A month has gone by since the last earnings report for Editas Medicine (EDIT Quick QuoteEDIT - Free Report) . Shares have lost about 16.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Editas due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Editas Medicine, Inc. before we dive into how investors and analysts have reacted as of late.

Editas Q2 Loss Wider Than Expected, Revenues Increase Y/Y

Editas reported a loss of 63 cents per share in the second quarter of 2025, wider than the Zacks Consensus Estimate of a loss of 41 cents. The company had incurred a loss of 82 cents per share in the year-ago quarter.

Collaboration and other research and development (R&D) revenues, which comprise the company’s top line, were $3.6 million in the reported quarter, up significantly from the year-ago quarter’s figure. The reported figure beat the Zacks Consensus Estimate of $1 million. The increase is mainly due to the recognition of revenue related to specified deliverables that were achieved in the second quarter of 2025.

EDIT’s Q2 Results in Detail

In the second quarter of 2025, R&D expenses decreased 70% to $16.2 million compared with $54.2 million reported in the year-ago period. The massive downtick in R&D expenses is mainly due to lower clinical and manufacturing costs following the abandonment of the reni-cel program in December 2024, partly offset by costs of in vivo research and discovery.

General and administrative expenses were $12.9 million in the reported quarter, down 29% year over year, due to a decrease in employee-related expenses as a result of reduced headcount.

Restructuring and impairment charges were $26.1 million in the second quarter of 2025 on account of the discontinuation of the reni-cel program and the related workforce reduction. Editas did not record any restructuring charges in the year-ago quarter.

Editas had cash, cash equivalents and investments worth $178.5 million as of June 30, 2025, down from $221 million as of March 31, 2025. The company expects its existing cash, cash equivalents and marketable securities, together with the retained portions of the payments payable under the license agreement with Vertex, to fund operating expenses and capital expenditure into the second quarter of 2027.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

VGM Scores

Currently, Editas has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Editas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Editas is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, GSK (GSK Quick QuoteGSK - Free Report) , a stock from the same industry, has gained 3.5%. The company reported its results for the quarter ended June 2025 more than a month ago.

Glaxo reported revenues of $10.67 billion in the last reported quarter, representing a year-over-year change of +7.2%. EPS of $1.23 for the same period compares with $1.09 a year ago.

Glaxo is expected to post earnings of $1.22 per share for the current quarter, representing a year-over-year change of -3.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.

Glaxo has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.