Arcturus Therapeutics Reports 43% Revenue Decline in Q2 2025

Arcturus Therapeutics Holdings Inc. reported a significant decline in financial performance for the second quarter of 2025, with total revenue of $28.3 million, down 43% from $49.9 million in the same period last year. The decrease was primarily attributed to reduced collaboration revenue from its partnership with CSL Seqirus, which fell from $46.0 million to $24.5 million year-over-year. For the first half of 2025, total revenue was $57.7 million, a 34% decrease compared to $87.9 million in the first half of 2024. The company also reported a net loss of $9.2 million for the quarter, an improvement from a net loss of $17.2 million in the prior year, and a cumulative net loss of $23.3 million for the first half of 2025, compared to $44.0 million in the same period of 2024.

Operating expenses also saw a notable reduction, totaling $39.9 million for the second quarter, down 44% from $71.0 million in the previous year. Research and development expenses were particularly impacted, decreasing by 50% to $29.6 million, primarily due to lower manufacturing costs associated with the LUNAR-COVID and LUNAR-OTC programs. General and administrative expenses also fell by 16% to $10.3 million, reflecting reduced share-based compensation and payroll costs. The company’s cash and cash equivalents, including restricted cash, stood at $253.4 million as of June 30, 2025, down from $317.2 million a year earlier.

Strategically, Arcturus has made significant advancements in its collaboration with CSL Seqirus, particularly with the KOSTAIVE® vaccine, which received marketing authorization in Japan in 2023 and began commercial sales in October 2024. The company is also pursuing regulatory approvals in Europe and the UK, with the European Commission granting marketing authorization for KOSTAIVE in February 2025. The collaboration agreement with CSL Seqirus includes potential milestone payments exceeding $1.3 billion, contingent on the successful registration of products, and up to $3.0 billion in commercial milestones based on net sales.

Operationally, Arcturus is focused on advancing its clinical pipeline, which includes candidates for rare diseases such as ornithine transcarbamylase (OTC) deficiency and cystic fibrosis (CF). The company has reported positive interim data from Phase 2 studies for its ARCT-810 and ARCT-032 candidates, indicating progress in its therapeutic development. As of June 30, 2025, the company had 27,148 shares outstanding, reflecting a slight increase from the previous quarter, and continues to evaluate its operational strategies to enhance efficiency and reduce costs.

Looking ahead, Arcturus anticipates continued losses as it invests in the development of its product candidates and seeks regulatory approvals. The company plans to leverage its existing cash reserves and potential future payments from collaborations to fund ongoing operations. However, it acknowledges the need for additional capital to support its long-term objectives, which may involve raising funds through equity or debt financing, or entering into new partnerships. The company remains committed to addressing its material weaknesses in internal controls over financial reporting and expects to complete remediation efforts by the end of fiscal year 2025.