Sutro Biopharma Inc (NASDAQ:STRO) Reports Q2 2025 Revenue Beat and Narrower Losses, Shares Rise in After-Hours Trading

SUTRO BIOPHARMA INC (NASDAQ:STRO) reported its second-quarter 2025 financial results, delivering a significant revenue beat while narrowing its losses compared to analyst expectations. The company’s performance and pipeline updates appear to have resonated with investors, as shares rose modestly in after-hours trading.

Key Financial Highlights vs. Estimates

• Revenue: Reported revenue of $63.75 million for Q2 2025, far exceeding the consensus estimate of $14.54 million. This represents a substantial outperformance, likely driven by collaboration revenue, milestone payments, or other non-recurring income.
• Earnings Per Share (EPS): Posted a loss of $0.14 per share, significantly better than the anticipated $0.41 loss. The narrower-than-expected loss suggests improved cost management or higher-than-forecast revenue contributions.
• Full-Year 2025 Estimates: Analysts project full-year sales of $59.56 million, meaning Q2’s results already surpassed this figure. However, the full-year revenue estimate appears misaligned with the reported numbers, possibly indicating adjustments are forthcoming.

Market Reaction

Following the earnings release, STRO’s stock rose 1.46% in after-hours trading, reflecting investor optimism around the revenue beat and improved EPS. Over the past month, shares have been relatively stable, declining just 2.18%, while the two-week performance shows a 12.57% drop, suggesting some volatility leading up to the earnings announcement.

Business and Pipeline Updates

The press release highlighted several key developments:

• STRO-004, a Tissue Factor-targeting antibody-drug conjugate (ADC), remains on track for a First-in-Human (FIH) study in H2 2025. The company positions this candidate as a potential best-in-class therapy.
• Preclinical progress was noted across the pipeline, including advancements in STRO-006 and dual-payload ADCs, though no specific clinical milestones were provided for these programs.

Forward-Looking Considerations

While no formal guidance was provided, analysts expect Q3 2025 revenue of $13.78 million and an EPS loss of $0.31. Given the strong Q2 performance, investors will watch whether the company can sustain momentum or if the beat was driven by one-time items.

For a deeper dive into earnings estimates and historical performance, review the full earnings details here.

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