Compugen Ltd. reported third‑quarter 2025 results that saw revenue drop 89% to $1.9 million, a sharp decline from $17.1 million in Q3 2024, while the company posted a net loss of $6.98 million. The loss widened from a $1.28 million profit in the same quarter a year earlier, but the company’s earnings per share of –$0.07 beat the consensus estimate of –$0.09, marking a $0.02 improvement and a 22% beat in absolute terms.
The EPS beat was largely driven by disciplined cost management. Operating expenses fell to $5.8 million from $6.3 million in Q3 2024, reflecting a modest reduction in research and development outlays and a slight decline in general and administrative costs. With revenue falling, the company’s ability to keep operating expenses lower helped narrow the loss and lift EPS toward the upper end of analyst expectations.
Revenue fell because the timing of milestone payments from key partners shifted. In Q3 2024, a large milestone from the Gilead license agreement was recognized, inflating revenue. In Q3 2025, the same milestone was deferred to the next quarter, and the company received only a smaller upfront payment, resulting in a lower top line. The company’s revenue is therefore highly lumpy and tied to the schedule of partner payments rather than steady product sales.
Cash, cash equivalents, short‑term bank deposits and marketable securities totaled $86.1 million as of September 30, 2025, giving the company a runway that management expects to extend into the third quarter of 2027. The robust cash position allows Compugen to continue investing in its Unigen™ AI/ML platform and advance clinical‑stage programs such as COM701 and GS‑0321 while pursuing milestone opportunities with Gilead and AstraZeneca.
Management reiterated its focus on progressing the COM701 maintenance trial, the GS‑0321 program with Gilead, and the rilvegostomig partnership with AstraZeneca. President and CEO Eran Ophir said, “Our solid financial position with a cash runway expected into Q3 2027 enables us to advance our differentiated IO pipeline and leverage our AI/ML‑powered discovery platform Unigen™ to discover novel ways to activate the immune system against cancer.” No new financial guidance was issued, but the company emphasized continued investment in high‑potential assets.
The earnings release was met with a positive market reaction, with the stock rising 3.7% in pre‑market trading. Analysts cited the EPS beat and the strong cash runway as key drivers of the rally, noting that while revenue missed higher consensus estimates of $1.47–$1.50 million, it beat lower estimates and the company’s own guidance for the next quarter. The market’s enthusiasm reflects confidence in Compugen’s cost discipline, partnership pipeline, and the strategic value of its AI platform.
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