Carisma Therapeutics (CARM) Q3 2025 earnings summary

Executive summary

• Operations have shifted from R&D to asset monetization and an orderly wind down, with no intention to resume historical research and development activities.

• Workforce reductions in 2024 and 2025 eliminated most employees, including executive terminations in Q4 2025.

• The planned merger with OrthoCellix was terminated due to failure to secure required financing, resulting in a $1.3 million receivable for a termination fee and expense reimbursement, which remains unpaid.

• The company was delisted from Nasdaq in October 2025 and now trades on the OTCID market tier.

• Asset sales included a $0.5 million patent sale to Resolution Therapeutics and a $4.0 million one-time payment from Moderna, ending all future payment obligations under their collaboration.

Financial highlights

• Net income for the nine months ended September 30, 2025 was $25.7 million, compared to a net loss of $42.8 million for the same period in 2024.

• Collaboration revenues were $49.0 million for the nine months ended September 30, 2025, primarily from the recognition of deferred revenue and a one-time payment from Moderna.

• Research and development expenses dropped to $11.8 million from $44.1 million year-over-year, reflecting the cessation of R&D activities.

• General and administrative expenses decreased to $8.5 million from $16.2 million year-over-year.

• Cash and cash equivalents were $2.8 million as of September 30, 2025, with an accumulated deficit of $279.9 million.

Outlook and guidance

• Management expects continued significant expenses related to the wind down and asset monetization, with substantial doubt about the ability to continue as a going concern beyond one year.

• It is unlikely that there will be meaningful cash available for distribution to stockholders upon dissolution.

• The company may suspend SEC reporting obligations and could pursue bankruptcy or liquidation if deemed in stockholders' best interests.