Kodiak Sciences (KOD 1.17%), a biotechnology company specializing in retinal disease therapies, released its Q2 2025 earnings results on August 13, 2025. The most notable news: the company reported a GAAP net loss of $54.3 million, translating to a GAAP EPS loss of $(1.03), beating consensus estimates of $(1.07) by $0.04 (GAAP). No product revenue was reported or expected, as Kodiak remains pre-commercial. Rising research and development (R&D) spending fueled clinical trial progress, but cash burn accelerated, with cash and cash equivalents decreasing from $138.9 million at March 31, 2025, to $104.2 million at June 30, 2025. Results point to a company in the critical late-stages of clinical development, with cash resources projected to last into 2026 as it moves toward key data readouts in its major programs.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(1.03) | $(1.07) | $(0.86) | (19.8%) |
| Revenue (GAAP) | N/A | $0.0 | $0.0 | n/a |
| Research & Development Expenses | $42.8 million | $32.5 million | 31.7% | |
| General & Administrative Expenses | $12.8 million | $15.5 million | (17.4%) | |
| Net Loss | $54.3 million | $45.1 million | N/A |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Key Focus Areas
Kodiak Sciences is a biotechnology firm focused on developing new drugs for diseases that affect the retina, the light-sensing tissue at the back of the eye. Its approach relies on a proprietary platform for designing antibody-based treatments. The company’s business remains pre-commercial: its medicines generate no revenue yet, as they are still in clinical studies.
The central mission for Kodiak is to achieve successful late-stage clinical trial results, secure regulatory approvals, and move toward commercialization. Key success factors include advancing pivotal studies of its lead drug candidates, differentiating its therapies in a crowded market, and sustaining enough financial resources to reach approval and product launch. Manufacturing scale-up and defending intellectual property are also critical as products near potential launch.
Quarterly Highlights: Operating Performance and Clinical Progress
The company increased R&D spending by nearly one-third year over year in Q2 2025, reaching $42.8 million (GAAP). This rise stemmed from the advancement of multiple late-stage clinical trials, including the GLOW2 and DAYBREAK studies for its lead anti-VEGF therapy, tarcocimab. The uptick in spending reflects the higher costs of enrolling patients and running these pivotal trials.
The decrease in general and administrative (G&A) expenses resulted from reduced stock-based compensation and income from subleasing facilities. This helped offset some of the pressure created by rising R&D requirements, showing ongoing cost control in areas not directly tied to science or operations.
GAAP net loss expanded to $54.3 million, up 20.3% from the prior year’s $45.1 million loss. The larger loss links primarily to stepped-up investment in clinical trials as the company aims for multiple pivotal data readouts expected between early 2026 and early 2027. With no revenue from product sales, Kodiak relies on existing cash resources and other funding sources to support these activities.
On the clinical front, Kodiak completed patient enrollment in its GLOW2 trial for diabetic retinopathy and the DAYBREAK trial for wet age-related macular degeneration is actively enrolling patients. Its second product, KSI-501 -- a bispecific antibody targeting both IL-6 and VEGF proteins -- advanced in late-stage testing, with a second Phase 3 study planned to start in early 2026. Additionally, the KSI-101 program in macular edema secondary to inflammation showed promising early data: over 90% of patients were ‘dry’ at week 8 in the Phase 1b MESI study, and 50% of patients achieved significant vision gains by week 12 in the KSI-101 APEX Phase 1b MESI cohort. Kodiak also continues to invest in its digital health programs and early pipeline, including dual cytokine-targeting therapies.
Looking Ahead: Financial Outlook and Key Milestones
Management stated that its cash position of $104.2 million as of June 30, 2025, will fund operations into 2026. This financial runway should cover the next wave of topline data announcements for its three main drug candidates, with pivotal readouts expected in Q1, Q3, and Q4 2026, depending on the study. Kodiak did not provide detailed financial guidance for the rest of fiscal 2025.
The coming quarters will be shaped by progress toward critical clinical milestones, the ability to manage cash burn and potential fundraising needs, and the evolving landscape of competition in retinal disease treatments. Investors and followers of Kodiak should monitor outcomes from late-stage studies, regulatory interactions, updates on manufacturing readiness, and how the company navigates the need for eventual commercialization partnerships or additional capital. KOD does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
