Precision BioSciences' Revenue Plummets, Net Loss Widens Dramatically

TL;DR

**DTIL is burning cash at an alarming rate with no revenue in sight; get out now.**

AI Summary

PRECISION BIOSCIENCES INC (DTIL) reported a significant decline in revenue and a widening net loss for the nine months ended September 30, 2025. Revenue plummeted to $60 thousand, a drastic 99.9% decrease from $68.058 million in the same period of 2024. The company's net loss expanded to $65.857 million, compared to a net income of $24.912 million in the prior year, representing a 364.3% swing to loss. Operating expenses decreased slightly by 6.7% to $64.716 million from $69.374 million, primarily due to a reduction in general and administrative expenses. Cash and cash equivalents decreased by 47.8% from $85.899 million at December 31, 2024, to $44.870 million at September 30, 2025. The company's total assets also declined by 31.4% from $136.388 million to $93.510 million. A key business change was the significant reduction in deferred revenue from $23.300 million to $19.957 million, indicating fewer upfront payments from collaborations. The company continues to face substantial funding needs and risks associated with the early stages of its ARCUS technology development.

Why It Matters

This filing reveals a critical financial deterioration for Precision BioSciences, signaling a challenging path forward for investors. The near-total collapse in revenue and the substantial increase in net loss raise serious questions about the company's ability to commercialize its ARCUS technology and secure future collaborations. For employees, this could indicate potential restructuring or workforce reductions as the company conserves cash. Customers and the broader market for genome editing may see this as a sign of the inherent risks and long development cycles in the biotech sector, potentially impacting competitive dynamics as other firms vie for market leadership in gene editing therapies.

Risk Assessment

Risk Level: high — The company's net loss for the nine months ended September 30, 2025, was $65.857 million, a significant increase from a net income of $24.912 million in the prior year. Cash and cash equivalents decreased by $41.029 million, from $85.899 million to $44.870 million, indicating a rapid cash burn. This substantial financial decline, coupled with a 99.9% drop in revenue, points to a very high-risk investment profile.

Analyst Insight

Investors should consider divesting from DTIL given the severe revenue decline and escalating net losses. The rapid depletion of cash reserves suggests a high probability of future dilutive equity raises or significant operational cutbacks, further eroding shareholder value. Monitor for any strategic shifts or major collaboration announcements that could alter this trajectory, but proceed with extreme caution.

Financial Highlights

debt To Equity

4.62

revenue

$60K

operating Margin

-107.75%

total Assets

$93.510M

total Debt

$76.876M

net Income

($65.857M)

eps

($1.84)

gross Margin

N/A

cash Position

$44.870M

revenue Growth

-99.9%

Key Numbers

• $60K — Revenue (99.9% decrease from $68.058M in 2024 for the nine months ended September 30, 2025)
• ($65.857M) — Net Loss (Compared to $24.912M net income in 2024, a significant swing to loss)
• $44.870M — Cash and Cash Equivalents (47.8% decrease from $85.899M at December 31, 2024)
• ($1.84) — Net Loss Per Share (Basic) (For the three months ended September 30, 2025, compared to ($2.25) in 2024)
• 12,109,680 — Common Stock Shares Outstanding (As of September 30, 2025, up from 8,229,730 at December 31, 2024, indicating dilution)
• $64.716M — Total Operating Expenses (Decreased by 6.7% from $69.374M for the nine months ended September 30, 2025)
• $19.957M — Non-current Deferred Revenue (Decreased from $23.300M at December 31, 2024, suggesting fewer long-term collaboration payments)
• $93.510M — Total Assets (Decreased by 31.4% from $136.388M at December 31, 2024)

Key Players & Entities

• PRECISION BIOSCIENCES INC (company) — Registrant
• Nasdaq Capital Market (regulator) — Exchange where common stock is registered
• $60 thousand (dollar_amount) — Revenue for the nine months ended September 30, 2025
• $68.058 million (dollar_amount) — Revenue for the nine months ended September 30, 2024
• $65.857 million (dollar_amount) — Net loss for the nine months ended September 30, 2025
• $24.912 million (dollar_amount) — Net income for the nine months ended September 30, 2024
• $44.870 million (dollar_amount) — Cash and cash equivalents as of September 30, 2025
• $85.899 million (dollar_amount) — Cash and cash equivalents as of December 31, 2024
• ARCUS (company) — Genome-editing technology
• Durham (person) — Location of principal executive offices

FAQ

Risk Factors

• Significant Revenue Decline and Widening Net Loss [high — financial]: Revenue for the nine months ended September 30, 2025, was $60 thousand, a 99.9% decrease from $68.058 million in the prior year. The company swung from a net income of $24.912 million to a net loss of $65.857 million, a 364.3% change. This severe decline in revenue and expansion of losses indicates significant operational challenges and a precarious financial position.
• Deteriorating Cash Position [high — financial]: Cash and cash equivalents decreased by 47.8% from $85.899 million at December 31, 2024, to $44.870 million at September 30, 2025. This substantial reduction in liquidity, coupled with ongoing net losses, raises concerns about the company's ability to fund its operations and development activities in the near term.
• Dilution from Stock Issuance [medium — financial]: The number of common stock shares outstanding increased from 8,229,730 at December 31, 2024, to 12,109,680 as of September 30, 2025. This represents a significant dilution for existing shareholders, likely due to equity financing to cover operational shortfalls.
• Dependence on ARCUS Technology Development [high — operational]: The company's ARCUS technology is in the early stages of development. Success is highly dependent on achieving technological milestones and securing future funding. Any delays or failures in development could severely impact the company's future prospects and ability to generate revenue.
• Reduction in Deferred Revenue [medium — financial]: Non-current deferred revenue decreased from $23.300 million to $19.957 million. This indicates a reduction in upfront payments from collaborations, suggesting fewer new or ongoing significant partnership agreements that provide immediate cash flow.
• Declining Total Assets [medium — financial]: Total assets have decreased by 31.4% from $136.388 million to $93.510 million. This decline is a result of reduced cash, marketable securities, and other assets, reflecting the company's cash burn and asset utilization.

Industry Context

Precision BioSciences operates in the highly competitive and capital-intensive biotechnology sector, focusing on gene editing technologies. The industry is characterized by long development cycles, significant R&D investment, and a high rate of failure. Success hinges on technological innovation, intellectual property protection, and the ability to secure substantial funding for clinical trials and commercialization.

Regulatory Implications

As a biotechnology company, Precision BioSciences is subject to stringent regulatory oversight from bodies like the FDA for its therapeutic products. Delays in regulatory approval, changes in regulatory requirements, or failure to meet compliance standards can significantly impact development timelines and market access, posing a substantial risk.

What Investors Should Do

1. Monitor cash burn rate and runway closely.
2. Evaluate the progress and commercial viability of ARCUS technology.
3. Assess the impact of share dilution.
4. Scrutinize new collaboration agreements and revenue streams.

Glossary

Deferred Revenue

Revenue that has been received by a company for goods or services that have not yet been delivered or rendered. It is recorded as a liability on the balance sheet. (A decrease in deferred revenue, particularly non-current deferred revenue, suggests fewer upfront payments from collaborations or long-term contracts, impacting future revenue streams and cash flow.)

Accumulated Deficit

The total cumulative net losses of a company since its inception, minus any cumulative net income. It represents a deficit in the company's equity. (The company has an accumulated deficit of ($548.321 million) as of September 30, 2025, highlighting its history of unprofitability and significant cash burn.)

Warrant Liability

A financial instrument that gives the holder the right, but not the obligation, to purchase a company's stock at a specified price within a certain timeframe. Changes in fair value are recognized in earnings. (The company recorded a loss of ($1.230 million) on changes in the fair value of warrant liability for the nine months ended September 30, 2025, which impacts net income.)

Equity Method Investment

An accounting method used to account for investments in which the investor has significant influence over the investee but does not have control. (The company reported a gain of $86 thousand from equity method investments for the nine months ended September 30, 2025, a positive but small contribution to overall results.)

Year-Over-Year Comparison

Precision BioSciences has experienced a dramatic downturn in financial performance compared to the prior year. Revenue has plummeted by 99.9% from $68.058 million to $60 thousand for the nine months ended September 30, 2025. The company has swung from a net income of $24.912 million to a substantial net loss of $65.857 million. While operating expenses have decreased slightly by 6.7%, this has not offset the catastrophic revenue decline. Key risks include a significantly reduced cash position and ongoing substantial funding needs, exacerbated by a decrease in deferred revenue.

Key Financial Figures

• $0.000005 — ich registered Common Stock, par value $0.000005 per share DTIL The Nasdaq Capital Marke

Filing Documents

• dtil-20250930.htm (10-Q) — 1494KB
• dtil-20250930ex101amendedr.htm (EX-10) — 140KB
• dtil-20250930ex103amendedr.htm (EX-10) — 139KB
• dtil-20250930ex104amendedr.htm (EX-10) — 140KB
• dtil-20250930xex102amended.htm (EX-10) — 138KB
• dtil-20250930xex105stanley.htm (EX-10) — 57KB
• dtil-20250930xex311.htm (EX-31) — 10KB
• dtil-20250930xex312.htm (EX-31) — 10KB
• dtil-20250930xex321.htm (EX-32) — 5KB
• dtil-20250930xex322.htm (EX-32) — 5KB
• 0001628280-25-047919.txt ( ) — 7349KB
• dtil-20250930.xsd (EX-101.SCH) — 44KB
• dtil-20250930_cal.xml (EX-101.CAL) — 72KB
• dtil-20250930_def.xml (EX-101.DEF) — 159KB
• dtil-20250930_lab.xml (EX-101.LAB) — 624KB
• dtil-20250930_pre.xml (EX-101.PRE) — 395KB
• dtil-20250930_htm.xml (XML) — 735KB

Forward-Looking Statements

Forward-Looking Statements 3 Risk Factor Summary 5 PART I. FINANCIAL INFORMATION 7 Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 7 Condensed Balance Sheets 7 Condensed Statements of Operations 8 Condensed Statements of Changes in Stockholders' Equity 9 Condensed Statements of Cash Flows 10 Notes to Condensed Financial Statements 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 36 Item 4.

Controls and Procedures

Controls and Procedures 36 PART II. OTHER INFORMATION 37 Item 1.

Legal Proceedings

Legal Proceedings 37 Item 1A.

Risk Factors

Risk Factors 37 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 90 Item 3. Defaults Upon Senior Securities 90 Item 4. Mine Safety Disclosures 90 Item 5. Other Information 90 Item 6. Exhibits 92

Signatures

Signatures 94 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of present and historical facts contained in this Quarterly Report on Form 10-Q, including, without limitation, statements regarding our future results of operations and financial position, business strategy and approach, including related results, prospective products, use and development of licensed products, planned preclinical studies and clinical trials, or discontinuance thereof, the status and results of our preclinical studies, expected release of interim data, expectations regarding the use and effects of ARCUS, including in connection with in vivo genome editing, collaborations and potential new partnerships or alternative opportunities for our product candidates, potential new application filings and regulatory approvals, research and development costs, timing, expected results and likelihood of success, as well as plans and objectives of management for future operations may be forward-looking statements. Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as "aim," "may," "will," "should," "expect," "exploring," "plan," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential," "seeks," or "continue" or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance, or achievements, and one should avoid placing und

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. PRECISION BIOSCIENCES, INC. CONDENSED BALANCE SHEETS (In thousands, except share and per share amounts) (unaudited) September 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 44,870 $ 85,899 Accounts receivable 4 229 Marketable securities — 413 Prepaid expenses 5,857 6,441 Assets held for sale 126 169 Contract asset — 1,469 Other current assets 848 369 Total current assets 51,705 94,989 Restricted cash 26,342 22,569 Property, equipment, and software—net 2,026 3,089 Intangible assets—net 985 622 Right-of-use assets—net 6,138 7,090 Investment in equity securities 744 3,206 Note receivable—net 5,370 4,602 Other assets 200 221 Total assets $ 93,510 $ 136,388 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 1,340 $ 1,312 Accrued compensation 3,157 5,182 Accrued research and development expenses 1,297 2,016 Deferred revenue 6,248 2,957 Lease liabilities 1,458 1,320 Other current liabilities 611 989 Current liabilities of discontinued operations 885 1,204 Total current liabilities 14,996 14,980 Loan payable 22,374 22,321 Deferred revenue 19,957 23,300 Lease liabilities 5,296 6,404 Warrant liability 4,026 2,796 Contract liabilities 10,000 10,000 Other noncurrent liabilities 227 194 Total liabilities 76,876 79,995 Stockholders' equity: Preferred stock: $ 0.0001 par value— 10,000,000 shares authorized as of September 30, 2025 and December 31, 2024; no shares issued and outstanding as of September 30, 2025 and December 31, 2024 — — Common stock: $ 0.000005 par value— 200,000,000 shares authorized as of September 30, 2025 and December 31, 2024; 12,109,680 shares issued and 12,082,665 shares outstanding as of September 30, 2025; 8,229,730 shares issued and 8,202,715 shares outstanding as of December 31, 2024 1 1 Additional paid-in capital 565,906 539,808 Accumulated deficit ( 548,321 ) ( 482,464 ) Treasury stock ( 952 ) ( 952 ) Total stockhold

View Full Filing

View this 10-Q filing on SEC EDGAR