Seres Therapeutics (MCRB 11.75%), a clinical-stage biotech focused on microbiome therapeutics, released its second quarter 2025 earnings on August 6, 2025. The main highlight was a narrowing net loss from continuing operations (GAAP), driven by lower expenses and continued progress around its core asset, SER-155. The reported loss per share (GAAP) was $2.27, compared to an estimate of $2.49. No revenue was reported, as expected, following the sale of VOWST. The results point to a period of transition for the company, with financial discipline and an increased focus on clinical pipeline advancement characterizing the quarter. Management stated that existing cash resources are projected to fund operations into the first quarter of 2026, though further financing remains a critical need.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(2.27) | $(2.49) | $(3.46) | 34.4% |
| Revenue (GAAP) | $0.0 | $0.0 | $0.0 | -- |
| Net Loss from Continuing Operations | $(19.9 million) | $(26.2 million) | 24.0% | |
| Research & Development Expenses | $12.9 million | $15.8 million | (18.4%) | |
| General & Administrative Expenses | $10.3 million | $13.1 million | (21.4%) | |
| Cash & Cash Equivalents (end of period) | $45.4 million | N/A | N/A |
Source: Analyst estimates for the quarter provided by FactSet.
About Seres Therapeutics and Key Success Factors
Seres is a biotechnology company aiming to discover and advance microbiome-based therapeutics. Its approach involves developing oral live biotherapeutics to repair or influence the human microbiome—communities of helpful bacteria in the gut—for disease treatment. Previously, it focused on commercializing VOWST, a microbiome capsule for C. difficile infection, with the majority of transition activities to Nestlé Health Science now complete.
Seres’ recent strategy has shifted to pipeline development. Its lead investigational asset, SER-155, is an oral therapeutic designed to prevent bloodstream infections in patients undergoing allogeneic hematopoietic stem cell transplantation (allo-HSCT). Key factors for the company’s future include regulatory progress (as shown by SER-155’s Breakthrough Therapy designation), establishing timely clinical partnerships, and the company’s ability to efficiently manage costs while attracting financing for ongoing studies.
Quarter in Review: Financial and Operational Developments
In the quarter, Seres reported a reduced net loss from continuing operations of $19.9 million (GAAP), an improvement from $26.2 million (GAAP) in Q2 2024. The company managed this improvement primarily by trimming expenses. Research and development spending dropped to $12.9 million from $15.8 million, a decrease of 18% (GAAP), due to completion of its Phase 1b SER-155 study and lower personnel costs. General and administrative costs also saw a reduction, to $10.3 million from $13.1 million a year prior, due in part to smaller staff and lower IT expenses.
No revenue was reported following the out-licensing of VOWST. The only notable non-operating income was $4.3 million, mostly reimbursements under a transition service agreement with Nestlé Health Science. These transition payments helped lift cash on hand to $45.4 million. Seres also received a $25 million installment payment from Nestlé in July 2025, further supporting its current operations.
Operationally, the period emphasized advancing SER-155. In May 2025, Seres submitted its proposed Phase 2 protocol for SER-155 to the U.S. Food and Drug Administration (FDA) after receiving positive regulatory feedback. The company designed the trial for rapid interim analysis—after roughly half the 248 planned participants reach their primary endpoint—enabling readouts within 12 months of study initiation. According to management, prior Phase 1b results showed a 77% reduction in bloodstream infections compared to placebo among patients undergoing allo-HSCT, and exploratory biomarker data, presented at leading scientific meetings, highlight potential for both infection prevention and immune system improvement in vulnerable patients.
During the quarter, leadership changes were announced. Thomas DesRosier and Marella Thorell became co-CEOs in August 2025. Governance stability will be important as Seres seeks to execute its pipeline-focused strategy and manage pending partnership negotiations, which are necessary to fund future clinical studies.
Strategic Focus: Partnerships, Pipeline, and Platform
Seres is now focused on developing SER-155 and exploring new live biotherapeutic programs.
During the quarter, the company actively sought new partnerships and funding options. It reported ongoing discussions with external parties involving multiple deal types, including out-licensing and collaborative ventures. These partnerships are critical, as management has made clear that cash on hand is expected to cover activities only into the first quarter of 2026. Without a deal or significant new financing, the Phase 2 SER-155 trial cannot begin in full.
On the technology front, Seres continues to highlight its proprietary biotherapeutics platform. The company uses a “reverse translational” approach—analyzing high-resolution microbiome data and leveraging a library of bacterial strains—to identify and design new, targeted oral therapeutics for conditions such as ulcerative colitis and Crohn’s disease. Ongoing research, supported by the Crohn’s & Colitis Foundation and partners at academic centers, may expand the therapeutic pipeline, but no new product candidates were advanced to late-stage development in the period.
No dividend was declared for the period.
Looking Ahead: Outlook and Investor Watch Points
Management reaffirmed that its current cash and equivalents, now enhanced by the recently received VOWST milestone, are sufficient to fund operations into the first quarter of 2026. However, no guidance was provided for either revenue projections or expense targets beyond this cash runway. The company cautioned that new partnership or financing deals are necessary to fund the upcoming Phase 2 SER-155 trial and other R&D work, and stated that, based on its current cash position and operating plans, it expects to fund operations into the first quarter of 2026.
For investors, the next quarter will hinge on progress in closing a partnership or strategic transaction, as well as further clinical milestones for SER-155, including feedback on the Phase 2 trial protocol. The ongoing decline in operating expenses supports cash conservation, but operational advances will likely remain contingent on new external funding. Investors should monitor cash burn, partnership activity updates, and clinical data releases for signals about Seres’ plans beyond the start of 2026.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
