Compass Therapeutics (CMPX 11.67%), a clinical-stage biotechnology company focused on developing novel bispecific antibody therapies for cancer, released its second quarter results on August 11, 2025. The company reported a net loss per share of $(0.14) (GAAP) in the second quarter, missing analyst expectations of $(0.12) GAAP EPS. Revenue (GAAP) was in line with expectations at $0, following the loss of one-time revenue from the prior-year period. Cash reserves (GAAP) declined from $127 million as of December 31, 2024, to $101 million as of June 30, 2025, but are still projected to last into 2027. Overall, the quarter saw sustained progress in clinical development alongside higher expenses as programs advanced.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.14) | $(0.12) | $(0.10) | (40.0%) |
| Revenue (GAAP) | $0 | $0 | $0.85 million | (100.0%) |
| Research & Development Expense | $16.4 million | $11.2 million | N/A | |
| General & Administrative Expense | $4.7 million | $4.7 million | 0.0% | |
| Cash & Marketable Securities (End of Period) | $101 million | N/A | N/A |
Source: Analyst estimates for the quarter provided by FactSet.
What Compass Therapeutics Does and Where It’s Focused
Compass Therapeutics is advancing new treatments for cancer using bispecific antibodies. The company’s pipeline features drug candidates at various stages, including tovecimig for biliary tract cancer and two other antibodies, CTX-8371 and CTX-10726, in early clinical development.
In recent quarters, Compass Therapeutics has focused investment on moving its lead assets through pivotal trials and preparing for possible future commercialization. The key to its future is successfully demonstrating safety and efficacy in clinical trials, protecting intellectual property, and eventually achieving regulatory approval. Strategic partnerships and strong cash management remain critical as it continues to operate without product revenue.
Quarterly Developments: Financials, Pipeline, and Milestones
The second quarter showcased the costs and promise of Compass Therapeutics’ portfolio. The company recorded no revenue (GAAP), a decline from the prior year, which had included one-off licensing income. As expected for a pre-commercial biotech, expenses and losses widened as research activity ramped up. Research and development cost (GAAP) grew to $16.4 million, reflecting expanded manufacturing and clinical efforts, especially for the tovecimig and CTX-10726 programs. General and administrative expense (GAAP) remained unchanged at $4.7 million.
Net loss (GAAP) increased to $19.9 million from $13.1 million in the prior year, in line with heavier spending to support ongoing trials and preparation for coming milestones. The cash and marketable securities position was $101 million as of June 30, 2025, as trial activity intensified. Management projects this balance will fund operating needs into 2027, offering important flexibility during the crucial development phase.
Pivotal progress was reported in the clinical pipeline. The standout was tovecimig, a bispecific antibody targeting DLL4 and VEGF-A, paired with paclitaxel in a Phase 2/3 trial for biliary tract cancer. In April 2025, the combination met its primary endpoint, significantly improving the overall response rate compared to paclitaxel alone. Notably, fewer patient deaths were observed than projected, delaying the analysis of critical secondary endpoints, including survival, until the first quarter of 2026. Management cited this as a positive sign of therapeutic effect but acknowledged the delay in final readouts.
Other pipeline assets moved forward as well. In early studies, CTX-8371, a bispecific antibody against PD-1 and PD-L1, generated deep partial responses in patients with non-small cell lung cancer and triple-negative breast cancer who had previously received checkpoint inhibitor therapy, as observed in the ongoing Phase 1 dose-escalation study. Both patients saw significant tumor reductions, and no dose-limiting toxicities have been observed in the first three dosing cohorts to date. Expansion of clinical testing is scheduled for the last quarter of 2025, and the company intends to file for permission to begin clinical trials of CTX-10726, its PD-1/VEGF-A bispecific, by the end of 2025. Early data for CTX-10726 showed stronger tumor control than a key competing therapy in animal testing, supporting further development.
No revenue was driven by partnerships this quarter, and there were also no reported changes in strategic alliances or intellectual property highlights.
Looking Ahead: Guidance and Investor Considerations
Management offered no formal revenue guidance, as Compass Therapeutics is still developing its first commercial product. Leadership confirmed that analysis of secondary endpoints from the tovecimig study in biliary tract cancer is now expected in the first quarter of 2026, reflecting a positive trend of unexpectedly durable patient outcomes. Initiation of new study cohorts in CTX-8371 and new regulatory filings for CTX-10726 remain scheduled for late 2025.
Investors should watch for the timing and results of upcoming clinical data—especially from the tovecimig trial, which represents the company’s near-term opportunity for a pivotal success and potential regulatory submission. In the meantime, the ongoing cash burn, absence of commercial revenue, and reliance on clinical trial outcomes mean Compass Therapeutics’ performance will likely remain highly variable and contingent on milestones.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
