Editas Q1 Loss Narrower Than Expected, Revenues Increase Y/Y

Editas Medicine EDIT reported an adjusted loss of 43 cents per share in the first quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 51 cents. The adjusted figure excluded the effect of restructuring and impairment charges in the reported quarter. The company had incurred a loss of 76 cents per share in the year-ago quarter.

Collaboration and other research and development (R&D) revenues, which comprise the company’s top line, were $4.7 million in the reported quarter, up significantly from the year-ago quarter’s figure. The reported figure beat the Zacks Consensus Estimate of $1 million. The increase is mainly due to recognizing the leftover deferred revenues after ending a collaboration agreement with a strategic partner.

EDIT’s Q1 Results in Detail

In the first quarter of 2025, R&D expenses decreased 45% to $26.6 million compared with $48.8 million reported in the year-ago period. The downtick in R&D expenses is mainly due to lower clinical and manufacturing costs following the abandonment of the reni-cel program in December 2024, partly offset by costs of in vivo research and discovery.

General and administrative expenses were $13.4 million in the reported quarter, down 31% year over year, due to a decrease in stock-based compensation expense.

Restructuring and impairment charges were $40.9 million in the quarter under review on account of the discontinuation of the reni-cel program and the related workforce reduction. EDIT did not record any restructuring charges in the year-ago quarter.

Shares of Editas have gained 21.3% year to date against the industry’s decline of 9.9%.

Editas had cash, cash equivalents and investments worth $221 million as of March 31, 2025, down from $269.9 million as of Dec. 31, 2024. The company expects its existing cash, cash equivalents and marketable securities, together with the retained portions of the payments payable under the license agreement with Vertex, to fund operating expenses and capital expenditure into the second quarter of 2027.

EDIT’s Key Pipeline & Corporate Updates

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

In December 2024, Editas ended the reni-cel development program following the failure of an extensive search to yield a commercial partner. As a result of this decision, the company implemented cost-saving measures, including a workforce reduction of approximately 65%. The move reverted EDIT to the pre-clinical stage.

As part of its strategic reprioritization efforts, Editas has focused its workforce and resources on in vivo (within the living organism) pipeline development.

Editas has successfully demonstrated in vivo preclinical proof of concept for editing hematopoietic stem, liver and other cells in humanized mice and in non-human primates, twice. The company demonstrated effective editing of hematopoietic stem cells (HSCs) using proprietary lipid nanoparticles (LNPs) after a single dose in non-human primates, with further optimization ongoing to achieve higher therapeutic editing levels. Additionally, high-efficiency gene editing in the liver was validated using AsCas12a delivered via LNPs, along with proof of an upregulation strategy in mice that significantly reduced disease biomarkers by increasing a relevant liver protein. Additional updates are expected soon.

Editas also showcased its “plug ‘n play” LNP platform, enabling efficient delivery to extrahepatic cell types in humanized mice. The company plans to announce a new target cell type or tissue beyond HSCs and the liver by year-end.

Editas Medicine, Inc. Price, Consensus and EPS Surprise

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

EDIT’s Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the biotech sector are Bayer BAYRY, AstraZeneca AZN and Allogene Therapeutics ALLO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for Bayer’s earnings per share have increased from $1.17 to $1.23 for 2025. During the same time, earnings per share have increased from $1.27 to $1.31 for 2026. Year to date, shares of Bayer have gained 38.1%. 

BAYRY’s earnings matched estimates in two of the trailing three quarters while missing the same on the remaining occasion, the average negative surprise being 19.61%. 

In the past 60 days, estimates for AstraZeneca’s earnings per share have increased from $4.48 to $4.50 for 2025. During the same time, earnings per share estimates for 2026 have increased from $4.95 to $4.98. Year to date, shares of AZN have gained 5.2%.

AZN’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, delivering an average surprise of 4.24%.

In the past 60 days, estimates for Allogene Therapeutics' loss per share have narrowed from $1.32 to $1.21 for 2025. During the same time, loss per share estimates for 2026 have narrowed from $1.35 to $1.17. Year to date, shares of ALLO have lost 45.1%.

ALLO’s earnings beat estimates in three of the trailing four quarters and matched the same on the remaining occasion, delivering an average surprise of 11.70%.

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