Zymeworks’ Earnings Call: Revenue Soars Amid Challenges

Zymeworks ((ZYME)) has held its Q3 earnings call. Read on for the main highlights of the call.

In the recent earnings call, Zymeworks presented a mixed yet optimistic outlook. The company showcased strong revenue growth and promising clinical data, suggesting a positive future trajectory. However, challenges such as the discontinuation of a key program and a decrease in cash reserves were also highlighted. Overall, the sentiment was largely positive, driven by increased revenue and encouraging clinical trial results.

Significant Revenue Growth

Zymeworks reported a substantial increase in total revenue for Q3 2025, reaching $27.6 million, up from $16 million in Q3 2024. This growth was primarily attributed to a $25 million milestone payment from Johnson & Johnson, related to the clinical progress of pasritamig.

Promising Clinical Data for ZW191

The company revealed encouraging Phase I data for ZW191, which demonstrated a high objective response rate of 64% in certain doses and a favorable safety profile. This positions ZW191 as a potential best-in-class folate receptor alpha directed ADC.

Strong Financial Position

Despite reporting a net loss of $19.6 million, Zymeworks maintains a robust financial position with $299.4 million in cash. The company anticipates being able to fund operations until the second half of 2027.

Progress in Partnered Programs

Zymeworks highlighted the strength of its collaborations, with milestone revenue recognition from partnerships and strong performance in partnered programs, including its collaboration with J&J and trials with Jazz.

Discontinuation of ZW171

The development of ZW171 was discontinued as it did not meet the internal thresholds for benefit-risk profiles as a monotherapy. Despite this, there remains potential for mesothelin-directed therapies.

Decrease in Cash and Cash Equivalents

The company’s cash resources decreased from $324.2 million at the end of 2024 to $299.4 million as of September 30, 2025, indicating an ongoing cash burn.

Forward-Looking Guidance

Zymeworks provided a positive forward-looking guidance, reporting significant financial and clinical progress during the third quarter of 2025. The company recognized a $25 million development milestone from its collaboration with Johnson & Johnson, contributing to a total revenue of $27.6 million. Operating expenses decreased slightly, and the net loss narrowed compared to the previous year. Clinically, the company made strides with its Phase I programs and continued its share repurchase program, reflecting confidence in its long-term outlook. Zymeworks expects to fund operations into the second half of 2027.

In summary, Zymeworks’ earnings call reflected a largely positive sentiment, driven by significant revenue growth and promising clinical data. Despite challenges such as the discontinuation of ZW171 and a decrease in cash reserves, the company remains confident in its financial and clinical progress, with expectations to sustain operations into 2027.