Tango (TNGX) Q2 Revenue Drops 52%

Source Motley_fool

Key Points

  • Revenue (GAAP) dropped approximately 84.0% year-over-year in Q2 2025, missing estimates due to a sharp decline in collaboration and license revenue.

  • GAAP earnings per share came in at ($0.35) for Q2 2025, wider than expected, as net loss rose 52% compared to the same period in 2024.

  • Strong clinical trial progress offset by truncated Gilead collaboration and lack of new financial guidance.

  • These 10 stocks could mint the next wave of millionaires ›

Tango Therapeutics (NASDAQ:TNGX), a biotechnology firm advancing targeted oncology therapies, posted its second quarter results on August 5, 2025. The highlight of the release was a steep decline in GAAP revenue, well below consensus, along with a larger net loss compared to analyst expectations. Revenue (GAAP) came in at $3.2 million—less than half of the $6.7 million estimate and a 59% drop compared to the same period in 2024. GAAP loss per share widened to ($0.35), compared to an expected ($0.34). The quarter was marked by meaningful clinical progress and disciplined R&D spending, but overshadowed by revenue pressures and the decision to end the Gilead partnership research term a year early. Overall, the period demonstrated pipeline advancement but heightened financial risk from falling collaborative income and increasing net losses.

MetricQ2 2025Q2 2025 EstimateQ2 2024Y/Y Change
EPS (GAAP)($0.35)($0.34)($0.24)45.8%
Revenue (GAAP)$3.2 million$6.7 millionN/A(52.2%)
Research and Development Expense$32.8 million$38.7 million(15.2%)
General and Administrative Expense$11.3 million$10.8 million4.6%
Cash, Cash Equivalents, and Marketable Securities$180.8 millionN/A

Source: Analyst estimates for the quarter provided by FactSet.

Company Overview and Recent Focus

Tango Therapeutics is a biotechnology firm specializing in the development of targeted cancer therapies through synthetic lethality—a method that selectively eliminates cancer cells based on their genetic profile. This approach allows for therapies that specifically attack tumors with particular genomic alterations, aiming to reduce harm to healthy tissue.

Its main area of focus is advancing a clinical-stage pipeline that includes PRMT5 inhibitors—TNG462 and TNG456—and a CoREST inhibitor, TNG260, targeting cancers with high unmet needs. Success factors for the company hinge on taking these assets through successful clinical trials, securing regulatory approvals, and forging productive drug development partnerships. Collaborations, strong intellectual property protection, and efficient progression of clinical studies are critical for achieving its business objectives.

Quarterly Performance and Developments

Revenue (GAAP) dropped sharply to $3.2 million, primarily as license revenue from the prior year evaporated. This reflects the unpredictable timing and non-recurring nature of collaboration milestones and licensing, emphasizing that the company still lacks direct product sales. Collaboration revenue (GAAP) was approximately 59% lower year-over-year, mainly due to fewer research costs being billed to partners.

The Gilead partnership, a key driver of past collaboration revenue, will see its research portion terminate ahead of schedule in August 2025. Tango retains rights to potential future milestones and royalties from programs that Gilead continues to develop but will not recognize new research revenue from this source beyond the current deferred revenue. In Q3 2025, $53.8 million in deferred revenue from Gilead will be recognized, providing a one-off revenue boost but not establishing a new recurring revenue stream.

Operating expenses reflected a shift in research and development, declining to $32.8 million (GAAP)—a reduction tied to discontinuing early-stage or less promising programs, including TNG908 and TNG348. The company ramped up investment in its lead clinical assets—especially the PRMT5 inhibitor TNG462, which entered new clinical settings, and the brain-penetrant PRMT5 inhibitor TNG456, which moved into a Phase 1/2 trial for glioblastoma. Spending on general and administrative activities rose modestly for the three months ended June 30, 2025, compared to the prior year.

Pipeline activity was significant. TNG462 began a new combination study with RAS(ON) inhibitors sourced from Revolution Medicines, and a Phase 1/2 update on TNG462 monotherapy is expected in the second half of the year—this will inform next steps toward a potential registration trial for pancreatic cancer. TNG456 dosed its first patient in a glioblastoma study. TNG260 also progressed in combination with pembrolizumab, an immunotherapy, with plans for a clinical update later this year.

Product Pipeline and Collaborations Explained

PRMT5 inhibitors like TNG462 and TNG456 are oral drug candidates designed to block the PRMT5 enzyme’s function in certain genetically defined cancers, aiming to slow tumor growth. TNG462 targets patients whose tumors have lost the MTAP gene—a biomarker for several hard-to-treat cancers, including pancreatic and lung cancer. TNG456 is engineered to cross the blood-brain barrier and is being developed in glioblastoma.

The CoREST inhibitor TNG260 is being tested in combination with pembrolizumab for lung cancer with STK11 mutations. All these assets are intended for cancer types where current therapies offer limited benefit, and there is a high unmet medical need. The company also relies on key partnerships for both scientific progress and financial support, such as the now-winding-down research collaboration with Gilead.

Financial Outlook and Areas to Watch

Management did not provide updated guidance for the remainder of fiscal 2025. It indicated that the current cash balance—$180.8 million as of Q2 2025 (GAAP)—should be sufficient to fund operations into the first quarter of 2027, supported by the expected recognition of all remaining deferred Gilead revenue in the upcoming quarter.

Looking ahead, investors should track several upcoming clinical milestones. Phase 1/2 data readouts for TNG462 and TNG260 are expected in the second half of 2025. Financially, collaboration revenue declined, and the absence of product sales magnifies the importance of successful trials or new partnerships to secure future funding. TNGX does not currently pay a dividend.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,039%* — a market-crushing outperformance compared to 181% for the S&P 500.

They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.

See the stocks »

*Stock Advisor returns as of August 4, 2025

JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Moving With Stocks, But Ethereum’s Correlation Is FadingBitcoin has been showing notable correlation to the stock equities recently, but data shows Ethereum is charting a more independent path. Bitcoin & Ethereum Showing Different Degrees Of
Author  NewsBTC
7 Month 10 Day Thu
Bitcoin has been showing notable correlation to the stock equities recently, but data shows Ethereum is charting a more independent path. Bitcoin & Ethereum Showing Different Degrees Of
placeholder
Ripple’s $21 Trillion Dream: What Capturing 20% Of SWIFT Volume Means For XRPRipple Labs, a crypto payments company, continues to set its ambitions and those of XRP higher than ever as it edges closer to disrupting the global financial messaging giant SWIFT. After Ripple CEO
Author  NewsBTC
7 Month 14 Day Mon
Ripple Labs, a crypto payments company, continues to set its ambitions and those of XRP higher than ever as it edges closer to disrupting the global financial messaging giant SWIFT. After Ripple CEO
placeholder
Philippines' GDP Growth Rises to 5.5% in Second Quarter of 2025The Philippine economy expanded at a marginally faster pace in the second quarter of 2025, with GDP growing 5.5% year-on-year.
Author  Mitrade
8 Month 07 Day Thu
The Philippine economy expanded at a marginally faster pace in the second quarter of 2025, with GDP growing 5.5% year-on-year.
placeholder
Asia Stocks Cautious Before China Tariff Deadline; Australia Sets Record HighMost Asian stock markets were little changed on Monday as investors looked ahead to the looming expiration of the U.S.-China tariff truce, while Australian equities climbed to new highs on rate-cut expectations.
Author  FXStreet
3 hours ago
Most Asian stock markets were little changed on Monday as investors looked ahead to the looming expiration of the U.S.-China tariff truce, while Australian equities climbed to new highs on rate-cut expectations.
placeholder
Oil Prices Extend Losses as Traders Eye US-Russia Summit, Inflation DataOil prices declined in Asian trading on Monday, adding to sharp losses from last week as expectations of progress in U.S.-Russia talks dampened geopolitical risk premiums, while weak inflation data from China weighed on demand sentiment.
Author  FXStreet
3 hours ago
Oil prices declined in Asian trading on Monday, adding to sharp losses from last week as expectations of progress in U.S.-Russia talks dampened geopolitical risk premiums, while weak inflation data from China weighed on demand sentiment.
goTop
quote