Y-mAbs (YMAB) Q2 Revenue Falls 14%

Key Points

• GAAP revenue of $19.5 million in Q2 2025 surpassed consensus by 6.3% but fell 14% year over year.

• GAAP EPS of ($0.07) in Q2 2025 was significantly better than the analyst estimate of ($0.26).

• Double-digit decline in DANYELZA product sales reflects commercial headwinds despite cost cuts and license revenue offset.

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Y-mAbs Therapeutics (NASDAQ:YMAB), a biopharmaceutical company focused on developing and commercializing antibody-based cancer therapies, reported its second quarter 2025 results on August 8, 2025. The company beat expectations on both revenue and earnings per share, posting GAAP revenue of $19.5 million against a GAAP consensus of $18.4 million, and GAAP EPS of ($0.07) compared to an analyst estimate of ($0.26). However, revenue dropped 14% from the prior year, mainly due to lower product sales. The quarter showed better-than-expected headline financials, but underlying results highlighted ongoing sales pressures and continued reliance on the company’s core product, DANYELZA.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

What Y-mAbs Therapeutics Does, and What Drives Success

Y-mAbs Therapeutics develops and commercializes immunotherapies for cancer. Its main focus is on antibody-based products, including its core commercial product, DANYELZA, which is used to treat GD2-positive tumors in pediatric neuroblastoma patients. DANYELZA is currently the company’s only approved drug and accounts for nearly all product revenue.

The company’s recent strategy has centered on expanding DANYELZA's commercial reach and advancing its SADA PRIT technology platform. This platform is a novel radiopharmaceutical approach for targeted delivery of radioactive treatments. Key success factors include broadening DANYELZA’s market, progressing the pipeline, entering strategic partnerships, securing regulatory approvals, and protecting intellectual property.

Quarter in Review: Business and Financial Performance

During the quarter, revenue exceeded expectations but still decreased 14% from the prior year due to a sharp drop in product sales. Net product revenue for DANYELZA fell 17% year over year, with a 6% decrease in the U.S. and a larger drop in ex-U.S. sales. The decline outside the U.S. was mainly due to the absence of large distributor stocking orders that had boosted results in Western Europe and Eastern Asia in the previous year. Ex-U.S. revenue partially recovered with gains in Turkey from a named patient program, while $0.5 million in license revenue from Israel provided a modest offset.

Despite the revenue contraction, gross profit remained healthy at $16.8 million, with a gross margin of 86%, nearly flat compared to last year. Research and development expenses fell to $11.1 million, reflecting cost discipline after workforce realignment and lower stock-based compensation. Selling, general, and administrative expenses also dropped, as litigation settlements booked in the prior-year quarter did not recur and legal expenses declined. This cost control helped reduce the net loss to $3.2 million, compared to $9.2 million a year ago, with a $2.0 million foreign currency gain also contributing to the improvement.

The revenue mix continued to be dominated by DANYELZA product sales, with no recurring contribution from pipeline projects or other marketed drugs. License revenue provided a modest offset but was not a recurring driver. The company remains exposed to lumpy distributor buying patterns, especially as ex-U.S. purchases can be uneven and influenced by single large orders. In the U.S., pressure from clinical trial enrollments and market competition weighed on DANYELZA volume.

No material one-time events occurred beyond the foreign currency gain and the absence of last year’s litigation settlements. The quarter was defined by operational tightening and the impact of higher expenses a year ago.

Product and Pipeline: Core Assets and Progress

DANYELZA, an antibody therapy targeting GD2, remained Y-mAbs' only commercial product and the principal source of revenue. Commercial efforts in the U.S. included expanding outreach to new high-volume centers and clinician advocates, as well as seeing DANYELZA added to updated National Comprehensive Cancer Network (NCCN) guidelines. This inclusion could boost its standing for treating relapsed or refractory neuroblastoma, but it had not yet translated into observable revenue gains during the period. Outside the U.S., revenue declined sharply from the previous year due to the lack of large-scale inventory orders that had boosted 2024 results, with partial offset from the program launch in Turkey via a named patient program.

The SADA PRIT platform, a radiopharmaceutical technology that uses bispecific antibody fragments for targeted radiation delivery, did not generate revenue this quarter. Clinical efforts included enrolling the first patient in a Phase 1 trial (Trial 1201) for its CD38-SADA asset in relapsed or refractory non-Hodgkin lymphoma. The GD2-SADA program continued early trials focused on safety, affinity, and dosing. No milestone payments or partnership revenue were recognized from these programs yet.

Management continued to prioritize business development. While revenue from new partnerships was limited, progress was made in commercial distribution arrangements, especially with the Turkish market. Internal organization changes in January 2025 separated DANYELZA and radiopharmaceuticals into dedicated business units to support commercialization and execution more efficiently in each area.

No new regulatory approvals, major product launches, or patent estate changes were disclosed this quarter. Progress toward broader commercialization of DANYELZA and early-stage clinical advancements in SADA PRIT will be important future levers.

Looking Ahead: Guidance, Risks, and Watch Items

Due to the announced acquisition by SERB Pharmaceuticals at a premium equity value, the company did not provide updated forward guidance for fiscal 2025 or beyond. The company did not hold its usual earnings call given the pending transaction. In this context, ongoing financial performance and operational goals are expected to remain secondary to the completion of the proposed deal.

YMAB does not currently pay a dividend.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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