Pulmatrix (PULM) Q2 Revenue Falls 100%

Key Points

• GAAP revenue dropped to zero in Q2 2025, with no new product sales or clinical trial sponsorships.

• Net loss per share (GAAP) was $(0.42) in Q2 2025, reflecting significant spending cuts and a substantial reduction in R&D activity.

• Pulmatrix focused on finalizing its merger with Cullgen and pursuing asset divestitures; no forward financial guidance was provided.

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Pulmatrix (NASDAQ:PULM), a biotechnology company known for its dry powder inhalation delivery platform iSPERSE™, released its second quarter results on August 6, 2025, covering the quarter that ended June 30, 2025. Pulmatrix reported zero revenue for the period ended June 30, 2025. Net loss per share (GAAP) was $(0.42), compared to $(1.59) in Q2 2024. There were no Wall Street analyst estimates available this quarter, but the reported GAAP loss per share of $(0.42) represented a substantial narrowing from last year’s GAAP result of $(1.59) in Q2 2024, mainly due to a near-total reduction in research and development spending. The quarter highlights Pulmatrix’s strategic pivot: winding down its prior clinical business, trimming operational costs, conserving cash, and focusing on completing its merger with Cullgen. The company offered no forward guidance for upcoming quarters as it transitions operations.

Business Overview and Recent Areas of Focus

Pulmatrix’s core business has centered on developing inhaled therapies using its proprietary iSPERSE™ technology—a dry powder drug delivery platform aimed at improving medication delivery to the lungs. This platform was designed to increase efficiency and tolerability in treatments compared to traditional inhalers or oral medications, positioning the company in the respiratory therapeutics space.

Over the past year, Pulmatrix’s strategic priorities have shifted dramatically. It has halted most clinical operations, halted R&D spending, and now seeks to divest its iSPERSE™ intellectual property and remaining clinical assets. The company’s ongoing viability depends on successfully completing its pending merger with Cullgen and monetizing its assets or securing royalty streams from former drug candidates such as PUR1900. Key success factors now rest less on product development and more on the execution of these strategic transactions.

Quarter Highlights: Operations, Finances, and Pipeline Progress

The quarter reflected a sharp operational downsizing as Pulmatrix’s GAAP revenue dropped from $1.6 million in Q2 2024 to zero. This change resulted from the completion of the wind-down of its PUR1900 clinical trial. Former sources of operating income, such as milestone payments or funding for joint studies, concluded, and there were no new business or sales streams to replace them during the period.

Research and development expense (GAAP) decreased from $2,834,000 in Q2 2024 to $14,000, a 99.5% drop. This near-total reduction in research spending came as Pulmatrix finished closing its flagship clinical programs and terminated related staff. The company stated: “The decrease was primarily due to winding down the PUR1900 Phase 2b clinical trial, disposal of the Company’s lab and facilities lease and employee terminations.” Helped by layoffs and cuts, although these savings were partially offset by legal and advisory expenses linked to the merger process.

Net loss and operating loss (GAAP) both narrowed substantially. The reduced losses were primarily due to a sharp decrease in R&D expenses. Net loss (GAAP) dropped to $(1.55) million from $(5.81) million in Q2 2024. The company avoided any unusual charges this quarter, whereas the prior period had included a significant loss from an asset transaction with MannKind. With its extreme cost containment, Pulmatrix exited the quarter with a GAAP cash and cash equivalents position of $5.8 million (down from $9.5 million at December 31, 2024), which management expects will fund operations until the Cullgen merger is finalized.

This period also saw Pulmatrix focus on two main strategic moves apart from operational cuts: the attempted sale of its iSPERSE™ intellectual property and clinical programs, and its merger with Cullgen. The company openly stated, “Pulmatrix is currently in a process to potentially divest its patent portfolio for our iSPERSE™ technology, as well as three related clinical programs.” These pipeline programs include PUR3100 for acute migraine (an orally inhaled dihydroergotamine engineered with iSPERSE™), PUR1800 for chronic obstructive pulmonary disease (a kinase inhibitor also using the iSPERSE™ platform), and PUR1900 (an inhaled formulation of an antifungal, developed with Cipla). Development or commercial responsibility for these candidates has ended or shifted to partners, and Pulmatrix itself has no ongoing clinical trials.

Regulatory milestones from past years continued to carry some legacy value. For example, the Food and Drug Administration had accepted a Phase 2 study for PUR3100 and Pulmatrix’s partner Cipla is moving forward with Phase 3 for PUR1900 in India. Pulmatrix may be eligible to receive a 2% royalty on possible future non-U.S. sales of PUR1900, but this would only occur if the product is successfully commercialized—a long-term and uncertain proposition.

The most critical development during the second quarter was continued progress toward completing the merger with Cullgen, a protein degrader drug development company. Pulmatrix received stockholder approval and had its registration statement declared effective by the Securities and Exchange Commission. The merger remains contingent on regulatory approvals, including from the China Security Regulatory Commission and Nasdaq. Until the deal closes, Pulmatrix is in a holding pattern, and the company highlights that any delay or failure in closing poses significant risks to its ongoing viability.

Looking Ahead: Guidance and Watchpoints

Pulmatrix did not provide any financial guidance or operational outlook for the next quarter or upcoming year. No revenue or earnings forecast was offered by management in the latest earnings release. The company’s leadership made clear that the near-term objective is to complete the planned merger and monetize or transfer its remaining assets.

Because Pulmatrix is not currently developing or selling any medications, its short-term future is heavily dependent on successful asset divestitures and getting the Cullgen deal across the finish line. Investors and observers should monitor progress toward merger closing, potential updates on the sale of iSPERSE™-related patent portfolios, and any royalty developments with former pipeline candidates. PULM 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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