Entrada (TRDA) Q2 Revenue Drops 98%

Key Points

• GAAP earnings per share were a loss of $(1.04) in Q2 2025, significantly wider than the $(0.85) GAAP loss per share analysts had expected.

• GAAP revenue fell to $2.0 million in Q2 2025, missing the $9.65 million GAAP consensus estimate and dropping 97.9% year-over-year in collaboration revenue.

• Operating expenses rose 18.2%, with cash reserves totaled $354.0 million as of June 30, 2025, providing a funding runway into the second quarter of 2027.

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Entrada Therapeutics (NASDAQ:TRDA), a biotechnology company developing intracellular therapies for rare neuromuscular diseases, reported second quarter 2025 financial results on August 6, 2025. The main news from the release was a sharp drop in revenue from collaboration activities and a larger-than-expected net loss per share, due in large part to the conclusion of major partnership milestones. The company reported a GAAP loss per share of $(1.04) in Q2 2025 versus the average analyst estimate of $(0.85), while GAAP revenue was $2.0 million, falling far short of the $9.65 million GAAP consensus estimate. Compared to the same quarter last year, GAAP revenue was down 97.9% year-over-year, and expenses—mainly for research and personnel—rose by about 18%. Leadership highlighted clinical and regulatory advancements, and maintained that its $354.0 million in cash, cash equivalents, and marketable securities as of June 30, 2025, will fund operations for at least two more years. The quarter marked execution of important pipeline milestones, but the financial results signal a challenging transition as Entrada moves toward developing its own products and away from partnership-driven revenue.

Source: Analyst estimates for the quarter provided by FactSet.

About Entrada Therapeutics and Its Focus Areas

Entrada Therapeutics engineers and develops intracellular biologics, focusing on rare neuromuscular and genetic diseases. Its technology centers on the EEV Platform, which delivers drug molecules into cells—a key hurdle for therapies that target diseases within tissues such as muscle. The company’s pipeline includes Duchenne muscular dystrophy (DMD) therapies, programs for inherited retinal diseases, and rare metabolic conditions.

In recent years, Entrada has concentrated on advancing clinical programs and securing regulatory approvals in the United States and Europe. Key success factors include demonstrating the EEV Platform’s safety and effectiveness in humans, achieving timely progress on regulatory milestones, and maintaining strong partnerships and intellectual property protections. The company’s collaboration with Vertex Pharmaceuticals has provided significant financial resources, but as milestone revenue declines, Entrada's future value will depend on the success of its own product pipeline and ability to navigate clinical and market challenges.

Quarterly Highlights and Commentary

During the quarter, Entrada made key clinical progress, particularly with its lead DMD program ENTR-601-44, which is based on its EEV Platform. The company dosed the first patient in its global Phase 1/2 multiple ascending dose clinical trial (ELEVATE-44-201), marking a shift from preclinical to patient testing. Entrada expects to release interim data from this study’s first cohort in the first half of 2026. Multiple clinical sites were activated in the United Kingdom and European Union, and the company reported progress preparing for new regulatory submissions for other DMD candidates (ENTR-601-50 and ENTR-601-51), targeting applications in late 2025 and into 2026.

Collaboration revenue (GAAP) plunged to $2.0 million in Q2 2025 from $94.7 million in Q2 2024. This is attributed to the substantial completion of its major partnership research plan with Vertex Pharmaceuticals, which focused on the experimental therapy VX-670 for myotonic dystrophy type 1 (DM1). This quarter’s figure reflects the winding down of those activities. Vertex continues development of VX-670, with ongoing clinical studies scheduled to wrap up patient enrollment and dosing in the first half of 2026, but major revenue contributions from this partnership are now exhausted.

Research and development expenses (GAAP) grew in Q2 2025 to support a broader pipeline and higher personnel costs, including increased stock-based compensation, as Entrada added staff for new and advancing clinical trials. General and administrative costs increased in line with these efforts. Meanwhile, Cash, cash equivalents, and marketable securities (GAAP) fell by $66.0 million during the first half of 2025, ending at $354.0 million as of June 30, 2025. Management stated this amount is sufficient to fund operations through at least Q2 2027, depending on development pace and expenses.

Other milestones included advancing two preclinical programs for inherited retinal diseases and adding experienced executives and scientific leadership. The company pointed to its growing intellectual property portfolio, which helps shield its platform and discovery efforts from competitors. The inherited retinal disease programs are expected to deliver a clinical candidate nomination by the end of 2025, reinforcing Entrada’s intent to broaden its reach beyond neuromuscular conditions.

Looking Ahead: Guidance and Investor Watchpoints

No revenue or earnings guidance was provided for fiscal 2025 or fiscal 2026. Instead, management pointed to key upcoming events as the main focus for the near term. These include interim clinical data readouts in 2026, regulatory submissions for additional DMD programs starting in late 2025, and the expectation that financial resources as of June 30, 2025, will extend the operating runway into Q2 2027. The company has strengthened its clinical and medical affairs leadership to support its expanding pipeline, but acknowledged that uncertainties remain around clinical outcomes and regulatory timelines.

Investors should monitor Entrada’s clinical trial progress, especially the timelines and initial results from the ELEVATE-44 and ELEVATE-45 studies. Key risks include the company’s dependence on internal pipeline success to generate future revenue, as major collaboration payments from Vertex have been largely recognized. The company does not currently pay a dividend.

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

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