Zymeworks (NASDAQ:ZYME) Posts Quarterly Earnings Results, Misses Estimates By $0.49 EPS

Key Points

• Q1 miss: Zymeworks reported EPS of ($0.59) versus consensus ($0.10), missing by $0.49, with revenue plunging to $2.41M (down ~91% YoY) and a widened net loss; the stock fell about 3.7% on the news.
• Zanidatamab regulatory catalysts: U.S. PDUFA is set for August 25, 2026 for first‑line HER2+ GEA and an sBLA was completed in China, creating near‑term commercialization visibility and expected partner milestone payments (~$250M U.S., ~$50M China).
• Pipeline and balance sheet: Positive Phase I signals for ZW191 and new pan‑RAS ADC candidates support continued development, while the company holds about $403.8M in cash and marketable securities, has executed ~$95.8M of a $125M buyback, and expects runway beyond 2028 assuming ~ $440M in anticipated milestones.

Zymeworks (NASDAQ:ZYME - Get Free Report) announced its quarterly earnings results on Thursday. The company reported ($0.59) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.10) by ($0.49), FiscalAI reports. The firm had revenue of $2.41 million for the quarter, compared to analysts' expectations of $24.38 million. Zymeworks had a negative return on equity of 26.00% and a negative net margin of 76.56%.The business's quarterly revenue was down 91.1% on a year-over-year basis. During the same period last year, the company posted ($0.30) earnings per share.

Here are the key takeaways from Zymeworks' conference call:

• Zanidatamab regulatory catalysts: U.S. PDUFA is set for August 25, 2026 for first‑line HER2+ GEA and an sBLA was completed in China, creating near‑term commercialization visibility and expected partner milestone payments (approximately $250M U.S., $50M China).
• Pan‑RAS ADC platform progress: AACR disclosed three new pan‑RAS ADC candidates with a proprietary payload showing tumor‑selective accumulation, durable pathway inhibition, and encouraging non‑human primate tolerability, supporting further development across RAS‑driven cancers.
• ZW191 clinical signal: Phase I data showed strong activity in heavily pretreated ovarian (ORR 56% overall; 61% at 6.4–9.6 mg/kg) and endometrial cancer (ORR 40% overall; 57% at 6.4–9.6 mg/kg) with manageable cytopenias/GI events and ongoing dose optimization.
• Financial results show volatility: revenue fell to $2.4M (Q1 2026) from $27.1M a year earlier and net loss widened to $44.2M, driven by the absence of non‑recurring 2025 milestones and declines in development support.
• Balance sheet and capital deployment: Cash and marketable securities were $403.8M at March 31, 2026, ~$95.8M of a $125M buyback executed (≈3.93M shares), and management expects runway beyond 2028 assuming anticipated milestone payments (~$440M), supporting buybacks, partnerships, or M&A optionality.

Zymeworks Stock Down 3.7%

Shares of NASDAQ ZYME traded down $1.01 during trading on Thursday, hitting $26.60. The company had a trading volume of 707,366 shares, compared to its average volume of 534,479. Zymeworks has a fifty-two week low of $10.86 and a fifty-two week high of $29.75. The stock has a fifty day simple moving average of $25.62 and a two-hundred day simple moving average of $24.06. The firm has a market capitalization of $1.96 billion, a price-to-earnings ratio of -24.63 and a beta of 1.20.

Wall Street Analysts Forecast Growth

ZYME has been the subject of a number of analyst reports. Weiss Ratings reiterated a "sell (d-)" rating on shares of Zymeworks in a research report on Monday, April 20th. Truist Financial upgraded Zymeworks to a "strong-buy" rating in a research note on Monday, April 27th. Stifel Nicolaus upped their price target on Zymeworks from $40.00 to $47.00 and gave the stock a "buy" rating in a report on Tuesday, March 3rd. HC Wainwright increased their price target on Zymeworks from $32.00 to $46.00 and gave the stock a "buy" rating in a research report on Friday, March 6th. Finally, Leerink Partners raised their price objective on Zymeworks from $52.00 to $58.00 and gave the company an "outperform" rating in a report on Tuesday, March 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $37.89.

Institutional Investors Weigh In On Zymeworks

Several large investors have recently bought and sold shares of ZYME. Rubric Capital Management LP lifted its position in shares of Zymeworks by 22.1% in the fourth quarter. Rubric Capital Management LP now owns 5,750,000 shares of the company's stock valued at $151,398,000 after acquiring an additional 1,039,449 shares in the last quarter. Vestal Point Capital LP increased its position in shares of Zymeworks by 53.5% during the third quarter. Vestal Point Capital LP now owns 1,765,000 shares of the company's stock worth $30,146,000 after purchasing an additional 615,000 shares in the last quarter. Siren L.L.C. acquired a new position in Zymeworks in the 4th quarter valued at $44,238,000. Deutsche Bank AG lifted its holdings in Zymeworks by 3.3% in the 4th quarter. Deutsche Bank AG now owns 1,595,833 shares of the company's stock valued at $42,018,000 after purchasing an additional 50,935 shares in the last quarter. Finally, Millennium Management LLC lifted its holdings in Zymeworks by 851.6% in the 3rd quarter. Millennium Management LLC now owns 1,104,813 shares of the company's stock valued at $18,870,000 after purchasing an additional 988,711 shares in the last quarter. 92.89% of the stock is currently owned by hedge funds and other institutional investors.

About Zymeworks

Zymeworks Inc is a clinical-stage biopharmaceutical company dedicated to the discovery, development and commercialization of next-generation multifunctional biotherapeutics. The company specializes in engineered antibody and protein therapeutics designed to address a range of unmet medical needs in oncology and other serious diseases. Through its proprietary platforms, Zymeworks aims to create novel bispecific and multispecific molecules that can simultaneously engage multiple targets and recruit immune effector functions to enhance potency and specificity.

At the core of Zymeworks' innovation is its Azymetric™ bispecific antibody platform, which enables the design of asymmetrical bispecific antibodies with controlled assembly and high stability.

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