MEI Pharma reported a Q2 2025 period with no reported revenue and a net loss of $2.68 million, driven primarily by ongoing R&D and G&A expenses. R&D expense of $0.308 million combined with G&A of $3.143 million yielded an operating loss of $3.451 million and an EBITDA of negative $3.451 million. A non-operating gain of $0.774 million partially offset operating losses, resulting in a pre-tax loss of $2.678 million and a net loss of $2.678 million, or −$0.40 per share, on 6.663 million weighted-average shares. In cash flow terms, operating cash flow was negative at −$3.666 million, while MEI benefited from maturities of investments totaling approximately $19.953 million, producing a net increase in cash of roughly $16.787 million for the period. Ending cash stood at $23.739 million against total current assets of $24.385 million and total liabilities of $2.287 million, yielding a robust liquidity position (current ratio ~10.66x). The company’s balance sheet reflects a substantial retained earnings deficit (−$398.903 million) but a stockholders’ equity position of $22.098 million, aided by sizable accumulated other comprehensive income/stockholders’ equity components. Importantly, MEI does not generate revenue in the near term and remains dependent on its pipeline and partnering activities for value realization.
Key Performance Indicators
Operating Income
Increasing
-3.45M
QoQ: 58.68% | YoY: 71.07%
Net Income
Increasing
-2.68M
QoQ: 66.57% | YoY: 75.80%
EPS
Increasing
-0.40
QoQ: 66.67% | YoY: 75.90%
Revenue Trend
Margin Analysis
Financial Highlights
Key quarterly metrics and trend observations:
- Revenue: $0 (no reported revenue for Q2 2025); YoY/QoQ revenue data not applicable due to non-revenue quarter.
- Operating income: −$3.451 million, vs. prior periods showing larger losses; YoY change reported as +71.07% (improvement in year-over-year comparison) and QoQ change of +58.68% (sequential improvement in operating loss).
- Net income: −$2.678 million; YoY change +75.80% and QoQ change +66.57%, reflecting a reduced net loss relative to the prior-year and prior-quarter periods.
- Earnings per share (diluted): −$0.40; YoY +75.90% and QoQ +66.67% (driven by lower net loss and share count stability).
- EBITDA: −$3.451 million (aligned with operating loss given the absence of depreciation/amortization data in the period).
- Cash flow: Operating cash flow −$3.666 million; Free cash flow −$3.666 million; Net change in cash +$16.787 million aided by maturities of investments totaling $19.953 million.
- Balance sheet highlights: Cash and cash equivalents $23.739 million; Total assets $24.385 million; Total current liabilities $2.287 million; Total stockholders’ equity $22.098 million; Retained earnings deficit $(398.903) million; Net debt to cash is negative (net cash position) at −$23.739 million.
- Liquidity ratios: Current ratio 10.66, Cash ratio 10.38, indicating ample liquidity relative to near-term obligations.
- Valuation context: Price/earnings negative due to losses; Enterprise value multiple 2.13x; Price-to-book ratio 0.742x; Cash per share $3.56. These metrics reflect a biotech pre-revenue profile with a pipeline-centric value proposition.
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-3.45M
71.07%
58.68%
Net Income
-2.68M
75.80%
66.57%
EPS
-0.40
75.90%
66.67%
Key Financial Ratios
Return on Assets
Weak
-0.11%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.12%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
10.66
Current ratio indicates excellent liquidity and financial flexibility
P/E Ratio
Negative
-1.53x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
0.74x
Trading below book value, potential value opportunity or distressed
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