stronger financials or more optimistic pipeline updates. The stock’s recent performance—down slightly over the past week and month—indicates cautious sentiment ahead of earnings, which was validated by the miss.

For a deeper dive into Revolution Medicines’ earnings and future estimates, see the full earnings and estimates breakdown here.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.