Sangamo's Revenue Plunges 98% Amid Mounting Losses, Going Concern Doubts

TL;DR

**SGMO is bleeding cash and facing delisting; get out now before it's too late.**

AI Summary

SANGAMO THERAPEUTICS, INC. (SGMO) reported a significant decline in revenue and a substantial net loss for the three and nine months ended September 30, 2025. Revenue plummeted to $581 thousand for the three months ended September 30, 2025, a drastic 98.8% decrease from $49.412 million in the same period of 2024. The net loss for the three months ended September 30, 2025, was $34.930 million, a sharp reversal from a net income of $10.672 million in the prior year. For the nine months ended September 30, 2025, the net loss widened to $85.513 million, compared to a net loss of $74.545 million in 2024. The company's cash and cash equivalents decreased to $29.616 million as of September 30, 2025, from $41.918 million at December 31, 2024, indicating a deteriorating liquidity position. Operating expenses saw a slight decrease, with research and development at $28.142 million for the three months, down from $27.732 million in 2024, and general and administrative expenses at $7.992 million, down from $11.049 million. A critical risk highlighted is the substantial doubt about the company's ability to continue as a going concern, necessitating significant additional funding and potential collaboration partners for its Fabry disease program.

Why It Matters

This filing reveals a dire financial situation for Sangamo, with a near-total collapse in revenue and widening losses, casting significant doubt on its ability to continue operations. For investors, this signals extreme risk and potential for substantial dilution or even total loss of investment if new funding or partnerships for programs like Fabry disease are not secured. Employees face job insecurity as the company may need to implement further cost reduction measures. Customers and the broader market, particularly in the competitive biotechnology and genomic medicine sectors, will see Sangamo's ability to advance its early-stage neurology programs severely hampered, potentially impacting future therapeutic options and ceding ground to rivals.

Risk Assessment

Risk Level: high — The company explicitly states, "There is substantial doubt about our ability to continue to operate as a going concern." This is evidenced by a significant net loss of $85.513 million for the nine months ended September 30, 2025, and a cash and cash equivalents balance of only $29.616 million, down from $41.918 million at December 31, 2024. The inability to secure a commercialization partner for its Fabry disease program further exacerbates this liquidity crisis.

Analyst Insight

Investors should consider divesting their shares due to the explicit 'going concern' warning, severe revenue decline, and substantial net losses. The company's reliance on securing new collaborations for its Fabry disease program and other assets, with no guarantee of success, presents an unacceptably high risk profile. Monitor for any definitive news on new funding or major partnerships, but assume continued downward pressure.

Financial Highlights

debt To Equity

13.2

revenue

$581 thousand

operating Margin

-6151.6%

total Assets

$88,643 thousand

total Debt

N/A

net Income

$(34,930) thousand

eps

$(0.11)

gross Margin

N/A

cash Position

$29,616 thousand

revenue Growth

-98.8%

Key Numbers

• $581 — Revenue (in thousands) (for the three months ended September 30, 2025, a 98.8% decrease from 2024)
• $49,412 — Revenue (in thousands) (for the three months ended September 30, 2024)
• $(34,930) — Net loss (in thousands) (for the three months ended September 30, 2025, compared to net income of $10,672 thousand in 2024)
• $(85,513) — Net loss (in thousands) (for the nine months ended September 30, 2025, widened from $(74,545) thousand in 2024)
• $29,616 — Cash and cash equivalents (in thousands) (as of September 30, 2025, down from $41,918 thousand at December 31, 2024)
• 336,494,489 — Shares outstanding (as of November 4, 2025)
• $(0.11) — Basic net loss per share (for the three months ended September 30, 2025)
• $(0.33) — Basic net loss per share (for the nine months ended September 30, 2025)

Key Players & Entities

• SANGAMO THERAPEUTICS, INC. (company) — registrant
• SGMO (company) — ticker symbol
• Nasdaq Capital Market (regulator) — exchange where common stock is listed
• U.S. Food and Drug Administration (regulator) — regulatory authority for product candidates
• Genentech, Inc. (company) — license agreement partner
• Astellas Gene Therapies, Inc. (company) — license agreement partner
• Eli Lilly and Company (company) — license agreement partner
• Fabry disease program (company) — key development program seeking commercialization partner

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company has a substantial doubt about its ability to continue as a going concern. This is primarily due to significant revenue declines and substantial net losses, necessitating significant additional funding. The company's cash and cash equivalents decreased to $29.616 million as of September 30, 2025, from $41.918 million at December 31, 2024.
• Revenue Collapse [high — financial]: Revenue for the three months ended September 30, 2025, was $581 thousand, a drastic 98.8% decrease from $49.412 million in the same period of 2024. This sharp decline indicates a severe operational or market challenge impacting the company's ability to generate income.
• Widening Net Loss [high — financial]: The net loss for the nine months ended September 30, 2025, widened to $85.513 million, compared to a net loss of $74.545 million in the prior year. The three-month period also saw a reversal from net income to a loss of $34.930 million.
• Dependence on Key Programs [high — operational]: The company's Fabry disease program is highlighted as critical, requiring significant additional funding and potential collaboration partners. The success and progression of this program are vital for future revenue generation and operational viability.
• Clinical Trial and Regulatory Approval Risks [medium — regulatory]: As a biotechnology company, Sangamo Therapeutics is subject to extensive regulatory oversight for its drug development programs. Delays or failures in clinical trials, or inability to secure regulatory approvals from bodies like the FDA, could significantly impact the company's financial health and future prospects.
• Competition in Gene Therapy [medium — market]: The gene therapy and gene editing market is highly competitive, with numerous companies vying for market share and scientific advancements. Intense competition could affect pricing, market access, and the ability to attract and retain talent.

Industry Context

Sangamo Therapeutics operates in the highly competitive and rapidly evolving gene therapy and gene editing sector. This industry is characterized by significant R&D investment, long development cycles, and stringent regulatory hurdles. Companies in this space often rely on strategic partnerships and substantial funding to advance their pipelines through clinical trials and towards commercialization.

Regulatory Implications

As a biotechnology firm, Sangamo Therapeutics is subject to rigorous oversight from regulatory bodies like the FDA. Any setbacks in clinical trials, manufacturing, or failure to meet evolving regulatory standards for gene therapies can lead to significant delays, increased costs, and potential program termination, directly impacting financial performance.

What Investors Should Do

1. Monitor cash burn rate and future funding rounds.
2. Evaluate progress and partnership developments for the Fabry disease program.
3. Assess the sustainability of the current operating expense structure.

Key Dates

• 2025-09-30: End of Q3 2025 — Reported significant revenue decline of 98.8% and a net loss of $34.930 million for the quarter, with cash reserves falling to $29.616 million.
• 2025-12-31: End of Fiscal Year 2024 — Company had $41.918 million in cash and cash equivalents, indicating a substantial decrease in liquidity by Q3 2025.

Glossary

Going Concern

An assumption that a company will continue to operate for the foreseeable future, typically at least the next 12 months. If there is substantial doubt about this, it must be disclosed. (The company explicitly states there is substantial doubt about its ability to continue as a going concern, highlighting a critical financial risk.)

Accumulated Deficit

The total cumulative net losses of a company since its inception, less any cumulative net income. It represents a negative balance in retained earnings. (Sangamo Therapeutics has a large accumulated deficit of $(1,589,830) thousand as of September 30, 2025, reflecting its history of net losses.)

Operating Lease Right-of-Use Assets

Assets recognized under accounting standards for leases, representing the right to use an asset for the lease term. (These assets, along with corresponding liabilities, are part of the company's long-term obligations and impact its balance sheet.)

Refundable Research Income Tax Credits

Tax credits that can be refunded to the company if they exceed the company's tax liability, often related to research and development activities. (These represent a form of potential future cash inflow or reduction in tax expense for the company.)

Year-Over-Year Comparison

Sangamo Therapeutics has experienced a dramatic downturn in financial performance compared to the prior year. Revenue for the three months ended September 30, 2025, has plummeted by 98.8% to $581 thousand from $49.412 million in 2024. This has led to a significant swing from a net income of $10.672 million to a net loss of $34.930 million in the same period. The company's cash position has also deteriorated, decreasing from $41.918 million at the end of 2024 to $29.616 million by September 30, 2025, exacerbating concerns about its going concern status.

Key Financial Figures

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

Filing Documents

• sgmo-20250930.htm (10-Q) — 1085KB
• sgmo-20250930xex101.htm (EX-10.1) — 27KB
• sgmo-20250930xex102.htm (EX-10.2) — 40KB
• sgmo-20250930xex103.htm (EX-10.3) — 41KB
• sgmo-20250930xex311.htm (EX-31.1) — 10KB
• sgmo-20250930xex312.htm (EX-31.2) — 10KB
• sgmo-20250930xex321.htm (EX-32.1) — 7KB
• 0001001233-25-000024.txt ( ) — 6208KB
• sgmo-20250930.xsd (EX-101.SCH) — 45KB
• sgmo-20250930_cal.xml (EX-101.CAL) — 59KB
• sgmo-20250930_def.xml (EX-101.DEF) — 216KB
• sgmo-20250930_lab.xml (EX-101.LAB) — 543KB
• sgmo-20250930_pre.xml (EX-101.PRE) — 400KB
• sgmo-20250930_htm.xml (XML) — 791KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 6 Condensed Consolidated Balance Sheets at September 30, 2025 and December 31, 2024 6 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 7 Condensed Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended September 30, 2025 and 2024 8 Condensed Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended September 30, 2025 and 2024 9 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 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 30 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 39 Item 4.

Controls and Procedures

Controls and Procedures 39

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 41 Item 1A .

Risk Factors

Risk Factors 41 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 44 Item 3. Defaults Upon Senior Securities 45 Item 4. Mine Safety Disclosures 45 Item 5. Other Information 45 Item 6. Exhibits 46

SIGNATURES

SIGNATURES 47 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) September 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 29,616 $ 41,918 Restricted cash 912 — Accounts receivable 523 526 Refundable research income tax credits 4,602 4,072 Prepaid expenses and other current assets 8,423 5,175 Total current assets 44,076 51,691 Property and equipment, net 14,794 17,887 Operating lease right-of-use assets 14,428 16,869 Refundable research income tax credits, non-current 14,474 12,809 Other non-current assets 871 879 Restricted cash — 1,500 Total assets $ 88,643 $ 101,635 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 15,556 $ 15,485 Accrued compensation and employee benefits 17,145 14,569 Other accrued liabilities 9,868 8,195 Deferred revenues 7,556 7,556 Total current liabilities 50,125 45,805 Deferred revenues, non-current 5,874 5,874 Long-term portion of lease liabilities 25,424 26,253 Other non-current liabilities 977 933 Total liabilities 82,400 78,865 Commitments and contingencies Stockholders' equity: Preferred stock — — Common stock 3,220 2,128 Additional paid-in capital 1,594,298 1,532,489 Accumulated deficit ( 1,589,830 ) ( 1,504,317 ) Accumulated other comprehensive loss ( 1,445 ) ( 7,530 ) Total stockholders' equity 6,243 22,770 Total liabilities and stockholders' equity $ 88,643 $ 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 September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenues $ 581 $ 49,412 $ 25,324 $ 50,249 Operating expenses: Research and development 28,142 27,732 81,232 87,846 General and administrative 7,992 11,049 27,128 34,861 Impairment of long-lived asse

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