Shattuck Labs (STTK 6.32%), a clinical-stage biotechnology company focused on developing novel immunotherapies, released its second quarter 2025 earnings results on August 14, 2025, which exceeded analyst expectations and marked a substantial improvement from the prior year quarter's GAAP loss of $(0.42) per share. As widely anticipated for a pipeline-driven biotech, the company reported no revenue, in line with forecasts. Spending reductions in both research and development and general expenses contributed to the narrowed loss and marked important pipeline progress, but future results remain tied to clinical and regulatory milestones—especially for its lead antibody program SL-325.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.24) | $(0.24) | $(0.42) | 42.9% |
| Revenue (GAAP) | $0.0 | $0.0 | $1.6 million | (100.0%) |
| Research & Development Expense | $8.7 million | $19.2 million | (54.7%) | |
| General & Administrative Expense | $4.4 million | $5.3 million | (17.0%) | |
| Cash and Cash Equivalents | $50.5 million | $105.3 million | (52.0%) |
Source: Analyst estimates for the quarter provided by FactSet.
Overview of Shattuck Labs' Business and Strategic Focus
Shattuck Labs is a biotechnology company specializing in the development of biologic drugs called antibodies. These proteins are engineered to modulate the immune system for the treatment of inflammatory and immune-mediated diseases. The company now focuses most of its resources on advancing a single lead pipeline asset: SL-325, an antibody targeting Death Receptor 3 (DR3). This candidate is designed for diseases such as inflammatory bowel disease, driven by immune cell activation and inflammation.
In recent quarters, Shattuck Labs has narrowed its R&D efforts to prioritize the DR3 platform. The shift away from earlier oncology programs reflects a strategy of focusing on areas with the potential for significant clinical impact and differentiation. For the current period, success depends on moving SL-325 through early-stage trials, managing costs, and ensuring enough cash to fund operations until the next development milestone.
Quarterly Developments and Financial Performance
The most significant event for the quarter was the submission of an Investigational New Drug (IND) application for SL-325 to the United States Food and Drug Administration. If cleared, the IND will allow the company to begin Phase 1 clinical trials. First dosing is expected to take place in the third quarter of 2025, with enrollment expected to be completed in the second quarter of 2026. According to management, "We expect to begin enrollment in our Phase 1 clinical trial, subject to regulatory alignment, in healthy volunteers later this quarter, and to complete the trial during the second quarter of 2026."
The company recognized no revenue, reflecting the wind-down of past collaboration income and its position as a pure-play clinical-stage firm. The absence of GAAP revenue in Q2 2025, compared to $1.6 million in Q2 2024, highlights the company's transition away from legacy programs and partnerships. GAAP R&D expenses were $8.7 million for the quarter. R&D expenses for the quarter ended June 30, 2025, declined 54.7% from $19.2 million in the same period a year ago, totaling $8.7 million.
The narrowed GAAP net loss of $12.5 million for the quarter, down from $21.6 million in Q2 2024, reflected lower R&D and G&A expenses.
Shattuck Labs ended the quarter with $50.5 million in cash and cash equivalents. This was down from $105.3 million at the end of Q2 2024, but GAAP current liabilities were modest at $5.3 million as of quarter end. After the quarter, the company announced a private placement for up to $103 million in additional funding, contingent on regulatory clearance for SL-325. The company stated that anticipated proceeds from the oversubscribed private placement of up to approximately $103 million, less offering expenses, combined with current cash and cash equivalents as of quarter end, are expected to fund operations through 2029. This structure means the company’s financial runway lengthens if it can advance SL-325 into clinical testing.
Looking Ahead: Guidance and Forward Considerations
Management did not provide detailed revenue or EPS guidance for the upcoming quarters or for fiscal 2025. The company's outlook remains closely linked to two major events: the clearance of the IND for SL-325, and the expected launch of the Phase 1 trial. These milestones must be achieved before the planned private placement delivers additional funding. The company's commentary made clear that "The closing of the private placement is contingent upon the IND clearance for SL-325 and the satisfaction of other customary closing conditions."
Investors and observers should closely monitor both the regulatory outcome for SL-325 and the company's progress in reducing cash outflows as it advances in clinical development.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
