01—Abstract
Summary
Summary of the 10-Q filed November 5, 2025. Cited figures are marked; the original filing is the authoritative source.
Revolution Medicines, Inc. reported its quarterly results for the period ended September 30, 2025 in this Form 10-Q.
The company is a clinical-stage precision oncology company developing RAS(ON) inhibitors and has no products approved for commercial sale. For the three months ended September 30, 2025, research and development expenses were $262.5 milliona and general and administrative expenses were $52.8 million, producing a net loss of $305.2 million, or $1.61 per share, compared with a net loss of $156.3 million in the prior-year quarter. For the nine months ended September 30, 2025, the net loss was $766.4 million, and the accumulated deficit reached $2.5 billion.
As of September 30, 2025, the company held $1.9 billionb in cash, cash equivalents and marketable securities, which management believes will fund planned operations for at least 12 months from the filing date. During June 2025 the company sold future royalties on daraxonrasib and zoldonrasib to Royalty Pharma for a $250.0 million upfront payment, recorded as a liability of $256.5 million, and entered into a term loan facility of up to $750.0 million, under which no amounts had been drawn. In October 2025, the company sold 3,521,018 shares under its 2024 at-the-market program for gross proceeds of $185.7 million, which the filing describes as a subsequent event.
Pipeline milestones highlighted in the filing include the RASolute 302 Phase 3 trial of daraxonrasib in second-line pancreatic cancer, where the company currently expects a clinical readout in 2026, and an FDA Commissioner's National Priority Voucher granted for daraxonrasib in October 2025. Breakthrough Therapy Designation was granted for daraxonrasib in June 2025 and for elironrasib in July 2025.
02—Key points
Key Highlights
- Net loss for the three months ended September 30, 2025 was $305.2 million ($1.61 per share), up from $156.3 million ($0.94 per share) a year earlier.
- Research and development expense rose to $262.5 million for the quarter from $151.8 million, and general and administrative expense rose to $52.8 million from $24.0 million.
- Cash, cash equivalents and marketable securities totaled $1.9 billion at September 30, 2025, down from $2.3 billion at December 31, 2024; management states this funds operations for at least 12 months.
- Royalty Purchase Agreement with Royalty Pharma provided a $250.0 million upfront payment in exchange for tiered royalties on daraxonrasib and zoldonrasib sales, recorded as a $256.5 million liability.
- Term Loan Facility of up to $750.0 million was entered into with Royalty Pharma Development Funding and Wilmington Trust; no amounts were drawn as of September 30, 2025.
- Subsequent to quarter-end, the company sold 3,521,018 shares under its 2024 at-the-market program for gross proceeds of $185.7 million (net $182.9 million).
- The company's Phase 3 RASolute 302 trial of daraxonrasib is expected to read out in 2026, and daraxonrasib received an FDA Commissioner's National Priority Voucher in October 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 5, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| R&D Expenses | $262.51M$151.75M | +73.0% |
| Operating Expenses | $315.27M$175.71M | +79.4% |
| Operating Income | -$315.27M-$175.71M | −79.4% |
| Net Income | -$305.21M-$156.29M | −95.3% |
| EPS (Basic) | $-1.61$-0.94 | −71.3% |
| EPS (Diluted) | $-1.61$-0.94 | −71.3% |
| Shares Outstanding (Basic) | 189.23M166.84M | +13.4% |
| Shares Outstanding (Diluted) | 189.23M166.84M | +13.4% |
05—Questions
Frequently Asked Questions
How much cash does the company have and how long will it last?
As of September 30, 2025, the company had $1.9 billion in cash, cash equivalents and marketable securities. Management believes this will enable it to fund planned operations for at least 12 months following the filing of this Quarterly Report.
What drove the increase in operating expenses?
Research and development expense increased by $110.8 million for the quarter, primarily from a $41.0 million increase in daraxonrasib costs, a $19.5 million rise in employee-related expenses, and a $17.7 million increase in zoldonrasib costs. General and administrative expense increased by $28.8 million, driven mainly by a $7.9 million increase in commercial preparation expenses and a $7.6 million increase in employee-related expenses.
What are the terms of the Royalty Pharma transactions?
In June 2025 the company received a $250.0 million upfront payment for tiered royalties of 2.55% on annual worldwide net sales up to $2.0 billion, 1.50% between $2.0 billion and $4.0 billion, and 0.60% between $4.0 billion and $8.0 billion. Up to an additional $1.0 billion of royalty purchases is available subject to specified triggers. The company separately has a term loan facility of up to $750.0 million, bearing interest at three-month term SOFR (3.5% floor) plus 5.75%, with no amounts drawn as of September 30, 2025.
Does the company have any approved products or revenue?
No. The filing states the company has no products approved for commercial sale and has never generated revenue from product sales. It expects to incur losses for at least the next several years.
What are the key near-term catalysts in the filing?
The company expects a clinical readout from the RASolute 302 Phase 3 trial of daraxonrasib in second-line metastatic pancreatic cancer in 2026, plans to share updated first-line data in the first half of 2026, and expects to initiate the RASolute 303 Phase 3 study in the second half of 2025. The filing also notes that daraxonrasib received a Commissioner's National Priority Voucher from the FDA in October 2025.
06—Continue