EDIT Stock Up on Narrower-Than-Expected Q4 Loss, Revenues Rise Y/Y

Editas Medicine EDIT reported a loss of 6 cents per share in the fourth quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 27 cents. The company had incurred a loss of 55 cents per share in the year-ago quarter. The comprehensive beat was mainly due to lower operating expenses.

Collaboration and other research and development (R&D) revenues, which comprise Editas’ top line, were $24.7 million in the reported quarter, down 19% from the year-ago quarter’s figure. The reported figure, however, comprehensively beat the Zacks Consensus Estimate of $7 million. The year-over-year decrease is primarily due to the recognition of revenues related to milestones achieved under EDIT’s collaboration agreement with Bristol Myers in the year-ago quarter.

Editas shares gained 16% on Monday as investors were impressed by the better-than-expected fourth-quarter results.

EDIT’s Q4 Results in Detail

In the fourth quarter of 2025, R&D expenses decreased 44% to $27.4 million compared with $48.6 million reported in the year-ago period. The decline in R&D expenses is primarily due to lower clinical and manufacturing costs following the abandonment of the reni-cel program in December 2024, partly offset by in vivo research and discovery costs.

General and administrative expenses were $11.4 million in the reported quarter, down 31% year over year, due to a decrease in employee-related expenses because of reduced workforce and reduced professional service expenses following the abandonment of the reni-cel program.

Restructuring and impairment charges fell by $18.5 million to a $6.3 million benefit in the fourth quarter from $12.2 million a year earlier, mainly due to favorable adjustments to previously estimated contract costs tied to the discontinuation of the reni-cel program.

Shares of Editas have lost 14.4% in the past six months against the industry’s 14.2% growth.

Editas had cash, cash equivalents and investments worth $146.6 million as of Dec. 31, 2025, down from $165.6 million as of Sept. 30, 2025. The company expects that its existing cash position will fund operating and capital needs into the third quarter of 2027.

EDIT’s Full-Year Results

In 2025, Editas recorded total revenues of $40.5 million, which beat the Zacks Consensus Estimate of $21.4 million. The recorded figure increased 25% from the $32.3 million reported in 2024.

EDIT reported a loss per share of $1.80 in 2025, narrower than the Zacks Consensus Estimate of a loss of $2.03 per share. In 2024, the company reported a loss per share of $2.88.

Editas Medicine, Inc. Price, Consensus and EPS Surprise

Editas Medicine, Inc. price-consensus-eps-surprise-chart | Editas Medicine, Inc. Quote

EDIT’s Key Pipeline Update

Editas has no approved products in its portfolio at the moment. Therefore, pipeline development remains the key focus of the company.

In late 2024, Editas discontinued the reni-cel program after failing to secure a commercial partner and cut its workforce by about 65%. The move returned the company to a pre-clinical stage, shifting its focus to in vivo (within the living organism) pipeline development.

Last year, Editas nominated EDIT-401 as its lead in vivo development candidate. This experimental, potential best-in-class, one-time gene editing therapy is designed to significantly reduce LDL cholesterol (LDL-C) levels, marking a key milestone in the company’s efforts to advance in vivo programmable gene editing.

Editas has already reported compelling preclinical results for EDIT-401, showing rapid and durable ≥90% LDL-C reductions in both non-human primates and mouse models with only moderate LDLR editing.

Editas remains on track to file an investigational new drug or clinical trial application by mid-2026 and begin a first-in-human study of EDIT-401 in patients with heterozygous familial hypercholesterolemia later this year. The company aims to generate initial human proof-of-concept data by the end of 2026, with top-line results expected in 2027.

EDIT’s Zacks Rank & Stocks to Consider

Editas currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are USANA Health Sciences USNA, Catalyst Pharmaceuticals CPRX and ALX Oncology Holdings ALXO. While USNA and CPRX sport a Zacks Rank #1 (Strong Buy) each, ALXO carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for USANA Health Sciences’ 2026 earnings per share (EPS) have risen from $1.90 to $2.00. USNA shares have lost 42.8% over the past six months.

USANA Health Sciences’ earnings beat estimates in three of the trailing four quarters and matched once, with the average surprise being 21.92%.

Over the past 60 days, estimates for Catalyst Pharmaceuticals’ 2026 EPS have risen from $2.53 to $2.82. CPRX shares have soared 22.4% over the past six months.

Catalyst Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 35.19%.

Over the past 60 days, estimates for ALX Oncology Holdings’ 2026 loss per share have narrowed from $1.21 to 88 cents. ALXO shares have rallied 80.5% over the past six months.

ALX Oncology Holdings’ earnings missed estimates in each of the trailing four quarters, with the average negative surprise being 12.82%.

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This article originally published on Zacks Investment Research (zacks.com).

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