Ultragenyx Pharmaceutical Inc. reported its third‑quarter 2025 results on 2025‑11‑04, posting revenue of $159.9 million—$7.6 million below the $167.55 million consensus estimate—and a net loss of $180.4 million, or $-1.81 per share, a $0.58 miss on the $-1.23 EPS estimate. The company’s revenue grew 15% year‑over‑year, driven by strong sales of Crysvita ($111.9 million) and Dojolvi ($24 million), but the quarter still fell short of analyst expectations.
The revenue shortfall was largely due to a modest decline in Crysvita sales relative to the prior year, offset by a slight dip in Dojolvi revenue. While the combined product revenue rose 15% from $139 million in Q3 2024, the company’s operating expenses increased to $331 million from $271 million, reflecting higher research and development spend—$216 million versus $170 million a year earlier—alongside expanded commercialization costs.
The widened net loss and EPS miss stem from the sharp rise in operating expenses, particularly R&D, which grew by $46 million year‑over‑year. Despite the revenue growth, the higher cost base eroded profitability, pushing the company into a larger loss than the $134 million ($1.40 per share) recorded in Q3 2024. The company’s operating margin contracted as a result, underscoring the impact of continued investment in its pipeline and market expansion.
Management reaffirmed its full‑year 2025 revenue guidance of $640 million to $670 million, unchanged from the prior outlook, and highlighted a robust cash position of $447 million as of September 30, 2025. The $400 million royalty financing from OMERS, which will begin payments in January 2028, further strengthens the balance sheet and supports ongoing R&D and commercialization initiatives. Ultragenyx reiterated its path to GAAP profitability in 2027, citing the expected lift from late‑stage clinical data for UX143 and GTX‑102.
Investors reacted negatively to the earnings miss, citing the larger-than‑expected net loss and revenue shortfall as key concerns. Management emphasized continued focus on cost discipline and strategic investments in high‑return opportunities, signaling confidence in meeting the full‑year guidance despite the quarter’s challenges.
Looking ahead, Ultragenyx is advancing pivotal data readouts for its late‑stage pipeline, with expectations for UX143 (osteogenesis imperfecta) and GTX‑102 (Angelman syndrome) in the coming months. The company’s emphasis on expanding its product portfolio and leveraging its royalty financing positions it to sustain growth momentum while navigating the current headwinds in operating expenses.
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