A month has gone by since the last earnings report for Editas Medicine (EDIT). Shares have added about 3.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Editas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
EDIT Reports Narrower-Than-Expected Q4 Loss, Revenues Rise Y/Y
Editasreported a loss of 6 cents per share in the fourth quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 27 cents. The company had incurred a loss of 55 cents per share in the year-ago quarter. The comprehensive beat was mainly due to lower operating expenses.
Collaboration and other research and development (R&D) revenues, which comprise Editas’ top line, were $24.7 million in the reported quarter, down 19% from the year-ago quarter’s figure. The reported figure, however, comprehensively beat the Zacks Consensus Estimate of $7 million. The year-over-year decrease is primarily due to the recognition of revenues related to milestones achieved under EDIT’s collaboration agreement with Bristol Myers in the year-ago quarter.
EDIT’s Q4 Results in Detail
In the fourth quarter of 2025, R&D expenses decreased 44% to $27.4 million compared with $48.6 million reported in the year-ago period. The decline in R&D expenses is primarily due to lower clinical and manufacturing costs following the abandonment of the reni-cel program in December 2024, partly offset by in vivo research and discovery costs.
General and administrative expenses were $11.4 million in the reported quarter, down 31% year over year, due to a decrease in employee-related expenses because of reduced workforce and reduced professional service expenses following the abandonment of the reni-cel program.
Restructuring and impairment charges fell by $18.5 million to a $6.3 million benefit in the fourth quarter from $12.2 million a year earlier, mainly due to favorable adjustments to previously estimated contract costs tied to the discontinuation of the reni-cel program.
Editas had cash, cash equivalents and investments worth $146.6 million as of Dec. 31, 2025, down from $165.6 million as of Sept. 30, 2025. The company expects that its existing cash position will fund operating and capital needs into the third quarter of 2027.
EDIT’s Full-Year Results
In 2025, Editas recorded total revenues of $40.5 million, which beat the Zacks Consensus Estimate of $21.4 million. The recorded figure increased 25% from the $32.3 million reported in 2024.
EDIT reported a loss per share of $1.80 in 2025, narrower than the Zacks Consensus Estimate of a loss of $2.03 per share. In 2024, the company reported a loss per share of $2.88.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted -29.21% due to these changes.
VGM Scores
Currently, Editas has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, the stock has a grade of F on the value side, putting it in the fifth quintile for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Editas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Editas is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Puma Biotech (PBYI), a stock from the same industry, has gained 15%. The company reported its results for the quarter ended December 2025 more than a month ago.
Puma Biotech reported revenues of $75.5 million in the last reported quarter, representing a year-over-year change of +27.7%. EPS of $0.29 for the same period compares with $0.43 a year ago.
For the current quarter, Puma Biotech is expected to post a loss of $0.13 per share, indicating a change of -230% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Puma Biotech. Also, the stock has a VGM Score of B.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
