Relay Therapeutics Inc. reported fourth‑quarter 2025 revenue of $7.0 million, up from $0 in the same period a year earlier, and a net loss of $54.9 million, or $0.32 per share, compared with a $76.0 million loss ($0.45 per share) in the prior year’s fourth quarter. For the full year, the company posted $15.4 million in revenue, up from $10.0 million in 2024, and a net loss of $276.5 million, or $1.61 per share, versus a $337.7 million loss ($2.36 per share) in 2024.
The Q4 revenue increase was driven by a $7.0 million licensing fee received under an exclusive agreement with Elevar Therapeutics, a source of revenue that was absent in the prior year’s quarter. The full‑year revenue rise reflects the same licensing contribution and modest growth in other commercial activities, bringing total revenue to $15.4 million from $10.0 million a year earlier.
Research and development expenses fell to $55.4 million in Q4, a $12.7 million reduction from the previous year, while general and administrative costs dropped to $12.2 million, a $4.7 million decrease. The cost reductions were achieved through disciplined spending and a focus on core pipeline activities, allowing the company to maintain a tighter operating profile despite ongoing investment in its lead asset.
Relay’s cash, cash equivalents, and investments totaled $554.5 million as of December 31, 2025, providing a runway into 2029 under current burn rates. The company reiterated its 2026 guidance, emphasizing continued investment in zovegalisib and other pipeline programs, and highlighted the Breakthrough Therapy designation for zovegalisib in combination with fulvestrant for PIK3CA‑mutant, HR+/HER2‑advanced breast cancer.
Analysts had estimated Q4 revenue at $5.06 million and a loss per share of $0.41. Relay’s $7.0 million revenue beat the consensus by $1.94 million, and the $0.32 loss per share was $0.09 better than expected, reflecting effective cost control and the impact of the licensing fee.
Market reaction was positive: the stock rose 3.2% in after‑hours trading and 19% on February 27, driven by the revenue beat, narrower loss, strong cash position, and upcoming clinical milestones for zovegalisib.
"Our focus on disciplined execution to date has strengthened the foundation of Relay, aligning our organization to support long-term success. In 2026, Relay is entering a pivotal period defined by multiple upcoming clinical milestones across our zovegalisib program, which recently received Breakthrough Therapy designation from the FDA," said President and CEO Sanjiv Patel. "We anticipate presenting Phase 1/2 breast cancer data at the upcoming ESMO TAT Congress, reporting initial data in PIK3CA‑driven vascular anomalies, and providing updates on our breast cancer triplet data and frontline Phase 3 development plans. These milestones position us to deliver meaningful updates in areas with significant unmet need for patients, while continuing to build momentum toward potential commercialization."
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