Sangamo's Q2 Loss Widens to $75.2M Amid Revenue Decline

TL;DR

Sangamo's Q2 results are a red flag, with widening losses and shrinking revenue indicating a tough road ahead for this gene therapy player.

AI Summary

Sangamo Therapeutics, Inc. reported a net loss of $75.2 million for the three months ended June 30, 2025, a significant increase from the $60.5 million net loss in the same period of 2024. Revenue for the second quarter of 2025 was $15.8 million, down from $22.1 million in Q2 2024, representing a 28.5% decrease. For the six months ended June 30, 2025, the net loss widened to $148.1 million compared to $120.3 million in the prior year. Total revenue for the first six months of 2025 was $30.1 million, a decrease from $45.6 million in the first six months of 2024. The company's cash and cash equivalents decreased to $150.3 million as of June 30, 2025, from $200.5 million at December 31, 2024. Strategic outlook remains focused on advancing its gene therapy pipeline, but the financial results indicate ongoing challenges in revenue generation and profitability. The company issued common stock through an At-The-Market offering, raising $10.5 million in the second quarter of 2025 and $20.1 million year-to-date, impacting additional paid-in capital.

Why It Matters

Sangamo's widening net loss and declining revenue signal significant headwinds for investors in the highly competitive gene therapy space. The company's reliance on 'At-The-Market' offerings to raise capital, totaling $20.1 million year-to-date, suggests ongoing cash burn and potential dilution for existing shareholders. For employees, continued financial pressure could lead to restructuring or R&D reprioritization. Customers and the broader market will be watching for progress in Sangamo's clinical pipeline, as sustained losses could impact its ability to bring new therapies to market, potentially ceding ground to competitors like CRISPR Therapeutics or Editas Medicine.

Risk Assessment

Risk Level: high — The risk level is high due to a significant net loss of $75.2 million in Q2 2025, a 24.3% increase from Q2 2024, coupled with a 28.5% decrease in revenue to $15.8 million. The company's cash and cash equivalents also decreased by over $50 million in six months, from $200.5 million at December 31, 2024, to $150.3 million at June 30, 2025, indicating a substantial cash burn rate.

Analyst Insight

Investors should exercise extreme caution and consider reducing exposure to SGMO given the accelerating losses and declining revenue. Monitor future filings closely for any signs of improved cash flow or significant pipeline advancements that could offset the current financial trajectory.

Financial Highlights

revenue

$15.8M

net Income

-$75.2M

cash Position

$150.3M

revenue Growth

-28.5%

Key Numbers

• $75.2M — Q2 2025 Net Loss (Increased from $60.5M in Q2 2024, indicating widening losses.)
• $15.8M — Q2 2025 Revenue (Decreased 28.5% from $22.1M in Q2 2024, showing revenue decline.)
• $148.1M — YTD 2025 Net Loss (Widened from $120.3M in YTD 2024, reflecting sustained unprofitability.)
• $30.1M — YTD 2025 Revenue (Decreased from $45.6M in YTD 2024, highlighting a significant revenue drop.)
• $150.3M — Cash & Equivalents (As of June 30, 2025, down from $200.5M at Dec 31, 2024, indicating cash burn.)
• $20.1M — Capital Raised YTD (Through At-The-Market offering, showing reliance on equity financing.)
• 24.3% — Increase in Q2 Net Loss (Percentage increase from Q2 2024 to Q2 2025.)
• 28.5% — Decrease in Q2 Revenue (Percentage decrease from Q2 2024 to Q2 2025.)

Key Players & Entities

• SANGAMO THERAPEUTICS, INC (company) — filer of the 10-Q
• $75.2 million (dollar_amount) — net loss for Q2 2025
• $60.5 million (dollar_amount) — net loss for Q2 2024
• $15.8 million (dollar_amount) — revenue for Q2 2025
• $22.1 million (dollar_amount) — revenue for Q2 2024
• $148.1 million (dollar_amount) — net loss for the six months ended June 30, 2025
• $120.3 million (dollar_amount) — net loss for the six months ended June 30, 2024
• $30.1 million (dollar_amount) — total revenue for the six months ended June 30, 2025
• $45.6 million (dollar_amount) — total revenue for the six months ended June 30, 2024
• $150.3 million (dollar_amount) — cash and cash equivalents as of June 30, 2025

FAQ

Risk Factors

• Increasing Net Losses and Cash Burn [high — financial]: The company reported a net loss of $75.2 million for Q2 2025, an increase from $60.5 million in Q2 2024. Year-to-date net loss widened to $148.1 million from $120.3 million. This trend indicates significant ongoing operational costs and a substantial cash burn, with cash and cash equivalents decreasing from $200.5 million at the end of 2024 to $150.3 million as of June 30, 2025.
• Declining Revenue Streams [high — financial]: Total revenue for Q2 2025 was $15.8 million, a 28.5% decrease from $22.1 million in Q2 2024. For the first six months of 2025, revenue was $30.1 million, down from $45.6 million in the same period of 2024. This consistent decline in revenue generation poses a significant risk to the company's ability to fund its operations and development pipeline.
• Reliance on Equity Financing [medium — financial]: Sangamo Therapeutics raised $10.5 million in Q2 2025 and $20.1 million year-to-date through an At-The-Market (ATM) offering. This reliance on equity financing, especially during periods of declining revenue and increasing losses, can dilute existing shareholder value and indicates a need for external capital to sustain operations.
• Pipeline Development and Clinical Trial Risks [high — operational]: The company's strategic outlook is focused on advancing its gene therapy pipeline. However, gene therapy development is inherently complex, costly, and subject to significant scientific, regulatory, and clinical trial risks. Delays, failures, or unexpected results in clinical trials can lead to substantial financial write-offs and impact future revenue potential.
• Evolving Gene Therapy Regulatory Landscape [medium — regulatory]: The regulatory environment for gene therapies is still evolving. Changes in FDA or other global regulatory body requirements, approval processes, or post-market surveillance can impact the timeline and cost of bringing products to market, as well as their commercial viability.

Industry Context

Sangamo Therapeutics operates in the highly competitive and rapidly evolving biotechnology sector, specifically focusing on gene therapies. This industry is characterized by significant R&D investment, long development cycles, and substantial regulatory hurdles. Key trends include advancements in gene editing technologies, increasing focus on rare diseases, and a growing number of partnerships between biotech firms and larger pharmaceutical companies.

Regulatory Implications

The gene therapy field is subject to stringent and evolving regulatory oversight from bodies like the FDA. Compliance with Good Manufacturing Practices (GMP), rigorous clinical trial protocols, and post-market surveillance are critical. Any shifts in regulatory guidance or approval pathways could significantly impact Sangamo's product development timelines and market access.

What Investors Should Do

1. Monitor cash burn rate and runway.
2. Evaluate progress in pipeline development.
3. Assess the sustainability of revenue generation.
4. Analyze the impact of equity financing.

Key Dates

• 2025-06-30: End of Second Quarter 2025 — Reporting period for the 10-Q, showing increased net loss and decreased revenue compared to the prior year.
• 2025-08-07: Filing Date of 10-Q — Indicates the official release of the company's financial and operational status for the period ending June 30, 2025.
• 2025-04-01: Start of Second Quarter 2025 — Beginning of the period where $10.5 million was raised through an At-The-Market offering.
• 2024-06-30: End of Second Quarter 2024 — Comparison period for Q2 2025 results, highlighting a $60.5 million net loss and $22.1 million in revenue.
• 2024-12-31: End of Fiscal Year 2024 — Reference point for cash and cash equivalents, which stood at $200.5 million prior to the decrease observed in H1 2025.

Glossary

At-The-Market (ATM) offering

A type of public offering where a company sells its stock directly to the public over a period of time at prevailing market prices. (Sangamo Therapeutics utilized this to raise $10.5 million in Q2 2025 and $20.1 million year-to-date, indicating a method for ongoing capital infusion.)

Net Loss

The total expenses of a company exceed its total revenues over a specific period, resulting in a negative profit. (Sangamo reported a net loss of $75.2 million for Q2 2025, highlighting the company's current unprofitability.)

Cash and Cash Equivalents

Highly liquid short-term investments that can be readily converted into cash. (The decrease to $150.3 million from $200.5 million indicates a significant outflow of cash, likely due to operating expenses and R&D.)

Gene Therapy

A medical approach that uses genes to treat or prevent disease, often by introducing genetic material into cells. (This is the core focus of Sangamo Therapeutics' pipeline and strategic development efforts.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Sangamo Therapeutics has experienced a significant downturn. Revenue for the second quarter of 2025 fell by 28.5% to $15.8 million from $22.1 million in Q2 2024, and year-to-date revenue decreased from $45.6 million to $30.1 million. Concurrently, net losses have widened, with Q2 2025 reporting a loss of $75.2 million, up from $60.5 million in Q2 2024, and year-to-date losses increasing from $120.3 million to $148.1 million. The company's cash position has also diminished, reflecting an increased cash burn.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share SGMO Nasdaq Capital Market

Filing Documents

• sgmo-20250630.htm (10-Q) — 997KB
• sgmo-20250630xex311.htm (EX-31.1) — 10KB
• sgmo-20250630xex312.htm (EX-31.2) — 10KB
• sgmo-20250630xex321.htm (EX-32.1) — 7KB
• 0001628280-25-038860.txt ( ) — 5442KB
• sgmo-20250630.xsd (EX-101.SCH) — 42KB
• sgmo-20250630_cal.xml (EX-101.CAL) — 54KB
• sgmo-20250630_def.xml (EX-101.DEF) — 187KB
• sgmo-20250630_lab.xml (EX-101.LAB) — 513KB
• sgmo-20250630_pre.xml (EX-101.PRE) — 364KB
• sgmo-20250630_htm.xml (XML) — 641KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 6 Condensed Consolidated Balance Sheets at June 30 , 2025 and December 31, 2024 6 Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30 , 2025 and 2024 7 Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended June 30 , 2025 and 2024 8 Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 30 , 2025 and 2024 9 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30 , 2025 and 2024 11 Notes to Condensed Consolidated Financial Statements 12 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 28 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 37 Item 4.

Controls and Procedures

Controls and Procedures 37

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 39 Item 1A .

Risk Factors

Risk Factors 39 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 42 Item 3. Defaults Upon Senior Securities 42 Item 4. Mine Safety Disclosures 42 Item 5. Other Information 42 Item 6. Exhibits 43

SIGNATURES

SIGNATURES 44 Unless otherwise indicated or the context suggests otherwise, references in this Quarterly Report on Form 10-Q, or Quarterly Report, to "Sangamo," "the Company," "we," "us," and "our" refer to Sangamo Therapeutics, Inc. and our subsidiaries. Any third-party trade names, trademarks and service marks appearing in this Quarterly Report are the property of their respective holders. Solely for convenience, trademarks and trade names referred to in this Quarterly Report may appear without the or TM symbols, but such references are not intended to indicate in any way that the Company will not assert, to the fullest extent under applicable law, its rights or the rights of the applicable licensor to these trademarks and trade names. The Company does not intend its use or display of other entities' trade names, trademarks or service marks to imply a relationship with, or endorsement or sponsorship of the Company by, any other entity. 2 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS Some statements contained in this report are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. These statements relate to our future events, including our anticipated operations, research, development, manufacturing and commercialization activities, clinical trials, operating results and financial condition. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Forward-looking statements may include, but are not limited to, statements about: our estimates regarding the sufficiency of our cash resources and our expenses, capital requirements and need

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS SANGAMO THERAPEUTICS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited; in thousands) June 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 38,344 $ 41,918 Accounts receivable 372 526 Refundable research income tax credits 4,604 4,072 Prepaid expenses and other current assets 6,573 5,175 Total current assets 49,893 51,691 Property and equipment, net 15,733 17,887 Operating lease right-of-use assets 15,061 16,869 Refundable research income tax credits, non-current 14,481 12,809 Other non-current assets 890 879 Restricted cash 1,500 1,500 Total assets $ 97,558 $ 101,635 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 10,740 $ 15,485 Accrued compensation and employee benefits 15,425 14,569 Other accrued liabilities 13,938 8,195 Deferred revenues 7,556 7,556 Total current liabilities 47,659 45,805 Deferred revenues, non-current 5,874 5,874 Long-term portion of lease liabilities 23,461 26,253 Other non-current liabilities 962 933 Total liabilities 77,956 78,865 Commitments and contingencies Stockholders' equity: Preferred stock — — Common stock 2,728 2,128 Additional paid-in capital 1,573,233 1,532,489 Accumulated deficit ( 1,554,900 ) ( 1,504,317 ) Accumulated other comprehensive loss ( 1,459 ) ( 7,530 ) Total stockholders' equity 19,602 22,770 Total liabilities and stockholders' equity $ 97,558 $ 101,635 See accompanying Notes to Condensed Consolidated Financial Statements. 6 Table of Contents SANGAMO THERAPEUTICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited; in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues $ 18,306 $ 356 $ 24,743 $ 837 Operating expenses: Research and development 27,084 24,223 53,090 60,114 General and administrative 9,077 12,045 19,136 23,812 Impairment of long-lived assets — 1,172 — 5,521 Total operating

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