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Kodiak Q3 Loss Wider Than Expected, Pipeline Development in Focus

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Key Takeaways

  • KOD's Q3 loss widened to $1.16 per share as R&D costs rose on increased clinical and manufacturing activity.
  • KOD is advancing tarcocimab and KSI-501 in phase III DR and wet AMD studies with data expected in 2026.
  • KOD's phase III PEAK and PINNACLE studies for KSI-101 are currently enrolling macular edema patients.

Kodiak Sciences (KOD - Free Report) reported a loss of $1.16 per share in the third quarter of 2025, wider than the Zacks Consensus Estimate of a loss of $1.07. The company had incurred a loss of 84 cents per share in the year-ago quarter.

The company currently does not have any approved products in its portfolio. As a result, it has yet to generate revenues.

KOD's Q3 Results in Detail

Research and development expenses were $50.5 million in the reported quarter, up 58% year over year. The improvement was mainly due to increased clinical and manufacturing activities associated with ongoing clinical studies.

General and administrative expenses were $11.9 million, down 20% year over year, primarily due to lower non-cash stock-based compensation expenses.

As of Sept. 30, 2025, Kodiak had cash, cash equivalents and marketable securities worth $72 million compared with $104.2 million as of June 30, 2025.

Shares of Kodiak have surged 89.1% year to date compared with the industry’s 15.4% growth.

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Image Source: Zacks Investment Research

KOD's Key Pipeline Updates

Kodiak is evaluating the efficacy and safety of tarcocimab in treatment-naïve patients with diabetic retinopathy (DR) in the phase III GLOW2 study. Top-line data is expected in the first quarter of 2026.

KOD’s second clinical candidate, KSI-501, a dual inhibitor Trap-Antibody-Fusion bioconjugate molecule, is designed to target concurrent inflammation and abnormal angiogenesis observed in the pathogenesis of retinal vascular diseases.

The company is also studying tarcocimab as a second investigational arm in the phase III DAYBREAK study to treat wet age-related macular degeneration (wet AMD), with KSI-501 being the first investigational arm. Top-line data from both arms of the DAYBREAK study are anticipated in the third quarter of 2026.

Based on the success of these two pivotal studies, Kodiak plans to submit a single regulatory filing, seeking the approval of tarcocimab for three large indications — DR, wet AMD and retinal vein occlusion.

Kodiak has also completed an early-stage study evaluating its third investigational candidate, KSI-101, for macular edema. The candidate is a novel, potent, high-strength bispecific protein targeting IL-6 and VEGF. Following its success, KOD has initiated two pivotal phase III studies (PEAK and PINNACLE) investigating two dose levels (5 mg and 10 mg) of KSI-101 for macular edema secondary to inflammation. Both studies are currently enrolling patients with top-line results expected in late 2026 and early 2027, respectively.

Kodiak Sciences Inc. Price, Consensus and EPS Surprise

Kodiak Sciences Inc. Price, Consensus and EPS Surprise

Kodiak Sciences Inc. price-consensus-eps-surprise-chart | Kodiak Sciences Inc. Quote

KOD's Zacks Rank & Stocks to Consider

Kodiak currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are ANI Pharmaceuticals (ANIP - Free Report) , Arcutis Biotherapeutics (ARQT - Free Report) and ADMA Biologics (ADMA - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for ANI Pharmaceuticals’ earnings per share have increased from $7.25 to $7.29 for 2025. During the same time, earnings per share estimates for 2026 have increased from $7.74 to $7.81. Year to date, shares of ANIP have surged 52.8%.

ANI Pharmaceuticals' earnings beat estimates in each of the trailing four quarters, the average surprise being 21.24%.

In the past 60 days, estimates for Arcutis Biotherapeutics’ loss per share have narrowed from 44 cents to 24 cents for 2025. During the same time, earnings per share estimates for 2026 have increased from 9 cents to 41 cents. Year to date, shares of ARQT have rallied 64.1%.

Arcutis Biotherapeutics’ earnings beat estimates in each of the trailing four quarters, the average surprise being 64.80%.

In the past 60 days, estimates for ADMA Biologics’ earnings per share have increased from 57 cents to 58 cents for 2025. During the same time, earnings per share estimates for 2026 have improved from 88 cents to 90 cents. Year to date, shares of ADMA have lost 8.4%.

ADMA Biologics’ earnings beat estimates in one of the trailing four quarters, matched once and missed the same on the remaining two occasions, with the average negative surprise being 3.01%.

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