Carisma Therapeutics (CARM) Q2 2025 earnings summary

Executive summary

• Operations reduced to focus on strategic alternatives and wind down, with no intention to resume R&D activities; 84% workforce reduction executed in March 2025.

• Entered into a merger agreement with OrthoCellix; post-merger, legacy shareholders expected to own 10% of the combined company.

• Nasdaq compliance issues persist; reverse stock split approved to help maintain listing, but continued listing is uncertain.

• Collaboration with Moderna concluded for R&D funding; future revenue depends on milestones and royalties.

Financial highlights

• Net loss of $9.8M for Q2 2025, improved from $11.2M in Q2 2024; six-month net loss of $19.0M, down from $30.1M year-over-year.

• Q2 2025 collaboration revenue was $0, down from $9.2M in Q2 2024; six-month revenue was $3.7M, down from $12.6M year-over-year.

• Cash and cash equivalents at June 30, 2025 were $2.0M, with an accumulated deficit of $324.6M.

• Research and development expenses dropped to $2.4M in Q2 2025 from $15.3M in Q2 2024; general and administrative expenses fell to $3.4M from $5.6M.

• Losses of $3.5M on sale of held-for-sale assets and $0.9M on lease abandonment recognized in Q2 2025.

Outlook and guidance

• Cash runway expected to last into fall 2025; substantial doubt exists about ability to continue as a going concern beyond one year.

• Future operations are highly dependent on successful completion of the OrthoCellix Merger; failure may lead to bankruptcy or liquidation.

• No plans to resume historical R&D activities unless a strategic transaction or significant funding is secured.