Sangamo Therapeutics Inc (NASDAQ:SGMO) Stock Plummets 22% After Q3 Earnings Miss

Sangamo Therapeutics Inc (NASDAQ:SGMO) reported third-quarter 2025 financial results that significantly missed analyst expectations, triggering a sharp negative market reaction in pre-market trading.

Earnings Performance Versus Estimates

The clinical-stage biotechnology company reported substantial deviations from consensus estimates for both revenue and earnings per share. The quarterly results reveal a challenging period for the company's financial performance.

• Revenue: Reported $0.58 million against an analyst estimate of $35.09 million
• Earnings Per Share (EPS): Reported -$0.11 per share compared to an estimated profit of $0.0002 per share

The revenue figure represents a near-total miss of expectations, coming in at less than 2% of what analysts had projected. Similarly, the company reported a loss where a marginal profit was anticipated, highlighting a significant earnings disappointment.

Market Reaction

The immediate market response to the earnings release was decisively negative. In pre-market trading, Sangamo's stock fell approximately 22%, reflecting investor concern over the substantial earnings and revenue shortfall. This sharp decline follows a period of weakness for the stock, which had already declined over 20% during the past month leading up to the earnings announcement.

Business Highlights and Regulatory Progress

Despite the financial underperformance, the company's recent press release highlighted continued progress with its lead therapeutic candidates. The most significant development involves isaralgagene civaparvovec (ST-920), Sangamo's investigational gene therapy for Fabry disease. The company confirmed that during a recent meeting with the U.S. Food and Drug Administration, the agency reiterated its October 2024 agreement to use estimated glomerular filtration rate (eGFR) slope as an endpoint to support an accelerated approval pathway for the treatment. This regulatory clarity represents a positive step forward for the company's flagship gene therapy program, potentially streamlining its path to market.

The company also continues development of ST-503, an epigenetic regulator targeting chronic neuropathic pain. As a clinical-stage company, Sangamo's valuation remains heavily dependent on the progression of its pipeline rather than current financial metrics.

Forward-Looking Estimates

Analyst projections for the coming periods indicate expectations for continued challenges. For the full year 2025, analysts estimate a loss of $0.30 per share on revenue of $74.26 million. Looking ahead to the fourth quarter of 2025, the consensus points to a loss of $0.11 per share with revenue projections of $13.44 million. The significant gap between these forward estimates and the company's actual Q3 performance suggests Sangamo may face difficulties in meeting annual targets.

For detailed historical earnings data and future analyst estimates, review the SGMO earnings and estimates page.

Disclaimer: This article presents factual information based on publicly available data and should not be construed as investment advice. Investors should conduct their own research and consult with financial advisors before making investment decisions.