It very much surprised on the upside on the bottom-line result.
It also has a much longer cash runway than it did at the end of 2024.
On Thursday, Celcuity (NASDAQ: CELC) issued its final business update and set of financial results for 2025. Investors were particularly encouraged by the clinical-stage biotech's far narrower-than-expected net loss for the year's final quarter, and expressed their appreciation by bidding the stock up by more than 4% on the day.
Celcuity, which is currently in a pure research and development phase, did not report any revenue for either the fourth quarter or the full-year 2025. During the quarter, its operating expenses increased to over $49 million from over $36 million in the same period of 2024.
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As for the bottom line, net loss not under generally accepted accounting principles (GAAP) deepened, but not alarmingly so, to $38.4 million ($0.73 per share) from the year-ago deficit of $32.3 million.
Analysts tracking the stock were likely not expecting Celcuity to be so disciplined. They were modeling a much deeper net loss of $1.05 per share.
One of the more encouraging aspects of that earnings release was the company's anticipation of topline results from a phase 3 clinical trial of gedatolisib in the treatment of advanced breast cancer. These should be available in the second quarter.
Even if Celcuity doesn't hit the target for the promising gedatolisib, it's heartening that it's built a solid cash foundation. Its cash and cash equivalents totaled nearly $166 million at the end of the quarter, up from $22.5 million at end-2024. That should give it plenty of runway, which is always a consideration for pre-revenue biotechs.
With that tailwind at its back and the gedatolisib late-stage trial results (hopefully) coming soon, this is a company packed with promise. Like many market players who bought into it just after that earnings release, I'd be bullish on its future too.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.