Kymera Q4 Loss Exceeds Projections, Additional Funding Prolongs Financial Runway

Kymera Therapeutics Q4 2025 Financial Overview

Kymera Therapeutics (KYMR) posted a net loss of $0.97 per share for the fourth quarter of 2025, exceeding analysts’ expectations, which had forecasted a loss of $0.77 per share. This result was also worse than the loss of $0.88 per share reported in the same period last year. The increased deficit was mainly attributed to higher research and development costs and a decline in collaboration revenue.

Collaboration revenue for the quarter reached $2.9 million, falling short of the consensus estimate of $30 million. These earnings were primarily generated from Kymera’s partnership with Gilead Sciences (GILD).

In the previous year’s fourth quarter, Kymera earned $7.4 million in collaboration revenue through its alliance with Sanofi (SNY).

Over the past year, Kymera’s stock price has surged by 214.2%, significantly outpacing the broader industry’s growth of 18.6%.

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Rising Operating Expenses in Q4

Research and development expenditures climbed to $83.8 million, marking a 16.7% increase from the prior year. This rise was largely due to expanded investments in the STAT6 program, platform development, discovery initiatives, and the continued expansion of the R&D team.

General and administrative costs grew by 3.7% year-over-year, reaching $16.9 million. The increase was driven by higher legal and professional service fees, as well as greater personnel and facility expenses.

In December 2025, Kymera completed a public equity offering, raising approximately $692 million in gross proceeds, including the full exercise of the overallotment option. This financing boosted the company’s cash reserves to about $1.6 billion at year-end and extended its financial runway through 2029.

2025 Annual Results

Kymera’s total revenue for 2025 dropped by 16.8% to $39.2 million, missing the consensus estimate of $54.7 million.

The company’s loss per share widened to $3.69, compared to $2.98 in 2024.

Pipeline Developments

Kymera is advancing targeted protein degradation (TPD), a cutting-edge therapeutic approach that leverages the body’s natural cellular recycling mechanisms to selectively remove harmful proteins.

• STAT6 Degrader Program: KT-621, a first-in-class oral STAT6 degrader, is in phase 2 trials for atopic dermatitis and asthma. It targets the main driver of type II inflammation. In December 2025, positive phase Ib BroADen study results demonstrated robust STAT6 degradation, significant biomarker reductions, and notable clinical improvements with a favorable safety profile.
• In January 2026, the BROADEN2 phase IIb study for atopic dermatitis was expanded to include adolescents, and dosing began in the BREADTH study for eosinophilic asthma. Both global, placebo-controlled trials are underway, with results expected between mid and late 2027.
• KT-621 received Fast Track designation for moderate-to-severe atopic dermatitis in December 2025.
• IRF5 Degrader Program: KT-579, an oral IRF5 degrader, is in phase 1 development. It aims to suppress pro-inflammatory cytokines, Type I interferons, and autoantibody production while maintaining normal immune function. Following FDA IND clearance, dosing began in a phase I study with healthy volunteers, and data is anticipated in the second half of 2026.
• Partnered Programs: KT-485/SAR447971, a selective oral IRAK4 degrader, is being co-developed with Sanofi for immuno-inflammatory diseases. IND-enabling studies are complete, and clinical trials are expected to start in 2026.
• Preclinical research is ongoing with Gilead Sciences under an exclusive option and license agreement to advance Kymera’s oral CDK2 molecular glue program for breast cancer and other solid tumors. If Gilead exercises its option, it will pay a fee and take over development, manufacturing, and commercialization.

Assessment of Kymera’s Performance

Kymera’s research and development spending continues to rise as its pipeline progresses. The company remains financially strong, ending 2025 with roughly $1.6 billion in cash and sufficient funding to support operations through 2029. Its innovative TPD platform and ongoing pipeline advancements are promising.

The investment outlook is focused on successful execution in targeted protein degradation, especially with KT-621’s phase 2 trials for atopic dermatitis and asthma. Further positive updates on KT-621 could drive additional gains for the stock.

Kymera’s Zacks Rank and Alternative Biotech Picks

Kymera Therapeutics currently holds a Zacks Rank #3 (Hold). Castle Biosciences (CSTL), with a Zacks Rank #1 (Strong Buy), is a higher-rated alternative.

• Castle Biosciences’ projected 2026 loss per share has improved from $1.06 to $0.96 over the past 60 days.
• CSTL shares have advanced 26.2% in the last six months.
• Castle Biosciences exceeded earnings estimates in three of the past four quarters, with an average surprise of 66.11%.

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