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Revolution Medicines Posts Wider-Than-Expected Loss in Q3, Sales Nil
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Key Takeaways
Revolution Medicines reported a Q3 loss of $1.61 per share, missing the expected $1.39 loss.
R&D expenses jumped 73% year over year to $263M, driven by higher clinical and manufacturing costs.
The company's lead drug daraxonrasib is in two late-stage studies, with a key data readout expected in 2026.
Revolution Medicines (RVMD - Free Report) reported a third-quarter 2025 loss of $1.61 per share, wider than the Zacks Consensus Estimate of a loss of $1.39. The company had incurred a loss of 94 cents in the year-ago quarter.
Currently, Revolution Medicines does not have any approved products in its portfolio. Hence, it has yet to generate revenues.
Year to date, shares of RVMD have surged 36% compared with the industry’s 10% growth.
More on RVMD’s Earnings
Research and development expenses amounted to around $263 million, up 73% year over year. This significant increase was primarily driven by higher costs associated with clinical studies and manufacturing for the company’s drug candidates, as well as increased employee-related expenses.
General and administrative expenses amounted to nearly $53 million, up 120% year over year, mainly due to higher employee-related expenses incurred during the quarter.
As of Sept. 30, 2025, Revolution Medicines had cash, cash equivalents and short-term investments worth $1.9 billion compared with $2.1 billion as of June 30, 2025.
2025 Guidance
The company reiterated its guidance for operating expenses for the full year. It expects the figure to be between $1.03 billion and $1.09 billion, which includes non-cash stock-based compensation expense of $115-$130 million.
RVMD’s Pipeline Updates
Revolution Medicines is developing multiple novel drugs that target the active, GTP-bound form (or ON form) of RAS proteins, which the company refers to as RAS(ON). Its lead pipeline drug is daraxonrasib, an investigational oral RAS(ON) multi-selective inhibitor designed to target all three major RAS mutation hotspot positions (G12, G13 and Q61).
RVMD is currently evaluating daraxonrasib across two late-stage registrational studies — RASolve 301 and RASolute 302. While the RASolve 301 study is evaluating the drug in patients with locally advanced or metastatic RAS-mutated NSCLC, RASolute 302 is assessing its efficacy for second-line metastatic PDAC. A data readout from the RASolute 302 study is expected in 2026.
The company is also expanding the development of daraxonrasib in the first-line setting across both NSCLC and PDAC indications. While the study on first-line PDAC is on track to start before the end of 2025, the NSCLC study is expected to begin in 2026. Revolution recently initiated the phase III RASolute 304 study on the drug as an adjuvant therapy for patients with resectable PDAC.
While multi-selective inhibitors like daraxonrasib target several forms of RAS mutations, Revolution Medicines is also developing mutant-selective inhibitors like elironrasib (targeting G12C) and zoldonrasib (for G12D) that are designed to suppress the growth of specific RAS-bearing cancer cells. The company is pursuing an expansive combination strategy to enhance efficacy and broaden therapeutic reach, especially in first-line settings.
RVMD is on track to start a registrational study, evaluating a combination therapy involving zoldonrasib in first-line metastatic PDAC, in the first half of 2026. It also intends to start one or more pivotal combination studies incorporating either elironrasib or zoldonrasib next year.
RVMD’s Zacks Rank
Revolution currently carries a Zacks Rank #3 (Hold).
EPS estimates for Alkermes’ 2025 have increased from $1.78 to $1.96, while those for 2026 have risen from $1.69 to $1.77 in the past 60 days. ALKS stock has gained 8% year to date.
Alkermes’ earnings beat estimates in three of the trailing four quarters and missed the mark on one occasion, delivering an average negative surprise of 4.58%.
In the past 60 days, estimates for CorMedix’s earnings per share (EPS) have increased from $1.24 to $1.85 for 2025. During the same time, EPS estimates for 2026 have increased from $2.09 to $2.49. Year to date, shares of CRMD have rallied 38%.
CorMedix’s earnings beat estimates in each of the trailing four quarters, the average surprise being 34.85%.
In the past 60 days, estimates for ANI Pharmaceuticals’ EPS have increased from $7.25 to $7.29 for 2025. During the same time, EPS estimates for 2026 have increased from $7.74 to $7.81. Year to date, shares of ANIP have surged 68%.
ANI Pharmaceuticals' earnings beat estimates in each of the trailing four quarters, the average surprise being 22.66%.
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Revolution Medicines Posts Wider-Than-Expected Loss in Q3, Sales Nil
Key Takeaways
Revolution Medicines (RVMD - Free Report) reported a third-quarter 2025 loss of $1.61 per share, wider than the Zacks Consensus Estimate of a loss of $1.39. The company had incurred a loss of 94 cents in the year-ago quarter.
Currently, Revolution Medicines does not have any approved products in its portfolio. Hence, it has yet to generate revenues.
Year to date, shares of RVMD have surged 36% compared with the industry’s 10% growth.
More on RVMD’s Earnings
Research and development expenses amounted to around $263 million, up 73% year over year. This significant increase was primarily driven by higher costs associated with clinical studies and manufacturing for the company’s drug candidates, as well as increased employee-related expenses.
General and administrative expenses amounted to nearly $53 million, up 120% year over year, mainly due to higher employee-related expenses incurred during the quarter.
As of Sept. 30, 2025, Revolution Medicines had cash, cash equivalents and short-term investments worth $1.9 billion compared with $2.1 billion as of June 30, 2025.
2025 Guidance
The company reiterated its guidance for operating expenses for the full year. It expects the figure to be between $1.03 billion and $1.09 billion, which includes non-cash stock-based compensation expense of $115-$130 million.
RVMD’s Pipeline Updates
Revolution Medicines is developing multiple novel drugs that target the active, GTP-bound form (or ON form) of RAS proteins, which the company refers to as RAS(ON). Its lead pipeline drug is daraxonrasib, an investigational oral RAS(ON) multi-selective inhibitor designed to target all three major RAS mutation hotspot positions (G12, G13 and Q61).
RVMD is currently evaluating daraxonrasib across two late-stage registrational studies — RASolve 301 and RASolute 302. While the RASolve 301 study is evaluating the drug in patients with locally advanced or metastatic RAS-mutated NSCLC, RASolute 302 is assessing its efficacy for second-line metastatic PDAC. A data readout from the RASolute 302 study is expected in 2026.
The company is also expanding the development of daraxonrasib in the first-line setting across both NSCLC and PDAC indications. While the study on first-line PDAC is on track to start before the end of 2025, the NSCLC study is expected to begin in 2026. Revolution recently initiated the phase III RASolute 304 study on the drug as an adjuvant therapy for patients with resectable PDAC.
While multi-selective inhibitors like daraxonrasib target several forms of RAS mutations, Revolution Medicines is also developing mutant-selective inhibitors like elironrasib (targeting G12C) and zoldonrasib (for G12D) that are designed to suppress the growth of specific RAS-bearing cancer cells. The company is pursuing an expansive combination strategy to enhance efficacy and broaden therapeutic reach, especially in first-line settings.
RVMD is on track to start a registrational study, evaluating a combination therapy involving zoldonrasib in first-line metastatic PDAC, in the first half of 2026. It also intends to start one or more pivotal combination studies incorporating either elironrasib or zoldonrasib next year.
RVMD’s Zacks Rank
Revolution currently carries a Zacks Rank #3 (Hold).
Revolution Medicines, Inc. Price
Revolution Medicines, Inc. price | Revolution Medicines, Inc. Quote
Our Key Picks Among Biotech Stocks
Some better-ranked stocks from the sector are Alkermes (ALKS - Free Report) , CorMedix (CRMD - Free Report) and ANI Pharmaceuticals (ANIP - Free Report) . While ALKS and CRMD each sport a Zacks Rank #1 (Strong Buy) at present, ANIP carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EPS estimates for Alkermes’ 2025 have increased from $1.78 to $1.96, while those for 2026 have risen from $1.69 to $1.77 in the past 60 days. ALKS stock has gained 8% year to date.
Alkermes’ earnings beat estimates in three of the trailing four quarters and missed the mark on one occasion, delivering an average negative surprise of 4.58%.
In the past 60 days, estimates for CorMedix’s earnings per share (EPS) have increased from $1.24 to $1.85 for 2025. During the same time, EPS estimates for 2026 have increased from $2.09 to $2.49. Year to date, shares of CRMD have rallied 38%.
CorMedix’s earnings beat estimates in each of the trailing four quarters, the average surprise being 34.85%.
In the past 60 days, estimates for ANI Pharmaceuticals’ EPS have increased from $7.25 to $7.29 for 2025. During the same time, EPS estimates for 2026 have increased from $7.74 to $7.81. Year to date, shares of ANIP have surged 68%.
ANI Pharmaceuticals' earnings beat estimates in each of the trailing four quarters, the average surprise being 22.66%.