Corvus Pharmaceuticals Reports $15.2 Million Net Income in Q1 2025, Driven by Warrant Liabilities Gain

Corvus Pharmaceuticals, Inc. reported a net income of $15.2 million for the first quarter of 2025, a significant turnaround from a net loss of $5.7 million in the same period of 2024. This positive shift was primarily driven by a $25.1 million gain from the change in fair value of warrant liabilities, which contrasted with the previous year's results where no such gain was recorded. Total operating expenses for the quarter increased to $9.9 million, up from $6.3 million year-over-year, reflecting higher research and development costs associated with ongoing clinical trials.

The company's financial position showed a decrease in total assets, which fell to $59.4 million as of March 31, 2025, down from $68.9 million at the end of 2024. Current assets also declined, primarily due to a reduction in cash and cash equivalents, which decreased from $8.7 million to $5.0 million. However, total stockholders' equity increased to $49.3 million, compared to $32.6 million at the end of the previous fiscal year, indicating a strengthening balance sheet despite the overall asset decline.

Operationally, Corvus is advancing its lead product candidate, soquelitinib, which is currently in a Phase 3 clinical trial for relapsed peripheral T cell lymphoma (PTCL) and a Phase 1 trial for atopic dermatitis. The company has also initiated a Phase 1b/2 trial for soquelitinib in solid tumors. The increase in research and development expenses, which rose to $7.5 million from $4.1 million, reflects the company's commitment to these clinical programs. As of March 31, 2025, Corvus had approximately 72.1 million shares outstanding, a notable increase from 49.0 million shares a year earlier, primarily due to stock options exercised.

Looking ahead, Corvus anticipates continued operating losses as it invests heavily in the development of its product candidates. The company reported an accumulated deficit of $381.8 million as of March 31, 2025, and management expects to require additional capital to fund ongoing operations and clinical trials. The company has approximately $44.2 million in cash, cash equivalents, and marketable securities, which it believes will be sufficient to support operations for at least the next 12 months. However, the need for further financing remains critical, as the company has not yet generated revenue from product sales and relies on equity offerings and potential collaborations to fund its activities.