Tango Therapeutics (TNGX 4.86%), a biotechnology firm advancing targeted oncology therapies, posted its second quarter results on August 5, 2025. The highlight of the release was a steep decline in GAAP revenue, well below consensus, along with a larger net loss compared to analyst expectations. Revenue (GAAP) came in at $3.2 million—less than half of the $6.7 million estimate and a 59% drop compared to the same period in 2024. GAAP loss per share widened to ($0.35), compared to an expected ($0.34). The quarter was marked by meaningful clinical progress and disciplined R&D spending, but overshadowed by revenue pressures and the decision to end the Gilead partnership research term a year early. Overall, the period demonstrated pipeline advancement but heightened financial risk from falling collaborative income and increasing net losses.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | ($0.35) | ($0.34) | ($0.24) | 45.8% |
| Revenue (GAAP) | $3.2 million | $6.7 million | N/A | (52.2%) |
| Research and Development Expense | $32.8 million | $38.7 million | (15.2%) | |
| General and Administrative Expense | $11.3 million | $10.8 million | 4.6% | |
| Cash, Cash Equivalents, and Marketable Securities | $180.8 million | N/A |
Source: Analyst estimates for the quarter provided by FactSet.
Company Overview and Recent Focus
Tango Therapeutics is a biotechnology firm specializing in the development of targeted cancer therapies through synthetic lethality—a method that selectively eliminates cancer cells based on their genetic profile. This approach allows for therapies that specifically attack tumors with particular genomic alterations, aiming to reduce harm to healthy tissue.
Its main area of focus is advancing a clinical-stage pipeline that includes PRMT5 inhibitors—TNG462 and TNG456—and a CoREST inhibitor, TNG260, targeting cancers with high unmet needs. Success factors for the company hinge on taking these assets through successful clinical trials, securing regulatory approvals, and forging productive drug development partnerships. Collaborations, strong intellectual property protection, and efficient progression of clinical studies are critical for achieving its business objectives.
Quarterly Performance and Developments
Revenue (GAAP) dropped sharply to $3.2 million, primarily as license revenue from the prior year evaporated. This reflects the unpredictable timing and non-recurring nature of collaboration milestones and licensing, emphasizing that the company still lacks direct product sales. Collaboration revenue (GAAP) was approximately 59% lower year-over-year, mainly due to fewer research costs being billed to partners.
The Gilead partnership, a key driver of past collaboration revenue, will see its research portion terminate ahead of schedule in August 2025. Tango retains rights to potential future milestones and royalties from programs that Gilead continues to develop but will not recognize new research revenue from this source beyond the current deferred revenue. In Q3 2025, $53.8 million in deferred revenue from Gilead will be recognized, providing a one-off revenue boost but not establishing a new recurring revenue stream.
Operating expenses reflected a shift in research and development, declining to $32.8 million (GAAP)—a reduction tied to discontinuing early-stage or less promising programs, including TNG908 and TNG348. The company ramped up investment in its lead clinical assets—especially the PRMT5 inhibitor TNG462, which entered new clinical settings, and the brain-penetrant PRMT5 inhibitor TNG456, which moved into a Phase 1/2 trial for glioblastoma. Spending on general and administrative activities rose modestly for the three months ended June 30, 2025, compared to the prior year.
Pipeline activity was significant. TNG462 began a new combination study with RAS(ON) inhibitors sourced from Revolution Medicines, and a Phase 1/2 update on TNG462 monotherapy is expected in the second half of the year—this will inform next steps toward a potential registration trial for pancreatic cancer. TNG456 dosed its first patient in a glioblastoma study. TNG260 also progressed in combination with pembrolizumab, an immunotherapy, with plans for a clinical update later this year.
Product Pipeline and Collaborations Explained
PRMT5 inhibitors like TNG462 and TNG456 are oral drug candidates designed to block the PRMT5 enzyme’s function in certain genetically defined cancers, aiming to slow tumor growth. TNG462 targets patients whose tumors have lost the MTAP gene—a biomarker for several hard-to-treat cancers, including pancreatic and lung cancer. TNG456 is engineered to cross the blood-brain barrier and is being developed in glioblastoma.
The CoREST inhibitor TNG260 is being tested in combination with pembrolizumab for lung cancer with STK11 mutations. All these assets are intended for cancer types where current therapies offer limited benefit, and there is a high unmet medical need. The company also relies on key partnerships for both scientific progress and financial support, such as the now-winding-down research collaboration with Gilead.
Financial Outlook and Areas to Watch
Management did not provide updated guidance for the remainder of fiscal 2025. It indicated that the current cash balance—$180.8 million as of Q2 2025 (GAAP)—should be sufficient to fund operations into the first quarter of 2027, supported by the expected recognition of all remaining deferred Gilead revenue in the upcoming quarter.
Looking ahead, investors should track several upcoming clinical milestones. Phase 1/2 data readouts for TNG462 and TNG260 are expected in the second half of 2025. Financially, collaboration revenue declined, and the absence of product sales magnifies the importance of successful trials or new partnerships to secure future funding. TNGX does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
