Corvus Pharmaceuticals (CRVS 6.10%), a clinical-stage biopharmaceutical company focused on developing immunology and oncology therapies, released its earnings results for Q2 2025 on August 7, 2025. The most notable update was a smaller net loss per share of $(0.10) (GAAP), outperforming the analyst consensus estimate of $(0.13). As the company has not yet commercialized any therapies. The period saw a significant expansion in research and development spending. and an improved cash position, thanks to warrant exercises. Overall, the quarter highlighted progress in advancing the clinical pipeline and extended financial runway, balanced against growing operating expenses and sustained net losses.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | ($0.10) | ($0.13) | ($0.07) | (43%) |
| Revenue (GAAP) | N/A | $0.0 million | $0.0 million | n/a |
| Research & Development Expense | $7.9 million | $4.1 million | 92.7% | |
| Cash, Cash Equivalents & Marketable Securities | $74.4 million | $51.96 million (as of Dec 31, 2024) | 43.2% |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Recent Focuses
Corvus Pharmaceuticals is developing targeted therapies in immunology and oncology, with a primary focus on soquelitinib, an oral small molecule inhibitor targeting ITK (interleukin-2 inducible T cell kinase). Its leading clinical programs are in atopic dermatitis (an inflammatory skin disease) and peripheral T cell lymphoma (a rare and aggressive blood cancer). The company aims to advance these candidates through various stages of clinical development to achieve regulatory approvals.
Its recent business strategy centers on achieving clear clinical milestones. The main focus has been reporting positive, early-stage trial results for soquelitinib in both atopic dermatitis and peripheral T cell lymphoma. Key success factors include robust clinical data, efficient resource use for development, protection of intellectual property, and the timely achievement of regulatory designations or approvals. The ability to secure strong partnerships, both in the U.S. and internationally, is also critical to supporting drug development outside its home market.
Second Quarter Highlights: Financial and Clinical Progress
The quarter was marked by two notable developments: a marked increase in R&D spend (GAAP research and development expenses totaled $7.9 million for Q2 2025, up from $4.1 million in Q2 2024) and strong progress in clinical trial advancement. Research and development expenses for the three months ended June 30, 2025 totaled $7.9 million compared to $4.1 million for the same period in 2024, driven by the ramp-up of soquelitinib trials. This included a Phase 1 trial in atopic dermatitis and ongoing Phase 3 enrollment in peripheral T cell lymphoma. General and administrative expenses increased as well.
From a cash management perspective, the company’s operational stability improved. All outstanding common stock warrants were exercised, adding $35.7 million in proceeds. Cash, cash equivalents, and marketable securities rose to $74.4 million as of June 30, 2025, up from $52.0 million at December 31, 2024. In management’s own words, “Corvus expects its cash to fund operations into the fourth quarter of 2026.” The larger cash balance provides breathing room for upcoming development milestones and allows for continued investment in pipeline expansion.
Clinically, soquelitinib showed meaningful efficacy in atopic dermatitis. Interim results from the third cohort of its Phase 1 trial showed a 64.8% mean reduction in EASI (Eczema Area and Severity Index) at 28 days, compared to 34.4% for placebo (data cutoff May 28, 2025). The response was earlier and deeper compared to previous cohorts, even though participants had more severe disease at baseline. Half (50%) of cohort 3 patients with available data also experienced a clinically significant drop in pruritus (itching) score at day 28 of the Phase 1 clinical trial. The safety profile remained favorable, with no dose-limiting toxicities or clinically significant lab abnormalities.
The pipeline also saw progress in oncology. The Phase 3 trial in peripheral T cell lymphoma continued to enroll patients at multiple sites, with the drug having received Fast Track and Orphan Drug designations—special regulatory statuses in the U.S. designed to help speed development for serious conditions. Additional collaboration with Angel Pharmaceuticals in China expanded the reach of soquelitinib’s development to new markets. Outside of the lead program, partnered assets—such as ciforadenant (an adenosine A2A receptor antagonist) for renal cell carcinoma, and mupadolimab (an anti-CD73 monoclonal antibody) for non-small cell lung cancer—remained in earlier clinical stages, either within Corvus’s own programs or through external partners.
Risks, Pipeline Drivers, and Competitive Landscape
No revenue was reported, reflecting Corvus’s status as a pre-commercial business. Its operating losses widened, with net loss growing to $8.0 million from $4.3 million in Q2 2024.
Corvus’s prospects are tied to the continued success of soquelitinib. The positive Phase 1 signals in atopic dermatitis are promising, but the small patient count and short duration limit the statistical certainty and generalizability of results. The company is extending dosing duration for the next cohort and plans to initiate a Phase 2 trial before year-end. In peripheral T cell lymphoma, the company highlighted the absence of any U.S. Food and Drug Administration (FDA) fully approved agents for relapsed/refractory patients as an area of high unmet need but acknowledged the dominance of established pharmaceutical competitors in the broader immune disease and oncology spaces.
One-time financial items played a major role this quarter. The $2.0 million non-cash gain related to warrant revaluation reduced the net loss but does not alter ongoing cash flows or spending patterns. Another important balance sheet update is that all warrant liabilities have been converted, eliminating this potential for future dilution or non-operational gains/losses. The company maintains its 49.7% equity stake in Angel Pharmaceuticals, valued at $11.8 million as of June 30, 2025.
The company does not currently pay a dividend.
Looking Ahead: Guidance and Next Steps
For future periods, management projected that the company’s cash and equivalents should fund operations into the fourth quarter of 2026, based on current plans as of June 30, 2025. There was no guidance given for expected revenue or other top-line financial metrics, reflecting the absence of commercialized products and the pre-revenue status.
Investors should watch for key upcoming milestones. Data from the longer-duration extension cohort in atopic dermatitis is expected in the fourth quarter of 2025. The company is on track to start a larger Phase 2 trial in atopic dermatitis before year-end, which will provide a more robust test of efficacy at different dosing regimens. The ongoing Phase 3 in peripheral T cell lymphoma will continue enrolling patients, with primary clinical endpoints expected in later periods. No formal timeline was shared for potential regulatory filings or commercialization activities.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
