Wave Life Sciences (WVE -0.73%), a clinical-stage biotechnology company focused on RNA-based medicines, reported second-quarter earnings on July 30, 2025, for the period ending June 30. The company missed Wall Street expectations by a wide margin, delivering revenue of $8.7 million for Q2 2025 versus analyst forecasts of $13.2 million and an earnings per share (EPS) loss of $0.31 for Q2 2025, compared to the anticipated loss of $0.28. Revenue fell 55.8% in the second quarter of 2025 compared to the prior year period. Operating expenses rose compared to the same period in 2024 as well, with research and administrative spending increased year over year in Q2 2025, contributing to a higher net loss for the second quarter of 2025 compared to the prior year period. Despite these financial setbacks, the company reported continued pipeline and clinical progress, but the absence of new partnership income and the accelerated cash burn put the focus firmly on near-term trial results and strategy execution.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.31) | $(0.28) | $(0.25) | (24.0%) |
| Revenue (GAAP) | $8.7 million | $13.2 million | $19.7 million | (55.8%) |
| Research and Development Expense | $43.5 million | $40.4 million | 7.7% | |
| General and Administrative Expense | $18.0 million | $14.3 million | 25.9% | |
| Net Loss | $(50.5 million) | $(32.9 million) | (53.5%) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Company Overview and Strategic Focus
Wave Life Sciences is dedicated to developing RNA-based medicines using its proprietary PRISM platform. This technology enables the company to design stereopure oligonucleotides -- specialized, chemically controlled strands of nucleic acids -- allowing greater control over drug properties like efficacy and safety. By leveraging this approach, it aims to create therapies for a wide range of genetic disorders, from rare conditions to broader public health challenges.
Recently, Wave Life Sciences has built a diverse portfolio, with candidates in clinical testing for obesity, alpha-1 antitrypsin deficiency (AATD), Duchenne muscular dystrophy (DMD), and Huntington’s disease (HD). Success hinges on the advancement of these programs, the validation and expansion of the PRISM platform, and the ability to secure partnerships or licensing deals that can both fund ongoing research and commercialize discoveries.
Key Developments in the Quarter
The quarter’s most immediate headline was the steep drop in revenue, which nearly halved compared to the same period in 2024. No new partnership agreements or large milestone payments offset this gap. At the same time, the company continued to increase research and development spending, which rose approximately 7.7% in the second quarter of 2025 compared to the same period in 2024. General and administrative costs, covering business operations and staff, increased by 25.9% in Q2 2025 compared to Q2 2024, resulting in a net loss of $50.5 million, 53.5% greater than the loss reported in the prior year period.
Pipeline progress remained a crucial theme. Wave’s PRISM technology continued to support the development of new assets and clinical advances. In AATD, the WVE-006 oligonucleotide program advanced as the company completed multidosing in a 200mg cohort and started single dosing at 400mg. According to management, *RestorAATion-2 clinical data from the complete 200 mg single and multidose cohorts remain on track for Q3 2025; data from the complete 400 mg single dose cohort remain on track for fall 2025.* In obesity, the INLIGHT clinical trial for WVE-007—a GalNAc-conjugated small interfering RNA (siRNA) targeting INHBE mRNA—expanded its second cohort from eight to 32 participants in Q2 2025, based on promising safety and biomarker data. Preclinical data for WVE-007 presented in June 2025 demonstrated efficacy comparable to semaglutide in terms of fat loss, with potential for dosing only once or twice a year.
In DMD, the exon-skipping oligonucleotide WVE-N531 produced encouraging results in a 48-week Phase 2 trial, reporting a statistically significant improvement in Time-to-Rise (a measure of muscle function) as well as reduced muscle damage markers. Wave confirmed that its New Drug Application (NDA) filing for WVE-N531 is planned for 2026, citing positive engagement with the U.S. Food and Drug Administration (FDA). For Huntington’s disease, the company continues to develop WVE-003, an allele-selective oligonucleotide. Preparation is ongoing for a potentially registrational, global Phase 2/3 study of WVE-003 in adults with SNP3 and Huntington’s disease.
Strategic partnerships were not a revenue or milestone driver this quarter. Although its collaboration with GSK could result in future milestone payments of up to $3.3 billion, these are not yet factored into its immediate forecasts or cash runway. The company’s cash and cash equivalents fell from $302.1 million at December 31, 2024, to $208.5 million at June 30, 2025. Deferred revenue also dropped.
Wave also appointed Dr. Christopher Wright as its new Chief Medical Officer to strengthen its clinical and regulatory operations.
Looking Ahead
The company maintained that it expects to fund its operations into 2027 with current cash resources. However, this forecast does not include possible milestone payments from the GSK partnership and is sensitive to the rate of future cash spending. Continued expense growth or delays in securing new partnerships could affect the duration of its financial runway.
Wave Life Sciences did not provide explicit revenue or earnings guidance for upcoming periods. Investors are expected to focus on upcoming clinical readouts, including data from the AATD RestorAATion-2 200mg cohort in the third quarter, INLIGHT obesity trial results later in the year, and the start of pivotal clinical trials in Huntington’s disease. Delays or adverse outcomes in these trials, or the absence of new collaboration agreements, could have a significant impact on future financial performance and funding ability. WVE does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
