Nkarta Reports Q2 2025 Financial Results with Reduced Net Loss and Increased Cash Reserves

Nkarta, Inc. reported its financial results for the second quarter of 2025, revealing a net loss of $22.98 million, a decrease from a net loss of $24.99 million in the same period last year. For the first half of 2025, the company recorded a net loss of $54.96 million, slightly higher than the $54.51 million loss reported in the first half of 2024. The company’s total operating expenses for the second quarter were $27.19 million, down from $30.72 million in the prior year, primarily due to reduced research and development costs following a workforce reduction in March 2025.

In terms of revenue, Nkarta continues to operate without any product sales, reflecting its ongoing status as a clinical-stage biopharmaceutical company focused on developing engineered natural killer (NK) cell therapies. The company’s accumulated deficit has increased to $599.18 million as of June 30, 2025, compared to $544.22 million at the end of 2024. Cash and cash equivalents, along with short-term investments, totaled $296.57 million, up from $273.34 million at the end of the previous fiscal year, indicating a stronger liquidity position.

Strategically, Nkarta has made significant adjustments to its operations, including a reduction in workforce that eliminated approximately 34% of its staff to streamline operations and reduce costs. The company has also expanded its clinical trial indications, adding primary membranous nephropathy to its Ntrust-1 trial for lupus nephritis and modifying lymphodepleting conditioning protocols for its NKX019 product candidate. These changes are aimed at enhancing the clinical development of its therapies targeting autoimmune diseases.

Operationally, Nkarta's research and development expenses decreased to $20.78 million in the second quarter of 2025 from $23.13 million in the same quarter of 2024. The company reported a decrease in personnel costs due to the workforce reduction, which was partially offset by increased clinical spending related to NKX019. General and administrative expenses also fell to $6.41 million from $7.59 million year-over-year, although they increased for the first half of the year due to severance costs associated with the workforce reduction.

Looking ahead, Nkarta anticipates continued net losses as it invests heavily in research and development to advance its product pipeline. The company plans to raise additional capital through equity or debt financing to support its operations and clinical trials. Management believes that its current cash reserves will be sufficient to meet its operational needs for at least the next twelve months, but acknowledges the uncertainty surrounding future funding requirements and the potential need for further cost containment measures.