Edgewise Therapeutics (EWTX) Financials

Edgewise Therapeutics (NASDAQ: EWTX) Financial Summary and Trends:

Edgewise Therapeutics is a biotech company that reported no revenue across the last several years, reflecting its status as a development stage company without commercial products. The financials for the last four years show consistent operating losses driven by substantial research and development (R&D) and selling, general & administrative (SG&A) expenses. Here’s a detailed look at the key trends from Q3 2022 through Q1 2025:

• Edgewise maintains a strong cash and investment position, with combined cash, equivalents, and short-term investments exceeding $400 million as of Q1 2025, providing a solid runway for ongoing R&D efforts.
• Interest & investment income has steadily increased, reaching over $5 million in Q1 2025, contributing a minor positive cushion to losses from operations.
• The company has successfully raised capital through common equity issuances regularly since 2022, bolstering its balance sheet with equity over $420 million as of Q1 2025.
• Operating expenses continue to rise, with R&D expense growing from approximately $13.9 million (Q3 2022) to nearly $37 million in Q1 2025, reflecting increased investment in clinical development and pipelines.
• SG&A expenses show a gradual increase, indicating growing operational footprints as the company progresses its development programs.
• The company reported substantial and consistent net losses each quarter (e.g., -$40.8 million in Q1 2025) driven by high R&D and operating expenses without offsetting revenue.
• Operating cash flow remains negative each quarter, with -$37.8 million in Q1 2025, indicating ongoing cash burn for R&D and operations.
• Although the company maintains large cash reserves, net cash flows from investing activities fluctuate greatly due to large purchases and sales of investments, which could imply liquidity management challenges.
• The increase in weighted average diluted shares (from ~51.8M in Q3 2022 to over 105M in Q1 2025) suggests dilution, which may impact existing shareholders.

Summary: Edgewise Therapeutics remains in the clinical development stage, with no product revenues to date, resulting in ongoing quarterly losses driven by rising R&D and SG&A expenses. The company’s strong cash and investment position and ability to raise capital through equity allow it to sustain operations in the near term. However, continued substantial losses and shareholder dilution are notable risks. Investors should watch for clinical progress and any potential revenue generation turning points in the coming quarters.