Applied Therapeutics Reports $1 Million Revenue in Q3 2025, Sees Significant Losses and Funding Concerns

Applied Therapeutics Inc. reported its financial results for the third quarter of 2025, revealing a total revenue of $1 million, a significant increase from $122,000 in the same period last year. This growth was primarily driven by a new license agreement with Biossil, which contributed $1 million in license revenue. However, the company experienced a decline in research and development services revenue, which fell to zero from $122,000 in the prior year, reflecting a decrease in deferred revenue recognized from the Advanz Agreement.

The company's total expenses for the quarter were $17.8 million, down from $29.9 million in the previous year. This reduction was largely attributed to a decrease in research and development expenses, which fell to $9.6 million from $14.8 million, primarily due to lower costs associated with the development of its lead product candidates, AT-007 and AT-001. General and administrative expenses also decreased to $8.2 million from $15 million, influenced by a significant litigation settlement of $15.4 million related to a securities class action lawsuit, which was partially offset by anticipated insurance recoveries of $16.7 million.

For the nine months ending September 30, 2025, Applied Therapeutics reported a net loss of $62.1 million, a notable improvement compared to a net loss of $149.6 million for the same period in 2024. The accumulated deficit as of September 30, 2025, stood at $636.4 million. The company’s cash and cash equivalents were reported at $11.9 million, a decrease from $79.4 million at the end of 2024, raising concerns about its ability to continue operations without additional funding.

In terms of operational developments, Applied Therapeutics is actively pursuing regulatory pathways for its product candidates, particularly AT-007, which has received orphan drug designation from the FDA for the treatment of Classic Galactosemia and SORD deficiency. The company is also working to address issues raised in a Complete Response Letter from the FDA regarding its New Drug Application for AT-007. Additionally, the company has entered into a new licensing agreement with Biossil for AT-001, which is expected to provide further financial support through milestone payments and royalties.

Looking ahead, Applied Therapeutics anticipates continued operating losses as it advances its clinical development programs. The company is exploring various financing options, including equity capital and potential collaborations, to secure the necessary funds for its ongoing operations and product development. However, management has expressed substantial doubt regarding its ability to continue as a going concern within the next twelve months, emphasizing the need for additional capital to support its business objectives.