Arcturus Therapeutics Reports 59% Revenue Decline and Increased Net Loss in Q3 2025

Arcturus Therapeutics Holdings Inc. reported a significant decline in financial performance for the third quarter of 2025, with total revenue of $17.2 million, a decrease of 59% compared to $41.7 million in the same period last year. The drop in revenue was primarily attributed to reduced collaboration revenue from its partnership with CSL Seqirus, which saw a decline in supply agreements and amortization of deferred revenue as the company transitions its COVID-19 vaccine, KOSTAIVE, from development to commercial sales. For the nine months ending September 30, 2025, total revenue was $74.8 million, down 42% from $129.5 million in the prior year.

Operating expenses also decreased, totaling $33.7 million for the third quarter, down 36% from $52.4 million in the same quarter of 2024. This reduction was driven by lower research and development costs, which fell to $23.3 million from $39.1 million year-over-year, reflecting decreased manufacturing and clinical trial expenses associated with the LUNAR-COVID and LUNAR-CF programs. General and administrative expenses also declined to $10.4 million from $13.3 million, primarily due to reduced share-based compensation and payroll costs.

The company reported a net loss of $13.4 million for the third quarter, compared to a loss of $6.9 million in the same period last year. For the nine months ended September 30, 2025, the net loss was $36.7 million, down from $50.9 million in the previous year. The increase in net loss was attributed to the significant drop in revenue, despite the reduction in operating expenses. The loss per share for the third quarter was $0.49, compared to $0.26 in the prior year.

In terms of operational developments, Arcturus continues to advance its collaboration with CSL Seqirus, which includes the commercialization of KOSTAIVE, the world’s first approved self-amplifying mRNA vaccine. The vaccine received marketing authorization in Japan in 2023 and began sales in October 2024. The company is also working on additional vaccine candidates, including ARCT-2138 for seasonal influenza and ARCT-2304 for H5N1 avian influenza, both of which are in various stages of clinical trials. As of September 30, 2025, Arcturus had cash and cash equivalents of $180.4 million, down from $237.0 million at the end of 2024, indicating a need for continued funding to support ongoing operations and development activities.

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 its operations. However, it acknowledges the uncertainty surrounding future financing and the need to achieve milestones under its collaboration agreements to ensure financial stability. The company is committed to addressing its operational challenges and enhancing its financial controls to support its long-term growth objectives.